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Rail News Home Kansas City Southern 3/17/2017 Rail News: Kansas City Southern
Kansas City Southern officials issued a statement yesterday saying they disagree with the Mexican Economic Competition Commission's conclusion that competition is lacking in certain areas of the freight-rail market in Mexico.KCS officials were reacting to the commission's preliminary report on effective competition in the market for interconnection services, trackage and switching rights used to provide freight-rail services in Mexico. The commission concluded that the conditions of effective competition are lacking in the market of trackage rights in the networks operated by KCS de Mexico S.A. de C.V. (KCSM),  Ferrocarril Mexicano S.A. de C.V., and Ferrocarril and Terminal del Valle de México S.A. de C.V., an entity partially owned by KCSM.In the next 20 days, KCS will file evidence and arguments with the commission in favor of their position, company officials said.They also noted that the commission's conclusions have no impact on KCSM's business or operations. If the commission confirms its findings, Mexico's railway regulatory agency would have the authority to consider certain remedies, including setting mandatory trackage rights on KCSM for specific commodities or routes. Contact Progressive Railroading editorial staff. More News from 3/17/2017

3/17/2017    

Rail News: Kansas City Southern

Rail News Home Kansas City Southern 1/20/2017 Rail News: Kansas City Southern
Kansas City Southern today reported fourth-quarter 2016 net income of $130 million, or $1.21 per diluted share, compared with $140 million, or $1.28 per diluted share, in fourth-quarter 2015. Adjusted diluted earnings per share came in at $1.12 for Q4 2016, down from $1.23 in Q4 2015, KCS officials said in a press release.The Class I's revenue of $599 million for the quarter remained unchanged from the same period a year ago, they said.Overall, carload volumes also were unchanged in the quarter compared with the prior year. Excluding the estimated impact of Mexican peso depreciation, revenue would have increased 3 percent compared with revenue in Q4 2015, KCS officials said.Operating income during Q4 2016 fell 4 percent to $211 million compared with Q4 2015. KCS' operating ratio for the quarter was 64.8 percent, a 1.4 point increase from Q4 2015.Operating expenses during the quarter rose 2 percent to $388 million compared with the year-ago quarter.KCS' quarterly results missed Wall Street analysts' expectations for earnings and revenue.For the full year 2016, net income totaled $480 million, or $4.43 per diluted share, compared with $485 million, or $4.40 per diluted share, in the previous year. Adjusted diluted earnings per share were $4.48 compared with $4.49 in 2015.KCS posted $2.3 billion in revenue for full-year 2016, down 3 percent compared with 2015's revenue. Carloads declined 2 percent to 2.17 million during the year compared with the previous year. Operating income for all of 2016 rose 2 percent to $819 million. The 2016 operating ratio was 64.9 percent, a 1.9 point improvement from 2015's operating ratio and a 1.5 point improvement from the prior year's adjusted operating ratio."KCS' ability to react swiftly and efficiently was proven throughout 2016, as our network faced challenging operational interruptions throughout the year. In addition, volatility in key commodities such as energy, consumer, and intermodal markets created uncertainty during 2016," said KCS President and Chief Executive Officer Patrick Ottensmeyer. "Despite these conditions, KCS' achieved a full-year operating ratio of 64.9 percent, a 1.5 point improvement versus 2015 adjusted."The company is aware of the economic and political uncertainty ahead in 2017, Ottensmeyer said."However, we continue to emphasize our commitment to growth and we are well positioned to take full advantage of the significant new business opportunities that lie ahead of us." he added. Contact Progressive Railroading editorial staff. More News from 1/20/2017

1/20/2017    

Rail News: Kansas City Southern

Rail News Home Kansas City Southern 1/13/2017 Rail News: Kansas City Southern
Patrick OttensmeyerPhoto – Kansas City Southern

1/13/2017    

Rail News: Kansas City Southern

Rail News Home Kansas City Southern 1/12/2017 Rail News: Kansas City Southern
Kansas City Southern, Watco Cos. LLC and WTC Industrial announced a joint venture investment to aid and expand the exportation of liquid fuels from the United States to Mexico.The project will include the construction of a unit-train liquid fuels terminal to be located in the WTC Industrial Park in San Luis Potosi, Mexico. Kansas City Southern de Mexico S.A. de C.V. (KCSM) will be the only railroad to serve the new terminal, KCS officials said in a press release.The joint venture stems from energy reform legislation Mexico passed in 2013 to open the nation's energy markets to foreign investment and the importation of refined energy products, including gasoline and diesel, KCS officials said.“Not only will the terminal provide Mexico with vitally needed refined energy products, it will also serve to boost job creation in both the U.S. and Mexico," said KCS President and Chief Executive Officer Patrick Ottensmeyer. "This project perfectly aligns the goals of Mexican energy reform with the desire of U.S. refining companies to expand their operations and enter new markets.”The joint venture partners will invest $45 million in this phase of the project, which is expected to be completed in the second quarter. The project also is anticipated to eventually include a storage facility to provide retail fuels to Central Mexico.“KCS looks forward to serving this major fluids distribution terminal in San Luis Potosi,” said Ottensmeyer. “It provides us with excellent cross-border line haul opportunities as well as moving product within Mexico on KCSM."Construction on the new rail terminal at the WTC Industrial park is "well underway and on schedule," said Allen Roach, Watco’s senior vice president of network strategy. "The location adjacent to the KCSM mainline ensures easy access to the terminal and quick cycle times of customer rail cars," he said. "The terminal is located in a Free Trade Zone, which provides an added economical advantage to rail shippers."The terminal will support 24-hour, seven-days-a-week operations for secured, fully automated unit-train and manifest shipments, Roach added. Contact Progressive Railroading editorial staff. More News from 1/12/2017

