Post on 19-Mar-2018
THE MEXICO
CONNECTION
Frank Hernandez
General Director U.S./Mexico Ops
BNSF Railway
June 17, 2015
1
2
Current
Respective
Gateway
Operation
Volumes
by
Gateway
Border
Process
3
Current
Respective
Gateway
Operation
Current Gateway Operations
Tucson
Presidio
4
5
Brownsville / Matamoros Gateway (Rosita International bridge)
5
6
Current Gateway Operations
6
Tucson
Presidio
7
Laredo / Nuevo Laredo Gateway
7
SOURCE: AMF Cancun ExpoRail 2015 – Oscar Del Cuerto Cuevas KCSM.
Investments in 2015
• Continuation of Master Plan for the Sanchez Yard at the Nuevo Laredo border
8
KCSM Expansion Projects
8
SOURCE: AMF Cancun ExpoRail 2015 – Oscar Del Cuerto Cuevas KCSM.
MASTER PLAN FOR THE SANCHEZ
YARD
OPERATIONAL SUPPORT RAILS
COMONFORT SIDING EXTENSION
ESCOBEDO YARD CTC
SIDING EXTENSION - 3 KM
EXPANSION OF SANTA MARIA IN
COAHUILA
EXPANSION OF CAPACITY OF THE
ESCOBEDO YARD
SIDING EXTENSION FOR OJO SECO
CONSTRUCTION OF THE “Y” IN THE
AHORCADO YARD
SIDING EXTENSION IN JACUARO -
3KM
COAHUILA
NUEVO
LEON
TAMAULIPAS
SAN LUIS
POTOSI
HIDALGO
PUEBLA
VERACRUZ
JALISCO
USA
CAPITAL INVESTMENTS FOR 2015
9
Tie Projects
9
SOURCE: AMF Cancun ExpoRail 2015 – Oscar Del Cuerto Cuevas KCSM
NUEVO LAREDO – LAMPAZOS
72,680 RAILROAD TIES
LAMPAZOS – LEAL
18,670 RAILROAD SLIDES
SLP – SALTILLO
23,000 RAILROAD TIES
ACAMBARO – CORONDIRO
17,000 RAILROAD TIES
CORONDIRO – LAZARO C.
5,000 RAILROAD TIES
MONTERREY – MATAMOROS
19,000 RAILROAD TIES
SLP – TAMPICO
28,000 RAILROAD TIES
SLP – AHORCADO
65,650 RAILROAD TIES
AHORCADO – HUEHUETOCA
4,000 RAILROAD TIES
M. HERRERA – ACAMBARO
25,000 RAILROAD TIES
LAMPAZOS
MONTERREY MATAMOROS
SALTILLO
TAMPICO
SANTA FE
MORELLA
CELAYA
AGUASCALLENTES
PEROTE
10
Tucson
Presidio
Current Gateway Operations
10
PUENTE
INTERNACIONAL
MANTENIMIENTO
TALLER DE
A RAMOS ARIZPE
7
Bodega
Rasini
MESA GIRATORIA
A EAGLE PASS
11
FXE Piedras Negras Yard
Vía 01
Vía 02
Vía 03
Vía Auxiliar
R-1
5+
664
R-1
7+
600
Espuela
R-1
7+
806
.30
R-1
7+
978
R-1
7+
656
R-1
7+
912
R-2
0+
910
R-2
0+
964
R-2
1+
094
R-1
5+
510
R-1
7+
838
NORTE
R-1
8+
432
.4
R-2
0+
927
.8
R-2
0+
842
.7
R-1
8+
512
.4
Vía limpieza 101
Vía Limpieza 102
Vía Extracción Norte
Vía Extracción sur
Vía 04
Vía 05
CH-1
CH-2
CH-3
CH-4 CH-5
CH-6
CH-7
CH-8
CH-9
CH-11
CH-10
CH-12 CH-13
CH-14
CH-15
CH-16
CH-17
CH-18
CH-19
CH-20
R-1
8+
220
.394
R-2
2+
197
.866
R-2
1+
077
.866
Cervecería Modelo
Via Principal
Esta conexión ya no existe.
