Tex-Mex is the shortline railroad connecting Kansas City Southern Railway with TFM, Mexico’s largest volume rail carrier. From the Mexican perspective, the move makes KCS – its partner -- a strong second rail carrier to the U.S. border at Laredo.
"Obtaining control of Mexrail and its U.S.-based assets under KCS strengthens us as a viable rail competitor in the cross-border market,” sys Michael R. Haverty, Chairman, President and CEO of KCS.
Part of the U.S. assets is the bridge between Laredo and Nuevo Laredo on the Mexican side of the border, which will now be run by KCS based on all existing agreements and protocols.
Purchase by KCS at this time is 51% of Tex Mex, with the remaining 49% to be purchased by October 31, 2005. The deal awaits approval by the U.S. Surface Transportation Board.
