The Kansas City Southern Railway Company is an American

Class I railroad Railroad classes are the system by which Rail freight transport, freight railroads are designated in the United States. Railroads are assigned to Class I, II or III according to annual revenue criteria originally set by the Surface Transportatio ...

. Founded in 1887, it operated in 10

Midwestern The Midwestern United States (also referred to as the Midwest, the Heartland or the American Midwest) is one of the four census regions defined by the United States Census Bureau. It occupies the northern central part of the United States. It ...

and Southeastern

U.S. state In the United States, a state is a constituent political entity, of which there are 50. Bound together in a political union, each state holds governmental jurisdiction over a separate and defined geographic territory where it shares its so ...

Illinois Illinois ( ) is a U.S. state, state in the Midwestern United States, Midwestern United States. It borders on Lake Michigan to its northeast, the Mississippi River to its west, and the Wabash River, Wabash and Ohio River, Ohio rivers to its ...

Missouri Missouri (''see #Etymology and pronunciation, pronunciation'') is a U.S. state, state in the Midwestern United States, Midwestern region of the United States. Ranking List of U.S. states and territories by area, 21st in land area, it border ...

Kansas Kansas ( ) is a landlocked U.S. state, state in the Midwestern United States, Midwestern region of the United States. It borders Nebraska to the north; Missouri to the east; Oklahoma to the south; and Colorado to the west. Kansas is named a ...

Oklahoma Oklahoma ( ; Choctaw language, Choctaw: , ) is a landlocked U.S. state, state in the South Central United States, South Central region of the United States. It borders Texas to the south and west, Kansas to the north, Missouri to the northea ...

Arkansas Arkansas ( ) is a landlocked state in the West South Central region of the Southern United States. It borders Missouri to the north, Tennessee and Mississippi to the east, Louisiana to the south, Texas to the southwest, and Oklahoma ...

Tennessee Tennessee (, ), officially the State of Tennessee, is a landlocked U.S. state, state in the Southeastern United States, Southeastern region of the United States. It borders Kentucky to the north, Virginia to the northeast, North Carolina t ...

Alabama Alabama ( ) is a U.S. state, state in the Southeastern United States, Southeastern and Deep South, Deep Southern regions of the United States. It borders Tennessee to the north, Georgia (U.S. state), Georgia to the east, Florida and the Gu ...

Mississippi Mississippi ( ) is a U.S. state, state in the Southeastern United States, Southeastern and Deep South regions of the United States. It borders Tennessee to the north, Alabama to the east, the Gulf of Mexico to the south, Louisiana to the s ...

Louisiana Louisiana ( ; ; ) is a state in the Deep South and South Central regions of the United States. It borders Texas to the west, Arkansas to the north, and Mississippi to the east. Of the 50 U.S. states, it ranks 31st in area and 25 ...

and

Texas Texas ( , ; or ) is the most populous U.S. state, state in the South Central United States, South Central region of the United States. It borders Louisiana to the east, Arkansas to the northeast, Oklahoma to the north, New Mexico to the we ...

. KCS owned the shortest north-south rail route between

Kansas City, Missouri Kansas City, Missouri, abbreviated KC or KCMO, is the largest city in the U.S. state of Missouri by List of cities in Missouri, population and area. The city lies within Jackson County, Missouri, Jackson, Clay County, Missouri, Clay, and Pl ...

, and several key ports along the

Gulf of Mexico The Gulf of Mexico () is an oceanic basin and a marginal sea of the Atlantic Ocean, mostly surrounded by the North American continent. It is bounded on the northeast, north, and northwest by the Gulf Coast of the United States; on the southw ...

. The focus of the routes was the fastest way to connect Kansas City to seaports, since it was only 800 miles from Kansas City to the Gulf of Mexico compared to 1,400 miles between Kansas City and the Atlantic Ocean ports. KCS operated over a railroad system consisting of that extended south to the

Mexico–United States border The international border separating Mexico and the United States extends from the Pacific Ocean in the west to the Gulf of Mexico in the east. The border traverses a variety of terrains, ranging from urban areas to deserts. It is the List of ...

at which point another KCS-operated railroad, Kansas City Southern de México (KCSM), hauled freight into northeastern and central

Mexico Mexico, officially the United Mexican States, is a country in North America. It is the northernmost country in Latin America, and borders the United States to the north, and Guatemala and Belize to the southeast; while having maritime boundar ...

and to several Gulf of Mexico ports and the Pacific Port of Lázaro Cárdenas.

Canadian Pacific Railway The Canadian Pacific Railway () , also known simply as CPR or Canadian Pacific and formerly as CP Rail (1968–1996), is a Canadian Class I railway incorporated in 1881. The railway is owned by Canadian Pacific Kansas City, Canadian Pacific Ka ...

purchased KCS in December 2021 for . On April 14, 2023, KCS became a wholly owned subsidiary of CPR, and both companies began conducting business under the name of their parent company,

Canadian Pacific Kansas City Canadian Pacific Kansas City Limited, Trade name, doing business as CPKC (known as Canadian Pacific Railway Limited until 2023), is a Canadian railway holding company. Through its primary operating railroad subsidiaries, Canadian Pacific Railw ...

