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Today, Kansas City Southern Executive Vice President and Chief Operating Officer Gerald Davies announced he will retire at year end of 2004, ending his 34-year transportation career and five-year stint with KCS.

Next year, Davies plans to continue serving KCS as a consultant to help the railroad acquire full ownership of TFM S.A. de C.V. and integrate the Mexican railroad with the Kansas City Southern Railway.

"I have been planning my retirement for a considerable period of time," said Davies in a prepared statement. "I am pleased with the progress made by KCS during my time here, and I am confident that the company will soon achieve its goal of creating a powerful NAFTA rail franchise."

In 1970, Davies began his transportation career with the U.S. Department of Transportation. He later served several railroads in various marketing, operating and finance positions, including VP of marketing for CSX Transportation, senior VP of marketing for Burlington Northern Railroad and SVP of marketing for Canadian National Railway Co.

"During his tenure, [Davies] has played an important role at KCS growing its U.S. revenues while also significantly increasing freight traffic between the U.S. and Mexico," said KCS Chairman, President and Chief Executive Officer Mike Haverty. "He has been equally effective in his role as top operating officer as evidenced by the steady improvement in the company's key operating metrics to a point where we now rank among the industry's best-run railroads."

KCS officials are searching for Davies' successor and expect to name a new COO by year end.