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Kansas City Southern de México budgets $251 million for '08 capex

Kansas City Southern de México S.A. de C.V. (KCSM) has spent more than $1.7 billion the past 10 years to improve infrastructure. This year, the railroad will add $251 million to that running total.
Yesterday, KCSM announced plans to invest that much in 2008 to improve and maintain infrastructure, as well as continue to develop service in Mexico.

"KCSM's International Intermodal Corridor, which starts in the important port of Lazaro Cardenas, is today one the key elements in the economic development of Mexico," said José Zozaya, the railroad's president and executive representative, in a prepared statement. "We will continue to [pursue] several railway and intermodal infrastructure projects throughout the country."
This year, KCSM expects to spend more than $100 million on track maintenance, capacity and commercial projects, such as replacing 232,000 ties and 50 miles of rail. The railroad will expand capacity by extending sidings in Tarentan and San Miguel Allende, and building double track from Rojas to Ramos Arizpe.

In addition, KCSM plans to spend more than $100 million to purchase 35 new locomotives and 600 new freight cars, and upgrade existing cars and locomotives.

The international intermodal corridor includes a major capex item, too. KCSM will accelerate the construction of an intermodal terminal in Lazaro Cardenas to complement a new Hutchison Port Holdings terminal that opened in November.

This year, the railroad also plans to complete preliminary engineering and environmental impact studies for proposed international crossings in Nuevo Laredo and Matamoros; continue to work with the state of Tamaulipas to develop an international bridge in Matamoros; develop plans for the future relocation of railway installations in cities such as Morelia, Monterrey and San Luis Potosi; and pursue new projects, such as MEGAMEX, a logistics center in the Valley of Mexico.

Contact Progressive Railroading editorial staff.

More News from 1/30/2008