So there is an article in the Trains newswire about Watco and KCS partnering in an effort to develop a Liquified Fuels export to Mexico routing that would terminate in San Louis Potsi, Mexico (not to be confused with Posti on the TV Series "Happy Days"). Anyways, I think it is a smart idea as that is a future growth area and they are ahead of the curve to develop the traffic lane in advance of demand. Curious what the rest of you think. Good idea, Bad idea, Waste of money.....or Don't care.
CMStPnP So there is an article in the Trains newswire about Watco and KCS partnering in an effort to develop a Liquified Fuels export to Mexico routing that would terminate in San Louis Potsi, Mexico (not to be confused with Posti on the TV Series "Happy Days"). Anyways, I think it is a smart idea as that is a future growth area and they are ahead of the curve to develop the traffic lane in advance of demand. Curious what the rest of you think. Good idea, Bad idea, Waste of money.....or Don't care.
The expanded service was facilitated by federal legislation passed in Mexico in 2013 which recognized that the country needed to open their energy market to foreign investment in order to meet current and future demand.."
The OP asked for comments. To me it seems like a perfectly logical move for KCS and subsidKCMdeM to move toward firming up a new lane. Particulary, in lin\ght of a recent article in TRAINS that stated that KCS moved something like 300.000 (?) autos/trucks back and forth across the Border; especially in light of a potential change in the tariff/tax structures for cross border product movements. Seems like a good move for WATCO who already has a presence in the SanLouis Potosi area with its Industrial Park and KCSdeM. It seems like a pretty good idea to be out ahead of current politics and business situations to plan on having a hedge for futures.
There is also another NEWSWire article that seems to support the latter situation with CSX also noting :
FTA [That Newswire article ]"...JACKSONVILLE - CSX said today that it worked with customers during 2016 to announce 114 new or expanded facilities that will be located along the CSX rail network or on connecting short lines. The investment by CSX customers on these projects totals $9.5 billion, and is expected to generate approximately 8,100 new jobs in areas served by the railroad. In addition, once the new developments are complete, they are projected to generate 136,000 new annual carloads for CSX. These projects are in addition to the more than 100 customer facilities on CSX that began operation in 2016..."
It seems comforting that some in the railroad industry are planning for the future, and a path contrary to the 'system rationalizations of the 1970's'.
International petroleum product movement is a hot potato. Mexico can reverse itself again, and go back to state control of the petroleum industry. Only time will tell if the risk pays off.
samfp1943It seems comforting that some in the railroad industry are planning for the future, and a path contrary to the 'system rationalizations of the 1970's'.
In the past railroad marketing basically consisted of a sales rep visiting the 'usual suspects' buying drinks and dinner and calling that a sales call. During this perios sales reps were to a big degree company paid alcholics.
Today sales reps are going to the unusual suspects and pitching rail oriented packages of transportation to benefit the unusual suspect company. Nowadays sales reps actually work to develop plans that benefit both the customers and the railroads.
Staggers gave the railroads the ability to search out opportunities that were and are 'outside the box.
Never too old to have a happy childhood!
MidlandMikeMexico can reverse itself again, and go back to state control of the petroleum industry.
Bet on at least the serious threat of it if Trump follows through with 'making Mexico pay for the wall' via taxes or tariff action... as I think is highly likely.
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