INSIGHT
BAJIO, NORTHERN REGION OFFER OPPORTUNITIES FOR RAIL INFRASTRUCTURE JOSÉ ZOZAYA President of Kansas City Southern de México (KCSM)
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Mexico’s first locomotive blew a steam cloud in Mexico City in
Zozaya, KCSM is responsible for moving 40 percent of this.
1873. Since that moment, the economic development of the
Of this 40 percent, 17 percent belongs to the automotive
country has been closely linked to the efficient transportation
industry and the rest to grains, fuels and other products.
means that railways provide. The future seems more than
Zozaya says that automotive companies arriving in Mexico
promising, says José Zozaya, President of Kansas City
establish their plants as close as possible to the largest
Southern de México (KCSM).
railway networks. “This is one of the reasons why the automotive industry has bloomed in the Bajio region, San
“In railway freight, the greater the volume, the higher the
Luis Potosi and Nuevo Leon,” he says. Railways enable
speed and the longer the distance, the greater the efficiency
companies to transport light and heavy vehicles and auto
of train transportation,” he says. This makes proximity to
parts in a cost-efficient way over long distances. In the
railways a must for cross-border trade and export-oriented
specific case of Celaya, Zozaya says that OEMs and their
industries such as automotive. This means the Bajio region
suppliers put pressure on the railway network to expand
and the north of Mexico offer the most opportunities for
but that KCSM still has the train capacity to support the
construction and improvement of railroad infrastructure
growth of the automotive manufacturing plants. “We work
in the form of city-rail beltways, rail border crossings and
together with these companies and jointly prepare for their
switchyards. “Brownsville-Matamoros and Laredo-Nuevo
projected transportation needs,” he says. “Locomotives
Laredo require better rail infrastructure so that trains can
are locomotives, whether they belong to KCSM or its
cross the border faster,” Zozaya says. “A major rail bypass in
competitors, but we transport merchandise at lower costs,
Celaya is also needed to make railway transportation more efficient and safer.” KCSM is exploiting opportunities in these areas. The company contributes to making the crossing of goods by railway in the Nuevo Laredo-Laredo region swifter and safer. “KCSM is building a double-track that stretches from the Sanchez Switchyard to the Nuevo Laredo International Bridge to create a safe corridor,” says Zozaya. He explains that KCSM is improving the capacity of this bridge by hiring train crews with dual nationalities. “This eliminates the need to stop convoys in the middle of the international bridge for crew changes,”
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with high delivery efficiency and security.”
Efficient logistics infrastructure is much more than creating and maintaining the physical infrastructure”
As production volumes in the automotive and agriculture
he says. In Celaya in the Bajio region, KCSM identified the
industries grow, Zozaya is confident that the use of railway
need for a major rail bypass, a project in which it would like
freight in those industries will grow as well. He believes this
to participate. “This city experiences a great deal of railway
will detonate growth and enable railway companies to move
traffic because the local automotive industry requires high
up to 35 percent of the total freight transported nationally in
numbers of trains and because both Ferromex and KCSM
the long term. In the meantime, he says KCSM will continue
operate there,” Zozaya says. The problem with high levels of
investing in Mexico as the company has committed US$156
rail traffic in the area is that they force trains to move slowly,
million for 2017 and has agreed a joint venture with Watco
putting convoys at risk of being vandalized and reducing their
and WTC Industrial for a fuel-storage facility in San Luis
efficiency.
Potosi. But, as he puts it, “Efficient logistics infrastructure is much more than creating and maintaining the physical
In Mexico, railway-transported freight accounts for 27
infrastructure.” He says more regulations are needed to
percent of the total goods transported and, according to
enable logistics companies to transport goods swiftly.
