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

2. 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

3. 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

4. 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

5. 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

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

7. KCS Intermodal Ramps Strategically Positioned

8. A Coordinated Cross Border Rail Network8 8

9. Port of Lazaro Cardenas

10. New Hutchison Terminal
November 28, 2007, 11:52

11. Steamship Lines calling Lazaro Cardenas

12. 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

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

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

15. 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

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

17. 17