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):
                                 August 16, 2004


                              KANSAS CITY SOUTHERN
               (Exact name of company as specified in its charter)


       DELAWARE                       1-4717                    44-0663509
   (State or other               (Commission file             (IRS Employer
jurisdiction 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 TMM, S.A. ("Grupo TMM") and Kansas City Southern ("KCS" or "Company")
announced on August 16, 2004, an agreement for TFM, S.A. de C.V. ("TFM") to sell
to KCS, Mexrail, Inc. ("Mexrail") shares representing a 51 percent ownership of
Mexrail for approximately $32.7 million (U.S.). The sale closed on August
16, 2004. KCS will repay to TFM on or before January 1, 2005, certain advances
from TFM in an amount of approximately $9.0 million and paid to Grupo TMM at
the closing outstanding payables of approximately $400,000. See the Press
Release attached hereto as Exhibit 99.1 for further information.



Item 7.          Financial Statements and Exhibits

(c) Exhibits

                 Exhibit No.              Document
                 (99)                     Additional Exhibits

                  99.1                    Press  Release  issued by Kansas  City
                                          Southern  dated  August  16,  2004,
                                          entitled,  "Grupo  TMM and  Kansas
                                          City  Southern  Announce  Agreement
                                          To Sell Controlling  Interest in
                                          Mexrail to Kansas City Southern" 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: August 18, 2004        By:             /s/ James S. Brook
                                  -------------------------------------------
                                               James S. Brook
                                       Vice President and Comptroller
                                       (Principal Accounting Officer)



<PAGE>


EXHIBIT 99.1




     Grupo TMM, S.A.
     Brad Skinner, Investor Relations
     011-525-55-629-8725 or 203-247-2420 or brad.skinner@tmm.com.mx


     Dresner Corporate Services
     Kristine Walczak (general investors, analysts and media)
     312-726-3600 or kwalczak@dresnerco.com

     Proa/StructurA
     Marco Provencio, Media Relations
     011-525-55-629-8708 and 011-525-55-442-4948 or mp@proa.structura.com.mx


     Kansas City Southern
     In the U.S.
     Warren K. Erdman, Vice President of Corporate Affairs
     816-983-1454 or warren.k.erdman@kcsr.com

     In Mexico
     Gabriel Guerra, Media Relations
     011-525-55-273-5359 or gguerra@gcya.net



              Grupo TMM and Kansas City Southern Announce Agreement
         To Sell Controlling Interest in Mexrail to Kansas City Southern


Kansas City,  MO. August 16, 2004 Grupo TMM, S.A.  (TMM) (NYSE:  TMM) and Kansas
City Southern  (KCS) (NYSE:  KSU) today  announced an agreement for TFM, S.A. de
C.V. (TFM) to sell to KCS,  Mexrail,  Inc.  (Mexrail)  shares  representing a 51
percent  ownership of Mexrail for approximately  $32.7 million (U.S.).  The sale
will close today.  KCS will repay to TFM on or before  January 1, 2005,  certain
advances from TFM in an amount of approximately $9 million and will pay to Grupo
TMM at the closing outstanding payables of approximately $400,000.

The sale will be made on terms substantially  similar to those previously agreed
to by the  parties  in April  of 2003.  Mexrail  wholly  owns The  Texas-Mexican
Railway Company  (Tex-Mex),  a U.S. based  shortline  railroad that connects The
Kansas City Southern Railway Company (KCSR) with TFM,  Mexico's largest railroad
by  volume.  The  Mexrail  shares  will be  placed  in a  voting  trust  pending
regulatory  approval by the Surface  Transportation  Board (STB) of KCS's common
control of Tex-Mex, KCSR, and the Gateway Eastern Railway Company.




                                    - more -



<PAGE>


Page 2 of 3


"KCS is very pleased to have  completed the Mexrail  transaction  and to have it
before the STB again for approval," said Michael R. Haverty, Chairman, President
and  CEO of  Kansas  City  Southern.  "Obtaining  control  of  Mexrail  and  its
U.S.-based  assets under KCS  strengthens KCS as a viable rail competitor in the
cross-border market.

"Approval of the Mexrail  transaction will make KCS, our TFM partner, a stronger
second U.S. rail carrier to the border at Laredo,  and will be highly beneficial
for TMM," said Jose  Serrano,  Chairman  and CEO of TMM. "We are pleased to have
completed this transaction."

Under the  agreement,  KCS has an exclusive  option to purchase the remaining 49
percent of Mexrail  through  October 31,  2005,  and an absolute  obligation  to
purchase  those shares on or before  October 31, 2005. KCS agrees to comply with
all prior STB rulings  concerning  the  international  bridge between Laredo and
Nuevo  Laredo (the  Bridge),  and to operate  the Bridge  under the terms of the
applicable bridge agreements and protocols.

KCS's  acquisition  of control of Tex Mex is subject to the approval of the STB.
KCS had  previously  submitted  an  application  to  control  Tex Mex,  but that
proceeding  was  suspended  by the  STB on  October  8,  2003,  following  TFM's
repurchase  of the  Mexrail  shares  from KCS under the terms of the April  2003
agreement.  KCS has notified the STB of the new  agreement and has requested the
STB  to  reinstate  the  procedural  schedule  and  to  move  forward  with  its
consideration of KCS's application to control Tex Mex.

Headquartered in Mexico City, TMM is a Latin American multimodal  transportation
company.  Through its branch  offices and network of subsidiary  companies,  TMM
provides a dynamic  combination of ocean and land transportation  services.  TMM
also has a significant  interest in TFM, S.A. de C.V.,  which operates  Mexico's
Northeast railway and carries over 40 percent of the country's rail cargo. Visit
TMM's   web   site   at   http://www.grupotmm.com   and   TFM's   web   site  at
http://www.tfm.com.mx.  Both sites offer Spanish/English language options. Grupo
TMM is listed on the New York Stock Exchange under the symbol "TMM" and Mexico's
Bolsa Mexicana de Valores under the symbol "TMM A."

