Savage Cos., a logistics provider for the chemical industry, will begin operating a petroleum terminal in central Mexico Jan. 1, working with Kansas City Southern to move the commodities into the United States.
Located near the city of Querétaro, Savage’s new terminal will store and transfer refined petroleum products. Initially, the terminal will transfer products directly from railcars onto tank trucks, but after receiving the necessary permits, Savage plans to add tank storage product blending as well.
“We’re excited to leverage our team’s experience operating transload facilities and rail operations to reduce the logistics costs of moving and managing refined petroleum products in Mexico,” Savage CEO Kirk Aubry said in a statement.
“We have a long and prosperous relationship with Savage in the U.S. and we are honored to extend our mutually beneficial endeavors to Mexico, where we believe this terminal will facilitate additional refined product exports from U.S. Gulf Coast refineries in support of Mexico energy reform,” Kansas City Southern CEO Patrick Ottensmeyer added. “Savage’s experience and commitment to excellence gives us the confidence that this new refined products terminal will provide additional market options in support of Mexico’s new energy infrastructure.”