Kansas City Southern de Mexico to serve new energy terminal in Bajio region

Avant Energy will build a network of terminals to supply refined petroleum products from the Port of Altamira, Tamaulipas, to the Bajio region of north-central Mexico, the company announced last week.

The network will be known as Suministro de Petroliferos Altamira–Bajio, or SUPERA, Avant Energy officials said in a press release.

Avant Energy is working with Kansas City Southern de Mexico and Savage Cos. as strategic partners in the development, construction and operation of energy infrastructure for the oil, natural gas, refined products and power sectors.

The SUPERA network will aim to provide an "efficient logistics solution" for companies to supply refined products from the United States to cities in the Bajio region. The network initially will consist of a marine terminal and an inland terminal developed at a cost of $200 million.

Located in the Port of Altamira, the marine terminal will be capable of unloading Panamax-size vessels and providing storage for up to 1.2 million barrels of refined products.

Savage will operate the terminal and facilitate rail access to the Bajio region through a connection with KCSM.

The inland terminal will feature a storage and dispatch facility in Queretaro with direct connection to KCSM. The terminal will be designed to receive unit trains with storage capacity of 450,000 barrels.

Construction is expected to begin on both terminals in third-quarter 2018 and begin operation before the end of 2019.

"We're committed to supporting this significant project," said Kansas City Southern President and Chief Operating Officer Patrick Ottensmeyer. "It's aligned with our strategy to increase the volume, velocity and value of the commodities we move."