Freight News, Rail

KCS to invest in Celaya Railway Bypass

[ July 25, 2022   //   ]

Kansas City Southern and its affiliate Kansas City Southern de México, S.A. de C.V. (KCSM) announced on July 20 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 14, 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.”
Canadian Pacific Railway Limited applauded the announcement.