KCS to build US$ 99-million cargo processing facility on US-Mexico border

KCS to build US$ 99-million cargo processing facility on US-Mexico border

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Kansas City Southern Railway (KCS) plans to develop a US$99-million cargo processing facility on the U.S.-Mexico border this month aimed to improve traffic between southern Texas and the state of Tamaulipas in northern Mexico.

The company estimates it can increase traffic from 24 to 32 trains crossing every 24 hours once the facility is completed.

Such infrastructure revamp comes along with procedural changes to smooth cross-border activity, including a program with U.S. and Mexican customs authorities to set up joint inspections in Laredo, Texas, a port that handles more than 37% of rail traffic between the U.S. and Mexico

The company also negotiated with trade unions not to change drivers when trains cross the border. Both measures, along with the new processing facility are expected to increase traffic by 33%.

KCS is the main rail freight operator in the US offering services to Mexico, serving 12 ports on the Gulf of Mexico and one on the Mexican Pacific coast. The company handles cars and auto parts, steel, grain and oil-derivative products.

Kansas City Southern will release its fourth quarter 2018 financial results on Friday, before the opening of trading on the New York Stock Exchange.



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