Kansas City Southern (KCS) (NYSE: KSU) announced today that its U.S. subsidiary, The Kansas City Southern Railway Company (KCSR), has opened a new, multi-commodity transload terminal at its former Zacha intermodal terminal in Dallas, Texas. KCSR has named Watco Transloading, L.L.C. (Watco) as its operator for the facility, effective October 17, 2016.

The new Zacha transload facility offers 9,523 feet of track space within the terminal and 80 acres of outside storage for customers with ample room for expansion as business grows. KCS' TransLoad Center (TLC) network has the capacity to handle a wide variety of products and strives to become an integral part of our customers' supply chains by improving their economics and response times.

The former Zacha intermodal terminal closed when KCS opened a new, state-of-the-art intermodal facility in Wylie, Texas. Since that time, Zacha has provided limited transload operations under an interim operator.

"KCS is focused on growth through key business relationships and a strategically-positioned network," said KCS executive vice president and chief marketing officer Brian Hancock. "Providing customers with supply chain solutions through our TLC network and partnerships with companies like Watco are important components of that growth."

"We are pleased to grow our partnership with KCS," said Watco vice president business development Rob Thrall. "The Watco operations team in Dallas is ready to provide safe, efficient operations and outstanding customer service. This is the 55 th terminal opening within the Watco Terminal and Port Services network."

About Kansas City Southern

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 KCSR, 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 NAFTA 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.

About Watco Transloading, L.L.C.

Watco Transloading, L.L.C., d/b/a Watco Terminal and Port Services is owned by Watco Companies, L.L.C., and consists of 55 terminal facilities located throughout the U.S. Watco Companies, LLC, is a Pittsburg, Kan.,-based transportation company that provides rail, terminal and port, supply chain, and mechanical services to customers throughout North America and Australia. Watco is the owner of Watco Transportation Services, LLC, one of the largest short line railroad holding companies in the U.S. with 36 short line railroads operating on more than 5,000 miles of track, as well as 33 industrial contract switching locations. Watco Companies is a 50/50 joint venture partner with The Greenbrier Companies, Inc., in GBW Railcar Services, LLC. GBW repairs and refurbishes freight cars at 33 locations across North America, including 14 tank car repair and maintenance facilities certified by the Association of American Railroads. More information about Watco and its subsidiaries can be found at  www.watcocompanies.com.

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