SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT

                     Pursuant to Section 13 or 15(d) of the

                         Securities Exchange Act of 1934

                Date of Report (Date of earliest event reported):

                                OCTOBER 11, 2002

                              KANSAS CITY SOUTHERN

               (Exact name of company as specified in its charter)


            DELAWARE                    1-4717               44-0663509
-------------------------------    --------------------  -----------------------
  (State or other jurisdiction      (Commission file        (IRS Employer
        of incorporation)                 number)        Identification Number)


                427 WEST 12TH STREET, KANSAS CITY, MISSOURI 64105

               (Address of principal executive offices) (Zip Code)


                COMPANY'S TELEPHONE NUMBER, INCLUDING AREA CODE:

                                (816) 983 - 1303

                                 NOT APPLICABLE

          (Former name or former address if changed since last report)









<PAGE>



ITEM 5.          OTHER EVENTS

GRUPO TFM ANNOUNCES FAVORABLE RULING IN VALUE ADDED TAX LAWSUIT

On October 11, 2002,  Grupo TMM, S.A.  ("Grupo  TMM") and Kansas City  Southern,
("KCS"), owners of the controlling interest in Grupo Transportacion  Ferroviaria
Mexicana,  S.A. de C.V. ("Grupo TFM"), announced that a three judge panel of the
Mexican  Magistrates  Court had  unanimously  ruled in favor of Grupo TFM in its
Value Added Tax lawsuit. See the attached Press Release for more details.

ITEM 7.          FINANCIAL STATEMENTS AND EXHIBITS

(c)              Exhibits

                 EXHIBIT NO.           DOCUMENT

                 (99)                  Additional Exhibits

                 99.1                  Press Release issued by Kansas City
                                       Southern and Grupo TMM dated October 11,
                                       2002 entitled, "Grupo TFM Announces
                                       Favorable Ruling in Value Added Tax
                                       Lawsuit", is attached hereto as Exhibit
                                       99.1

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company
has duly  caused  this  Report  to be signed  on its  behalf by the  undersigned
hereunto duly authorized.

                                           Kansas City Southern

Date: October 11, 2002                  By:         /S/  LOUIS G. VAN HORN
                                           -------------------------------------
                                                       Louis G. Van Horn
                                                Vice President and Comptroller
                                                (Principal Accounting Officer)


<PAGE>


EXHIBIT 99.1

GRUPO TMM COMPANY CONTACT:                 AT DRESNER CORPORATE SERVICES:

Jacinto Marina, Chief Financial Officer    Kristine Walczak (general investors,
011-525-55-629-8790                         analysts and media)
(jacinto.marina@tmm.com.mx)                312-726-3600 (kwalczak@dresnerco.com)
Brad Skinner, Senior Vice President
Investor Relations
011-525-55-629-8725
(brad.skinner@tmm.com.mx)
Luis Calvillo, Executive Vice President
And Media Relations
011-525-55-629-8758
(luis.calvillo@tmm.com.mx)

KCS COMPANY CONTACT:

Ronald Russ, Senior Vice President and Chief Financial Officer
816-983-1702
(ronald.g.russ@kcsr.com)
William H. Galligan, Assistant Vice President, Corporate Affairs
816-983-1551
(william.h.galligan@kcsr.com)



FOR IMMEDIATE RELEASE
FRIDAY, OCTOBER 11, 2002

                      GRUPO TFM ANNOUNCES FAVORABLE RULING
                           IN VALUE ADDED TAX LAWSUIT

MEXICO CITY,  OCTOBER 11, 2002 - GRUPO TMM, S.A.  ("GRUPO TMM") (NYSE:  TMM) AND
KANSAS CITY SOUTHERN ("KCS") (NYSE: KSU), owners of the controlling  interest in
Grupo Transportacion Ferroviaria Mexicana, S.A. de C.V. ("Grupo TFM"), announced
today that a three judge panel of the Mexican  Magistrates Court has unanimously
ruled in favor of Grupo TFM in its Value Added Tax lawsuit. The claim dates back
to January  1997. As a result of this  decision,  Grupo TFM expects to receive a
certificate   that  may  be  used  against   future  taxes  or,  under  existing
regulations, may be exchanged for cash. The decision is not subject to appeal by
the government.

In response to the court ruling, Jose Serrano, Chairman and CEO of Grupo TMM and
Grupo TFM said, "The decision of the court affirms that the Rule of Law is alive
and well in Mexico. This ruling is a victory for our country and should serve as
encouragement  and  validation  for all investors  throughout the world that the
current  Government of Mexico is serious about  transparency and adhering to the
laws of the nation."

