News

New liquid fuels terminal to aid US export to Mexico

Kansas City Southern (KCS), Watco Companies and WTC Industrial (WTC) have agreed a joint venture investment to facilitate and expand the exportation of liquid fuels from the US to Mexico. The project will include the construction of a unit train liquid fuels terminal to be located in the WTC Industrial Park in San Luis Potosi.

The new facility, which has an anticipated completion in the second quarter of 2017, will be solely rail served by Kansas City Southern de Mexico (KCSM). The joint venture partners will invest approximately $45 million in this phase of the project. It is expected that the terminal project will eventually include a storage facility that would provide retail fuels for the population of Central Mexico.

KCS President and Chief Executive Officer Patrick J Ottensmeyer said: “This project perfectly aligns the goals of Mexican energy reform with the desire of US refining companies to expand their operations and enter new markets.”

Allan Roach, Watco Senior Vice President Network Strategy, added: “WTC Industrial has an existing, modern, state-of-the-art industrial park and construction of the new rail terminal at the park is well under way and on schedule. The location adjacent to the KCSM main line ensures easy access to the terminal and quick cycle times of customer rail cars. The terminal is located in a Free Trade Zone, which provides an added economical advantage to rail shippers. The terminal will have 24 hour/7 days a week secured, fully-automated operations for unit trains and manifest shipments.”