Kansas City Southern Acquires Puerta Mexico Intermodal Facility, Adds Direct Train Service

Kansas City Southern (KCS) (NYSE: KSU) announced today that it has acquired the Puerta Mexico intermodal facility at Toluca in the State of Mexico. Later this month, Kansas City Southern de Mexico, S.A. de C.V. (KCSM) will add direct train service from Lazaro Cardenas to Puerta Mexico, providing Mexico City import and export shippers with a service alternative featuring improved consistency and reliability and better transit times.

"Puerta Mexico is well-positioned on KCS’ International Intermodal Corridor, making it a valuable enhancement for our cross border service offering,” said David L. Starling, KCS president and chief operating officer.

KCS executive vice president sales and marketing Patrick J. Ottensmeyer, added that, "The growth of manufacturing activity and international trade flows in the Mexico City area is increasing the demand for modern, multi-modal terminals in Mexico’s industrial heartland. The strategic location and modern facilities at Puerta Mexico will allow KCS to better serve these growing markets.”

With its connection to the KCS rail network, Puerta Mexico serves the industrial centers of Mexico and the U.S., several important seaports and the Toluca-Mexico City industrial corridor. The facility provides intermodal rail and truck services, warehouse storage and has the only inland customs-clearing facility in the State of Mexico.

In addition to train service, Puerta Mexico offers multi-modal terminal services and on-site customs and bonded warehousing facilities to ocean carriers, intermodal and other logistics service providers. With its direct access to KCSM’s "N” line, Puerta Mexico will become the terminal of choice for service to and from the central valley, the Port of Lazaro Cardenas and the border crossing at Nuevo Laredo/Laredo. With an estimated capacity exceeding 150,000 containers and two million plus tons of cargo per year on more than 130 developed acres, it essentially doubles the intermodal capacity available to the greater Mexican central valley region and alleviates congestion in the region.

"Since 1996, KCS has invested over $3 billion to expand and improve Mexico’s rail infrastructure. The purchase of Puerta Mexico further demonstrates KCS’ commitment to Mexico and its institutions, the appeal of Mexican markets and the viability of direct foreign investment in Mexico,” said KCSM president and executive representative Jose G. Zozaya. "Puerta Mexico is a key link in KCS’ International Intermodal Corridor, creating a continuous cycle of economic growth for Central Mexico.”

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 KCSM, serving northeastern and central Mexico and the port cities of Lázaro Cárdenas, 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 are primary components of a NAFTA Railway system, linking the commercial and industrial centers of the U.S., Mexico and Canada.