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Kansas City Southern Tex-Mex hub near Dallas adds 342,000 TEU capacity

STRENGTHENING networks serving Mexico and the US Southeast, Kansas City Southern Railway's (KCS) new Wylie Intermodal Terminal will also handle expected growth in intermodal conversion in the Dallas area.

KCS officially opened the US$64 million project in July in Wylie, a city 30 miles northeast of Dallas after 12 months of construction, reports Newark's Journal of Commerce.



Wylie Phase I will boast of an annual capacity of 342,000 TEU, more than 50 per cent the capacity of KCS's neighbouring terminal in Zacha. The Zacha terminal, which has an annual intermodal lift capacity of 168,000 TEU, will now be used for transloading and automotive operations.



The new terminal has an automated gate system with high-definition imagers, optical character recognition and biometric driver identification, 1,500 parking spaces, 400 container stack spots, enhanced traffic signals, specific turn lanes and two 5,000-foot intermodal tracks.



"We are very pleased to offer our intermodal customers this new, world-class terminal for US domestic, US international and US-Mexico cross-border shipments," said KCS president Pat Ottensmeyer.



And that's only the first phase of construction, Mr Ottensmeyer said on a recent second-quarter earnings conference call.



"There is plenty of room around this Phase I for further expansion if the business continues to grow in these markets and we believe it will," he said.



Mr Ottensmeyer also noted its potential to capture expected intermodal conversions as truck capacity tightens in the Dallas area not only for KCS's US-Mexico traffic, but for its Meridian Speedway, a joint venture with Norfolk Southern connecting Dallas to the US Southeast.



Although intermodal growth rates decelerated in the second quarter, KCS has seen some of the fastest intermodal growth in the last few years compared to other Class I competitors, largely due to its booming US-Mexico traffic.



The railway has also been building and extending sidings at Los Chivos, San Cristobal, Melchor Ocampo, Corondiro and Lazaro Cardenas as well as expanding its existing intermodal terminal in Kendleton, Texas.
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