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Watco to build new liquid fuels terminal in Mexico

Watco Cos. LLC has reached an agreement with WTC Industrial to design, build and operate a new, public unit-train liquid fuels terminal and general cargo facility at WTC Industrial Park in San Luis Potosi, Mexico.

The terminal will be located on Kansas City Southern de Mexico's (KCSM) main line and will have the capacity to unload one unit train per day in Phase I, company and WTC Industrial officials announced yesterday in a press release.

"The Watco team is excited about this new partnership with WTC Industrial and KCSM to develop a fuels terminal in a manner that best benefits the customer," said Watco CEO Rick Webb. "This is an expansion of Watco services that will bring great connections between existing U.S.- and Canadian-served refineries, terminals, ports and railroads."

The primary objective behind the terminal's development is to receive a variety of commodities and handle and receive unit trains in order to serve Mexico's central region under a free trade zone, officials said.

"KCS looks forward to serving this major fluids distribution and general cargo terminal in the heart of Mexico,” said KCS President Patrick Ottensmeyer. “We have a successful history of working with WTC and Watco, and are excited about this unique opportunity to leverage all of our strengths to create the efficiencies and economies of scale that will benefit Mexico for many years to come."

The terminal has been under consideration since early 2013, and permitting for it is nearly completed. WTC Industrial is one of the largest industrial park developers in Mexico. Operations are slated to begin in fourth-quarter 2016 or early next year, officials said.

"Logistics are key, and whoever is able to get the products in the most cost efficient way will have an advantage on the market, especially on the refined products that will play a big role in Mexico now that the energy reform has taken place," said Jorge Wade, WTC Industrial's director of the terminal.



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