Kansas City Southern’s operations in Mexico have experienced shipment delays since July 11 due to teacher protests occurring there.
The protests are directed towards Mexico’s government, but have occurred on or near Kansas City Southern de México S.A. de C.V. tracks stopping regular public freight rail transportation. Other Mexican railroads and transportation companies also are affected by the protests, according to a press release.
A southern line from Lazaro Cardenas through Morelia to Toluca is “impassible,” according to the company’s website. This has caused delays in Sanchez, Monterrey, Escobedo and Queretaro.
It is not possible to estimate the financial impact, if any, of the protests will have on the Kansas City-based rail company (NYSE: KSU) at this time, according to the release.
However, Kansas City Southern’s Mexican operations are a critical component of the company’s business. About 48 percent of the company’s annual revenue came from Mexico in 2015, according to the company’s annual report.
There is no resolution date to these interruptions, but the companies impacted have requested the relevant union and governmental authorities intervene.
Kansas City Southern, which is ranked No. 10 on the Kansas City Business Journal’s Top Public Companies List, is a transportation holding company headquartered in Kansas City. It has investments in the U.S., Mexico and Panama.