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Kansas City Southern de Mexico invests in Celeya railway bypass

Parent company Kansas City Southern’s pending merger partner Canadian Pacific backs investment

A Kansas City Southern train. (Photo: Jim Allen/FreightWaves)

Kansas City Southern de Mexico plans to invest as much as $4 billion pesos ($195 million) in the Celaya-NBA Line Railway Bypass and supporting infrastructure.

KCSM made the investment agreement with the Mexican Ministry of Infrastructure, Communications and Transportation (SICT).

In response to KCSM’s investment, SICT has added 10 years to the railroad’s concession title. The amendment provides KCSM with exclusive rights to the railway bypass, located northwest of Mexico City, through 2037.

“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,” said Oscar Augusto Del Cueto Cuevas, KCSM president, general manager and executive representative, in a news release.

In a separate news release, Canadian Pacific (NYSE: CP), whose merger with KCSM’s parent company Kansas City Southern is awaiting federal approval, “applauded” KCSM’s announcement.

CP will announce its second-quarter 2022 earnings results before the market opens on July 28. The financial results could include an update on KCS operations.

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Joanna Marsh

Joanna is a Washington, DC-based writer covering the freight railroad industry. She has worked for Argus Media as a contributing reporter for Argus Rail Business and as a market reporter for Argus Coal Daily.