Lazaro Cardenas Cross Border Intermodal Network Kansas City Southern Lazaro Cardenas Cross Border Intermodal Network

A Coordinated Cross Border Rail Network In the center of the North American rail system Exceptional growth opportunities Emerging participant in global trade growth Premier Mexico trans border rail service provider Network of the future for North American automotive growth CANADIAN PACIFIC Canadian National CSX BNSF UNION PACIFIC Ferromex Norfolk Southern FERROSUR

Cross Border Truckload Volume U.S. Mexico Truck Volume by Direction Source: Norbridge analysis of Bureau or Transportation: Transborder Freight Data Source: Norbridge analysis of Bureau or Transportation: Transborder Freight Data 3

The Lazaro Land Bridge Route Advantage 3,395 2,987 Houston Routes 2,411 3,682 2,256 2,838 Atlanta Routes As you can see, it is 400 miles shorter between Lazaro and Houston or between LA/LB and Houston. We are learning that Houston represents a vast opportunity for KCS, as the Houston area is hard to get to by other means. LA/LB would rather not serve Houston, but go further east. Going through the Panama Canal and then to Houston is time consuming and expensive. Lazaro is shorter and price competitive. It is more than 300 miles shorter from Lazaro to Atlanta, another attractive destination. While not an immediate market we’re pursuing, New York is the same length via Lazaro over KCS to Norfolk Southern as it is from LA/LB. With NS developing its Crescent Corridor, this has real potential for the future. 1,634 1,299

Mexican Investment Focus Basic rail infrastructure Bypasses, overpasses and grade crossings Increase train speeds in urban areas Port infrastructure Expansion of existing port capacity Focus on ease of use / operational efficiency New Victoria to Rosenberg line New Rosenberg IM ramp 5 5

Victoria – Rosenberg: Improving the KCS Cross-Border Rail Network Rosenberg/Houston Intermodal Ramp Eliminates 151 miles (41%) of UP trackage rights

KCS Intermodal Ramps Strategically Positioned

A Coordinated Cross Border Rail Network 8 8

Port of Lazaro Cardenas

New Hutchison Terminal November 28, 2007, 11:52

Steamship Lines calling Lazaro Cardenas

Value of Lazaro Cardenas No Environmental issues/fees No infrastructure issues/fees Productive workforce Not affiliated with the ILWU Pro-business local government Ample land for future terminal expansion State-of-the-art port infrastructure Hutchison – premier terminal operator Natural deep water port – max. vessel flexibility 59 ft. access channel 54 ft. ship channel KCS’ investment in line and port rail capacity

Container Growth at Lázaro Cárdenas 14% growth 2009 vs Container Growth at Lázaro Cárdenas 14% growth 2009 vs. 2008 29% growth in 1Q 2010 Source: Secretaría de Comunicaciones Y Transportes, Coordinación General de Puertos Y Marina Mercante 13

Managing Security in Mexico is a Priority Custodians/Jump teams Mainline Patrols Fixed point inspections K-9 14

Simplified Customs Clearance KCS provides in-bond and fully cleared border crossing products that are fast, simple and secure for your customers Seamless rail border crossing Reduced cost versus truck Customs clearance performed at destination Foreign trade zone services Single invoice Single bi-lingual customer service contact 15

The Bottom Line… Success! Lazaro Cardenas 2008 vs 2009 Combination Imports and Exports grew 18.2% KCS/Lazaro - 2009 vs 2010 January April Comparison Volume = 21% Growth Revenue = 32% Growth 16

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