KCS Renames Mexican Railroad ‘Kansas City Southern de Mexico, S.A. de C.V.,’ restructures management

KANSAS CITY, Mo.– Kansas City Southern has changed the name of its Mexican subsidiary, TFM, S.A. de C.V., to “Kansas City Southern de Mexico, S.A. de C.V.” KCS is also combining the management of certain marketing and support services for its U.S. and Mexican railroads, as well as other management changes at KCSM.

The new name communicates to various audiences the common ownership and seamless marketing of services on both sides of, and across, the U.S.-Mexican border. It also communicates KCS’ pride in its Mexican railroad and its commitment to Mexico, say company officials.

By combining the management of marketing and support services, KCS will promote close coordination between the U.S. and Mexican operations.

The integration of many of the marketing and support services for U.S. and Mexican operations has already begun. In November 2005, KCS announced the appointment of Richard M. Zuza, senior vice president of international purchasing and materials, who is responsible for purchasing for the entire KCS enterprise.

The intermodal and automotive sales and marketing functions of The Kansas City Southern Railway Company (KCSR) and KCSM have been combined and will be led by Michael J. Smith, vice president sales and marketing intermodal and automotive business unit.

The new combined group will focus on longer-haul and cross-border traffic. Likewise, vice president and chief information officer Scott E. Arvidson will lead the information technology function for both KCSR and KCSM. KCS plans to implement its Management Control System (MCS) at KCSM sometime next year, fully integrating the two railroads’ operating platforms. Other marketing and support services will be combined over the next month. Each of these steps will enable KCS to realize better efficiency and ensure a coordinated approach on cross-border opportunities.

“In the months since KCS acquired full ownership of KCSM, we have steadily sharpened our focus on day-to-day operations and customer service. We intend to keep management of train operations of KCSM in Monterrey with Mexican management, but we also want to realize the benefits of integration in marketing, information technology, purchasing and other areas. The new management structure announced today will help us realize our vision of a seamless transportation company serving the growing markets between Mexico and the U.S.,” said Michael R. Haverty, KCS chairman, president and chief executive officer. said Haverty.