Supply Chain Research

Rail operator Kansas City Southern reported 3Q 2018 revenue growth of 6.5% in part due to an acceleration of refined oil shipments to Mexico from the U.S. Total Mexican imports of refined oil climbed 9.9%, while those by rail surged 80.6% higher in the three months to August 31 on a year earlier. The speed of growth, and resulting congestion, may explain KCS’s increased dwell time and reduced speeds. The company has also flagged further demand growth in oil products as a future driver of earnings, though recent statements by President-elect Andrés Manuel López Obrador suggest the country...