The planned terminal, Terminal del Centro de Mexico Petroliferos y Petroquimicos (TCMFTZ), will be located on Kansas City Southern de Mexico’s main line in San Luis Potosi. Its main objective is to receive a variety of commodities and handle unit trains from the U.S. to serve the central region of Mexico.

Phase 1 of the project will include 300,000 bbl of storage tank capacity, unit train unloading tracks (one unit train per day initially) and truck loading spots sufficient to handle 70,000 b/d, Watco said in a statement.

Located in a NAFTA Free Trade Zone, TCMFTZ will provide added economic advantage to rail shippers. Operations are scheduled to begin in late 2016 or early 2017.

“Logistics are key and whoever is able to get the products in the most cost efficient way will have an advantage on the market, especially on the refined products that will play a big role in Mexico now that the energy reform has taken place,” Jorge Wade, WTC Industrial’s director of TCMFTZ, said in the Watco statement.

WTC Industrial, the industrial development division of holding company Grupo Valoran, is nearing completion on permitting processes begun subsequent to conception of the project in 2013.

“To comply with [Mexico’s] regulations, this will be a public terminal where anyone can have access,” said Vicente Rangel, CEO of Grupo Valoran. “This is why we chose a neutral terminal operator like Watco with the experience and knowledge to run the facility in a very efficient, safe and secure environment.”

Wade told the El Economista newspaper that the project is in the early stages of basic engineering and land preparation of 50 acres inside the WTC Industrial Park.

Pittsburg, Kan.-based Watco Com. LLC is a transportation company providing rail, terminal and port, supply chain, and mechanical services in North America and Australia.