KCS picks up US-Mexico fuel shipper

Written by Stuart Chirls, Senior Editor
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Rendering of Rangeland Energy's South Texas Energy Products System facility.

Kansas City Southern is expanding its energy-related U.S.-Mexico crossborder service.

Rangeland Energy III, LLC announced that operations commenced at its STEPS terminal in Corpus Christi, Texas, on June 4. The refiner will load diesel fuel onto railcars for a leading refined products customer, delivered to third-party inland terminals in Mexico via the KCS.

“Rangeland is looking forward to facilitating the transportation of diesel to destinations in Mexico for a major industry player,” said Rangeland President and Chief Executive Christopher W. Keene. “This is the first customer to contract with us for services at the STEPS [South Texas Energy Products System] facility. As we continue to build out the STEPS project, we are working with other key marketers, refiners and producers to provide services into and out of STEPS.”

There has been an increase in the number of petroleum-related terminals being constructed on the U.S. side of the border. Mexican refining capacity has been squeezed by dilapidated facilities, as well as theft of products from pipelines. KCS operates a Mexican-based subsidiary, Kansas City Southern de Mexico.

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