KCS acquires Puerta Mexico Intermodal Facility, adds direct train service

Kansas City Southern said that it has acquired the Puerta Mexico intermodal facility at Toluca in the State of Mexico. Later this month, Kansas City Southern de Mexico, S.A. de C.V. (KCSM) will add direct train service from Lazaro Cardenas to Puerta Mexico, providing Mexico City import and export shippers with a service alternative featuring improved consistency and reliability and better transit times.

"Puerta Mexico is
well-positioned on KCS’ International Intermodal Corridor, making it a valuable
enhancement for our cross-border service offering," said David L. Starling, KCS
president and chief operating officer.

KCS executive vice
president sales and marketing Patrick J. Ottensmeyer, added that, "The growth
of manufacturing activity and international trade flows in the Mexico City area
is increasing the demand for modern, multi-modal terminals in Mexico’s
industrial heartland. The strategic location and modern facilities at Puerta
Mexico will allow KCS to better serve these growing markets."

With its connection to the
KCS rail network, Puerta Mexico serves the industrial centers of Mexico and the
U.S., several important seaports and the Toluca-Mexico City industrial corridor.
The facility provides intermodal rail and truck services, warehouse storage and
has the only inland customs-clearing facility in the State of Mexico.

In addition to train service,
Puerta Mexico offers multi-modal terminal services and on-site customs and bonded
warehousing facilities to ocean carriers, intermodal and other logistics
service providers. With its direct access to KCSM’s "N" line, Puerta Mexico
will become the terminal of choice for service to and from the central valley,
the Port of Lazaro Cardenas and the border crossing at Nuevo Laredo/Laredo. With
an estimated capacity exceeding 150,000 containers and two million plus tons of
cargo per year on more than 130 developed acres, it essentially doubles the
intermodal capacity available to the greater Mexican central valley region and
alleviates congestion in the region.

"Since 1996, KCS has
invested over $3 billion to expand and improve Mexico’s rail infrastructure. The
purchase of Puerta Mexico further demonstrates KCS’ commitment to Mexico and
its institutions, the appeal of Mexican markets and the viability of direct
foreign investment in Mexico," said KCSM president and executive representative
Jose G. Zozaya. "Puerta Mexico is a key link in KCS’ International Intermodal
Corridor, creating a continuous cycle of economic growth for Central Mexico."