VIEW FROM THE TOP |
ROLLING TOWARD A CONNECTED, COMPETITIVE FUTURE JOSÉ ZOZAYA President of Kansas City Southern Mexico
Q: How is KCSM helping unlock railway transportation
A: KCSM’s rail network converges with the Lazaro Cardenas
potential in Mexico and what impact has it achieved in
ZEE, so we opened the dialog with the institutions in
the economic development of the country?
charge of its development to explore the possibility of
A: KCSM currently has 4,251km of railway in Mexico. We are
having further reach within the area. For example, we are
committed to further upgrading our rail network through
considering extending some of our railways. We have not
an annual investment in its modernization; this in order
yet defined a specific investment for the development of the
to have a more competitive and efficient railway system.
ZEE, but we do make a yearly investment in modernizing
In 2018 we have planned to invest US$165 million, but the
and upgrading our railway network in the area, specifically
total outlay may end up being higher. We believe that
near the Lazaro Cardenas Port, where we have significant
we are achieving our efficiency goal as our key actions
activity related to rails and rolling stock including wagons
attest to our progress. For example, we collaborated with
and locomotives.
the Mexican and US authorities to establish an inspection booth at the border, which has helped to establish a more
Q: What transport projects would you prioritize for the
efficient train crossing in the area.
next administration and why? A: I believe that infrastructure projects are simply fundamental
We are working on international crew matters to avoid
to the country’s logistics with the view to making Mexico a
having our trains stopped at the border. We are also
global logistics hub. There is the need to improve existing
making a considerable investment in our rail yard in Nuevo
infrastructure, including roads, rails and ports. I believe that
Laredo, building the biggest rail infrastructure that we have
the country has a very good rail system as the KCSM lines
in the country. We expect this project to help us speed up
are integrated with the US and Canada. As we speak, many
train movements on the northern and southern crossings,
trains are crossing both borders, enabling North America to
increasing our efficiency and competitivity. Our outlay
be integrated as a logistics block.
is also focused on new equipment and locomotives. All of these actions may seem independent but they pursue
I expect to see an ever more connected and competitive
the objective of making our trains more efficient and
network in the future. This railway efficiency has brought
competitive. We move around 40 percent of the total rail
important investments to Mexico, such as the network that
freight in the country. While we do not expect to increase
serves the automotive industry. We must strive to improve
this percentage, the volumes moved keep growing.
this efficiency through strategic actions. For example, I think security is a relevant issue to deal with. KCSM has
The energy sector has also grown considerably. Railway
been closely working on improving railway transportation
transportation is now perceived as the rolling pipeline
security with several authorities, such as the Mexican Army
as services become more efficient and safer. KCSM’s
and the Federal Police. We have contributed a great deal
rail network interlinks with the key points for energy
financially to control and monitoring equipment for our
development in Mexico and the US, connecting from
trains, to better monitor the products we move. We think
Texas to the center of Mexico. We have had an important
that it is key to take more preemptive actions instead of
demand for gasoline transport, from the Mexican Gulf to
reactive ones.
the Bajio region. We participated in the fuels terminal in San Luis Potosi, which speeds up the storage and availability of fuels.
Kansas City Southern Mexico offers the most seamless and efficient transportation option to cross the US-Mexico border,
Q: What is the role of KCSM in the development of the
with customs pre-clearance for faster, lower-cost service than
rail infrastructure for ZEEs’ success?
trucks can offer
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