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TxDOT, Kansas City Southern Railway to Collaborate on El Campo, Victoria Rail Bypasses

VICTORIA, TX-In a Memorandum of Understanding (MOU) executed October 23, Texas Department of Transportation (TxDOT) and Kansas City Southern Railway (KCSR) officials agreed to work together to investigate options for relocating KCSR rail lines that could run through El Campo and portions of Victoria.

KCSR will begin preliminary engineering for possible construction of future rail bypasses around both communities. The rail bypasses would reroute rail traffic that would otherwise go through both communities on existing KCSR right-of-way. KCSR is rebuilding the old Southern Pacific line between Rosenberg and Victoria and will fund the preliminary engineering.

These efforts to collaborate throughout the early planning stages of the rail relocation projects should help save both organizations time and money once the decision is made to move forward with construction.

"The communities of El Campo and Victoria will benefit from this partnership," said Warren K. Erdman, KCS Executive Vice President-Corporate Affairs. "By working together from the beginning on project planning and engineering, we can make sure that all parties are pulling in the same direction and reduce the likelihood of unforeseen issues down the road. We think this project collaboration with TxDOT will greatly help our effort to bring both of these projects to completion in the future."

"This partnership is another example of how the combined efforts of public and private entities can result in the best of solutions for communities like El Campo and Victoria," said Transportation Commissioner Ted Houghton. "Rail relocation efforts like this one are important to the continued health of the Texas economy and safety of our state's residents. Identifying a revenue source for the state's Rail Relocation and Improvement Fund is one way the legislature could help support projects like this one in the future."

The agreement with KCSR is aligned with four of TxDOT's five agency goals. By relocating urban rail crossings to rural areas, congestion will be reduced, air quality will be improved and safety of El Campo and Victoria families will be enhanced. Additionally, the relocation of these rail projects out of urban areas will expand economic opportunity, allowing people and goods to move by rail more freely through the El Campo and Victoria communities.

The Texas Department of Transportation

The Texas Department of Transportation is responsible for maintaining nearly
80,000 miles of road and for supporting aviation, rail and public transportation across
the state. TxDOT and its 15,000 employees strive to empower local leaders to solve
local transportation problems, and to use new financial tools, including tolling and
public-private partnerships, to reduce congestion and pave the way for future economic
growth while enhancing safety, improving air quality and preserving the value of the
state's transportation assets. Find out more at www.txdot.gov.

Kansas City Southern

Headquartered in Kansas City, Mo., Kansas City Southern (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 Lazaro Cardenas, Tampico and Veracruz, and a 50 percent interest in PCRC, 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.