What Kansas City Southern Is
Kansas City Southern is a freight railroad that moves cargo across the central United States and into Mexico. It is not a passenger railroad — you cannot buy a ticket to ride it. Instead, the company operates trains that haul goods like chemicals, automobiles, grain, and containers between major cities and industrial hubs.
The railroad owns and operates about 6,700 miles of track. Its main routes run from Kansas City, Missouri south through Oklahoma and Texas, and into Mexico through Laredo, Texas. The company also operates in the northeastern United States through a subsidiary called Midland Valley Railroad. Kansas City Southern is publicly traded, meaning you can buy shares of the company through a brokerage account, but most people encounter it as the railroad that moves freight through their region.
Key Takeaways
- Kansas City Southern moves freight — not passengers — on 6,700 miles of track across the central United States and Mexico.
- The railroad hauls chemicals, automobiles, grain, containers, and other industrial cargo for shipping companies and manufacturers.
- You cannot ride Kansas City Southern trains as a passenger, but the railroad affects shipping costs and delivery times for goods you buy.
- The company is owned by Canadian National Railway as of 2021, though it still operates under its own name and brand.
- Stock in Kansas City Southern can be purchased through any brokerage account if you want to own a share of the company.
How Kansas City Southern Makes Money
Kansas City Southern earns revenue by charging shippers to move their cargo on its trains. A manufacturer in Kansas City might pay the railroad to haul a trainload of chemicals to a plant in Texas. A grain elevator in Oklahoma might pay to move wheat to a port in Mexico. The railroad sets its rates based on what the market will bear, the distance traveled, and the type of cargo.
The company also earns money from switching fees — charges for moving cars between different tracks or connecting to other railroads. When a shipment needs to move from Kansas City Southern's tracks onto another railroad's tracks to reach its final destination, Kansas City Southern may charge a fee for that handoff. These fees add up across thousands of shipments per day.
The Route Network and What It Connects
Kansas City Southern's main north-south corridor runs from Kansas City through Oklahoma and Texas to Laredo, where it crosses into Mexico. This route is valuable because it connects the industrial heartland of the Midwest to Mexican manufacturing centers and ports. Shippers use this route to move goods between the United States and Mexico, which makes it one of the busiest freight corridors in North America.
The railroad also operates branch lines that connect to smaller cities and industrial sites. These branches feed cargo onto the main line, so a shipment might start on a branch line in a small Oklahoma town, move onto the main line, and travel all the way to Mexico. Kansas City Southern also connects to other major railroads — BNSF, Union Pacific, and Canadian National — so cargo can move seamlessly from one railroad's tracks to another's.
Who Owns and Operates Kansas City Southern
Canadian National Railway acquired Kansas City Southern in 2021 for approximately $15 billion. This means Canadian National now owns the company outright, though Kansas City Southern continues to operate as a separate business unit with its own management and brand. The acquisition gave Canadian National direct access to Mexico, which expanded its reach into North American freight markets.
Before the Canadian National acquisition, Kansas City Southern was an independent, publicly traded company. Investors could buy and sell stock in the company on the stock exchange. After the acquisition, the company was taken private, meaning shares are no longer traded on public exchanges. If you own Kansas City Southern stock from before 2021, you would have received cash for your shares as part of the acquisition process.
Types of Cargo Kansas City Southern Moves
Kansas City Southern handles a wide range of freight. Intermodal containers — the large metal boxes you see stacked on ships and trucks — make up a significant portion of traffic. The railroad also moves automobiles and auto parts, which is important because many Mexican factories manufacture components for U.S. car makers. Chemicals, fertilizers, and agricultural products like grain and ethanol are common loads. Coal and minerals also travel on Kansas City Southern's lines, though coal traffic has declined in recent years.
The mix of cargo changes with the seasons and economic conditions. During harvest season, grain shipments increase. When auto manufacturing is strong, automobile traffic rises. The railroad adjusts its operations to handle whatever cargo shippers need moved, within the limits of its equipment and track capacity.
How Trains Move on the Network
Kansas City Southern operates trains on a schedule, though not a published schedule like a bus or airline. The railroad plans its operations to move cargo efficiently while balancing the needs of different shippers. A train might leave Kansas City with a mix of containers, automobiles, and chemicals, stop at several intermediate points to pick up or drop off cars, and arrive in Texas or Mexico days later.
The railroad employs locomotive operators, conductors, maintenance workers, and dispatchers who coordinate train movements. Dispatchers use computer systems to track trains in real time and route them to avoid conflicts — two trains cannot occupy the same track at the same time. The railroad also maintains its tracks, switches, and equipment constantly to keep trains running safely and on time. Delays can cost shippers money, so reliability is a competitive advantage.
Investing in Kansas City Southern Stock
If you want to own a piece of Kansas City Southern, you cannot buy individual shares anymore because Canadian National owns the company. However, you can own Canadian National stock through any brokerage account — online brokers like Fidelity, Charles Schwab, or E-Trade all offer it. Canadian National trades on the New York Stock Exchange under the ticker symbol CNR, and on the Toronto Stock Exchange under CNQ.
Owning railroad stock means you own a small fraction of the company's assets and earnings. If the railroad is profitable, the company may pay dividends to shareholders — regular cash payments based on how many shares you own. The stock price also rises or falls based on investor expectations about the railroad's future earnings. Freight railroads are sensitive to economic cycles: when the economy is strong and factories are producing goods, railroads move more cargo and earn more money.
Frequently Asked Questions
Can I take a passenger train on Kansas City Southern?
No. Kansas City Southern operates only freight trains. If you want to travel by train, you would use Amtrak, which operates passenger service on separate routes. Kansas City Southern's trains carry cargo, not people.
How long does it take for cargo to move from Kansas City to Mexico on Kansas City Southern?
Transit time depends on the distance, the number of stops, and how busy the railroad is. A shipment from Kansas City to Laredo might take three to five days, but this varies. Shippers can contact Kansas City Southern or a freight broker for specific timing on their shipment.
What happens if my shipment is delayed on Kansas City Southern?
Delays can occur due to weather, equipment problems, or high traffic. The shipper or freight broker who booked the shipment would contact Kansas City Southern to find out why and when the cargo will arrive. Most shipping contracts include terms about liability for delays.
Does Kansas City Southern still exist as a separate company?
Kansas City Southern operates as a subsidiary of Canadian National Railway. It maintains its own brand and operations, but Canadian National owns it. If you see Kansas City Southern locomotives or signage, you are looking at equipment owned by Canadian National.
Where can I find Kansas City Southern's contact information?
Kansas City Southern's main office is in Kansas City, Missouri. You can reach the company through its website or by calling its customer service line. If you are a shipper, you would typically work through a freight broker or your company's logistics department rather than contacting the railroad directly.