Transportation   Gas  

US products railed 'round Mexico's mountains

Investors are scrambling to meet Mexico's thirst for refined products by rail, which offers a faster solution than pipelines and coastal terminals that are years from fruition.

Mexico's refined products railed import infrastructure is still dominated by slower transloading operations, which can take four to seven days to unload a unit train. But more efficient unit train-capable destinations are being built.

Kansas City Southern (KCS), perhaps the best-positioned US railroad to benefit from Mexico's demand, runs unit trains from US Gulf coast refining centers into central Mexico.

Mexico's mountainous inland terrain offers distinct advantages for rail over pipelines, railroad executives reckon. Most residents live in the central region, and the mountain range through Mexico's central spine complicates cross-country pipelines.

"Those mountain ranges are extremely difficult and costly to build through," said David Eaton, vice president of sales and marketing at KCS' Mexican subsidiary. "We do not think there will be pipelines in those markets for 10 to 20 years, if ever."

Terminal storage will be the linchpin for railed refined products in Mexico, Eaton said. Terminals need significant storage to unload a typical 96-car unit train laden with 65,000 bl.

Many Mexico-bound KCS shipments originate from the Jefferson Energy Terminal in Beaumont, Texas. The terminal is close to ExxonMobil's 348,000 b/d Beaumont refinery, and connects to all major operational Mexico refined products terminals.

Rangeland Energy's Corpus Christi products-by-rail and LPG loading terminal came on stream for manifest carload service in June, and is targeting unit train shipments by late 2019. Howard Midstream Energy Partners in May completed a new bulk liquids terminal in the Port of Corpus Christi.

In Mexico, Gas Natural del Noroeste's 510,000 bl in San Jose Iturbide, Guanajuato is Mexico's sole unit train-capable terminal. Pemex's PMI trading unit is the largest terminal customer, and ExxonMobil also holds storage there.

On the coast, Avant Energy is building terminals to supply the Port of Altamira, Tamaulipas, known as Supera, with US logistics group Savage and KCS' Mexico subsidiary as partners.

News No: 2497
Date: 2018/11/05 - 22:54
News Source: Argus Media

US  Mexico  rail  KCS  LPG 


Leave a Comment:


India: Bulk Pig Iron Export Volumes Halve in FY'19

According to customs data maintained with SteelMint, bulk Indian pig iron export volumes have come down sharply by 50% in FY19. India has exported 221,260 MT pig iron in FY’19 as against 446,250 MT in FY’18. In the month of March pig iron exports from India recorded at 50,000 MT against nil from the previous month.

Russia: MMK Steel Doubled Steel Shipments to Vietnam in CY18

As per sources, one of the world's largest steel producer and a leading Russian metal company Magnitogorsk Iron and Steel (MMK) has doubled its metal shipments to Vietnam in CY18 as compared to CY17.

Indian Steel Market Weekly Snapshot

Indian Steel industry observed average inquiries during the Week-15 (9th to 13th Apr) owing to election mood in the country. In context to supply scenario, the production of Semis & Finished steel products more or less on same proportion, this led to volatility in prices.

Global Ferrous Scrap Market Overview - Week 15, 2019

Major global scrap markets observed price correction on weak demand globally. Turkish steel mills booked cargoes at lowered prices amid subdued steel demand. Japan's monthly Kanto tender for Apr'19 fetched bids lower by USD 15 against last month.

MSC is leading other companies in reducing water consumption: Crisis Management Dept.

The Director General of Isfahan Provincial Crisis Management Department, accompanied by a host of crisis managers from governor’s offices in the province, toured the production lines of Mobarakeh Steel Company and hailed MSC as a leading company when it comes to cutting water consumption.

Vietnam Mills Books 30,000 MT HRC from Russia

Imported HRC offers to Vietnam inched up this week following uptrend in export offers from China. On weekly basis imported HRC offer to Vietnam inch up by USD 5/MT from China.
Upcoming Events
 Mines & Metals

Mine & Business Today

 Scrap & Recycling


Our partners