THE MEXICO CONNECTION

THE MEXICO
CONNECTION
Frank Hernandez
General Director U.S./Mexico Ops
BNSF Railway
June 17, 2015
1
Current
Respective
Gateway
Operation
Volumes
by
Gateway
Border
Process
2
Current
Respective
Gateway
Operation
3
Current Gateway Operations
Tucson
Presidio
4
Brownsville / Matamoros Gateway
(Rosita International bridge)
55
Current Gateway Operations
Tucson
Presidio
66
Laredo / Nuevo Laredo Gateway
Investments in 2015
• Continuation of Master Plan for the Sanchez Yard at the Nuevo Laredo border
SOURCE: AMF Cancun ExpoRail 2015 – Oscar Del Cuerto Cuevas KCSM.
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KCSM Expansion Projects
MASTER PLAN FOR THE SANCHEZ
YARD
EXPANSION OF SANTA MARIA IN
COAHUILA
USA
COAHUILA
OPERATIONAL SUPPORT RAILS
EXPANSION OF CAPACITY OF THE
ESCOBEDO YARD
NUEVO
LEON
COMONFORT SIDING EXTENSION
TAMAULIPAS
ESCOBEDO YARD CTC
SIDING EXTENSION FOR OJO SECO
SAN LUIS
POTOSI
CONSTRUCTION OF THE “Y” IN THE
AHORCADO YARD
SIDING EXTENSION - 3 KM
SIDING EXTENSION IN JACUARO 3KM
JALISCO
HIDALGO
VERACRUZ
CAPITAL INVESTMENTS FOR 2015
SOURCE: AMF Cancun ExpoRail 2015 – Oscar Del Cuerto Cuevas KCSM.
PUEBLA
88
Tie Projects
LAMPAZOS
NUEVO LAREDO – LAMPAZOS
72,680 RAILROAD TIES
MONTERREY
MONTERREY – MATAMOROS
19,000 RAILROAD TIES
MATAMOROS
SALTILLO
LAMPAZOS – LEAL
18,670 RAILROAD SLIDES
SLP – TAMPICO
28,000 RAILROAD TIES
SLP – SALTILLO
23,000 RAILROAD TIES
TAMPICO
SLP – AHORCADO
65,650 RAILROAD TIES
AGUASCALLENTES
ACAMBARO – CORONDIRO
17,000 RAILROAD TIES
CELAYA
AHORCADO – HUEHUETOCA
4,000 RAILROAD TIES
CORONDIRO – LAZARO C.
5,000 RAILROAD TIES
MORELLA
PEROTE
SANTA FE
M. HERRERA – ACAMBARO
25,000 RAILROAD TIES
SOURCE: AMF Cancun ExpoRail 2015 – Oscar Del Cuerto Cuevas KCSM
99
Current Gateway Operations
Tucson
Presidio
10
FXE Piedras Negras Yard
A RAMOS ARIZPE
Rasini
TALLER DE
MANTENIMIENTO
A EAGLE PASS
PUENTE
INTERNACIONAL
Bodega
7
MESA GIRATORIA
11
FXE Rio Escondido Yard
NORTE
Via Principal
CH-11
CH-4
CH-5
Vía Extracción Norte
CH-12
CH-10
Vía 01
CH-7
CH-6
Vía 02
CH-8
R-18+220.394
CH-9
Vía 03
Vía 04
R-21+077.866
R-20+927.8
R-20+842.7
CH-14 Vía Extracción sur
CH-13
CH-17
CH-15
CH-18
CH-19
CH-20
R-20+964
R-20+910
R-17+978
R-17+806.30
R-17+600
R-15+664
R-15+510
CH-3
Espuela
Vía limpieza 101
R-21+094
Vía Auxiliar
Vía Limpieza 102
R-22+197.866
CH-1
R-17+912
R-17+838
R-17+656
CH-2
R-18+432.4
R-18+512.4
Cervecería Modelo
Esta conexión ya
no existe.
