KCS, Bulkmatic enter JV to expand the exportation of liquid fuels from U.S. to Mexico

Written by Maggie Lancaster, assistant editor
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Kansas City Southern (KCS) is entering a 50/50 joint venture investment with Bulkmatic Transport Company, which aims to 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, Mexico. Kansas City Southern de Mexico, S.A. de C.V. (KCSM) will serve the facility.

KCS says 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.”

KCS says 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.

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