Kansas City Southern de Mexico Experiencing Service Disruptions Due to Civil Protests
July 25 2016 - 4:51PM
Business Wire
Over the last several days, Kansas City Southern de Mexico, S.A.
de C.V. (KCSM), a subsidiary of Kansas City Southern (KCS) (NYSE:
KSU), has been experiencing service interruptions and shipment
delays due to a series of civil protests on or near its rail
network. The protests are continuing to impede KCSM’s ability to
provide efficient freight rail service to its customers.
The track blockages are not the result of any action of KCSM,
but part of more generalized civil disobedience directed at the
government of Mexico. The protests are also impacting the service
of other Mexican railroads and transportation companies. Resolution
of the civil protests depends on the intervention and negotiations
carried out by the relevant union and governmental authorities. To
that end, KCSM, along with other transportation companies and
businesses impacted by the civil disturbances, have requested the
appropriate authorities to intervene so as to resolve the situation
as expeditiously as possible. However, at this time it is not
possible to project when regular service will be restored, nor
estimate the financial impact, if any, the protests will have on
KCSM.
Headquartered in Kansas City, Missouri, KCS is a transportation
holding company that has railroad investments in the U.S., Mexico
and Panama. Its primary U.S. holding is The Kansas City Southern
Railway Company, serving the central and south central U.S. KCS’s
international holdings include Kansas City Southern de México, S.A.
de C.V. (“KCSM”), serving northeastern and central Mexico and the
port cities of Lázaro Cárdenas, Tampico and Veracruz, and a 50
percent interest in the Panama Canal Railway Company, providing
ocean-to-ocean freight and passenger service along the Panama
Canal. KCS’s North American rail holdings and strategic alliances
are primary components of a NAFTA Railway system, linking the
commercial and industrial centers of the U.S., Mexico and
Canada.
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version on businesswire.com: http://www.businesswire.com/news/home/20160725006311/en/
Kansas City SouthernWilliam H. Galligan,
816-983-1551bgalligan@kcsouthern.com
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