A joint venture investment project between Kansas City Southern (KCS), Watco Companies and WTC Industrial will facilitate the exportation of liquid fuels from the US to Mexico.
The project includes the construction of a unit train liquid fuels terminal in the WTC Industrial Park in San Luis Potosi and will be solely rail served by Kansas City Southern de Mexico.
The companies will invest $45 million in this phase of the project, which is due to be completed in the second quarter of 2016. The terminal project will eventually include a storage facility that would provide retail fuels for central Mexico.
This development is a direct result of Mexico’s newly liberalised energy market after legislation was passed in 2013. The piece of legislation, which is due to be completely fulfilled by 2018, will result in the country’s energy markets being fully open to foreign investment and the importation of refined energy products, including petrol and diesel.
KCS president and CEO Patrick Ottensmeyer says: ‘Not only will the terminal provide Mexico with vitally needed refined energy products, it will also serve to boost job creation in both the US and Mexico. This project perfectly aligns the goals of Mexican energy reform with the desire of the US refining companies to expand their operations and enter new markets.’