THE AMBITIOUS plan to create a north-south ’Nafta Railway’ serving the North American Free Trade Area reached fruition on April 1, when Kansas City Southern formally took over Mexican rail concessionaire TFM SA de CV.
KCS has purchased a controlling interest from its former partner Grupo TMM SA, giving it ownership of all TFM shares. The two companies reached agreement on revised terms earlier this year. TFM will legally remain a Mexican corporation, and will retain its Mexican management team.
’This is an historic opportunity to create one of North America’s premier railroads’, said KCS Chairman, President & CEO Mike Haverty. `TFM, Kansas City Southern Railway and the Texas Mexican Railway Company will now operate under common overall leadership, creating a seamless transportation system that spans the heart of North America.’