Michael Haverty, Chairman, CEO and President of KCS stated, "We are pleased with
the fairness of the Mexican  judicial  system.  By removing the uncertainty that
has  surrounded  the VAT credit  issue,  the  decision  of the three judge panel
enhances  the  opportunity  for KCS and Grupo TMM to  further  grow the value of
their investment through the development of TFM and the NAFTA rail network."
<PAGE>

Headquartered  in Mexico City, Grupo TMM is Latin America's  largest  multimodal
transportation  company.  Through its branch  offices and network of  subsidiary
companies,   Grupo  TMM  provides  a  dynamic  combination  of  ocean  and  land
transportation   services.   Grupo  TMM  also  has  a  significant  interest  in
Transportacion  Ferroviaria  Mexicana (TFM),  which operates Mexico's  Northeast
railway and carries  over 40 percent of the  country's  rail cargo.  Visit Grupo
TMM's web site at www.grupotmm.com.mx and TFM's web site at www.tfm.com.mx. Both
sites offer Spanish/English language options.

KCS is a  transportation  holding  company that has railroad  investments in the
United States,  Mexico,  and Panama. Its primary holding is Kansas City Southern
Railway.  Headquartered  in Kansas City,  Missouri,  KCS serves customers in the
central  and  south  central  regions  of  the  U.S.  KCS's  rail  holdings  and
investments  are primary  components  of a NAFTA  Railway  system that links the
commercial and industrial centers of the United States, Canada, and Mexico.






Included in this press release are certain forward-looking statements within the
meaning of Section 27A of the  Securities  Act of 1933, as amended,  and Section
21E of the  Securities  Exchange Act of 1934, as amended.  Such  forward-looking
statements are based on the beliefs of the Companies'  managements as well as on
assumptions  made. Actual results could differ materially from those included in
such forward-looking statements.  Readers are cautioned that all forward-looking
statements  involve risks and  uncertainty.  The  following  factors could cause
actual  results  to  differ  materially  from such  forward-looking  statements:
global, US and Mexican economic and social  conditions;  the effect of the North
American Free Trade Agreement on the level of US-Mexico  trade; the condition of
the world shipping market; the success of the Companies' investment in TFM, S.A.
de C.V.  and other new  businesses;  risks.  These risk  factors and  additional
information  are  included  in Grupo  TMM's  and KCS'  reports  on file with the
Securities and Exchange Commission.
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SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT

                     Pursuant to Section 13 or 15(d) of the

                         Securities Exchange Act of 1934

                Date of Report (Date of earliest event reported):

                                OCTOBER 11, 2002

                              KANSAS CITY SOUTHERN

               (Exact name of company as specified in its charter)

            DELAWARE                    1-4717               44-0663509
-------------------------------    --------------------  -----------------------
  (State or other jurisdiction      (Commission file        (IRS Employer
        of incorporation)                 number)        Identification Number)

                427 WEST 12TH STREET, KANSAS CITY, MISSOURI 64105

               (Address of principal executive offices) (Zip Code)

                COMPANY'S TELEPHONE NUMBER, INCLUDING AREA CODE:

                                (816) 983 - 1303

                                 NOT APPLICABLE

          (Former name or former address if changed since last report)
ITEM 5.          OTHER EVENTS

GRUPO TFM ANNOUNCES FAVORABLE RULING IN VALUE ADDED TAX LAWSUIT

On October 11, 2002,  Grupo TMM, S.A.  ("Grupo  TMM") and Kansas City  Southern,
("KCS"), owners of the controlling interest in Grupo Transportacion  Ferroviaria
Mexicana,  S.A. de C.V. ("Grupo TFM"), announced that a three judge panel of the
Mexican  Magistrates  Court had  unanimously  ruled in favor of Grupo TFM in its
Value Added Tax lawsuit. See the attached Press Release for more details.

ITEM 7.          FINANCIAL STATEMENTS AND EXHIBITS

(c)              Exhibits

                 EXHIBIT NO.           DOCUMENT

                 (99)                  Additional Exhibits

                 99.1                  Press Release issued by Kansas City
                                       Southern and Grupo TMM dated October 11,
                                       2002 entitled, "Grupo TFM Announces
                                       Favorable Ruling in Value Added Tax
                                       Lawsuit", is attached hereto as Exhibit
                                       99.1

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company
has duly  caused  this  Report  to be signed  on its  behalf by the  undersigned
hereunto duly authorized.

