USD Group LLC Expands Presence in Mexico with New Refined Products Terminals in Central Chihuahua
USD Group LLC (“USDG”), through its subsidiary USD Marketing Mexico S.
de R.L. de C.V., announced today plans to expand its network of refined
products destination terminals across Mexico, including two terminals in
the Central Chihuahua area. The Ciudad Cuauhtémoc terminal development
is expected online by mid-2018 and will include manifest rail and truck
transloading capabilities, as well as land for expansion. Additionally,
USDG is formalizing plans for a second refined products distribution
terminal in the Central Chihuahua area, which will feature unit train,
tank storage and truck loading capabilities. The planned terminals are
expected to meaningfully improve the distribution of refined products
across the state of Chihuahua, which includes approximately two million
residents and one of Mexico’s most concentrated and productive
agricultural and mining hubs.
“Along with the Querétaro terminal, our expansion into the Central
Chihuahua area demonstrates our commitment to improving the delivery of
critical products across the region,” said Steve Magness, USDG’s Vice
President, Business Development. “We believe our network of scalable
terminals will enable our customers to more effectively meet the rapidly
growing demand for refined products in Mexico.”
Both terminals will be serviced by Ferromex railroad, a subsidiary of
Grupo México Transportes, with access to all North American Class 1
railroads.
“We look forward to supporting USDG’s terminal network in Mexico,” said
Ernesto Anguiano Sánchez, Ferromex’s Executive Vice President of Sales.
About USD Group LLC
USDG and its affiliates are engaged in designing, developing, owning and
managing large-scale multi-modal logistics centers and energy-related
infrastructure across North America. USDG solutions create flexible
market access for customers in significant growth areas and key demand
centers, including Western Canada, the U.S. Gulf Coast and Mexico. Among
other projects, USDG is currently pursuing the development of a premier
energy logistics terminal on the Houston Ship Channel with substantial
tank storage capacity, multiple docks (including barge and deepwater),
inbound and outbound pipeline connectivity, as well as a rail terminal
with unit train capabilities. For additional information, please visit texasdeepwater.com.
About Grupo México Transportes (GMXT)
GMXT, through its subsidiary Ferromex, is the largest rail
transportation company in Mexico, with more than 7,050 miles (11,350 km)
of rail track covering all major industrial and commercial zones in the
country, as well as connections to international markets through eight
seaports and six border crossings. GMXT’s rail lines, which handle over
1.4 million carloads per year, reach across 24 states in Mexico,
including regions responsible for between 65% and 70% of the national
consumption of refined products and three large cities (Mexico City,
Guadalajara and Monterrey). GMXT also has a presence in Texas and
Florida in the United States.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of U.S. federal securities laws, including statements with
respect to the siting, commercialization and development of the Central
Chihuahua terminals, the ability of the Central Chihuahua terminals to
be sustainable and profitable and the demand for refined products in
Mexico. Words and phrases such as “is expected,” “is planned,”
“believes,” “projects,” and similar expressions are used to identify
such forward-looking statements. However, the absence of these words
does not mean that a statement is not forward-looking. Forward-looking
statements relating to USDG are based on management’s expectations,
estimates and projections about USDG, its interests and the energy
industry in general on the date this press release was issued. These
statements are not guarantees of future performance and involve certain
risks, uncertainties and assumptions that are difficult to predict.
Therefore, actual outcomes and results may differ materially from what
is expressed or forecast in such forward-looking statements. Factors
that could cause actual results or events to differ materially from
those described in the forward-looking statements include construction
and cost-related risks; risks associated with constructing and operating
a terminal in a non-United States jurisdiction; changes in general
economic conditions; the effects of competition, in particular, by
pipelines and other terminalling facilities; the supply of, and demand
for, rail terminalling services for crude oil, refined products and
biofuels; hazards and operating risks that may not be covered fully by
insurance; disruptions due to equipment interruption or failure at our
terminals or third-party facilities on which our business is dependent;
natural disasters, weather-related delays, casualty losses and other
matters beyond our control; and changes in laws or regulations to which
we are subject, including compliance with environmental and operational
safety regulations, that may increase our costs. USDG is under no
obligation (and expressly disclaims any such obligation) to update or
alter its forward-looking statements, whether as a result of new
information, future events or otherwise.
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