NAFTA Rail will join KCSR, Tex-Mex, and TFM - Rail Update - Kansas City Southern, Texas Mexican Railway, TFM Railway - Brief Article

Railway Age,  May, 2003  

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Since the late 1990s, "The NAFTA Railway" has been the unofficial name Kansas City Southern gave to its north-south alignment of railroads linking the U.S., Mexico, and Canada.

KCS announced late last month that KCS Railway, the Texas Mexican Railway, and Mexico's TFM Railway will officially come together under the common ownership and control of NAFTA Rail, a new holding company based in Kansas City, Mo. The KCSR/Tex-Mex transaction will require the approval of the Surface Transportation Board. Mexican regulatory authorities must approve NAFTA Rail's acquisition of TFM. When the legal paperwork is completed, KCS will trade on the New York Stock Exchange as NAFTA Rail.

Under the TEM acquisition agreement, TMM Intermodal, a subsidiary of Grupo TMM, will receive 22% of NAFTA Rail shares plus $200 million in cash, and a potential incentive payment of $100 million to $180 million. Michael R. Haverty; KCS's chairman, president, and CEO, will carry these titles to NAFTA Rail.

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