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Mexcentrix – Shelter Services Mexico Outsourcing
Home / Blog / NEWS / New link to KC Southern in Mexico sweats U.S. policy debates

New link to KC Southern in Mexico sweats U.S. policy debates

Celebrations for the opening of a $568 million shipping terminal — tied to the U.S. by Kansas City Southern operations — were muted due to worries about policy changes that could harm U.S.-Mexican trade.

The highly automated terminal at the port of Lazaro Cardenas was built to expand trade between Asia and Mexico and expand a port seen as a backdoor to the United State. Lazaro Cardenas plays a key role in Kansas City Southern’s operations. The railroad operates a line from the port through Mexico and ties to its U.S. line in Texas.

kansas city southern 5 credit Roy Luck

Developer APM Terminals spent $568 million on the terminal and had planned to spend another $900 million to expand its capacity by the end of the decade, The Wall Street Journal reports.

However, business at the port, and along what’s called the Nafta Railway, will depend partly on U.S. policy. President Donald Trump campaigned saying he would scrap the North American Trade Agreement — although the administration now talks of renegotiating the pact — and any tax plans discussed in Congress could increase the cost of imported goods and components.

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