1/12/2017    

Rail News: Kansas City Southern

Rail News Home Kansas City Southern 11/15/2016 Rail News: Kansas City Southern
Shown are KCS board members who were present for the dedication ceremony. From left to right are Patrick Ottensmeyer, Lu Cordova, Antonio Garza Jr., Robert Druten, David Starling, Thomas McDonnell, Terrence Dunn and David Garza.Photo – Kansas City Southern

11/15/2016    

Rail News: Kansas City Southern

Rail News Home Kansas City Southern 11/14/2016 Rail News: Kansas City Southern
Kansas City Southern and Kansas City Southern de Mexico hosted a symposium in Houston last week on how the railroads' cross-border network is serving Mexico's growing energy market.The symposium addressed topics aimed at customers and service providers seeking to do business with Mexico's energy market. Participants included energy shippers and transportation providers from throughout North America, KCS officials said in a press release.Topics included an overview of new regulations and what they mean for the market; railroad infrastructure capacity and consistent, reliable and flexible service capabilities to handle current and future traffic; safety and security programs to move products; and the practical aspects of importing fuel to Mexico."KCS and KCSM are well-positioned to transport refined products cross-border. With KCSM's direct access to Monterrey, San Luis Potosi and Queretaro, we can bridge the gap and serve this market well," said KCS Executive Vice President and Chief Marketing Officer Brian Hancock.In addition to Hancock, speakers included KCSM Servicios Senior Vice President Operations Oscar Del Cueto, KCS Director International Purchasing Manuel Elizondo and KCSM Security Adviser Jim Kniestedt of the Gravick Group. Contact Progressive Railroading editorial staff. More News from 11/14/2016

11/14/2016    

Rail News: Kansas City Southern

Rail News Home Kansas City Southern 10/18/2016 Rail News: Kansas City Southern Kansas City Southern Railway Co. will increase train speed on 2.5 miles of track in Gulfport, Miss., starting Oct. 31, the railroad announced yesterday.Speed will increase on track between Martin Luther King Street and Highway 90 from 10 mph to 20 mph. The higher speed is possible because of a major track rehabilitation effort that will help aid economic development in the region, KCSR officials said in a press release.The railroad has partnered with Mississippi Operation Lifesaver in informing community members to be aware of the faster train speed. They urged motorists and pedestrians to stay off railroad rights of way and to "always expect a train" at any crossing. Contact Progressive Railroading editorial staff. More News from 10/18/2016

10/18/2016    

Rail News: Kansas City Southern

Rail News Home Kansas City Southern 10/18/2016 Rail News: Kansas City Southern
Kansas City Southern's third-quarter revenue slipped 4 percent to $605 million versus the same quarter last year, the Class I reported this morning. Overall carload volumes fell 4 percent compared with a year ago. Excluding the peso and fuel-price factors, KCS' third-quarter revenue would have been down 1 percent compared with last year's quarter, company officials said in a press release.KCS third-quarter revenue declined in four commodity groups, which was partially offset by small increases in agriculture and minerals, and chemicals and petroleum. Intermodal revenue dropped 7 percent largely because of service disruptions on the Mexican network.Reduced U.S. drilling operations continue to affect KCS's crude oil and frac sand movements. As a result, energy revenue fell 15 percent during the third quarter versus a year ago.The railroad posted third-quarter net income of $121 million, or $1.12 per diluted share, compared with $132 million, or $1.20 per diluted share, in third-quarter 2015. Operating income for the quarter declined 9 percent to $200 million compared with year-ago results. The company's operating ratio was 66.9 percent, a 1.7 point increase from third-quarter 2015.The quarter's operating expenses were down 2 percent to $405 million compared with last year. However, excluding the estimated impacts of Mexican peso depreciation and lower U.S. fuel prices, operating expenses rose 2 percent. Also during the quarter, KCS recognized a $16 million Mexican fuel excise tax credit. Additionally, the Class I recorded a year-to-date adjustment to increase the incentive compensation level for the year."Kansas City Southern faced a challenging third quarter as extraneous events, including flooding outages and service disruptions on our Mexican network, resulted in additional operating costs," said President and Chief Executive Officer Patrick Ottensmeyer. "In spite of these events, KCS' third-quarter carloads grew 5 percent sequentially with strength seen in both the automotive and energy commodity groups. Overall, the company remains committed to growth and we continue to invest and prepare for the many long-term opportunities on the horizon." Contact Progressive Railroading editorial staff. More News from 10/18/2016

10/18/2016    

Rail News: Kansas City Southern

Rail News Home Kansas City Southern 10/13/2016 Rail News: Kansas City Southern
Kansas City Southern announced Tuesday that it will spend $5.6 million this year on construction and improvement projects on its Louisville Subdivision in Mississippi.
 
KCS plans to make crosstie and grade-crossing improvements between Philadelphia and Newton, Miss., starting Oct. 25 through early November. Communities the Class I will work through include Philadelphia, Neshoba, Union, Decatur, and Newton, Miss.The work includes replacing 27,000 crossties and improving 26 grade crossings. In August, KCS announced a slate of construction and improvement projects in Texas and Louisiana. Contact Progressive Railroading editorial staff. More News from 10/13/2016

10/13/2016    

Rail News: Kansas City Southern

Rail News Home Kansas City Southern 10/7/2016 Rail News: Kansas City Southern
A KCS intermodal trainPhoto – Kansas City Southern

10/7/2016    

Rail News: Kansas City Southern