KCS subsidiary buys 75 locomotives

[Anonymous]

Just curious, where did these units come from? El-Mo-Mex is a subsidiary of GM. Have these units been on lease? Are these from TFM?


Today, Kansas City Southern announced subsidiary The Kansas City Southern Railway Co. (KCSR) and a Mexican affiliate recently purchased 75 SD70MAC locomotives from El-Mo-Mex Inc. for $32.6 million plus the assumption of $95.9 million in debt and accrued interest.

KCSR plans to sell the locomotives to a third party and lease the power under a long-term contract.

“This transaction is another step toward making KCS’ U.S. and Mexican operations more efficient, reducing costs and taking advantage of economies of scale,” said KCS Chairman, President and Chief Executive Officer Mike Haverty in a prepared statement.

Best regards,
Swafford

[CSSHEGEWISCH]

The SD70MAC's may be TFM 1600-1674 and the whole transaction appears to be more of a refinancing than anything else. Note that the locomotives will have gone from one leasing company to another after everything is said and done. The locomotives will probably continue to run on TFM.