Supply Chain Research

Kansas City Southern will develop a new Mexican railfreight logistics center at Nuevo Laredo by 2025. The company is clearly not concerned about near-term regulatory risks from NAFTA negotiations or a recent antitrust decision from the Mexican government. Nuevo Laredo (NL) was already the largest railfreight export terminal in Mexico with 41% of the $58 billion of national exports by rail in the 12 months to April 30 after growth of 17% on a year earlier. The most significant industry for NL’s rail exports are cars and parts which represented 69% of outbound shipments. That opens both NA...