KCSM could kick off Mexico rail bypass construction in Q2

Rail operator Kansas City Southern de México (KCSM) will invest US$133mn this year in new yards, railways and signaling systems, according to company president Óscar Del Cueto.

In an agreement with the Mexican infrastructure, communications and transport ministry (SICT), the company has committed to investments in several projects, Del Cueto told local media at a press gathering.

One project that is not included in the investment plan is the US$200mn Celaya rail bypass in Guanajuato state.

“We will begin when we have acquired all the rights of way,” said Del Cueto. “We hope we can start [construction] this year, in the second quarter when all the land is secured. There are more than 500 lots to purchase and we have obtained close to 90 since we began the process, and we expect that to accelerate.” 

Celaya is a key point for KCSM as it connects Lázaro Cárdenas port with the US border, and the bypass lines will help speed up transportation of goods between the countries. 

Another key project that is also separate from the 2023 investment plan is the US$400mn Nuevo Laredo bridge between Nuevo León state and Texas. KCSM will invest US$80mn in its construction this year, said Del Cueto. 

He also said that parent company Kansas City Southern (KCS) is expecting approval in around two weeks from the US Surface Transportation Board (STB) to complete its US$31bn merger with rail operator Canadian Pacific.