Monday, January 9, 2012

Booming trade with Mexico boosts U.S. railroad

Kansas City Southern railcars are rumbling over the Rio Grande as record trade between Mexico and the U.S. buffers the railroad from a slowing global economy.
Escalating shipping and labor costs in world manufacturing centers such as Asia have encouraged Nissan, DuPont and other companies to shift capital spending to Mexico. Many of the goods will head to the U.S., the destination for about 80 percent of Mexico's exports.
Cross-border merchandise trade totaled $341 billion by the end of September, about 18 percent higher than the same point in 2010, according to the Bureau of Transportation Statistics. The increase will help Kansas City Southern, the only U.S. railroad with a wholly owned Mexican subsidiary, compete with trucks traversing the border. Continued

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