Kansas City Southern Railroad chairman and chief executive officer Michael R. Haverty said Thursday building a $400-million-plus Laredo-Nuevo Laredo East Loop Bypass is a way to alleviate railroad congestion in downtown Laredo and Nuevo Laredo.
"The plan is to build the bypass down to Rio Bravo and back to our Sanchez yard," Haverty said during his keynote speech at the 16th annual Manufacturing and Logistics Symposium at Texas A&M International University.
"Union Pacific has not made any commitment to do this. But we're going ahead."
Haverty pointed out three reasons KCS is forging ahead with their East Loop Bypass.
"It's economically feasible, solves congestion issues and will not conflict with the Texas Department of Transportation's proposed highways," he said.
Haverty said 17 trains per day run through Laredo on KCS railways.
"In five years, we're projecting 35 per day through here and in 10 years we are projecting 50 per day," he said.
Nothing too small
After his address, Haverty said the bypass "would keep the railroad aligned with both cities."
"Some people want to say Kansas City Southern is too small to handle this type of project," he said.
"They said we'd never do this or that on spending money for other projects. These type of comments are usually from people who have interests in their own projects."
Warren K. Erdman, KCS executive vice president of corporate affairs, said, "The reception we've received from the business community here in Laredo has been overwhelming.
"Nobody in the business community was questioning our plans. There's just been an enormous amount of support."
Lifetime railroader
A fourth-generation railroader, Haverty began his career with Missouri Pacific Railroad Company in 1963 as a brakeman and completed its management training program in 1967.
In 2005, Haverty oversaw an agreement placing KCSR, bridge carrier The Texas Mexican Railroad Company and Mexican railroad TFM under common control of KCS.
TFM became KCSM (Kansas City Southern de México) in December 2005.
This agreement helped forge a rail network, known as the NAFTA (North American Free Trade Agreement) Railway, which links commercial and industrial centers of the United States, Canada and Mexico, providing North American shippers an alternative to other carriers.
KCS has invested close to $1 billion in equity in Mexico, Haverty said.
"We just did a $175 million project between Victoria and Rosenberg," he said.
"Those who say that KCS can't get it done are wrong. We're a determined company and Laredo will be important to us.
"We are committed to working with communities."
(Joe Rutland can be reached at 728-2529 or jrutland@lmtonline.com)
