KCS, Bulkmatic Announce Mexico Refined Energy Products Terminal to Facilitate Increased U.S. Export of Liquid Fuels
August 30 2017 - 9:42AM
Business Wire
Project will facilitate refined products export
opportunities for U.S. refiners and help address Mexico’s growing
demand for fuel products.
Kansas City Southern (KCS) (NYSE: KSU) and Bulkmatic Transport
Company (Bulkmatic) today announced a memorandum of understanding
to form a 50/50 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 Salinas Victoria near Monterrey,
Nuevo Leon. The facility will be served by Kansas City Southern de
Mexico, S.A. de C.V. (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.
“We are pleased to pursue this joint venture to expand the
export of U.S. petroleum products into Mexico,” said KCS president
and chief executive officer Patrick J. Ottensmeyer. “The terminal
will provide vitally needed refined energy products and boost job
creation in the U.S. and Mexico. The project neatly aligns Mexican
energy reform goals with U.S. refining companies’ desire to expand
their operations into new markets.”
“We are excited to partner with KCS to create a cost-efficient
linkage between Mexican consumers and U.S. producers of refined
products. This project will benefit economies on both sides of the
border by providing consumers in Mexico access to more suppliers,
and refineries in the U.S. access to important new markets,” said
Bulkmatic chief executive officer Alfie Bingham.
The joint venture partners will invest approximately U.S. $50
million over the next few years to develop the terminal, which will
begin limited operations in third quarter and have storage
facilities in mid-2018 that will provide retail fuels for the
population of the Monterrey metropolitan area.
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 railway network
linking the commercial and industrial centers of the U.S., Mexico
and Canada.
About Bulkmatic
Bulkmatic, headquartered in Griffith, Ind., has been a leader in
dry and liquid bulk materials handling, transportation, and
logistics in the U.S. for nearly 50 years. Bulkmatic de Mexico, a
subsidiary of Bulkmatic, operates a network of rail-served bulk
materials transload and storage terminals throughout Mexico.
Products handled include plastic resins, LPG, petrochemicals,
chemicals, lube oils, asphalt and various food commodities.
Bulkmatic de Mexico has been in operation for over 20 years and is
the largest bulk commodity rail-to-truck transloader in Mexico.
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version on businesswire.com: http://www.businesswire.com/news/home/20170830005721/en/
Kansas City SouthernC. Doniele Carlson,
816-983-1372dcarlson@kcsouthern.com
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