Date: Thu, 20 Nov 1997 17:39:49 GMT Server: Apache/1.2.4 Last-Modified: Mon, 05 May 1997 22:32:02 GMT ETag: "1114-bb1-336e5fe2" Content-Length: 2993 Accept-Ranges: bytes Connection: close Content-Type: text/html
KANSAS CITY, Mo.--May 5, 1997--Kansas City Southern Industries, Inc. ("KCSI") that it had acquired Gateway Western and Eastern Railways and had extended its rail network an additional 402 miles between Kansas City, Missouri and East St. Louis, Illinois.
In January, KCSI petitioned the Surface Transportation Board ("STB") for approval to operate Gateway's lines. The STB's decision approving the acquisition was issued on April 28 and became effective on May 5, 1997.
"With the acquisition of Gateway Western, KCSI's 6000 mile rail network extends from Kansas City, East St. Louis, Springfield, Illinois and Meridian, Mississippi to Mexico City. Gateway's operations will be coordinated with the other KCSI rail companies and affiliates--Kansas City Southern Railway, Texas Mexican Railway and TFM--to comprise the NAFTA Railway," said KCS President and Chief Executive Officer, Mike Haverty.
"Gateway has established itself as an important transportation link between Kansas City and East St. Louis," said Haverty. "With its strong management, qualified work force, strategic location on the Mississippi River, and access to every major U.S. rail carrier, Gateway is a strong addition to Kansas City Southern's NAFTA rail network."
In December 1996, KCSI, through a new affiliate called KCS Transportation Company ("KCSTC"), acquired all of the outstanding shares of Gateway stock. The stock was placed in an independent voting trust pending a decision by the STB. Now that the STB has approved the acquisition, the voting trust will be dissolved and the shares transferred to KCSTC.
Gateway Western, based in Fairview Heights, Illinois, has changed names and ownership numerous times in its 150 year history. With a work force of 281 employees, today it operates in Missouri and Illinois and serves as a bridge carrier between East St. Louis and Kansas City. In 1996, Gateway reported earnings of $5.1 million on revenues of $40.9 million.
Kansas City Southern Railway ("KCSR") is a Class I Railroad
with operations in 11 central and southeastern states. KCSR is a wholly-owned
subsidiary of KCSI, a transportation and financial asset management company
with headquarters in Kansas City.
CONTACT: Landon H. Rowland Kansas City Southern Industries Inc Chairman, President and Chief Executive Officer 816-983-1393 Michael R. Haverty Kansas City Southern Railway Company President and Chief Executive Officer 816-983-1389 Joseph D. Monello Kansas City Southern Industries Inc Vice President and Chief Financial Officer 816-983-1213