Supply Chain Research

Kansas City Southern will shortly start construction of a new cargo processing facility to improve the flow of goods across the U.S.-Mexico border at Laredo. The completion of U.S.-Mexico-Canada Agreement negotiations will allow companies to make the longer-term supply chain plans that can include a switch to intermodal rail from trucking. So far rail only accounted for 15.0% of Mexico’s northbound exports in the 12 months to Nov. 30. Diversification will also be important given the autos sector accounted for 73.4% of the value of rail-borne exports from Mexico over the same period.