Kansas City Southern de México

Infobox rail
railroad_name = Kansas City Southern de México
logo_filename = KCSM Logo.jpg
logo_size = 150
system_

map_size = 300
map_caption = Kansas City Southern system map
marks = TFM
locale = Mexico
start_year = 1997
end_year = present
predecessor_line =
successor_line =
gauge = RailGauge|ussg|lk=on (standard gauge)
length =
hq_city = Mexico City, DF
website = http://www.kcsouthern.com/

Kansas City Southern de México (KCSM), formerly Transportación Ferroviaria Mexicana (TFM), is the name of a company dedicated to freight transportation using rail in the North Eastern part of Mexico. KCSM is fully owned and operated by Kansas City Southern Industries, who owns its own fleet and the rights to operate and maintain a rail system through a concession from the Mexican government. The majority of the rail system spans from the Mexico City Valley to the United States border at Laredo, TX; there are also tracks that connect to the port cities of Lázaro Cárdenas and Veracruz, giving Kansas City Southern de Mexico a unique position because they connect both the Gulf of Mexico and the Pacific Ocean to the United States border. [http://www.kcsouthern.com/en-us/KCS/Pages/CompanyProfiles.aspx Kansas City Southern Company Profiles] , Kansas City Southern Industries.]

History

Kansas City Southern de Mexico was originally formed in 1996 when Kansas City Southern Industries and Transportacion Maritima Mexicana (TMM) purchased a government concession to operate on a rail system in Mexico. It was the Mexican President, Ernesto Zedillo who proposed the privatisation of the Mexican railways because the Mexican railway system had fallen into a state of disrepair and needed drastic work to become profitable. Since the late 1930s, Mexican trains and tracks were property of the government as Ferrocarriles Nacionales de México (Mexican National Railways). The nationalized railroad operated successfully for many years, yet by the 1990's the system was so poorly run, that US railways would not even send rail cars into Mexico, for fear that they would not be returned. When the decision to privatize the railroad was made, only 15% of freight was moved by rail in Mexico (versus 42% in the US [http://www.nationalatlas.gov/articles/transportation/a_freightrr.html Overview of U.S. Freight Railroads] , from the National Atlas.gov.] ) even though the road system in Mexico is relatively poor.

The most sought after portion of the concessions, called the Northeast Railroad, was bid on by many major companies, including the United State's largest railroad company, Union Pacific Railroad. This concession contained about 4,000 km (2,500 miles) of track with connections to many key cities, including Monterrey, San Luis Potosi, Mexico City, and Laredo. This track carried 46% of all rail traffic in Mexico and 60% of all freight coming from the United States [http://www.zsrlaw.com/publications/articles/raa0901.htm Overview of U.S. Freight Railroads] , The Mexican Railroad Industry] . KCSM and TMM bid and won the concession for $1.4 Billion USD for the rights to operate the concession, each paying 49% and 51%, respectively.

In 2005, Kansas City Southern Industries purchased Transportacion Maritima Mexicana's share in TFM, giving them full ownership of the company, and the TFM was officially renamed Kansas City Southern de Mexico, S.A. de C.V. [cite news| author=Heaster, Randolph| publisher=Kansas City Star| date=December 6 2005| url=http://www.kansascity.com/mld/kansascity/business/13336418.htm| title=Kansas City Southern railroad has new name| accessdate=2005-12-06| ] . Today, KCSM consists of 2,661 track miles, serving northeastern and central Mexico and the port cities of Lazaro Cardenas, Tampico, and Veracruz among others.

Key Connections

* Monterrey
* San Luis Potosi
* Mexico City
* Laredo
* Queretaro
* Saltillo
* Guadalajara
* Lázaro Cárdenas
* Veracurz
* Tampico

References

External links

* [http://www.kcsouthern.com KCSM official website]
* [http://www.kcsouthern.com/en-us/Pages/default.aspx Kansas City Southern official website]