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Rail News Home Kansas City Southern 12/11/2017 Rail News: Kansas City Southern
This month, the company is opening eight Mobile-branded service stations in Queretaro, Mexico.Photo – Business Wire

Rail News Home Kansas City Southern 11/15/2017 Rail News: Kansas City Southern
Kansas City Southern has been recognized by the Women's Forum of New York for its efforts to diversify the makeup of its corporate board.At an event yesterday, the Class I was honored for achieving at least 25 percent female representation on its corporate board. Twenty-five percent of KCS board members are women, according to a KCS press release.At the forum's 2017 Breakfast of Corporate Champions, KCS was cited as a "corporate game changer" for its efforts."We congratulate KCS and their work towards achieving a greater gender balance in their boardroom," said Janice Reals Ellig, chief executive of The Ellig Group and chair of the Women's Forum of New York. "KCS knows that more women on boards is smart business and their continued success is an inspiration to others."Meanwhile, Latino Leaders magazine's September/October issue recognized three Latino members of the KCS board. The magazine highlighted KCS directors Lu Cordova, Antonio Garza Jr. and David Garza-Santos among 100 Latino directors in its special 2017 Corporate and Board Edition."KCS embraces the tremendous value that comes from the diversity of our board and throughout the company, which is why we are so proud to be recognized by these two organizations," said KCS President and CEO Patrick Ottensmeyer.

Rail News Home Kansas City Southern 11/7/2017 Rail News: Kansas City Southern
Kansas City Southern de Mexico will serve a new petroleum transload terminal that will begin operations in central Mexico on Jan. 1, 2018.A Savage Cos. subsidiary will operate the terminal and has plans to expand it later next year, Savage officials said in a press release.The terminal is located near the city of Queretaro. Initially, it will serve manifest rail volumes, transferring products directly from rail cars to trucks. Once permitting approvals are received, Savage plans to add tank storage and fixed facilities for high-speed unloading, product blending and truck loading.At full buildout, the facility will be capable of handling unit trains."We have a long and prosperous relationship with Savage in the U.S. and we are honored to extend our mutually beneficial endeavors to Mexico, where we believe this terminal will facilitate additional refined product exports from U.S. Gulf Coast refineries in support of Mexico energy reform," Kansas City Southern President and Chief Operating Officer Patrick Ottensmeyer said in the press release.

Rail News Home Kansas City Southern 10/24/2017 Rail News: Kansas City Southern
USD Group LLC subsidiary Queretaro Energy Terminal (QET) has begun construction of a multimodal transloading terminal for petroleum product distribution in Queretaro, Mexico, the company announced yesterday.The QET will be served by Kansas City Southern de Mexico with access to all North American Class Is, according to a USD Group press release."Our investment in QET provides an attractive opportunity to establish a presence in the growing Mexican market while leveraging our logistics expertise in support of an existing and profitable business," said Steve Magness, vice president, business development for USD Group. "We believe rail will provide timely, flexible and sustainable distribution capabilities necessary to improve access to energy supplies that will help fuel Mexico's economic growth."Queretaro is located less than 150 miles from Mexico City.

Rail News Home Kansas City Southern 10/18/2017 Rail News: Kansas City Southern
Kansas City Southern Railway Co. announced yesterday it has consolidated occupational health, workplace and public safety, and environmental functions into a new group within the company's operations.As part of the consolidation, KCS promoted Kayden Howard from associate general counsel to the newly created position of vice president health, safety and environmental. Howard has been with KCS since 2005.KCS also will create a new position of assistant vice president health and safety. The person appointed to that post will lead the team responsible for the ongoing design, implementation and administration of workplace safety and health programs for the company, KCS officials said in a press release.KCS Executive Vice President Jeff Songer said he is confident that Howard "will continue to enhance our overall commitment to safety."Prior to joining KCS, Howard practiced labor and employment law with the firm Shook, Hardy & Bacon, and worked for the U.S. Department of Labor.

