Kansas City Southern Lazaro Cardenas Cross Border Intermodal
Kansas City Southern Lazaro Cardenas Cross Border Intermodal Network
A Coordinated Cross Border Rail Network Canadian National CANADIAN PACIFIC CSX BNSF • In the center of the North American rail system • Exceptional growth opportunities • Emerging participant in global trade growth • Premier Mexico trans border rail service provider UNION PACIFIC Ferromex Norfolk Southern • Network of the future for North American automotive growth FERROSUR
Cross Border Truckload Volume U. S. Mexico Truck Volume by Direction Source: Norbridge analysis of Bureau or Transportation: Transborder Freight Data 3
The Lazaro Land Bridge Route Advantage 3, 395 2, 987 Houston Routes 2, 411 3, 682 2, 256 2, 838 Atlanta Routes 1, 634 1, 299
Mexican Investment Focus • Basic rail infrastructure • Bypasses, overpasses and grade crossings • Increase train speeds in urban areas • Port infrastructure • Expansion of existing port capacity • Focus on ease of use / operational efficiency • New Victoria to Rosenberg line • New Rosenberg IM ramp 5 5
Victoria – Rosenberg: Improving the KCS Cross-Border Rail Network Rosenberg/Houston Intermodal Ramp Eliminates 151 miles (41%) of UP trackage rights 6
KCS Intermodal Ramps Strategically Positioned
A Coordinated Cross Border Rail Network 8 8
Port of Lazaro Cardenas
New Hutchison Terminal November 28, 2007, 11: 52
Steamship Lines calling Lazaro Cardenas
Value of Lazaro Cardenas • No Environmental issues/fees • No infrastructure issues/fees • Productive workforce • Not affiliated with the ILWU • Pro-business local government • Ample land for future terminal expansion • State-of-the-art port infrastructure • Hutchison – premier terminal operator • Natural deep water port – max. vessel flexibility • 59 ft. access channel • 54 ft. ship channel • KCS’ investment in line and port rail capacity
Container Growth at Lázaro Cárdenas 14% growth 2009 vs. 2008 29% growth in 1 Q 2010 Source: Secretaría de Comunicaciones Y Transportes, Coordinación General de Puertos Y Marina Mercante
Custodians/Jump teams Fixed point inspections Mainline Patrols K-9 14
Simplified Customs Clearance • KCS provides in-bond and fully cleared border crossing products that are fast, simple and secure for your customers – – – Seamless rail border crossing Reduced cost versus truck Customs clearance performed at destination Foreign trade zone services Single invoice Single bi-lingual customer service contact
The Bottom Line… Success! • Lazaro Cardenas 2008 vs 2009 – Combination Imports and Exports grew 18. 2% • KCS/Lazaro - 2009 vs 2010 January April Comparison – Volume = 21% Growth – Revenue = 32% Growth
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