Market Overview

KCS Releases "For the Long Haul" Sustainability Report on 2017 Performance

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Kansas City Southern (KCS) (NYSE:KSU) has released its 2017
sustainability report, "For
the Long Haul: Delivering Prosperity, Valuing People, Protecting the
Planet"
. The report is available in the Corporate
Responsibility
section of www.kcsouthern.com.

"We believe that responsible business practices are essential to
supporting the KCS vision, values and culture, as well as building and
maintaining accountability, trust and strong relationships with our
stakeholders," said KCS president and CEO Patrick J. Ottensmeyer. "To
that end, we are pleased to share our 2017 sustainability report, which
was created to clearly communicate why our sustainability priorities are
important to our business, and how they help us fulfill our vision to
consistently be the fastest-growing, best-performing, most
customer-focused transportation provider in North America."

The 2017 report highlights include:

  • Diversity of KCS' board of directors and the directors' commitment to
    "honor the rights of all individuals to be treated with respect and
    dignity," which led to strengthening KCS' Non-Discrimination &
    Anti-Harassment Policy;
  • Strategic advantages of our cross-border rail network and our
    innovative Rail Unified Cargo Processing Center, helping to reduce
    delays and enhance security at the U.S.-Mexico border;
  • Creation of new Health, Safety and Environmental (HSE) group to
    enhance KCS workplace safety and health;
  • Positive Train Control (PTC) implementation progress;
  • New and award-winning KCSM Security Operations Center dedicated to the
    security of KCS freight, people and facilities in Mexico;
  • Decrease in employee attrition rate to 6.6 percent;
  • Increase in employee training hours by approximately 55 percent;
  • Increase in donations from employees and The KCS Charitable Fund by
    approximately 23 percent;
  • Increase in fuel consumption reduction target by four million gallons;
  • Reduction of energy intensity ratio and water consumption; and
  • Inclusion of a new biodiversity and land management section.

KCS' 2017 sustainability report follows the Global Reporting
Initiative's (GRI) latest standards for disclosing governance, economic,
social and environmental topics. These standards provide for the
disclosure of measurable data and specific information related to
sustainability. For the 2017 report, we increased our reporting of
stakeholder priority material topics.

Headquartered in Kansas City, Mo., KCS 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 are primary components of a railway network linking the
commercial and industrial centers of the U.S., Mexico and Canada.

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