KANSAS CITY, Mo.--(BUSINESS WIRE)--Kansas City Southern (KCS) and its affiliate Kansas City Southern de México, S.A. de C.V. (KCSM) announced today that KCSM has reached an agreement with the Mexican Ministry of Infrastructure, Communications and Transportation (SICT) to fund a new investment in the Celaya-NBA Line Railway Bypass and other infrastructure in an amount not to exceed $4 billion pesos.
In exchange for the investment, the SICT has agreed to amend KCSM’s Concession Title effective July 14th , 2022, to extend the exclusivity rights granted to KCSM for an additional period of 10 years. Under this amendment, KCSM’s exclusivity will now expire in 2037.
“We are pleased to announce an agreement with the SICT to make critical rail infrastructure investments in the Celaya Bypass and other infrastructure, and extend KCSM’s exclusivity rights under the Concession Title by 10 years,” stated Oscar Augusto Del Cueto Cuevas, KCSM president, general manager and executive representative. “This agreement and amendment reinforce our strong partnership with the Mexican government, and our long-standing commitment to support Mexico’s railway network, which plays an essential role in promoting the country’s economic growth.”
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 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. More information about KCS can be found at www.kcsouthern.com.
