Mr. Haverty in last Monday's conference call with analysts gave an impressive account of his ability to increase operating efficiency by lowering costs to beat the competition. He mentioned his experience working with JB Hunt trucking to use intermodal shipping to lower trucking costs along the Interstate 20 corridor. His ability to negotiate with the Norfolk Southern Railway initiated a dedicated through train service between Dallas, Texas and Atlanta, Georgia. Petroleum and Chemicals are the largest commodities in terms of revenue. KCSR is the largest railroad in pulp and paper carload originations serving Georgia Pacific and International Paper.
Farm products are another important freight segment.
A public offering of DST common stock was made on October 31, 1995. This was part of an effort for the company to concentrate on its rail business. It enabled an expanded customer base into the south-central portion of the United States and improved operating efficiency. The concession provides for a 50-year initial period with the option for an additional 50 years. It is virtually granting the consortium a transportation monopoly into the interior of Mexico.