KCS, Watco Companies, and WTC Industrial to invest $45 million for fuel for Mexico
The project will include the construction of a unit train liquid fuels terminal located in the WTC Industrial Park in San Luis Potosi. The facility will be solely rail served by Kansas City Southern de Mexico (KCSM).
The joint venture 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 which put into motion a process which 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 joint venture partners will invest approximately $45 million in this phase of the project, which has an anticipated completion in the second quarter of 2017.
It is projected that the terminal project will eventually include a storage facility that would provide retail fuels for the population of Central Mexico.
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