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Rail News: Rail Industry Trends

KCS projects transload program growth in the U.S., Mexico

Kansas City Southern's TransLoad Center (TLC) program continues to grow. Last year, U.S. TLC business at the Kansas City Southern Railway Co. (KCSR) increased 10 percent and Mexican TLC business at Kansas City Southern de México S.A. de C.V. (KCSM) rose 20 percent vs. 2006.

To meet a projected increase in Mexican demand during the next five years, KCSM is working with third-party TLC operators to expand capacity. In January, TLC operator Bulkmatic opened a 60,000-square-foot warehouse in Monterrey to provide packaging transload services for the chemical industry. Bulkmatic also doubled their track capacity to 200 cars in anticipation of more plastics and chemical business.

In April, Logistica Integral plans to open a new TLC in Toluca at an existing crossdock site featuring a 10,000-square-foot warehouse and 10 car spots. The company expects to add 50 car spots to transload plastics, steel and industrial products. In the year's second half, Logistica also will open a 100,000-square-foot warehouse in Queretaro for paper, steel, plastics and food that will feature 85 car spots to transload bulk products.

KCSR anticipates TLC program growth in the United States the next few years, as well. The TLCs offer transload services — including rail, trucking and warehousing — to shippers of various commodities.

Contact Progressive Railroading editorial staff.

More News from 3/31/2008