KCS prepares for anticipated petrochemical business growth

December 04, 2015

On December 3, KCS executive vice president and chief marketing officer Brian Hancock addressed the 2015 Petrochemical Supply Chain and Export Logistics conference in Houston, Texas.  The event, hosted by FC Business Intelligence, publisher of the Petrochemical Update, was an opportunity for heads of supply chain, transportation logistics and commercial teams to talk about core issues affecting the growth of exports from the U.S., as well as the safe, reliable and efficient movement of products.

Petrochemical exports are set to increase dramatically from the U.S.  A conference theme was how industry is preparing for the change by investing in new infrastructure across rail, marine, shipping, pipelines and at ports to support capacity coming online.  

Hancock explained how KCS is partnering with petrochemical producers and making strategic investments into its rail infrastructure along the gulf coast to support production growth.  He provided insight into how the company is developing rail infrastructure in Mexico so products and derivatives can be diverted to Mexico to overcome finite port capacity in Houston or LA/Long Beach.  He also provided an outlook for future development and projected rail capacity being developed to meet export growth from 2017 and beyond.

Hancock, said, “Lazaro Cardenas is an innovative alternative to U.S. ports.  Specifically, the use of the foreign trade zone in Mexico City for U.S.-produced resins is a unique solution for customer supply chains.  So much resin is expected to be produced that alternatives will be needed.  KCS can provide that alternative.”

KCSR assistant vice president sales and marketing Jennifer Fussell, added, “Storage in transit yards and transload terminals provide variable infrastructure capacity for our customers.  We are investing today and will be prepared for the additional business.”