Kansas City Southern (KCS) and Bulkmatic Transport Co. (Bulkmatic) have signed a memorandum of understanding (MoU) to form a 50/50 joint venture (JV) investment to facilitate and expand the exportation of liquid fuels from the US to Mexico.
The project will include the construction of a unit train liquid fuels terminal, located near Monterrey, Nuevo Leon, Mexico. This facility will be served by Kansas City Southern de Mexico, S.A. de C.V. (KCSM).
The JV comes as a direct result of energy reform legislation passed in Mexico in 2013. Recognising that it lacked the necessary refinery infrastructure to meet its growing demand for refined energy products, Mexico developed legislation that put a process (which will culminate by 2018) into motion in the country’s energy markets being fully open to foreign investment and the importation of refined energy products, including gasoline and diesel.
“We are pleased to pursue this joint venture to expand the export of US 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 US and Mexico. The project neatly aligns Mexican energy reform goals with US refining companies’ desire to expand their operations into new markets.”
“We are excited to partner with KCS to create a cost-efficient linkage between Mexican consumers and US 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 US access to important new markets,” said Bulkmatic CEO, Alfie Bingham.
The JV partners will invest approximately US$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.
Read the article online at: https://www.tanksterminals.com/storage-tanks/31082017/kcs-and-bulkmatic-sign-mou-for-liquid-fuel-exports/