Kansas City Southern (company)
|Traded as||NYSE: KSU
S&P 500 Component
|David L. Starling
(CEO & President)
|Total equity||$3914M (2015)|
Kansas City Southern is the parent company of the Kansas City Southern Railway, a Class I railroad headquartered in the Quality Hill neighborhood of Kansas City, Missouri, USA. It is also sometimes known as "The NAFTA Railroad" in reference to the North American Free Trade Agreement because its operations carry goods between the Midwestern United States and Mexico.
Kansas City Southern was founded in 1887 by Arthur Edward Stilwell, with the goal of connecting the U.S. heartland to the Gulf of Mexico. An early slogan for the company was "The shortest route from Kansas City to salt water." Its original network linked Kansas City with Port Arthur, Texas. Although it remained financially strong, it did not add routes until the 1930s, when it expanded to Louisiana. From 1940 to 1969, KCS offered luxury passenger service between Kansas City and New Orleans, but ceased passenger operations due to the growing popularity of auto and air travel.
Due to KCS' geographic placement, the railroad has benefited from the passage of NAFTA in 1995.
KCS attempted to purchase the Southern Pacific Transportation Company from Southern Pacific Santa Fe Railroad Company in 1988, but was defeated by the Rio Grande's parent company, Rio Grande Industries.