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Hutchison Ports Holdings Group plans to spend $200 million to build a container terminal at the Port of Lazaro Cardenas, Mexico — a project that could mean more intermodal traffic for Kansas City Southern de México S.A. de C.V. and its parent, Kansas City Southern.

The terminal is designed to handle 2 million containers annually. Hutchinson Ports expects the facility to handle 450,000 containers annually after the company completes the project’s first phase next year. The terminal’s second and third phases will increase annual capacity to 850,000 containers and 1.7 million containers, respectively.