(Kansas City Southern issued the following press release on October 24.)
KANSAS CITY, Mo. — Kansas City Southern (KCS) (NYSE: KSU) today announced that it intends to make application in both the U.S. and Mexico for federal authority to construct a new international rail bridge over the Rio Grande River southeast of Laredo, TX along the proposed Texas Department of Transportation (TxDOT) East Loop Bypass Corridor. KCS has retained TranSystems to conduct preliminary engineering in preparation for the U.S. and Mexican bridge permit applications.
“Looking to the future, KCS believes a new international rail bridge somewhere along the proposed TxDOT East Loop Bypass Corridor will be needed,” said Warren K. Erdman, KCS executive vice president corporate affairs. “KCS has begun a preliminary engineering study to prepare for our U.S. and Mexican bridge permit applications, and we intend to file our applications next year.”
Previously, KCS has expressed its interest in a new international rail bridge and secure rail corridor generally along the TxDOT East Loop Bypass Corridor to remove international through-traffic from downtown Laredo and Nuevo Laredo, while retaining rail connections to the three vital railyards: Union Pacific’s Port Laredo, The Texas Mexican Railway Company’s (Tex Mex) Laredo Yard and Kansas City Southern de Mexico, S.A. de C.V.’s (KCSM) Sanchez Yard. Retaining these rail connections along a new secure rail corridor between the three rail yards and a new international rail bridge is essential to international rail operations in and around Laredo and Nuevo Laredo.
A new international rail bridge southeast of Laredo along the proposed TxDOT East Loop Bypass Corridor would achieve that goal while removing international through-traffic from the urban centers of Laredo and Nuevo Laredo. This plan would also make the existing Tex Mex rail right-of-way through Laredo and the existing KCSM right-of-way through Nuevo Laredo available for other public purposes like a possible commuter rail corridor for daily commuters between the U.S. and Mexico. In June of this year, KCSM signed a Memorandum of Understanding with the State of Tamaulipas and the City of Nuevo Laredo to work together on this project.
“We intend to accelerate our permit application process in the U.S. and Mexico so that this project can move forward on an accelerated basis,” said Erdman. “This project and its East Loop Bypass Corridor alignment will be the best way to get rail traffic out of downtown Laredo and Nuevo Laredo in the future, expand rail capacity, improve safety and convenience for motorists, enhance security along the entire corridor, and provide both the public and private benefits to make this a win-win for everyone.”
KCS plans to accelerate its preliminary engineering and to file both its U.S. and Mexican applications in 2008. KCS will continue to work closely with local and state officials in Texas and Tamaulipas to share its preliminary engineering findings and coordinate the project going forward.
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.