Kansas City Southern renames Mexican railroad subsidiary
Kansas City Southern (KCS) has renamed its Mexican subsidiary, TFM, S.A. de C.V., to Kansas City Southern de M'xico, S.A. de C.V. (KCSM).
KCS took full control of TFM (formerly Ferrocarril del Noreste) in September following the end of long-standing dispute with the Mexican government concerning the payment of a value-added tax refund to TFM.
As part of a management restructuring program, Javier Ri'n, KCSM’s current chief executive officer, will leave the company within three months. Manuel Zulaica Lopez, KCSM’s director of operations, will have direct responsibility to the KCSM board of directors until a new president is appointed.
Management of KCSM train operations remains in Monterrey, but the intermodal and automotive sales and marketing functions of Kansas City Southern Railway Co. (KCSR) and KCSM have been combined and will be led by Michael J. Smith, vice president sales and marketing intermodal and automotive business unit.
KCS plans to implement its Management Control System at KCSM sometime next year, fully integrating the two railroads’ operating platforms.
“We want to realize the benefits of integration in marketing, information technology, purchasing and other areas. The new management structure announced today will help us realize our vision of a seamless transportation company serving the growing markets between Mexico and the U.S.,” said Michael R. Haverty, KCS chairman, president and chief executive officer.