Rail News Home Kansas City Southern 8/31/2017 Rail News: Kansas City Southern
Kansas City Southern and Bulkmatic Transport Co. have signed a memorandum of understanding to form a joint venture investment that will facilitate and expand the export of liquid fuels from the United States to Mexico.The project will include construction of a unit train liquid fuels terminal in Salinas Victoria near Monterrey, Nuevo Leon, in Mexico. Kansas City Southern de Mexico will serve the new terminal, KCS officials said in a press release.KCS and Bulkmatic will invest $50 million over the next few years to develop the terminal, which is scheduled to begin limited operations in the third quarter and have storage facilities available in mid-2018 to provide retail fuel for the Monterrey area.The 50-50 joint venture is a result of Mexico's 2013 energy reform legislation aimed at opening the nation's energy markets to foreign investment and the importation of refined energy products, including gasoline and diesel."The terminal will provide vitally needed refined energy products and boost job creation in the U.S. and Mexico," said KCS President and Chief Executive Officer Patrick Ottensmeyer. "The project neatly aligns Mexican energy reform goals with U.S. refining companies' desire to expand their operations into new markets."The agreement will help create a "cost-efficient linkage between Mexican consumers and U.S. producers of refined products," said Bulkmatic CEO Alfie Bingham.

Rail News Home Kansas City Southern 8/22/2017 Rail News: Kansas City Southern
TYR Energy Logistics LLC has acquired control of the Bronco Road Railroad Terminal (BRRT) in Corpus Christi, Texas, the company announced yesterday.Located south of the city's "Refinery Row," BRRT is the only rail terminal in Corpus Christi directly connected to a Kansas City Southern line, which provides access via Kansas City Southern de Mexico to all major markets in northeastern and central Mexico, TYR officials said in a press release.BRRT features five miles of track and was recently renovated. TYR is finalizing an agreement that would give BRRT direct access to dock facilities on the south side of the Port of Corpus Christi.The company plans to connect the terminal to the port via pipeline and truck to allow two-way flow of product for import and export from supply markets, TYR officials said.The direct connection to KCS provides several advantages, said TYR Chief Executive Officer Aaron Ball."Kansas City Southern is unique in its ownership of an extensive line on both sides of the U.S.-Mexico border," Ball said. "Our customers have direct access to Mexico and don’t have to pay fees associated with using multiple rail lines for most of the major markets. We also view rail as the most reliable and secure form of refined fuels transportation in Mexico."

Rail News Home Kansas City Southern 5/30/2017 Rail News: Kansas City Southern
Kansas City Southern today announced the addition of four new directors to its board effective immediately.The additions bring the board to 12 members, 11 of which are independent, KCS officials said in a press release.The new members are Mitch Krebs, Lydia Beebe, Janet Kennedy and Henry Maier. "The diverse backgrounds and wide range of expertise of these new directors substantially strengthens the Board's ability to oversee the achievement of our long-term strategic objectives," said KCS Chairman Robert Druten. "They also have very important insights relating to financial structure and capital allocation, strategy development, corporate governance, technology and cybersecurity, and transportation as well as international operating experience in Mexico, which further complement and enhance the skill sets of our other directors."Krebs is president and chief executive officer of Coeur Mining Inc., a global producer of silver and gold with mines in North and South America, including Mexico. Beebe has served in various executive roles at Chevron Corp., most recently as its chief governance officer. She is an adviser on corporate strategy and current serves as senior of counsel with the law firm Wilson Sonsini Goodrich & Rosati.Kennedy is president of Microsoft Canada, a subsidiary of Microsoft Corp. She has more than 20 years of experience in sales and marketing of business solutions.Maier is president and CEO of FedEx Ground, a subsidiary of FedEx Corp. Prior to assuming that role in 2013, Maier held various senior executive roles in marketing, communications and strategic planning. Contact Progressive Railroading editorial staff. More News from 5/30/2017

Rail News Home Kansas City Southern 5/24/2017 Rail News: Kansas City Southern
Kansas City Southern Railway Co. will increase train speed from 25 mph to 49 mph on 2.6 miles of track in Louisiana starting June 4, the Class I announced Monday.The speed increase will occur along track between Major Parkway and Woodman Road in New Roads, La. The maximum speed will be increased incrementally, starting with 30 mph on June 4, followed by 35 mph on June 11, 40 mph on June 18, 45 mph on June 25 and 49 mph on July 2, KCS officials said in a press release.Faster train speed on the track segment was made possible by a major track rehabilitation, they said.The railroad and Louisiana Operation Lifesaver officials reminded the community to practice safety around rail crossings and urged pedestrians to stay off railroad rights of way."Always expect a train," they said. Contact Progressive Railroading editorial staff. More News from 5/24/2017

