©2013 kansas city southern mexico-us chamber of commerce 1
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©2013 Kansas City Southern
Mexico-USChamber of Commerce
1
©2013 Kansas City Southern 2
January 2004 January 2005 January 2006 January 2007 January 2008 January 2009 January 2010 January 2011 January 2012 January 2013$0
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Total Trade with Mexico ($ billions) US Industrial Production Index (adjusted)
To
tal
Tra
de
wit
h M
ex
ico
($
bil
lio
n)
US
In
du
str
ial
Pro
du
cti
on
In
de
x (
ad
jus
ted
)
U.S. – Mexico cross-border trade exceeds pre-recession levels
Source: Board of Governors of the Federal Reserve System and US Census Bureau
©2013 Kansas City Southern 3
Foreign Direct Investment (FDI) in Mexico
Foreign Direct Investment (FDI) for 2012 reached $15.4 bn
2013 FDI for the 1st half of 2013 reached $10.2 bn
Manufacturing sector is key in 2013 with 83.4% investments
From 1999 to 2013 FDI accounts $335 bn
2012 FDI Projects of More Than $50 USD Million
Elaboration by KCS Market Research based on Promexico data. Tourism and Financial services are not shown on the map
©2013 Kansas City Southern
Mexico Automotive Renaissance
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KCS currently has access to nine automotive plants in Mexico:
Chrysler Fiat (Toluca)Chrysler (Encantada)Ford (Cuautitlán)GM (San Luis Potosí)GM (Rojas)GM (Silao)Nissan (Aguascalientes)Nissan (Cuernavaca)VW (Puebla)
Additional plant openings in 2013-15:Honda (Celaya)Mazda (Salamanca) Nissan (Aguascalientes)
• Audi (near Puebla)
©2013 Kansas City Southern
Cross Border Shipments by Truck 2012
3.1 million truckloads originate or terminate in KCS’ Target Market
50 percent of loads move to/from locations deep into Mexico
KCS operates the Laredo rail bridge on both sides of border
The current KCS intermodal cross border market share represents about 2 percent of available market.
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SOURCE: KCS Market Research derived from BTS Data
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Mexico’s Natural Gas Potential
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Driving Success Integration of Cross Border
Logistics and Trade
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Fix the Cross-border Truck Process
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Enforce Trucking Regulation in Mexico
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Automate the Customs Process
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Impact of the Manual Customs Process
Initial Finding: 37% of Northbound Intermodal shipments ramp same-day
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Value of Re-engineering the Process
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Redefine Commercial Terms of Sale
©2013 Kansas City Southern
Identify and Centralize Extra Services
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©2013 Kansas City Southern 16
Establish Proper Customs Broker Alignment
©2013 Kansas City Southern
Create Visibility to Border & Customs Costs
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Bridge Dray Move
Brokerage Commission
Fees and Admin
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©2013 Kansas City Southern