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Kansas City Southern profile

By | March 18, 2020

Railroad holding company has long history with and connections to the Midwest, Mexico, Texas, and Gulf of Mexico communities

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An images of a Kansas City Southern locomotive hauling a train in sunlight with blue skies in winter time.
An images of a Kansas City Southern locomotive hauling a train in sunlight with blue skies in winter time.
Kansas City Southern ES44AC No. 4765 leads a Canadian Pacific freight train through southeastern Wisconsin in 2015.
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Kansas City Southern railroad logo

Kansas City Southern summary
Kansas City Southern is a railroad holding company incorporated in Delaware and operating from a headquarters in Kansas City, Missouri. As a railroad, Kansas City Southern is the smallest of the largest seven Class I railroads in North America. It is primarily a north-south operating railroad while its peers operating mostly east-west routes. Kansas City Southern and its subsidiaries employed 7,040 people as of December 2019 and hauled freight between the Midwest, and the Gulf of Mexico, major industrial centers in Mexico, and the Pacific Ocean.

Kansas City Southern subsidiaries
According to the company’s annual report filed with the Securities and Exchange Commission, Kansas City Southern is the holding company responsible for several railroads and railroad companies, including The Kansas City Southern Railway Company; Kansas City Southern de México, S.A. de C.V.; and Mexrail, parent company of The Texas Mexican Railway Company. Kansas City Southern also owns, or partly owns, Panama Canal Railway Company;, KCSM Servicios, S.A. de C.V.; Meridian Speedway, LLC; TFCM, S. de R.L. de C.V., a bulk liquid terminal operator in Mexico; and Ferrocarril y Terminal del Valle de México, S.A. de C.V., a Mexico City-area service provider.

Kansas City Southern history
Kansas City Southern Railway Company dates to 1887 and, according to its SEC filing, serves a 10-state area in the United States including Missouri, Alabama, Louisiana, Mississippi, and Texas. Kansas City Southern de México operates a 50-year rail concession from the Mexican government from the Pacific Ocean port of Lazaro Cardenas, northeast to Texas and the United States. The two subsidiary railroads are connected by 157-mile Texas Mexican Railway Company, known as Tex-Mex. Together the railroads form an approximately 6,700-mile network.

Kansas City Southern industrial mix
In 2019, Kansas City Southern told the SEC, its railroads say Chemical & Petroleum products represent 26% of its railroad traffic followed by Industrial & Consumer Products, 21%; Agriculture & Minerals, 17%; Intermodal, 13%; Automotive, 9%; Energy, 9%; Other commodities, 5%.

See Kansas City Southern’s predecessor railroads, or family tree!

Kansas City Southern CEO Patrick J. Ottensmeyer
Kansas City Southern CEO Patrick J. Ottensmeyer
TRAINS: David Lassen

Kansas City Southern officers (as of December 2019)
•Patrick J. Ottensmeyer — President and Chief Executive Officer — age 62
•Warren K. Erdman — Executive Vice President, Administration and Corporate Affairs — age 61
•Brian D. Hancock — Executive Vice President and Chief Innovation Officer — age 54
•Jeffrey M. Songer — Executive Vice President and Chief Operating Officer — age 50
•Michael W. Upchurch — Executive Vice President and Chief Financial Officer — age 59
•José Guillermo Zozaya Delano — President and Executive Representative — KCSM — age 67
•Lora S. Cheatum — Senior Vice President, Human Resources — age 63
•Michael J. Naatz — Executive Vice President and Chief Marketing Officer — age 54
•Suzanne M. Grafton — Vice President and Chief Accounting Officer — age 44
•Adam J. Godderz — General Counsel and Corporate Secretary — age 45

Kansas City Southern selected 2019 financial details (totals may not balance due to rounding)
Balance sheet:
Total assets: $9.8 billion
Total liabilities: $5 billion
Total shareholders’ equity: $4.7 billion

Income statement:
Total revenues: $2.9 billion
Total operating expenses: $2 billion
Total operating income: $886 million
Total net income: $541 million

Kansas City Southern selected rolling stock details
Total route miles: about 6,700
Employees: 7,040
Locomotives: 750 freight (road) engines; 199 switching engines
Boxcars: 2,822
Hoppers (covered and open top): 6,071
Gondolas: 2,330
Flatcars and intermodal cars: 2,196
Automotive cars: 3,851
Tank cars: 477

The average age of freight locomotives was 15.5 years. The average age of switching locomotives was 45.8 years.

All information taken from a Securities and Exchange Commission filing and made available on Kansas City Southern’s website.

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