12
FXE Rio Escondido Yard
13
Current Gateway Operations
13
Tucson
Presidio
14
Current Gateway Operations
14
Tucson
Presidio
15
Ciudad Juarez Yard
16
Meseta Yard
17
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
0
100
200
300
400
500
600
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Infrasturcure and Capacity Equipment Telecommunications Other18
FXE / FERROSUR Infrastructure Investments
Accumulated 1998-2014: 3,434
Millions of dollars
Millio
ns
in U
SD
67.5
241.6
155.0
78.4 79.3 85.5
137.0 136.9
311.8 323.8
199.8
165.9 174.3
347.5
255.1
398.8
276.5
411.4
Investment Program for FXE/FSRR from 1998-2015 (Millions of dollars)
19
Current Gateway Operations
19
Tucson
Presidio
Tucson
Presidio
20
Current Gateway Operations
20
21
San Diego / Tijuana Gateway
22
San Diego / Tijuana Gateway
23
San Diego / Tijuana Gateway
24
Volumes
by
Gateways
24
San Diego Volumes*
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
2012 2013 2014
NORTH SOUTH
49%
47%
48%
51% 53%
52%
*BNSF units only 25
Tucson Volumes
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
2010 2011 2012 2013 2014
Nogales Volumes
NORTH SOUTH
50%
49% 50%
49%
50%
51% 50% 50% 51% 50%
Volume for all railroads 26
El Paso Volumes
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
2010 2011 2012 2013 2014
NORTH SOUTH
48% 48% 45% 46%
47%
55%
54%
53% 52% 52%
Volume for all railroads 27
Brownsville Volumes
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
2010 2011 2012 2013 2014
NORTH SOUTH
55% 49%
52%
54% 53%
46% 47% 45% 51%
48%
Volume for all railroads 28
Eagle Pass vs Laredo Volumes
Volume for all railroads
0
100,000
200,000
300,000
400,000
500,000
600,000
2010 2011 2012 2013 2014
LAREDO EAGLE PASS
29
Current
Border
Process
30
Mexico Overview
31
Mexico Volume
2014
BNSF moves a broad array of products to and from Mexico
31
32
BNSF International Gateways
CANADA
USA
MEXICO
Tucson
Nogales Presidio
Ojinaga
33
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
34
International Border Support
EXTERNAL PARTNERSHIP’S
• AAR Transborder Committee
• Set business standards for all
Class I railroads, including
Mexico and Canada, for
international transborder
business
• U.S. Customs-CBP
• Other PGA’s
• Canadian Customs-CBSA
• Mexico Customs - Aduana
• Sagarpa
• Connecting Rail Carriers
• Domestic
• Foreign
Quarterly/bi-monthly
meetings at each
BNSF gateway
• U. S. Brokers
• Canadian Brokers
• Mexico Brokers
• Freight Forwarders
• International Customers
35
Eagle Pass Set Out Traffic at Car Level
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% 118,931
11
TOTAL IM
36
El Paso Set Out Traffic at Car Level
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% 105,379
532
TOTAL IM
37
Challenges Southern Border
• Ventanilla Unica de
Comercio Exterior Mexicano
• “VUCEM”
• Implemented November 17, 2014
38
39
TALKING POINTS
•All remaining slides are TALKING POINTS and will
not be visible to the audience.
40
3A) Brownsville / Matamoros Gateway (Rosita International bridge)
40
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.
41
5A) Laredo / Nuevo Laredo Gateway
41
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.
42
9A) Eagle Pass / Piedras Negras Gateway
42
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.
43
12A) Presidio / Ojinaga Gateway
43
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.
44
13A) El Paso / Cd. Juarez Gateway
44
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.
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.
45
46
19A) San Diego / Tijuana Gateway
46
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.
47
28A) Eagle Pass vs Laredo
47
• 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.