MRO Magazine

KCS and Sasol Sign Long-Term Agreement to Grow Petrochemical Business in Gulf Region

By Business Wire News   


Kansas City Southern (KCS) (NYSE: KSU) has announced that its U.S. subsidiary, The Kansas City Southern Railway Company (KCSR), has reached an agreement with Sasol Chemicals (USA) LLC (Sasol) for the construction and long-term lease of a storage-in-transit (SIT) rail yard to support Sasol’s new ethane cracker and derivatives project in Lake Charles, La. In addition to building the SIT yard for lease to Sasol, KCSR will replace and expand its existing rail car classification yard in Mossville, La.

“We are very pleased to expand our relationship with Sasol by entering into this long-term lease agreement,” said KCS President Patrick J. Ottensmeyer. “In addition to serving Sasol’s needs in Lake Charles for many years to come, this investment will better position KCSR to serve the growing petrochemical industry and other customers in the Lake Charles area.”

“KCS has been a key partner in ensuring safe and reliable delivery of our products to our customers for decades,” said Mike Thomas, senior vice president of U.S. operations for Sasol. “We are delighted to extend our relationship with KCS as we increase the number and volume of products we manufacture at our Lake Charles site over the next several years.”

In October 2014, Sasol announced a final investment decision on an $8.1 billion ethane cracker and derivatives complex in Louisiana. At the heart of the project is an ethane cracker that will produce 1.5 million tons of ethylene annually, benefitting from significant economies of scale. The complex also includes six chemical manufacturing plants. An additional $800 million will be invested in infrastructure and utility improvements, as well as land acquisition, to establish the Lakes Charles location as an integrated, multi-asset site that will enable growth for decades to come. Construction is underway, and the company expects that the facility will achieve beneficial operation in 2018.

About KCS

Headquartered in Kansas City, Mo., KCS is a transportation holding company that has railroad investments in the U.S., Mexico and Panama. Its primary U.S. holding is KCSR, serving the central and south central U.S. Its international holdings include Kansas City Southern de Mexico, S.A. de C.V., serving northeastern and central Mexico and the port cities of Lázaro Cárdenas, Tampico and Veracruz, and a 50 percent interest in Panama Canal Railway Company, providing ocean-to-ocean freight and passenger service along the Panama Canal. KCS’ North American rail holdings and strategic alliances are primary components of a NAFTA Railway system, linking the commercial and industrial centers of the U.S., Mexico and Canada.

About Sasol

Committed to excellence in all it does, Sasol is an international integrated energy and chemical company that leverages the talent and expertise of more than 33,000 people working in 37 countries. Sasol develops and commercializes technologies, and builds and operates world-scale facilities to produce a range of product streams, including liquid fuels, high-value chemicals and low-carbon electricity. While remaining committed to its home-base of South Africa, Sasol is expanding internationally based on a unique value proposition.

Kansas City Southern
C. Doniele Carlson, 816-983-1372


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