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Rail News: Kansas City Southern

NAFTA Rail receives Mexican competition commission's stamp of approval


On June 25, Mexico's Competition Commission approved Kansas City Southern's NAFTA Rail plan without conditions.

The proposed combined railway complies with Mexico's competition guidelines and would not impede rail competition, the commission said.

"NAFTA Rail will enhance competition in Mexico and the United States, as it will provide North American shippers with another viable shipping alternative," said Mike Haverty, KCS chairman, president and chief executive officer, in a prepared statement.

In April, KCS announced plans to place The Kansas City Southern Railway Co. (KCSR), The Texas Mexican Railway Co. and TFM S.A. de C.V. under the common control of NAFTA Rail, a Kansas City, Mo.-based transportation holding company.

The plan still needs to be blessed by Mexico's Foreign Investment Commission, which is expected to issue a ruling by July's end. Also, Surface Transportation Board would have to approve KCS' plan to place common control of KCSR and Tex-Mex under NAFTA Rail. The board, which recently characterized the plan as a minor transaction, expects to issue a ruling Oct. 17.

Contact Progressive Railroading editorial staff.

More News from 6/26/2003