New Strategically-Located Central Bajío Vehicle Distribution Center to Add Velocity, Capacity and Markets to KCS Automotive Network

Kansas City Southern (KCS) (NYSE: KSU) announced today a collaboration with Suministros Industriales Potosinos SA de CV (SIPSA) and TransDevelopment Group (TDG) to develop the Central Bajío Vehicle Distribution Center, a state-of-the-art origin and destination terminal for the shipment of finished vehicles. Strategically-located on the KCS main line, and developed, owned and operated by SIPSA and TDG, the VDC will serve the rapidly-growing Bajío region and strong Mexico City area demand.

The Central Bajío VDC is master planned for growth with future capacity for up to 10,000 vehicles, unit train service and direct truck access to Mexico City, Guadalajara and the Bajío Region. The terminal is located 40 kilometers east of Querétaro, Mexico’s fastest growing city, along the KCS main line between Monterrey and Lázaro Cárdenas. It will be constructed adjacent to SIPSA’s Transload and Cross Dock Terminal - the highest-capacity terminal of its kind on the KCS network. The surrounding area is the largest center of automobile manufacturing in Mexico.

“Development of the Central Bajío VDC adds velocity, capacity and markets,” said KCS vice president automotive and intermodal Rodrigo Flores. “One goal is to speed the turnaround for multi-level rail cars making a round-trip between the U.S. and Mexico improving the availability of rail cars in the region. Unloading rail cars in the Bajío, near many of the assembly plants where empty rail cars are needed adds capacity and reduces congestion.”

“This VDC also improves access to and from some of the most important markets in Mexico, including Guadalajara, Leon, Querétaro and San Luis Potosí. In conjunction with terminals in Toluca and Monterrey, KCS connects a robust automotive terminal network,” added Flores. “It’s the perfect destination for inland port moves of imported automobiles into Mexico, and KCSM’s new connection to the Veracruz Port makes this opportunity even bigger.”

“We see strong potential in the Bajío for finished vehicles,” says SIPSA managing director Xavier Zermeño. “At our existing facility in Comonfort, we handle inbound parts for assembly plants through our cross docks and general cargo tracks, which are also available to accommodate finished vehicles during construction of the Central Bajío VDC. This terminal is a natural location to increase our capabilities to include finished vehicles, right in the heart of automobile production in Mexico.”