Kansas City Southern Acquires Puerta Mexico Intermodal Facility

On March 8, Kansas City Southern (KCS) (NYSE: KSU) announced its acquisition of the Puerta Mexico intermodal facility at Toluca in the State of Mexico. Later this month, Kansas City Southern de Mexico, S.A. de C.V. (KCSM), will add direct train service from Lazaro Cardenas to Puerta Mexico.

Patrick J. Ottensmeyer, KCS executive vice president sales and marketing commented, "The growth of manufacturing activity and international trade flows in the Mexico City area is increasing the demand for modern, multi-modal terminals in Mexico's industrial heartland. The strategic location and modern facilities at Puerta Mexico will allow KCS to better serve these growing markets."

The Puerta Mexico serves the industrial centers of Mexico and the U.S., several important seaports and the Toluca-Mexico City industrial corridor. It provides intermodal rail and truck services and warehouse storage, and, the railroad said, it has the only inland customs-clearing facility in the State of Mexico.

In addition to train service, Puerta Mexico offers multi-modal terminal services and on-site customs and bonded warehousing facilities to ocean carriers, intermodal and other logistics service providers. It has an estimated capacity of more than 150,000 containers and 2 million tons of cargo per year.

"Since 1996, KCS has invested over $3 billion to expand and improve Mexico's rail infrastructure. The purchase of Puerta Mexico further demonstrates KCS' commitment to Mexico and its institutions, the appeal of Mexican markets and the viability of direct foreign investment in Mexico," said Jose G. Zozaya, KCSM president and executive representative. "Puerta Mexico is a key link in KCS' International Intermodal Corridor, creating a continuous cycle of economic growth for Central Mexico."