Rail News Home Kansas City Southern 5/17/2017 Rail News: Kansas City Southern
Kansas City Southern Railway Co. will spend $24.6 million this year on construction and improvement projects on its rail line through Missouri, Arkansas, Oklahoma, Texas and Louisiana.The work will be completed on its Pittsburg, Heavener and Shreveport subdivisions, according to a KCS press release.The Class I has planned rail, tie and crossing improvements between Neosho, Mo., and Blanchard, La. The work is expected to begin May 30 and continue through late August. In total, the project will include the replacement of 7.7 miles of rail and 90,000 ties, as well as improvements to more than 130 grade crossings."KCS, through its U.S. and Mexican subsidiaries, continues to invest in capital projects to expand network capacity, keep maintenance in a regular and healthy cycle, and enhance the safety of our operation," said President and Chief Executive Officer Patrick Ottensmeyer. "These investments also help us be an economic growth partner to our customers and the communities through which we operate." Contact Progressive Railroading editorial staff. More News from 5/17/2017

Rail News Home Kansas City Southern May 2017 Rail News: Kansas City Southern

Kansas City Southern de Mexico has implemented a customized crew call system.Photo – KCS By Kansas City SouthernIn 2016, Kansas City Southern’s Information Technology (IT) team deployed CPM-Mexico Crew Call — transforming time-consuming manual processes and a legacy server into an efficient, cloud-based automated crew management solution for Kansas City Southern de Mexico S.A. de C.V. (KCSM).Since 1998, KCSM — which serves northeastern and central Mexico, including the ports in Lázaro Cárdenas, Tampico and Veracruz — had been using a self-developed crew management application on a legacy client server. Manual processes were used for train scheduling, union rules for crew pool order, crew assignments and exceptions, calling crews via a LAN line and confirming via text, taxi service, operational reporting and payroll.“In all areas of the company, KCSM is progressively seeking innovative solutions,” said Mike Naatz, KCS’ senior vice president of operations support and chief information officer. “From an IT standpoint, we want solutions that speed fact-based decision-making, automate activities and simplify management, enabling people to grow from task managers to strategic thinkers.”When KCSM’s application no longer worked well with newer company technologies, the railroad began evaluating its options for moving forward. While other crew management technology solutions were available in the industry, KCSM sought a more customizable and cost-effective solution.“In many ways, KCSM is not like other railroads, so a one-size-fits-all industry solution doesn’t always make sense for us,” said Wayne Godlewski, KCS’ vice president of information technology. “We teamed up with CloudMoyo, hosted extensive requirements sessions with IT, transportation, labor relations and payroll to identify where we can improve, and customized the CloudMoyo Public Transport Management System [CPM] into the CPM-Mexico Crew Call.”The new CPM-Mexico Crew Call is transforming the way KCSM operates by automating tasks and providing real-time data to more effectively manage the business. Newly-automated functions include:
• Crew availability tracking;
• Crew pool order management;
• Interactive Voice Response (IVR) crew assignment acceptance and tie-up;
• Employee incident management (e.g. on rest, vacation, medical leave);
• Improved compliance with union agreements;
• Real-time notifications to the crew office; and
• Integration with the KCS Management Control System (MCS), Track Warrant System (TMDS), SAP, Sirius and other operating systems.CPM-Mexico Crew Call effectively schedules crews for trains by managing crew availability, allocation order and attendance, as well as train schedule compliance with an IVR notification and acceptance system. The system uses the Microsoft Azure cloud and advances in mobile technology to balance crew and equipment needs in a manner that is cost-effective and enables quicker time to deployment and higher return on investment. And, workforce and logistics management, delivered via a state-of-the-art user experience, leads to an improved work experience for crews, a reduction in overtime (cost savings) and a stricter adherence to labor laws.

