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2/10/2005



Rail News: Rail Industry Trends

KCS, Tex Mex reps talk transition strategy


On Tuesday, representatives from Kansas City Southern and The Texas Mexican Railway Co. met in Kansas City, Mo., to discuss the progress of integrating Tex Mex into KCS' operations.

Officials from KCS' finance, marketing, information technology, labor relations, law, transportation, human resources, mechanical, contracts, internal audit and corporate affairs departments, and members of Tex Mex's management team mapped out remaining aspects of the transition, which is expected to be completed by mid-year. Although KCS and Tex Mex will be managed by one company and governed by the same operating procedures, Tex Mex will retain its own identity.

In April, Tex Mex will begin to phase out its information technology (IT) systems — including revenue and pricing applications — and migrate IT to KCS' systems. Tex Mex already is using KCS' Management Control System computer platform, and soon will begin using the Class I's Enterprise Workforce Management system for payroll and timekeeping functions.

Tex Mex's transportation, engineering, mechanical and police departments already have been integrated or will undergo minor changes. KCS plans to substantially alter the road's finance and marketing departments, according to a prepared statement.

In November, the Surface Transportation Board approved KCS' application to control Tex Mex and the U.S. portion of the International Rail Bridge in Laredo, Texas, per a deal with former Tex Mex majority owner Grupo TMM S.A. KCS assumed control of the railroad Jan. 1.


Contact Progressive Railroading editorial staff.

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