Mexico City, Mexico — Kansas City Railroad is analyzing new options for investments in the country, particularly hydrocarbon transport and storage projects, says Patrick Ottensmeyer, company president and CEO.
The opening of the energy sector in Mexico is a business area that Kansas City Southern Railway (KCS) will take advantage of, which is why they company is analyzing more hydrocarbon transportation and storage projects.
Patrick Ottensmeyer said they are analyzing new investment options in the country, mainly in refineries and fuels.
“The initial opportunities we see are in refined products to bring to Mexico. We are creating infrastructure that there was not before to make it possible (…). It is early (to) know how many storage centers we can open, but we are analyzing the possibilities,” said Ottensmeyer.
The company, along with Watco Companies, LLC and WTC Industrial, invested $45 million in a fuel storage project that will facilitate and expand the export of liquid fuels from the United States to an Luis Potosí, Mexico.
The manager highlighted a project they have in Salinas Victoria, north of the city of Monterrey, which has characteristics similar to the one they build in San Luis Potosi.
There are many more opportunities with energy reform for the firm due to the country’s proximity to areas such as Eagle Ford, he added, where there is a revolution in gas and oil extraction.
“There are a lot of opportunities across the country and it will take years to take advantage of,” said KCS president and CEO.
The Kansas City Southern Railway Company, owned by Kansas City Southern, is the smallest and third-oldest Class I railroad in North America still in operation. Founded in 1887, KCS currently operates in 10 central U.S. states.