KC Southern, Grupo TMM to combine into NAFTA Rail
May 01, 2003
by Emily Buckley
KANSAS CITY, MISSOURI, U.S. — Kansas City Southern and Grupo TMM, S.A. have announced a series of agreements that will place The Kansas City Southern Railway Company, the Texas Mexican Railway Company, and TFM, S.A. de C.V. under the common control of a single transportation holding company, NAFTA Rail, to be headquartered in Kansas City. As part of the transaction, KCS will change its name to NAFTA Rail, which will trade on the New York Stock Exchange.
The changes have been approved by the companies’ boards of directors, but remain subject to shareholder and regulatory approval. The common control of and the Texas Mexican Railway requires approval of the U.S. Surface Transportation Board. Additionally, the acquisition of Grupo TFM shares by NAFTA Rail would require the approval in Mexico.
"Common control of these three railroads, will enhance competition and give shippers in the NAFTA trade corridor a strong transportation alternative as they make their decisions to move goods between the United States, Mexico and Canada," said Michael R. Haverty, chairman, president, and chief executive officer of KCS.
Headquartered in Kansas City, KCS serves customers in the central and south central regions of the U.S. Headquartered in Mexico City, Grupo TMM is a Mexican multimodal transportation company and logistics provider. Grupo TMM also has the controlling interest in TFM, which operates Mexico’s Northeast Rail Lines and carries more than 40% of the country’s rail cargo.