Kansas City Southern (NYSE: KSU) will continue to invest in Mexico through its Mexican subsidiary, Kansas City Southern de Mexico, S.A. de C.V. (KCSM), despite the global economic recession, according to a report at mexicobiznews.com.
KCSM, which expects to be moderately affected by the financial crisis, anticpates that the new railway facilities at the Lazaro Cardenas Terminal, a deepwater port located in the State of Michoacan, will increase rail cargo volumes, the report said.
In June 2006, KCS announced that it would provide daily service from Larazo Cardenas, San Luis Potosi, and Monterrey, Mexico to the southeastern U.S. markets via Jackson, Miss., with connecting service to Atlanta, Ga. KCS acquired a controlling stake in Transportacion Ferroviaria Mexicana (TFM) in April 2005, enabling it, TFM, and The Texas Mexican Railway Company to create a single 1,300 mile rail system under common ownership connecting the midwestern United States, central Mexico, and Mexico’s Pacific seaports, according to the Freightdawg.com blog.
The Lazaro Cardenas Terminal is managed by Hutchison Port Holdings.
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