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Yesterday, Kansas City Southern reported that Kansas City Southern de México S.A. de C.V.’s (KCSM) service in northern Mexico has been disrupted by infrastructure damage caused by Hurricane Alex, which made landfall on June 30.

The hurricane damaged track around the Monterrey and Saltillo areas and impacted lines to Laredo and Matamoros. KCSM has issued freight embargos at the U.S.-Mexico border and into Monterrey until damage is repaired. Traffic in some of the impacted areas could resume soon.

KCS is sending equipment, track materials and personnel from the United States into Mexico to help with repairs. After lines reopen, it could take up to two weeks to clear congestion and move parked trains, KCS officials said in a prepared statement.

“It is too early in the recovery process to estimate the financial impact of the repairs and business interruption, which KCS and KCSM currently expect will be reflected primarily in their third-quarter financial results,” the officials said. “KCSM maintains insurance intended to cover events such as this, with self-insured retention amounts ranging from $5 million to $10 million.”