History

Origins (1887–1900)

Arthur Stilwell began construction on the first line of what would eventually become the Kansas City Southern Railway in 1887, in suburban Kansas City, Mo. Together with Edward L. Martin, Stilwell built the Kansas City Suburban Belt Railway, a 20-mile long railroad, which was incorporated in 1887 and began operation in 1890. In 1897, Stilwell completed the Kansas City, Pittsburg and Gulf Railroad Company (KCP&G) with a route running north and south from Kansas City to

Shreveport, Louisiana Shreveport ( ) is a city in the U.S. state of Louisiana. It is the List of municipalities in Louisiana, third-most populous city in Louisiana after New Orleans and Baton Rouge, Louisiana, Baton Rouge. The bulk of Shreveport is in Caddo Parish, Lo ...

, terminating at

Port Arthur, Texas Port Arthur is a city in the state of Texas, United States of America, located east of metro Houston. Part of the Beaumont–Port Arthur metropolitan area, the city lies primarily in Jefferson County, with a small extension in Orange County. ...

. In order to comply with Louisiana laws Stilwell, William S. Taylor, E. L. Martin, and others, officers of the Missouri, Kansas & Texas Trust Company of Kansas City, Missouri, as well as the KCP&G, incorporated the ''Kansas City, Shreveport & Gulf Railway Company'' (KCS&G) on September 27, 1894, to build or acquire railroads in Louisiana. The Arkansas Construction Company completed a 41.10-mile line from Arkansas-Louisiana State line (northern terminus with the Texarkana & Fort Smith Railway Company) to Shreveport on April 15, 1896. The Kansas City Terminal Construction Company completed a 76.40-mile Shreveport to Many line on October 26, 1896, an 85.80-mile Many to De Quincy line on June 30, 1897, and the 19.16-mile De Quincy to the Louisiana-Texas state line on September 11, 1897, where the southern terminus was with the Texarkana & Fort Smith Railway Company. A 26.60-mile narrow gauge branch line was acquired from the Calcasieu, Vernon & Shreveport Railway Company (CV&S), through the Arkansas Construction Company, that ran from De Quincy, West Lake, Lake Charles, and Lockport, and the construction company widened the tracks to standard gauge. In 1895, the KCP&G entered into a contract with the KCS&G to operate and maintain its property. In 1900, KCP&G was taken over by the Kansas City Southern Railway Company (KCS). By 1914, the KCS owned the separate entities of the Arkansas Western Railway Company, Fort Smith & Van Buren Railway Company, Kansas City, Shreveport & Gulf Railway Company, the Kansas City, Shreveport & Gulf Terminal Company, the Maywood & Sugar Creek Railway Company, the Port Arthur Canal & Dock Company, the Poteau Valley Railroad Company, the Texarkana & Fort Smith Railway Company, the Arkansas Western Railway Company, the Glenn Pool Tank Line Company, the Joplin Union Depot Company, the Kansas City Terminal Railway Company, and the K. C. S. Elevator Company.

20th century (1900–2000)

In 1962, Kansas City Southern Industries, Inc. (KCSI) was established when the company began to diversify its interests into other industries. At that time, KCS became a subsidiary of KCSI. In 2002, KCSI formally changed its name to Kansas City Southern (KCS), with KCS remaining a subsidiary. From 1940 to 1969, the Kansas City Southern operated two primary passenger trains, the ''Flying Crow'' (Trains #15 & 16) between Kansas City and Port Arthur (discontinued on May 11, 1968) and the '' Southern Belle'' (Trains #1 & 2) between Kansas City and New Orleans (discontinued on November 2, 1969). In 1995, a new '' Southern Belle'' was created as an executive train to entertain shippers and guests. It also pulls the ''Holiday Express'' train in December, making the rounds to several KCS cities and stations.

Access to Mexico

In 1996, Kansas City Southern Industries won a Mexican government concession to operate the "Northeast Railroad," a potentially profitable 5,335-kilometer rail system connecting key cities and ports. This line, which carried a significant portion of Mexico's rail traffic and freight from the United States, was highly sought after due to its strategic location, including proximity to numerous auto assembly plants. The concession was operated by a new company known as Transportación Ferroviaria Mexicana (TFM), which was a joint venture of KCSI with Transportación Maritima Mexicana (TMM). In 2005, TMM sold its share of TFM to KCSI, prompting a rename to Kansas City Southern de México (KCSM). In

1995 1995 was designated as: * United Nations Year for Tolerance * World Year of Peoples' Commemoration of the Victims of the Second World War This was the first year that the Internet was entirely privatized, with the United States government ...