CH-16
Vía 05
12
Current Gateway Operations
Tucson
Presidio
13
13
Current Gateway Operations
Tucson
Presidio
14
14
Ciudad Juarez Yard
15
Meseta Yard
16
Rail Relay Projects
Modernization of the Infrastructure
•
• FXE/FSRR have rehabilitated 60% of their network
FXE/FSRR’s basic network has a capacity for 130 tons per car
CAPACITY ON THE NETWORK IN 1999
CAPACITY ON THE NETWORK IN 2014
SYMBOLS (FOUR AXIS POINTS)
130 TONS OF CARGO CAPACITY
123 TONS OF CARGO CAPACITY
120 TONS OF CARGO CAPACITY
110 TONS OF CARGO CAPACITY
0.00 KILOMETERS WITH CAPACITY
OF 130 TONS IN 1999
5,743 KILOMETERS WITH CAPACITY
OF 130 TONS IN 2014
17
FXE / FERROSUR Infrastructure Investments
Investment Program for FXE/FSRR from 1998-2015
(Millions of dollars)
600
Accumulated 1998-2014: 3,434
Millions of dollars
500
411.4
Millions in USD
398.8
400
311.8
300
347.5
323.8
255.1
241.6
276.5
199.8
200
100
165.9 174.3
155.0
67.5
137.0
78.4
79.3
136.9
85.5
0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Infrasturcure and Capacity
Equipment
Telecommunications
Other
18
Current Gateway Operations
Tucson
Presidio
19
19
Current Gateway Operations
Tucson
Presidio
20
20
San Diego / Tijuana Gateway
21
San Diego / Tijuana Gateway
22
San Diego / Tijuana Gateway
23
Volumes
by
Gateways
24
24
San Diego Volumes*
9,000
8,000
7,000
6,000
5,000
47%
49%
48%
4,000
3,000
2,000
53%
51%
52%
1,000
0
2012
2013
NORTH
*BNSF units only
2014
SOUTH
25
Tucson Volumes
Nogales Volumes
160,000
140,000
120,000
49%
100,000
50%
80,000
60,000
50%
49%
40,000
20,000
50%
51%
50%
50%
2010
2011
2012
51%
50%
2013
2014
0
NORTH
Volume for all railroads
SOUTH
26
El Paso Volumes
200,000
180,000
160,000
140,000
120,000
52%
53%
55%
52%
54%
100,000
80,000
60,000
48%
48%
45%
2010
2011
2012
40,000
46%
47%
20,000
0
NORTH
Volume for all railroads
2013
2014
SOUTH
27
Brownsville Volumes
140,000
120,000
100,000
52%
80,000
60,000
54%
53%
49%
55%
40,000
20,000
48%
46%
47%
45%
51%
2010
2011
2012
2013
0
NORTH
Volume for all railroads
2014
SOUTH
28
Eagle Pass vs Laredo Volumes
600,000
500,000
400,000
300,000
200,000
100,000
0
2010
2011
2012
LAREDO
Volume for all railroads
2013
2014
EAGLE PASS
29
Current
Border
Process
30
Mexico Overview
BNSF moves a broad array of products to and from Mexico
Mexico Volume
2014
31
31
BNSF International Gateways
CANADA
USA
Tucson
Nogales
MEXICO
Presidio
Ojinaga
32
International Border Support
• Interaction, support, and liaison for the following internal
business units, ensuring seamless and transparent
transborder shipments :
INTERNAL PARTNERSHIPS
•
•
•
•
•
•
•
•
Transportation/Operations
Mexico and Canada Marketing Sales
Mechanical
Service Design
Equipment Distribution
Ag/Grain Desk
Unit Train Desk
Customer Support
33
International Border Support
EXTERNAL PARTNERSHIP’S
• U. S. Brokers
• AAR Transborder Committee
• Set business standards for all
Class I railroads, including
Mexico and Canada, for
international transborder
business
• Canadian Brokers
• Mexico Brokers
• Freight Forwarders
• International Customers
• U.S. Customs-CBP
• Other PGA’s
• Canadian Customs-CBSA
• Mexico Customs - Aduana
• Sagarpa
Quarterly/bi-monthly
meetings at each
BNSF gateway
• Connecting Rail Carriers
• Domestic
• Foreign
34
Eagle Pass Set Out Traffic at Car Level
11
118,931
TOTAL
Year
Total Cars for
Delivery to
FXE
Total IM
Cars Set
Out
Percentage
of Cars S/O
2013
42,116
3
.00007%
2014
50,324
4
.00008%
YTD 2015
26,491
4
.00002%
IM
35
El Paso Set Out Traffic at Car Level
532
105,379
TOTAL
Year
Total Cars for
Delivery to
FXE
Total IM
Cars Set
Out
Percentage
of Cars S/O
2013
47,658
149
.003%
2014
46,061
194
.004%
YTD 2015
11,660
189
.002%
IM
36
Challenges Southern Border
• Ventanilla Unica de
Comercio Exterior Mexicano
• “VUCEM”
• Implemented November 17, 2014
37
38
TALKING POINTS
• All remaining slides are
TALKING POINTS and will
not be visible to the
audience.
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3A) Brownsville / Matamoros Gateway
(Rosita International bridge)
1. Haulage agreement with Union Pacific Railroad (UPRR) from Algoa to
Brownsville.
2. Mexican interchange railroad at Matamoros is Kansas City Southern de
Mexico (KCSM). KCSM is wholly owned by KCS.
3. Current hours of operation at the BROWNSVILLE / MATAMOROS
Gateway:
 0800 – 2000hrs, Monday thru Saturday (12hrs per day, no directional
windows)
 1000 – 1400hrs, Sunday
 This Gateway and interchange hours are used solely by UPRR and
KCSM
4. KCSM network improvements include: New international railroad bridge at Rosita.
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5A) Laredo / Nuevo Laredo Gateway
1. Trackage rights on UPRR to Robstown and delivery of our trains to KCS at
this location. Haulage Agreement with KCS between Robstown to Laredo.
