Business Wire | Oct 25, 2021 04:30PM EDT

New Strategically-Located Central Bajo Vehicle Distribution Center to Add Velocity, Capacity and Markets to KCS Automotive Network

Oct. 25, 2021

KANSAS CITY, Mo.--(BUSINESS WIRE)--Oct. 25, 2021--Kansas City Southern (KCS) (NYSE: KSU) announced today a collaboration with Suministros Industriales Potosinos SA de CV (SIPSA) and TransDevelopment Group (TDG) to develop the Central Bajo Vehicle Distribution Center, a state-of-the-art origin and destination terminal for the shipment of finished vehicles. Strategically-located on the KCS main line, and developed, owned and operated by SIPSA and TDG, the VDC will serve the rapidly-growing Bajo region and strong Mexico City area demand.

The Central Bajo VDC is master planned for growth with future capacity for up to 10,000 vehicles, unit train service and direct truck access to Mexico City, Guadalajara and the Bajo Region. The terminal is located 40 kilometers east of Quertaro, Mexico's fastest growing city, along the KCS main line between Monterrey and Lzaro Crdenas. It will be constructed adjacent to SIPSA's Transload and Cross Dock Terminal - the highest-capacity terminal of its kind on the KCS network. The surrounding area is the largest center of automobile manufacturing in Mexico.

"Development of the Central Bajo VDC adds velocity, capacity and markets," said KCS vice president automotive and intermodal Rodrigo Flores. "One goal is to speed the turnaround for multi-level rail cars making a round-trip between the U.S. and Mexico improving the availability of rail cars in the region. Unloading rail cars in the Bajo, near many of the assembly plants where empty rail cars are needed adds capacity and reduces congestion."

"This VDC also improves access to and from some of the most important markets in Mexico, including Guadalajara, Leon, Quertaro and San Luis Potos. In conjunction with terminals in Toluca and Monterrey, KCS connects a robust automotive terminal network," added Flores. "It's the perfect destination for inland port moves of imported automobiles into Mexico, and KCSM's new connection to the Veracruz Port makes this opportunity even bigger."

"We see strong potential in the Bajo for finished vehicles," says SIPSA managing director Xavier Zermeo. "At our existing facility in Comonfort, we handle inbound parts for assembly plants through our cross docks and general cargo tracks, which are also available to accommodate finished vehicles during construction of the Central Bajo VDC. This terminal is a natural location to increase our capabilities to include finished vehicles, right in the heart of automobile production in Mexico."

"TransDevelopment has been developing finished vehicle facilities in Mexico for almost 30 years, and we've always been on the lookout for an automotive terminal site that checks all the boxes-both from the network and market side, and also the development feasibility and local partner perspective," says TDG senior development manager Alex MacGregor. "When we started working on the Central Bajo VDC initiative, we realized that this was the perfect opportunity."

For more information about the Central Bajo VDC project, visit https://centralbajiovdc.com/.

About Kansas City Southern

Headquartered in Kansas City, Mo., KCS is a transportation holding company that has railroad investments in the U.S., Mexico and Panama. Its primary U.S. holding is The Kansas City Southern Railway Company, serving the central and south-central U.S. Its international holdings include Kansas City Southern de Mexico, S.A. de C.V., serving northeastern and central Mexico and the port cities of Lzaro Crdenas, Tampico and Veracruz, and a 50 percent interest in Panama Canal Railway Company, providing ocean-to-ocean freight and passenger service along the Panama Canal. KCS' North American rail holdings and strategic alliances with other North American rail partners are primary components of a unique railway system, linking the commercial and industrial centers of the U.S., Mexico and Canada.

About Suministros Industriales Potosinos SA de CV

Founded in 1997, Suministros Industriales Potosinos, SA de CV, (SIPSA) is a key logistics terminal operator in the Bajo region. Headquartered in San Luis Potos, SIPSA operates dry bulk, liquid bulk, and cross dock facilities in SLP, Celaya, and Toluca. Their newest facility, in Comonfort, Gto, has the ability to accommodate over 550 railcars on 15 operating tracks.

About TransDevelopment Group

Atlanta-based TransDevelopment Group (TDG) is a world-class developer of specialized transportation facilities. TDG has been designing and developing finished vehicle terminals for almost 35 years, and counts among its clients many of the largest automakers, shipping lines, port authorities, Class I railroads, and terminal operators throughout North America. In 1993, TDG established Transdevelopment Mxico SA de CV, headquartered in Mexico City, which has developed finished vehicle terminals in Mexico for Volkswagen, Ford, General Motors, Chrysler, Nissan, Honda, Audi, and Toyota.

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CONTACT: KCS: C. Doniele Carlson, 816-983-1372, dcarlson@kcsouthern.com

CONTACT: Suministros Industriales Potosinos: Hugo Olalde, +52 444 257 9885, hugo.olalde@terminalsip.com

CONTACT: TransDevelopment Group: Alex MacGregor, 678-733-2805, ajm@transdevelopment.com