KCS, Watco, WTC Announce Mexico Refined Energy Products Terminal to Facilitate Increased U.S. Export of Liquid Fuels
January 11 2017 - 12:00PM
Business Wire
Project will result in fuel export
opportunities for U.S. refiners and help address Mexico’s growing
demand for fuel products
Kansas City Southern (KCS) (NYSE:KSU), Watco Companies, LLC
(Watco) and WTC Industrial (WTC), today announced a joint venture
investment which will facilitate and expand the exportation of
liquid fuels from the United States to Mexico. The project will
include the construction of a unit train liquid fuels terminal
located in the WTC Industrial Park in San Luis Potosi. The facility
will be solely rail served by Kansas City Southern de Mexico
(KCSM).
The joint venture comes as a direct result of energy reform
legislation passed in Mexico in 2013. Recognizing that it lacked
the refinery infrastructure necessary to meet its growing demand
for refined energy products, Mexico developed legislation which put
into motion a process which will culminate by 2018 in the country’s
energy markets being fully open to foreign investment and the
importation of refined energy products, including gasoline and
diesel.
“Kansas City Southern is pleased to be part of this joint
venture, which will expand the export of U.S. petroleum products to
Mexico,” stated KCS president and chief executive officer Patrick
J. Ottensmeyer. “Not only will the terminal provide Mexico with
vitally needed refined energy products, it will also serve to boost
job creation in both the U.S. and Mexico. This project perfectly
aligns the goals of Mexican energy reform with the desire of U.S.
refining companies to expand their operations and enter new
markets.”
The joint venture partners will invest approximately U.S. $45
million in this phase of the project, which has an anticipated
completion in the second quarter of 2017. It is projected that the
terminal project will eventually include a storage facility that
would provide retail fuels for the population of Central
Mexico.
“KCS looks forward to serving this major fluids distribution
terminal in San Luis Potosi,” said Mr. Ottensmeyer. “It provides us
with excellent cross-border line haul opportunities as well as
moving product within Mexico on KCSM. We have a successful history
of working with Watco and WTC, and we are excited about the chance
to leverage each of our strengths to create the efficiencies and
economies of scale that will benefit both the U.S. and Mexico.”
“The opportunity to partner with WTC and KCS in San Luis Potosi
is a best case scenario,” said Watco senior vice president network
strategy Allan Roach. “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.”
“Grupo Valoran (WTC Industrial) confirms the commitment of the
private sector to supply fuel and chemicals in an efficient, safe
and competitive manner to consumers in Central Mexico through this
facility,” said Valoran chief executive officer Vicente Rangel
Mancilla.
Valoran chief operating officer Jose Luis Contreras added,
“Thanks to Grupo Valoran’s vast experience and leadership for over
eight years with the Mexican Foreign Trade Zone, this terminal will
work to simplify the logistic and import process to the benefit of
consumers.”
About KCS
Headquartered in Kansas City, Mo., KCS is a transportation
holding company that has railroad investments in the U.S., Mexico
and Panama. Its primary U.S. holding
is The Kansas City Southern Railway
Company, serving the central and south central U.S. Its
international holdings include KCSM, serving northeastern
and central Mexico and the port cities of Lázaro Cárdenas, Tampico
and Veracruz, and a 50 percent interest in Panama Canal Railway
Company, providing ocean-to-ocean freight and passenger service
along the Panama Canal. KCS' North American rail holdings and
strategic alliances are primary components of a NAFTA Railway
system, linking the commercial and industrial centers of the U.S.,
Mexico and Canada. More information about KCS can be found
at www.kcsouthern.com.
About Watco Companies, LLC
Watco Companies, LLC, is a Pittsburg, Kansas, based
transportation company providing, transportation, terminal and
port, mechanical, and supply chain services to Customers throughout
North America and Australia. Watco is the owner of Watco
Transportation Services, LLC, one of the largest short line
railroad holding companies in the U.S. with 36 short line railroads
and 31 industrial contract switching locations. Watco Terminal and
Port Services operates more than 70 terminals, two significant port
operations, and multiple warehouses. Watco Companies is a 50/50
joint venture partner with The Greenbrier Companies, Inc., in GBW
Railcar Services, LLC. GBW repairs and refurbishes freight cars at
31 locations across North America. Watco’s Supply Chain Services
provides supply chain solutions globally. More information about
Watco and its subsidiaries can be found
at www.watcocompanies.com.
About WTC
WTC is the industrial developing division of the
holding Grupo Valoran, a well-known company recognized in
San Luis Potosi by the quality of its projects. The General Cargo
and Fluids Terminal will be inside WTC I, taking advantage of all
the benefits in services and security that a state of the art
industrial park offers. WTC Industrial San Luis Potosi is a world
class industrial and logistic development unique in its type that
offers a Rail Road Terminal, Customs Office on site, Free Trade
Zone (FTZ), and the most complete real estate services in the
market. Its location in the city of San Luis Potosi is conveniently
situated near the most important highway and railroad in Mexico
also known as the NAFTA corridors. Seventy-five percent of the
Mexican GDP is concentrated within 250 miles-radius of WTC
Industrial San Luis Potosi. You can find out more about WTC
at www.wtcindustrial.mx.
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version on businesswire.com: http://www.businesswire.com/news/home/20170111005855/en/
KCSC. Doniele Carlson,
816-983-1372dcarlson@kcsouthern.comorWatcoTracie
VanBecelaere,
620-704-1288tvanbecelaere@watcocompanies.comorValoranLiliana
Gonzalez, 011-52-444-834-2600lilianagonzalez@valoran.com.mx
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