Kansas City Southern and Bulkmatic Transport Company have reached an understanding to form a 50/50 joint venture investment that will 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. The facility will be served by Kansas City Southern de Mexico, SA de CV.
The JV 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 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 JV partners will invest about $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.