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.”
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