, the expanding KCS bought 49 percent of Tex-Mex Railway. At the time, the investment was considered questionable by some observers, because TM had no connection to KCSR. The solution would not come until 1996, when

Union Pacific The Union Pacific Railroad is a Class I freight-hauling railroad that operates 8,300 locomotives over routes in 23 U.S. states west of Chicago and New Orleans. Union Pacific is the second largest railroad in the United States after BNSF, ...

and Southern Pacific agreed to provide Tex-Mex with trackage rights from Robstown northbound and through the

Houston Houston ( ) is the List of cities in Texas by population, most populous city in the U.S. state of Texas and in the Southern United States. Located in Southeast Texas near Galveston Bay and the Gulf of Mexico, it is the county seat, seat of ...

area to connect with KCSR at Beaumont. This agreement was one of the conditions imposed by the

Surface Transportation Board The Surface Transportation Board (STB) of the United States is an independent federal agency that serves as an adjudicatory board. The board was created in 1996 following the abolition of the Interstate Commerce Commission (ICC) and absorbed regula ...

(STB) for the approval of the proposed merger between UP and SP. Responding to increased

international trade International trade is the exchange of capital, goods, and services across international borders or territories because there is a need or want of goods or services. (See: World economy.) In most countries, such trade represents a significan ...

between the US and Mexico, the railroad built a large railroad yard and

intermodal freight transport Intermodal freight transport involves the transportation of freight in an intermodal container or vehicle, using multiple modes of transportation (e.g., rail, ship, aircraft, and truck), without any handling of the freight itself when changing ...

facility at Laredo in

1998 1998 was designated as the ''International Year of the Ocean''. Events January * January 6 – The ''Lunar Prospector'' spacecraft is launched into orbit around the Moon, and later finds evidence for Lunar water, frozen water, in soil i ...

. They also won Regional Railroad of the Year that same year.

21st century (2000–2023)

On March 21, 2021, the

(CP) announced that it was purchasing KCS for US$29 billion. Prior, a competing cash and stock offer was made by

Canadian National Railway The Canadian National Railway Company () is a Canadian Class I freight railway headquartered in Montreal, Quebec, which serves Canada and the Midwestern and Southern United States. CN is Canada's largest railway, in terms of both revenue a ...

(CN) on April 20, 2021 at $33.7 billion. On May 13, 2021, KCS announced in a statement that they planned to accept the higher offer from CN, but would give CP until May 21 to come up with a higher bid, which was not made. However, CN's merger attempt would be blocked by a STB ruling in August 2021 that the company could not use a voting trust to assume control of KCS, due to concerns about potentially reduced competition in the railroad industry. On September 12, 2021, KCS accepted a new $31 billion offer from CP. Though CP's offer was lower than the offer made by CN, the STB permitted CP to use a voting trust to take control of KCS. The voting trust allowed CP to become the beneficial owner of KCS in December 2021, but the two railroads operated independently until receiving approval for a merger of operations from the STB. That approval came on March 15, 2023, which permitted the railroads to merge as soon as April 14, 2023.

Operations

KCS hauled freight for seven major government and business sectors: agriculture and minerals, military, automotive, chemical and petroleum, energy, industrial and consumer products and intermodal. KCS had the shortest north-south rail route between

, and several key ports along the

in Alabama, Louisiana, Mississippi and Texas. The KCS, along with the

railroad, was one of only two Class I railroads based in the

United States The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...

that has not originated as the result of a merger between previously separate companies. The company owned or contracted with intermodal facilities along its rail network in Kansas City, MO; Jackson, Miss.; Wylie, Texas; Kendleton, Texas; and

Laredo, Texas Laredo ( ; ) is a city in the U.S. state of Texas and the county seat of Webb County, Texas, Webb County, on the north bank of the Rio Grande in South Texas, across from Nuevo Laredo, Tamaulipas, Mexico. Founded in 1755, Laredo grew from a villag ...

. KCS operated over a railroad system consisting of that extended south to the

at which point another KCS railroad, Kansas City Southern de México (KCSM), can haul freight into northeastern and central

and to the Gulf of Mexico ports of

Tampico Tampico is a city and port in the southeastern part of the Mexican state of Tamaulipas. It is located on the north bank of the Pánuco River, about inland from the Gulf of Mexico, and directly north of the state of Veracruz. Tampico is the fif ...

, Altamira, and

Veracruz Veracruz, formally Veracruz de Ignacio de la Llave, officially the Free and Sovereign State of Veracruz de Ignacio de la Llave, is one of the 31 states which, along with Mexico City, comprise the 32 Political divisions of Mexico, Federal Entit ...

, as well as to the Pacific Port of Lázaro Cárdenas, fulfilling the vision of KCS founder Arthur Edward Stilwell.

Corporate structure

Kansas City Southern Railway was owned by Kansas City Southern, known as ''Kansas City Southern Industries'' until 2002, which in turn also owned other companies like Kansas City Southern de México and the Panama Canal Railway's operator, Panama Canal Railway Company.

Bibliography

* Kansas City Southern History (2008)
History of the Kansas City Southern Railway
Retrieved July 7, 2008. * "Kansas City Southern Color Pictorial", Steve Allen Goen, 1999

References

External links

*
Kansas City Southern Historical Society
{{Authority control Alabama railroads Arkansas railroads Illinois railroads Kansas railroads Louisiana railroads Mississippi railroads Missouri railroads Nebraska railroads Oklahoma railroads Tennessee railroads Texas railroads Economy of the Midwestern United States Economy of the Southeastern United States Class I railroads in North America Railway companies established in 1900 Railway companies disestablished in 2023