Kansas City Southern (KCS) has promoted Rodrigo Flores from Vice President Automotive to Vice President Automotive and Intermodal Sales, effective Sept. 1, 2020. In this expanded role, Flores will be responsible for the automotive and intermodal business units in the U.S. and Mexico.
The Rail Transportation Regulatory Agency of Mexico (ARTF), described as “a decentralized body of the Secretariat of Communications and Transportation,” established, nearly 25 years after the country’s national railroad was privatized, rate regulations for its three railroad concessions—Ferrocarril Mexicano, SA de CV (Ferromex), Ferrosur, SA de CV, and Kansas City Southern de México, SA de CV (KSCM).
“We view concerns around Kansas City Southern’s concession in Mexico as overblown. The exclusivity provision cannot be revisited until 2027 and the concession remains in effect for 20 years after that. Further, KSU is improving its operations via PSR, which should aid Mexico as reliable rail service is likely to be a necessity for the country as it grows its manufacturing base. Reiterate Outperform.”
“Shippers expect rail price increases of 2.3%, up 40bps sequentially, above rail cost inflation, but well below the survey’s average. Economic expectations are all higher sequentially; some remain below the survey’s average while some are very positive indicators. With PSR cost-cutting, growth opportunities and the ability to capitalize on supply chain near-shoring, Kansas City Southern remains our top rail pick.”
Kansas City Southern de Mexico, S.A. de C.V. (KCSM) President, General Manager and Executive Representative Dr. Jose Guillermo Zozaya Delano will retire as of Aug. 1, 2020. Delano will be succeeded by Vice President and Director General Oscar Augusto Del Cueto Cuevas.
The Panel of the Mexican Federal Competition Commission (COFECE) published an excerpt of its final report regarding its assessment of effective competition, and found that 20 of 31 Kansas City Southern (KCS) routes under analysis lacked effective competition. KCS disagrees.
Kansas City Southern announced on March 26 that it will expand the deployment of the CloudMoyo Crew Management tool (CCM) currently used in Mexico on KCSM to its U.S. operations.
Kansas City Southern confirmed on March 21 that the Investigation Authority of the Mexican Federal Competition Commission (COFECE) published an excerpt of its preliminary report about its assessment of effective competition in the market of freight railway transportation services “regarding certain chemical and petrochemical products shipped in certain specific routes with an origin or destination in the southern region of the State of Veracruz.”
Kansas City Southern Railway Co. on March 30 responded to the Surface Transportation Board’s March 16 blanket letter requesting information on Class I railroad 2018 service outlooks.
Chris Aadnesen is retiring as Executive Chairman of the Georgetown Rail Equipment Company (GREX) board of directors, following a long and distinguished railroad industry career, 15 of them with GREX.