Union Pacific and Ferromex test new coal route to Asia via Mexico

Union Pacific and Ferromex have successfully tested a new logistics route transporting thermal coal from Wyoming’s Powder River Basin to Vietnam via Mexico’s Guaymas Port. The shipment originated at Peabody Energy’s North Antelope Rochelle mine, where coal was loaded onto Union Pacific freight trains. The cargo traveled south through the United States to Nogales, Arizona, where it was transferred to Ferromex for transport to the Pacific coast at Guaymas.

Peabody Energy confirmed that a Panamax-class vessel was loaded in early June, delivering the coal to its destination in accordance with specified requirements. This new route offers an alternative export path to Asian markets by utilizing Mexico’s Pacific coast, potentially reducing transit times and bypassing more congested traditional routes. Following the successful delivery, Peabody reported interest from other customers in Asia, and further test shipments via Guaymas are being considered.