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News Article

Bajio Region to Build New Vehicle Distribution Center

By Antonio Gozain | Wed, 11/03/2021 - 14:19

Kansas City Southern (KCS) announced the construction of a new vehicle distribution center (VDC) in the state of Queretaro. The modern VDC will meet the demand of Mexico’s key regions from Mexico City to the northern border.

The new hub will be developed jointly by KCS, Suministros Industriales Potosinos (SIPSA), a logistics terminal operator in the region, and TransDevelopment Group (TDG), a developer of specialized transportation facilities. The VDC will be strategically located on KCS’s main line to serve the Bajio region and the “strong demand in the Mexico City area,” informed KCS through a press release. "This VDC improves access to and from some of the most important markets in Mexico, such as Guadalajara, Leon, Queretaro and San Luis Potosi," said Rodrigo Flores, Vice President Automotive and Intermodal, KCS.

KCS said that the hub will be located 40 kilometers east to Queretaro’s capital, the fastest-growing city in the sector in Mexico, according to the railway company. The VDC will be built next to SIPSA’s Transvase and Cross Dock terminals, through KCS’s line that connects Monterrey to Lazaro Cardenas.

The project, which will have a capacity of up to 10,000 vehicles and a block train service, will boost the entire automotive sector in the country, said Flores. He added that both companies chose the Bajio region due to its high OEM concentration, which demands better connectivity to reduce the current congestion.

“This project adds speed, capacity and markets. It is the perfect destination for the movement of imported cars, from ports to the interior of Mexico; and KCS’s new connection with the port of Veracruz makes this opportunity even greater," said Flores.

While Xavier Zermeño, Director, SIPSA, pointed the benefits that the new VDC will bring to both the production and distribution of finished vehicles, Alex MacGregor, Senior Development Manager, TDG, said that the consolidated and experienced industry of the Bajio region enables the development of the project.

“TDG has been developing facilities for finished vehicles in Mexico for almost 30 years and we have always been looking for an automotive terminal site that meets all the requirements. When we started working on the VDC Central Bajio initiative we realized that this was the perfect opportunity," said MacGregor.

Nuevo Leon to Build Electric-Vehicle R&D Center

While the Bajio region continues expanding its manufacturing capacity, Nuevo Leon focuses on the development of an EV Research & Development Center as part of CLAUT’s strategic plans for 2025.

The alliance will launch the Agents of Change - Lean Six Sigma training program, which focuses on the automotive industry specialization and will allow a companies’ talent to certify in this methodology. The training will provide the industry with good practices in continuous improvement based on a global benchmarking process to position Mexico as a reference in Latin America, reported MBN.

The data used in this article was sourced from:  
MBN, KCSM, El Economista
Antonio Gozain Antonio Gozain Journalist and Industry Analyst