Kansas City, MO Railyards

Overview of the Intermodal Railyards

The Kansas City Terminal Railway complex anchors the region, with major yards including BNSF Argentine Yard, Union Pacific Neff Yard, and CPKC’s Knoche Yard, serving intermodal, automotive, grain, and bulk commodities with direct links to all major U.S. rail corridors

Kansas City’s four intermodal terminals—BNSF Logistics Park Kansas City, Union Pacific’s Kansas City Intermodal Facility, CPKC’s Wylie Intermodal Terminal, and Norfolk Southern’s Voltz Yard—enable seamless transfer between rail, truck, and warehousing, supporting high-volume containerized and bulk freight

Market Size and Economic Impact

Kansas City’s rail network moves over 250 million tons of freight annually, ranking as the largest rail center in the U.S. by tonnage; the rail and logistics sector supports more than 30,000 regional jobs and generates an estimated $10 billion in annual economic impact

Competitive Landscape

• BNSF Railway: Operates Argentine Yard, one of North America’s largest classification yards, and Logistics Park Kansas City intermodal terminal
• Union Pacific: Neff Yard and Kansas City Intermodal Facility handle automotive, grain, and intermodal traffic with direct west coast connections
• CPKC: Knoche Yard and Wylie Intermodal Terminal provide north-south NAFTA/USMCA corridor access, linking Canada, the Midwest, and Mexico

Opportunities

• Cross-Border Trade: USMCA/NAFTA corridor growth drives demand for north-south intermodal and automotive shipments
• E-commerce Expansion: Surge in distribution centers and last-mile logistics increases intermodal and warehousing volumes
• Infrastructure Modernization: Ongoing investments in yard automation, track upgrades, and digital freight management enhance efficiency

Challenges

• Congestion Management: High train volumes and yard congestion challenge fluidity and on-time performance
• Workforce Availability: Recruiting and retaining skilled labor for rail operations and maintenance remains a persistent issue
• Urban Encroachment: Balancing rail expansion with city development and community impact requires careful planning

Trade and Logistics Trends

• Intermodal Surge: Kansas City ranks as the 4th largest inland intermodal gateway in the U.S. by inbound container volume
• Automotive Logistics: Major hub for finished vehicle distribution and parts supply chains
• Grain Exports: Strong outbound grain and agricultural commodity flows to Gulf and Pacific ports

Future Outlook

• Terminal Expansions: BNSF and Union Pacific plan yard and intermodal capacity increases to meet projected freight growth
• Automation Initiatives: Railroads are piloting AI-driven yard management and predictive maintenance systems
• Green Logistics: Investments in cleaner locomotives and sustainable infrastructure to reduce emissions and improve efficiency

Recommendations

• Capacity Enhancement: Expand mainline and yard infrastructure to accommodate rising intermodal and carload volumes
• Technology Integration: Accelerate adoption of digital tracking, automation, and predictive analytics for network optimization
• Workforce Development: Strengthen partnerships with local institutions to train and retain skilled rail and logistics professionals