Kansas City Southern Announces Revised Service Metrics to Provide a More Complete View of Customer Service and Operational Performance

Kansas City Southern (KCS) (NYSE:KSU) has revised the definitions of two key service metrics that it uses to measure operating performance. These revised metrics will provide a more complete view of customer service and operational performance on the KCS network.

Following are brief definitions of the two service metrics that are changing:

Operational Cars Online (formerly Cars Online): A car level metric representing the number of cars on the KCS network that are not at a customer’s location.

Gross Velocity (formerly Train Speed): A train level metric measuring the average velocity of a train between its origin and destination stations, calculated as the sum of the miles traveled divided by the sum of total transit hours. Transit hours are measured by calculating the difference between a train's origin departure and destination arrival date and times broken down by segment across the train route. This metric includes all time spent at intermediate locations between a train origin and destination (including all crew changes, terminal dwell, delays, and incidents).

Please visit http://investors.kcsouthern.com/ and navigate to Performance Metrics> Railroad Performance Measures for weekly data and full definitions of performance metrics. To assist in comparing restated data to historical performance, KCS has provided two years of restated service metrics under the new definitions.

“As part of its transition to a precision-scheduled network, KCS is pleased to provide a more complete view of its operational performance to its customers and stakeholders,” stated Kansas City Southern’s Executive Vice President Precision Scheduled Railroading Sameh Fahmy. “These revised metrics will give stakeholders a more accurate understanding of KCS’ operational performance as we strive to improve customer service.”

The methodology for calculating train speed and cars on line differs from the calculations that have been provided to the Surface Transportation Board (STB) in the past under the agency’s Ex Parte 724 docket. The Company will report train speed, dwell and cars on line to the STB in a manner acceptable to the agency.

Headquartered in Kansas City, Mo., Kansas City Southern (KCS) (NYSE: KSU) 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 percent 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 with other North American rail partners are primary components of a unique railway system, linking the commercial and industrial centers of the U.S., Mexico and Canada. More information about KCS can be found at www.kcsouthern.com.

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