BNSF, KANSAS CITY SOUTHERN FORM MARKETING ALLIANCE
The Burlington Northern Santa Fe Railway Co. and Kansas City Southern said Tuesday they have agreed to form a comprehensive marketing alliance.
BNSF, based in Fort Worth, Texas, and KCS, based in Kansas City, Mo., said they intend to coordinate marketing and operations initiatives in a number of target markets. The carriers are developing plans to enhance competitive options for shippers in the West Lake and West Lake Charles, La. Region. The railroads will also coordinate operations to improve and extend service options for grain shippers and receivers.
'The complementary, end-to-end nature of the KCS and BNSF networks, together with our mutual customer focus and development of interline service products, makes this alliance the basis for a natural partnership,' said Matthew K. Rose, chairman, president and chief executive officer of BNSF.
'The combined resources of BNSF and KCS will provide booth railroads with expanded access to important markets, while at the same time shippers will gain enhanced options and competitive alternatives,' said Michael Haverty, chairman, CEO and president of KCS.
Coal and unit-train operations are excluded from the alliance, as well as any points where BNSF and KCS are the only direct rail competition.
BNSF operates 33,000 route miles of track covering 28 states and two Canadian provinces. KCS has railroad investments in the United States, Mexico and Panama. It's primary holding, Kansas City Southern Railway, serves the central and south central regions of the United States.