WATCO TO BUILD NEW LIQUID FUELS TERMINAL IN SAN LUIS POTOSI, MEXICO
PITTSBURG, KS, March 30, 2016 – Watco Companies, LLC (Watco), 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, MX (SLP). The 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 (1) 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 concept of this terminal was conceived in early 2013. Since then, permitting processes began and are nearing completion. WTC Industrial is one of the largest industrial parks developer 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. The added value of this project is it combines the strengths and experience of the three participating companies.
“To comply with the regulations, this will be a public terminal where anyone can have access. 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,” said Vicente Rangel, CEO of Grupo Valoran, holding of WTC Industrial.
"KCS looks forward to serving this major fluids distribution and general cargo terminal in the heart of Mexico,” said KCS President Patrick J. 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 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 (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.”
“We see this opportunity to partner with WTC at this location as a best case scenario” said Allan Roach. “WTC Industrial has an existing, modern, state of the art Industrial Park. 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.”
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WTC Industrial is the industrial developing division of the holding Grupo Valoran, a well-known company recognized in San Luis Potosi by the quality of its projects. The General Cargo and Fluids Terminal will be inside WTC I, taking advantage of all the benefits in services and security that a state of the art industrial park offers.
WTC Industrial San Luis Potosi is a world class industrial and logistic development unique in its type that offers a Rail Road Terminal, Customs Office on site, Free Trade Zone (FTZ), and the most complete real estate services in the market.
Its location in the city of San Luis Potosi is conveniently situated near the most important highway and railroad in Mexico also known as the NAFTA corridors. Seventy-five percent of the Mexican GDP is concentrated within 250 miles-radius of WTC Industrial San Luis Potosi. You can find out more about WTC at www.wtcindustrial.mx.
About Watco Terminal and Port Services
Watco Terminal and Port Services is a division of Watco Companies, L.L.C., consisting of 55 terminal facilities located throughout the United States. Watco Companies, LLC, is a Pittsburg, Kansas, based transportation company providing rail, terminal and port, supply chain, and mechanical services to Customers throughout North America and Australia. Watco is the owner of Watco Transportation Services, LLC, one of the largest short line railroad holding companies in the U.S. with 35 short line railroads operating on more than 4,700 miles of track, as well as 30 industrial contract switching locations. Watco Companies is a 50/50 joint venture partner with The Greenbrier Companies, Inc., in GBW Railcar Services, LLC. GBW repairs and refurbishes freight cars at 33 locations across North America, including 14 tank car repair and maintenance facilities certified by the Association of American Railroads. More information about Watco and its subsidiaries can be found at www.watcocompanies.com.