Railroad News

Kansas City Southern employs PSR to improve service performance, forge a traffic-growth foothold

The new mantra "service begets growth" was developed by KCS to emphasize the correlation between optimal operational performance and accelerated business generation. Senior execs believe a fluid and resilient railroad is much better positioned to capitalize on traffic-growth opportunities.Photo – Kansas City Southern

By Jeff Stagl, Managing Editor

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BMW opens KCSM-served plant in Mexico

Rail News Home Kansas City Southern 6/13/2019 Rail News: Kansas City Southern
image KCSM operates more than 2,000 miles of track in Mexico, where it expects to serve 14 automotive plants by next year.Photo – Kansas City Southern

BMW Group and Mexican government officials last week marked the opening of the automaker's new plant in San Luis Potosi, Mexico.

To be served by Kansas City Southern de Mexico (KCSM), the more than $1 billion plant is designed to produce up to 175,000 vehicles annually. The facility will be used to produce the BMW 3 Series Sedan, the company's most successful model series, BMW Group officials said in a press release.

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From the editor: Ottensmeyer to receive 2019 Railroad Innovator Award

By Pat Foran, Editor

Progressive Railroading and RailTrends® have named Kansas City Southern President and Chief Executive Officer Patrick Ottensmeyer the 2019 recipient of the Railroad Innovator Award, which recognizes an individual’s outstanding achievement in the rail industry. KCS’s president since 2015 and CEO since 2016, Ottensmeyer has helmed the railroad during a pivotal stretch in its history.

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UP and KCS: A tale of two PSR interpretations — analysis by Tony Hatch

Tony Hatch is an independent transportation analyst and consultant, and a program consultant for Progressive Railroading’s RailTrends® conference.

Last month, two western (well, west of the Mississippi) railroads reported above-consensus first-quarter earnings: Kansas City Southern, which grew year over year (YOY) by 18 percent (adjusted, versus Street estimates of around 10 percent); and Union Pacific Railroad, in its weather-dominated quarter, by 15 percent YOY (versus around 12 percent). KCS lowered its operating ratio by 160 basis points (bps) to (adjusted) 64.2, and UP lowered its OR by a point — having absorbed a 160bps weather impact — to 63.6. It was also noted that “at Union Pacific, we do not include real estate sales in our OR.” Zing! But more than the results — it was the differing tones and tenors of the earnings' webcasts that struck me.

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KCS appoints new leaders of chemical and petroleum, industrial and consumer groups

Kansas City Southern has reorganized its leadership in charge of the chemical, petroleum, industrial and consumer commodity groups, the Class I announced today.

KCS has appointed Ginger Adamiak vice president of energy and chemical products, adding chemical and petroleum in the United States and Mexico to her responsibilities. She previously served as VP energy, industrial development and innovation.

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