Watco to build new unit-train fuels terminal in San Luis Potosi, Mexico

Watco Companies LLC has reached a definitive 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 planned terminal is strategically located on Kansas City Southern De Mexico’s main line in SLP in the heart of Mexico and will have the capability to unload one unit train per day in Phase 1.

The main objective of this terminal is to receive a variety of commodities and handle and receive unit trains in order to serve the Central Region of Mexico under a Free Trade Zone.

“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, director of the terminal for WTC Industrial.

The location adjacent to the KCSM main line ensures easy access to the terminal and quick cycles of railcars.  The terminal will be located in the Free Trade Zone which provides an added economical advantage to rail shippers. Phase 1 of the terminal will include 300,000 barrels of storage tank capacity, unit train unloading tracks, and truck loading spots sufficient to truck 70,000 bpd. The terminal will have 24 hour/7 day per week secured, fully automated state of the art operations.

“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 Chief Executive Officer Rick Webb. “This is an expansion of Watco services that will bring great connections between existing US and Canadian (NAFTA) served refineries, terminals, ports, and railroads. We believe this has strong growth opportunities for supplying fuels to the SLP region, the customers, and the communities surrounding SLP.”

The concept for this terminal was developed in early 2013. Since then, permitting processes began and are nearing completion. WTC Industrial is one of the largest industrial parks developers in Mexico with great experience applying for and receiving the necessary permits to build various types of infrastructure projects. Operations are scheduled to commence the later part of Q4 2016 or early 2017.

“To comply with the regulations, this will be a public terminal where anyone can have access,” said Vicente Rangel, chief executive officer of Grupo Valoran, holding company of WTC Industrial. “This is why we chose a neutral terminal operator like Watco with the experience and knowledge to run the facility in a very efficient, safe, and secure environment.”

KCS President Patrick J Ottensmeyer said: "KCS looks forward to serving this major fluids distribution and general cargo terminal in the heart of Mexico. 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."

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