Kansas City Southern and Norfolk Southern Open Joint Intermodal Facility to Serve North Texas Gulf.

PORT ARTHUR, Texas--(BUSINESS WIRE)--April 20, 1998--Kansas City Southern Railway (NYSE: KSU) and Norfolk Southern Corp. (NYSE: NCS) today announced the opening of a newly constructed joint intermodal facility in Port Arthur, Texas, to service the Port Arthur/Beaumont/ Houston Texas Gulf Coast region.

The new facility fills the void for intermodal services in the Port Arthur and Beaumont area and offers a competitive alternative to existing intermodal services in the Houston area.

KCS began operating in the facility on March 31, providing intermodal service over major U.S. rail corridors through key interchange points in Jackson, Miss., Shreveport, La., Kansas City, St. Louis and Minneapolis. Norfolk Southern begins operating in the facility on April 20, utilizing KCS haulage over the Meridian, Miss., gateway to service international and domestic shippers in the Southeast.

The facility, which has an annual capacity of 60,000 lifts, is situated on KCS property adjacent to its Port Arthur yard and the Port of Port Arthur. It also is located near the crossroads of three major interstates -- I-10, I-73 and I-82 -- providing quick access for truck interchanges. It features two 1,200-foot strip tracks with a capacity for 12 89-foot cars each.

Trailers and containers destined to or originating from the Houston area will be serviced through a Houston terminal where trailers and containers are drayed to the Port Arthur facility.

"KCS and Norfolk Southern have enjoyed a good working relationship, as evidenced by the success of our joint intermodal service on the Meridian Speedway," said KCS President and Chief Executive Officer Mike Haverty. "This joint facility is another example of how KCS is better serving shippers and extending its market reach through alliances with connecting railroads."

Haverty added that the startup also offers a timely alternative for intermodal shippers who want to bypass rail congestion in the Houston area.

Norfolk Southern Chairman, President and Chief Executive Officer David R. Goode said, "We are pleased to be able to work with the Kansas City Southern to establish an NS presence in the Houston area and expand the service options available to intermodal customers in this growing market."

KCS is a Class 1 railroad with operations in 11 Central and Southeastern states. It is the primary operating subsidiary of Kansas City Southern Industries (KCSI), a transportation and financial asset management company with headquarters in Kansas City, Mo. KCS is the flagship carrier in the 6,500-mile NAFTA Railway, providing seamless transportation services for the growing volume of North American trade.

Norfolk Southern is a Virginia-based holding company with headquarters in Norfolk. It owns a major freight railroad, Norfolk Southern Railway, which operates approximately 14,400 miles of railroad in 20 states, primarily in the Southeast and Midwest and the Province of Ontario. The corporation also owns Pocahontas Land Corp., a natural resources company.

CONTACT: KCS

Bill Galligan, 816/983-1551

World Wide Web Site: www.kcsi.com

or

NS

Robert Fort, 757/629-2710

World Wide Web Site: www.nscorp.com