News & Reviews News Wire KCS de Mexico receives 10-year extension to operating concession

KCS de Mexico receives 10-year extension to operating concession

By Trains Staff | July 20, 2022

| Last updated on February 23, 2024


Railroad agrees to invest in bypass in Celaya, Mexico

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Red, black, and orange locomotive at head of freight train
A Kansas City Southern de Mexico ES44AC leads a train of coal empties on BNSF at Hinsdale, Ill., on July 2, 2021. KCS de Mexico has reached agreement with the Mexican government on a 10-year extension to its operating concession. David Lassen

KANSAS CITY, Mo. — Kansas City Southern de Mexico’s exclusive operating concession for its routes in Mexico have been extended by 10 years as part of an agreement with the Mexican government to invest in a new rail bypass route.

The agreement with the Mexican Ministry of Infrastructure, Communications and Transportation (SICT) extends the concession to 2037. In return KCS de Mexico will invest up to 4 billion pesos ($195 million) in the Celaya-NBA Rail bypass. The project involves more than 18 miles of new line to provide a route avoiding a congested diamond of KCS de Mexico and Ferromex lines in Celaya, a community in central Mexico about 130 miles northwest of Mexico City.

“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,” KCSM President Oscar Augusto Del Cueto Cuevas said in a press release.

— Updated at 9:45 a.m. CDT to correct year of extension to 2037.

7 thoughts on “KCS de Mexico receives 10-year extension to operating concession

  1. So KCSM is now a thing for another 15 years. How does this alter, if at all, the stratagem of UP and BNSF as regards the CP[KC] merger?

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