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3/12/2003



Rail News: Rail Industry Trends

KCS to merge Gateway Western's identity into mother railroad's by July


On July 1, Kansas City Southern plans to consolidate Gateway Western Railway Co.'s (GWWR) markings into the Class I's — ending the 320-mile short line's separate identity.


Operating from Kansas City, Mo., to East St. Louis and Springfield, Ill., GWWR was purchased by KCS in 1997.
The next year, KCS began migrating general administrative functions — such as accounting, payroll, insurance, claims, human resources and information technology — to the Class I's headquarters.


In 2000, KCS moved the short line's customer-service department from Fairview Heights, Ill., to Shreveport, La. And in October 2001, all GWWR workers became KCS employees.


However, GWWR kept its markings because of the complexity of
consolidating the short line's accounting and computer systems, according to a prepared statement.


But KCS recently implemented Management Control System, which enables the Class I to eliminate redundant systems and streamline processes. So, KCS' accounting, marketing, information technology and operating departments are ready to remove GWWR's markings and consolidate the two railroads' identities into one.


The consolidation won't affect Gateway Eastern Railway, which operates in East St. Louis, Ill., KCS said.












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