2. Mexican interchange railroad at Nuevo Laredo is KCSM.
3. This Gateway has historically been the # 1 U.S./Mexico Gateway, as it
relates to total volumes interchanged. Eagle Pass / Piedras Negras
Gateway is now vying for that title.
4. Current hours of operation at at the LAREDO / NUEVO LAREDO Gateway
is 24/7, as follows:
 0200 – 0800hrs Northbound Export Window (NEW)
 0800 – 1400hrs Southbound Export Window (SEW)
 1400 – 2000hrs NEW
 2000 – 0200hrs SEW
 This Gateway and interchange hours are shared by KCS, UPRR, and
KCSM
5. KCSM network improvements include: Sanchez yard, siding extensions,
spring switches, double tack along 30% of Laredo to Mexico city corridor,
CTC from Laredo to Mexico city, intermodal yards.
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9A) Eagle Pass / Piedras Negras
Gateway
1. Trackage rights to Eagle Pass Gateway.
2. Mexican interchange railroad at Piedras Negras is Ferrocarril Mexicano (FXE).
3. FXE is owned by Grupo Mexico and UPRR. It has also merged with Ferrocarril
Sureste (FERROSUR).
4. This Gateway has been challenging the LAREDO / NUEVO LAREDO Gateway
for total volumes interchanged.
5. Current hours of operation at at the EAGLE PASS / PIEDRAS NEGRAS
Gateway is 24/7, as follows:
 0000 – 0600hrs SEW
 0600 – 1200hrs NEW
 1200 – 1800hrs SEW
 1800 – 0000hrs SEW
 This Gateway and interchange hours are shared by BNSF, UPRR, and FXE
6. UP Eagle Pass Sub improvements include: CTC from Spofford to MP 25.6,
double track segments, new classification yard at Spofford / Laughlin.
7. FXE network improvements include: Rio Escondido yard (in fourth of 7 phases
of development), siding extensions, spring switches, double track segments,
CTC islands, intermodal yards.
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12A) Presidio / Ojinaga Gateway
On the Mexican side of the border, forms part of the FXE network. On the
USA side, it forms part of the Texas Pacifico. Both FXE & Texas Pacifico
form part of Grupo Mexico.
Bridge is owned by the Mexican Government & the State of Texas.
Bridge sustained fire damage February 29, 2008 and has been OOS since that
date.
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13A) El Paso / Cd. Juarez Gateway
1. Mexican interchange railroad at Cd. Juarez is FXE.
2. FXE is owned by Grupo Mexico and UPRR. It has also merged with
Ferrocarril Sureste (FERROSUR).
3. Current hours of operation at the EL PASO / CD. JUAREZ Gateway:
 1600 – 0700hrs (15hrs per day, no directional windows).
 This Gateway and interchange hours are shared by BNSF, UPRR,
and FXE.
4. BNSF Eagle Pass Sub improvements include: New “Y” at Belen, NM.
5. FXE network improvements include: Meseta yard, siding extensions,
spring switches, double track segments, CTC islands, intermodal
yards.
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18A) Tucson / Nogales Gateway
1. Current hours of operation at the TUCSON / NOGALES Gateway:
 0900 – 1700hrs Monday thought Sunday (8hrs per day, no directional
windows).
 This Gateway and interchange hours are shared by UPRR and FXE.
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19A) San Diego / Tijuana Gateway
1. Interchange with the San Diego Imperial Valley Railroad (SDIY) at San Diego,
who then interchanges with the Baja California Railroad (BJRR) at the San Isidro
yard at the border.
2. Mexican interchange railroad at Tijuana is BJRR.
3. BJRR is owned by the Mexican government, but has granted concession rights
to BJRR.
4. Current hours of operation at the SAN DIEGO / TIJUANA Gateway:
 0900 – 1200hrs Monday through Friday.
5. BJJR network improvements include: 6 new storage tracks at Tijuana, transload
facility, cold storage warehouse, and team tracks.
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28A) Eagle Pass vs Laredo
• I have purposefully placed the EAGLE PASS & LAREDO Gateway volumes
on the same slide, in order to allow you to see the impressive growth that
has taken place at the EAGLE PASS Gateway.
• In recent years, have seen 21% growth in volumes year after year at the
EAGLE PASS Gateway. If this trend continues, this Gateway will probably
take over 1st place, as being the Gateway with the highest volume of
railway interchanges. This could happen as early as this year and has
sporadically occurred on a monthly basis, several times during past three
years.
• In recent years, while still busy, we have seen much less growth at Laredo
gateway. As a matter of fact, there was basically “ZERO” growth during
2014, as more and more rail traffic either shifted toward the EAGLE PASS
Gateway or new business began using EAGLE PASS.
• That concludes my presentation. I thank you for your time and will be glad
to attempt to answer any questions you might have, as time permits.
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