View Full Version : KCS and NS Complete Regulatory Review

04-10-2006, 09:07 PM
Kansas City, Mo., and Norfolk, Va., April 10, 2006 - Kansas City
Southern (KCS) (NYSE: KSU) and Norfolk Southern (NS) (NYSE: NSC)
announced that they have cleared the last regulatory hurdle for the
proposed KCS/NS joint venture transaction involving KCS’ Meridian
Speedway. The U.S. Surface Transportation Board (STB) concluded its
environmental review, thereby making that approval effective as of
12:01 a.m. Eastern Daylight Time today, April 10, 2006.

On Dec. 2, 2005, KCS and NS announced an agreement to form a joint
venture to increase capacity and improve service on KCS’ Meridian
Speedway between Meridian, Miss. and Shreveport, La. This rail line is
an important direct rail connection moving rail traffic between the
southeast and southwest U.S. The joint venture involves the
contribution of KCS’ 320-mile line between Meridian, Miss. and
Shreveport, La. to the joint venture company and an NS investment of
$300 million in cash, substantially all of which will be used for
capital improvements to increase capacity. The transaction was subject
to regulatory approval from the STB.

“We are delighted with the completion of the regulatory process for our
joint venture transaction,” said Michael R. Haverty, chairman,
president and chief executive officer of Kansas City Southern. “Now we
can move forward with it and begin implementing the capacity and
service improvements that it will allow along this very important
transcontinental rail corridor.”

Norfolk Southern chief executive officer Wick Moorman said, “We are
eager to move ahead with the innovative joint venture. The Meridian
Speedway project is a creative approach to improving the overall
fluidity of the nation’s rail network, and it will help us deliver the
kind of service our customers require and deserve.”

Headquartered in Kansas City, Mo., KCS is a transportation holding
company that has railroad investments in the U.S., Mexico and Panama.
Its primary U.S. holding is The Kansas City Southern Railway Company,
serving the central and south central U.S. Its international holdings
include Kansas City Southern de Mexico, S.A. de C.V., serving
northeastern and central Mexico and the port cities of Lázaro Cárdenas,
Tampico and Veracruz, and a 50% interest in Panama Canal Railway
Company, providing ocean-to-ocean freight and passenger service along
the Panama Canal. KCS' North American rail holdings and strategic
alliances are primary components of a NAFTA Railway system, linking the
commercial and industrial centers of the U.S., Canada and Mexico.

NS is one of the nation's premier transportation companies. Its Norfolk
Southern Railway subsidiary operates approximately 21,200 route miles
in 22 states, the District of Columbia and Ontario, Canada, serving
every major container port in the eastern U.S. and providing superior
connections to western rail carriers. NS operates the most extensive
intermodal network in the East and is North America's largest rail
carrier of automotive parts and finished vehicles.