KCS, Bulkmatic to launch Mexico refined energy products terminal
Written by William C. Vantuono, Editor-in-Chief
Kansas City Southern (KCS) and Bulkmatic Transport Company (Bulkmatic)—the former once again reaffirming the importance of the North American Free Trade Agreement (NAFTA)—intend to form a 50/50 joint venture to “facilitate and expand the exportation of liquid fuels from the U.S. to Mexico.” The project will include construction of a unit train liquid fuels terminal located in Salinas Victoria near Monterrey, Nuevo Leon, and served by Kansas City Southern de Mexico, S.A. de C.V. (KCSM).
“The joint venture comes as a direct result of energy reform legislation passed in Mexico in 2013,” KCS said. “Recognizing that it lacked the refinery infrastructure necessary to meet its growing demand for refined energy products, Mexico developed legislation that put into motion a process that 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.”
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 2017 and have storage facilities in mid-2018 that will provide retail fuels for the population of the Monterrey metropolitan area.
“We are pleased to pursue this joint venture to expand the export of U.S. petroleum products into Mexico,” said KCS President and CEO 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.”
Bulkmatic’s partnership with KCS “will create a cost-efficient linkage between Mexican consumers and U.S. producers of refined products,” said Bulkmatic CEO Alfie Bingham. “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.”
