Kansas City Southern Signs MoU With Bulkmatic Transport To Build Liquid Fuels Terminal

Published: Aug 30 2017
Deal Summary

The Kansas City Southern Railway Company, a transportation holding company, signed a memorandum of understanding (MoU) with Bulkmatic Transport Company Inc., a dry bulk carrier, to build a unit train liquid fuels terminal located in Salinas Victoria, near Monterrey, Nuevo Leon, Mexico.

Under the terms, Kansas City Southern and Bulkmatic Transport will form a 50:50 joint venture, which will facilitate and expand the exportation of liquid fuels from the US to Mexico. The terminal will be operated by Kansas City Southern de Mexico, S.A. de C.V. (KCSM). The partners will invest approximately US$50 million over the next few years to develop the terminal. The terminal will start operations in the third quarter of 2017, and have storage facilities in mid-2018.

Patrick J. Ottensmeyer, president and CEO of Kansas City Southern, said, “We are pleased to pursue this joint venture to expand the export of U.S. petroleum products into Mexico. 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.”

Alfie Bingham, CEO of Bulkmatic Transport, said, “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.”

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