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© Kansas City Southern
Infrastructure and Transportation 2nd North American Sustainable Economic Development Summit
“Trade Regimes of the Americas”
José Zozaya
President , General Manager, and Executive Representative,
Kansas City Southern de Mexico August 24th, 2015
© Kansas City Southern 2
Infrastructure, key to regional development
INFRAESTRUCTURE
DEVELOPMENT
competitiveness
It integrates
national and regional markets.
Reduces
the cost of
transportation.
A modern transportation
infrastructure:
Infrastructure
development is one of the
most important areas in
a country´s economy.
Infrastructure
development is one of the
most important areas in
a country´s economy.
© Kansas City Southern 3
• NAFTA market:
Almost
$18.7
trillion dlls
according to the IMF.
México: North American Logistics Platform
• MEXICO ranks 61st out of 144 countries on the
Global
Competitiveness
Index
2014-2015
by the WEF.
© Kansas City Southern 4
• Many industrial sectors have
been benefited from this trade
agreement:
o Automobile
o Electronics
o Machinery
o Home appliances.
NAFTA, Benefits and Requirements
NAFTA helped adapt Mexican
manufacturers faster to technological innovations.
- World Bank
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Automotive Industry
5
NAFTA
2014
2.9 Million 1994
1 Million
12% increase in production
from 2013 to 2014
Automotive freight transported by rail between
Mexico and the US, increased by 10% in 2014
© Kansas City Southern
Mexican Railway System
6
Mexico's foreign trade accounted for
46% of the total cargo
handled in the Mexican rail system.
Almost half of what the railroad carries crosses the borders of Mexico.
The Mexican
Railway System
is the 11th
world's largest
in terms of freight
volume
transported
The Mexican
Railway System
is the 11th
world's largest
in terms of freight
volume
transported
Mexico’s railways
carry more
freight than any
railway in the
European Union.
Mexico’s railways
carry more
freight than any
railway in the
European Union. Mexico’s railways
are the most
productive freight
railways in all of
Latin America.
© Kansas City Southern 7
Mexican Railway System
Kansas City Southern de
México
Ferromex
Ferrosur
Combining, rails, ports and trucking freight transportation services efficiently enable to be highly competitive worldwide.
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Kansas City Sothern de México
©2015 Kansas City Southern 8
© Kansas City Southern
KCS network is located in the center of the North
American rail system
9
Laredo
Houston
Dallas
Shreveport
East St. Louis
Springfield
Kansas City
Birmingham
Meridian
New Orleans
Jackson
We are the only railroad that connects with all Class 1 railroads in the US and Mexico.
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Challenges and opportunities
10
Transportation plays a key role in economic growth at local, national, regional and
global levels.
To achieve the goals of competitiveness and economic growth that the region needs
it is essential to continue investing in infrastructure and promote Public Private
Partnerships (PPPs) as a way to boost productivity and economic development.
With the participation of the private sector as a provider of transportation
infrastructure under a PPP scheme, we contribute to improving transportation
services and thus strengthen the productive capacity of the region.
© Kansas City Southern
Challenges and opportunities
11
The railway sector constantly invests in equipment, safety and technology that
maintain a modern and high quality service.
Intermodal transport is another key factor for transport infrastructure development
and for the region’s competitiveness. The activity rate in this sector is growing,
largely due to the positive synergy between ports and railways to move high volumes
of freight.
Another area of opportunity is the modernization of the border infrastructure
needed to reduce logistics costs and streamline trade between Mexico, the US and
Canada, and will allow us to grow in competitiveness over other trading blocs.
© Kansas City Southern
Thank you!
