KCS de Mexico to serve Savage Cos.'s new petroleum terminal

Kansas City Southern de Mexico will serve a new petroleum transload terminal that will begin operations in central Mexico on Jan. 1, 2018.

A Savage Cos. subsidiary will operate the terminal and has plans to expand it later next year, Savage officials said in a press release.

The terminal is located near the city of Queretaro. Initially, it will serve manifest rail volumes, transferring products directly from rail cars to trucks. Once permitting approvals are received, Savage plans to add tank storage and fixed facilities for high-speed unloading, product blending and truck loading.

At full buildout, the facility will be capable of handling unit trains.

"We have a long and prosperous relationship with Savage in the U.S. and we are honored to extend our mutually beneficial endeavors to Mexico, where we believe this terminal will facilitate additional refined product exports from U.S. Gulf Coast refineries in support of Mexico energy reform," Kansas City Southern President and Chief Executive Officer Patrick Ottensmeyer said in the press release.