All this automation is displayed on dashboards providing predictive analytics and actionable data. Now that KCSM has visibility of real-time data to monitor and react to train delays in a timely manner, the company can improve its forecasting of crew supply and demand to promote safety and operational efficiencies, thus improving service times for customers and value for shareholders. With real-time data brought to life, managers can make fact-based decisions and take action to keep the organization on track.“We are very pleased with our progress to date in terms of technology solutions and operating process improvements. We’ve already been able to decommission some related legacy systems and upgrade others,” said Godlewski.  The data speaks volumes about where the company has been and where it’s headed now, he added.“With more predictive analytics, we’ll also be able to forecast where we’re going, which is truly where the innovation lies,” said Godlewski.
Keywords Browse articles on Kansas City Southern Kansas City Southern de Mexico CPM-Mexico Crew Call CloudMoyo Contact Progressive Railroading editorial staff.

Rail News Home Kansas City Southern 4/21/2017 Rail News: Kansas City Southern
Kansas City Southern de Mexico (KCSM) yesterday filed a formal response to challenge the Mexican Federal Competition Commission's report on effective competition in Mexico's freight railroad system.KCSM filed its arguments and evidence to challenge the March 15 preliminary report in which the commission's investigative authority found a lack of effective competition regarding interconnection services for trackage rights for the KCSM, Ferromex, Ferrosur and Ferrovalle railroads, according to a KCSM press release.The report has no legal or regulatory implications for KCSM's concession title rights or railroad operations. However, the competition panel's investigation was based on "faulty economic analysis," KCSM officials believe.KCSM cited three reports issued by the Organization for Economic Cooperation and Development (OECD) that railroad officials believe contain important conclusions and findings that should have been considered by the commission's investigative authority.The three OECD reports cited are "Peer Review of Railway Freight Development in Mexico," issued in 2014; “Establishing Mexico's Regulatory Agency for Rail Transport," issued in 2016; and “Review of the Regulation of Freight Transport in Mexico," issued in 2017.The competition panel has 110 business days to analyze the arguments submitted in response to the preliminary report and issue a final report. KCSM parent Kansas City Southern officials said they believe KCSM's response to the commission's report "is compelling and should lead to an amended final report." Contact Progressive Railroading editorial staff. More News from 4/21/2017

4/21/2017    

Rail News: Kansas City Southern

Rail News Home Kansas City Southern 4/21/2017 Rail News: Kansas City Southern
Kansas City Southern today reported first-quarter revenue climbed 8 percent to $610 million on a 6 percent increase in carloads compared with first-quarter 2016.Excluding an estimated impact of Mexican peso depreciation, revenue rose 11 percent compared with the same period a year ago, KCS executives said in a press release.Operating income jumped 12 percent to $211 million. Reported diluted earnings per share (EPS) rose 39 percent to $1.38 from 99 cents per share a year ago. Adjusted diluted EPS rose 14 percent to $1.17 from $1.03 in Q1 2016.Year over year, operating ratio declined to 65.4 percent from 66.6 percent.KCS President and Chief Executive Officer Patrick Ottensmeyer described the first-quarter performance as "solid and clean." The railroad's first-quarter revenue, volumes, operating ratio and EPS were all records, he said. Revenue increased in four commodity groups led by a 64 percent increase in energy and a 25 percent increase in automotive. Revenue from chemical and petroleum climbed 8 percent and agriculture and minerals rose 6 percent in the quarter compared with last year.Two business areas saw "relatively modest" declines: intermodal, down 2 percent, and industrial and consumer, down 1 percent compared to Q1 2016, Ottensmeyer said.Operating expenses increased 6 percent to $399 million. Excluding an estimated impact of Mexican peso depreciation, operating expenses rose 9 percent compared with Q1 2016 expenses.For the remainder of 2017, KCS' outlook is "favorable" for 75 percent of its business volume and "neutral" for 25 percent. Favorable markets are automotive, energy, chemicals and petroleum, and intermodal; neutral markets are agriculture and minerals and industrial and consumer."We all remain focused on operational improvements and longer-term growth drivers and are excited to see some of these opportunities, such as refined products movements, materialize in 2017," said Ottensmeyer. Contact Progressive Railroading editorial staff. More News from 4/21/2017

4/21/2017    

Rail News: Kansas City Southern