                                           Kansas City Southern

Date: October 11, 2002                  By:         /S/  LOUIS G. VAN HORN
                                           -------------------------------------
                                                       Louis G. Van Horn
                                                Vice President and Comptroller
                                                (Principal Accounting Officer)
EXHIBIT 99.1

GRUPO TMM COMPANY CONTACT:                 AT DRESNER CORPORATE SERVICES:

Jacinto Marina, Chief Financial Officer    Kristine Walczak (general investors,
011-525-55-629-8790                         analysts and media)
(jacinto.marina@tmm.com.mx)                312-726-3600 (kwalczak@dresnerco.com)
Brad Skinner, Senior Vice President
Investor Relations
011-525-55-629-8725
(brad.skinner@tmm.com.mx)
Luis Calvillo, Executive Vice President
And Media Relations
011-525-55-629-8758
(luis.calvillo@tmm.com.mx)

KCS COMPANY CONTACT:

Ronald Russ, Senior Vice President and Chief Financial Officer
816-983-1702
(ronald.g.russ@kcsr.com)
William H. Galligan, Assistant Vice President, Corporate Affairs
816-983-1551
(william.h.galligan@kcsr.com)

FOR IMMEDIATE RELEASE
FRIDAY, OCTOBER 11, 2002

                      GRUPO TFM ANNOUNCES FAVORABLE RULING
                           IN VALUE ADDED TAX LAWSUIT

MEXICO CITY,  OCTOBER 11, 2002 - GRUPO TMM, S.A.  ("GRUPO TMM") (NYSE:  TMM) AND
KANSAS CITY SOUTHERN ("KCS") (NYSE: KSU), owners of the controlling  interest in
Grupo Transportacion Ferroviaria Mexicana, S.A. de C.V. ("Grupo TFM"), announced
today that a three judge panel of the Mexican  Magistrates Court has unanimously
ruled in favor of Grupo TFM in its Value Added Tax lawsuit. The claim dates back
to January  1997. As a result of this  decision,  Grupo TFM expects to receive a
certificate   that  may  be  used  against   future  taxes  or,  under  existing
regulations, may be exchanged for cash. The decision is not subject to appeal by
the government.

In response to the court ruling, Jose Serrano, Chairman and CEO of Grupo TMM and
Grupo TFM said, "The decision of the court affirms that the Rule of Law is alive
and well in Mexico. This ruling is a victory for our country and should serve as
encouragement  and  validation  for all investors  throughout the world that the
current  Government of Mexico is serious about  transparency and adhering to the
laws of the nation."

Michael Haverty, Chairman, CEO and President of KCS stated, "We are pleased with
the fairness of the Mexican  judicial  system.  By removing the uncertainty that
has  surrounded  the VAT credit  issue,  the  decision  of the three judge panel
enhances  the  opportunity  for KCS and Grupo TMM to  further  grow the value of
their investment through the development of TFM and the NAFTA rail network."
Headquartered  in Mexico City, Grupo TMM is Latin America's  largest  multimodal
transportation  company.  Through its branch  offices and network of  subsidiary
companies,   Grupo  TMM  provides  a  dynamic  combination  of  ocean  and  land
transportation   services.   Grupo  TMM  also  has  a  significant  interest  in
Transportacion  Ferroviaria  Mexicana (TFM),  which operates Mexico's  Northeast
railway and carries  over 40 percent of the  country's  rail cargo.  Visit Grupo
TMM's web site at www.grupotmm.com.mx and TFM's web site at www.tfm.com.mx. Both
sites offer Spanish/English language options.

KCS is a  transportation  holding  company that has railroad  investments in the
United States,  Mexico,  and Panama. Its primary holding is Kansas City Southern
Railway.  Headquartered  in Kansas City,  Missouri,  KCS serves customers in the
central  and  south  central  regions  of  the  U.S.  KCS's  rail  holdings  and
investments  are primary  components  of a NAFTA  Railway  system that links the
commercial and industrial centers of the United States, Canada, and Mexico.

Included in this press release are certain forward-looking statements within the
meaning of Section 27A of the  Securities  Act of 1933, as amended,  and Section
21E of the  Securities  Exchange Act of 1934, as amended.  Such  forward-looking
statements are based on the beliefs of the Companies'  managements as well as on
assumptions  made. Actual results could differ materially from those included in
such forward-looking statements.  Readers are cautioned that all forward-looking
statements  involve risks and  uncertainty.  The  following  factors could cause
actual  results  to  differ  materially  from such  forward-looking  statements:
global, US and Mexican economic and social  conditions;  the effect of the North
American Free Trade Agreement on the level of US-Mexico  trade; the condition of
the world shipping market; the success of the Companies' investment in TFM, S.A.
de C.V.  and other new  businesses;  risks.  These risk  factors and  additional
information  are  included  in Grupo  TMM's  and KCS'  reports  on file with the
Securities and Exchange Commission.