Rail gains steam in race to supply Mexico with U.S. fuel

9 Jan 2018   Mexico, Railroads, USA

A big winner from surging imports of energy products into Mexico from the United States is the rail industry, benefiting from weak pipeline systems beset by a lack of connectivity, limited capacity and rampant theft. Fuel exports from the United States to Mexico have shot up by about 40 percent over the last two years. Today, Mexico stands as the top U.S. export market – absorbing about 1 million barrels a day, worth roughly $20 billion annually in trade. And no slowdown is on the horizon. For one thing, experts say, Mexico faces supply constraints due to the poor condition of many of its refineries; for another, the country keeps adding cars, to its roads. Oil companies have taken note, and are turning to rail shipments to move oil products across the U.S.-Mexico border. Leasing rates for some tank cars have doubled, while a clutch […]

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