KCS is a  transportation  holding  company that has railroad  investments in the
United States,  Mexico and Panama.  Its primary  holding in the United States is
The  Kansas  City  Southern  Railway  Company.  Headquartered  in  Kansas  City,
Missouri,  KCS serves  customers in the central and south central regions of the
United States.  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.







                                    - more -
<PAGE>


Page 3 of 3


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 TMM's and KCS's  management 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. For additional information relating to
such  risks and  uncertainties,  readers  are  urged to  review  TMM's and KCS's
respective  filings and submissions with the Securities and Exchange  Commission
under the Securities Exchange Act of 1934, as amended.













































                                      # # #
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{"company-data": {"conformed-name": "KANSAS CITY SOUTHERN", "cik": "0000054480", "assigned-sic": "4011", "irs-number": "440663509", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-04717", "film-number": "04984441"}, "business-address": {"street1": "427 WEST 12TH STREET", "city": "KANSAS CITY", "state": "MO", "zip": "64105", "phone": "8169831303"}, "mail-address": {"street1": "427 WEST 12TH STREET", "city": "KANSAS CITY", "state": "MO", "zip": "64105"}, "former-company": {"former-conformed-name": "KANSAS CITY SOUTHERN INDUSTRIES INC", "date-changed": "19920703"}}
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):
                                 August 16, 2004

                              KANSAS CITY SOUTHERN
               (Exact name of company as specified in its charter)

       DELAWARE                       1-4717                    44-0663509
   (State or other               (Commission file             (IRS Employer
jurisdiction 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 TMM, S.A. ("Grupo TMM") and Kansas City Southern ("KCS" or "Company")
announced on August 16, 2004, an agreement for TFM, S.A. de C.V. ("TFM") to sell
to KCS, Mexrail, Inc. ("Mexrail") shares representing a 51 percent ownership of
Mexrail for approximately $32.7 million (U.S.). The sale closed on August
16, 2004. KCS will repay to TFM on or before January 1, 2005, certain advances
from TFM in an amount of approximately $9.0 million and paid to Grupo TMM at
the closing outstanding payables of approximately $400,000. See the Press
Release attached hereto as Exhibit 99.1 for further information.

Item 7.          Financial Statements and Exhibits

(c) Exhibits

                 Exhibit No.              Document
                 (99)                     Additional Exhibits

                  99.1                    Press  Release  issued by Kansas  City
                                          Southern  dated  August  16,  2004,
                                          entitled,  "Grupo  TMM and  Kansas
                                          City  Southern  Announce  Agreement
                                          To Sell Controlling  Interest in
                                          Mexrail to Kansas City Southern" 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: August 18, 2004        By:             /s/ James S. Brook
                                  -------------------------------------------
                                               James S. Brook
                                       Vice President and Comptroller
                                       (Principal Accounting Officer)
EXHIBIT 99.1

     Grupo TMM, S.A.
     Brad Skinner, Investor Relations
     011-525-55-629-8725 or 203-247-2420 or brad.skinner@tmm.com.mx

     Dresner Corporate Services
     Kristine Walczak (general investors, analysts and media)
     312-726-3600 or kwalczak@dresnerco.com

     Proa/StructurA
     Marco Provencio, Media Relations
     011-525-55-629-8708 and 011-525-55-442-4948 or mp@proa.structura.com.mx

     Kansas City Southern
     In the U.S.
     Warren K. Erdman, Vice President of Corporate Affairs
     816-983-1454 or warren.k.erdman@kcsr.com

     In Mexico
     Gabriel Guerra, Media Relations
     011-525-55-273-5359 or gguerra@gcya.net

              Grupo TMM and Kansas City Southern Announce Agreement
         To Sell Controlling Interest in Mexrail to Kansas City Southern

Kansas City,  MO. August 16, 2004 Grupo TMM, S.A.  (TMM) (NYSE:  TMM) and Kansas
City Southern  (KCS) (NYSE:  KSU) today  announced an agreement for TFM, S.A. de
C.V. (TFM) to sell to KCS,  Mexrail,  Inc.  (Mexrail)  shares  representing a 51
percent  ownership of Mexrail for approximately  $32.7 million (U.S.).  The sale
will close today.  KCS will repay to TFM on or before  January 1, 2005,  certain
advances from TFM in an amount of approximately $9 million and will pay to Grupo
TMM at the closing outstanding payables of approximately $400,000.

The sale will be made on terms substantially  similar to those previously agreed
to by the  parties  in April  of 2003.  Mexrail  wholly  owns The  Texas-Mexican
Railway Company  (Tex-Mex),  a U.S. based  shortline  railroad that connects The
Kansas City Southern Railway Company (KCSR) with TFM,  Mexico's largest railroad
by  volume.  The  Mexrail  shares  will be  placed  in a  voting  trust  pending
regulatory  approval by the Surface  Transportation  Board (STB) of KCS's common
control of Tex-Mex, KCSR, and the Gateway Eastern Railway Company.

                                    - more -
Page 2 of 3

"KCS is very pleased to have  completed the Mexrail  transaction  and to have it
before the STB again for approval," said Michael R. Haverty, Chairman, President
and  CEO of  Kansas  City  Southern.  "Obtaining  control  of  Mexrail  and  its
U.S.-based  assets under KCS  strengthens KCS as a viable rail competitor in the
cross-border market.

"Approval of the Mexrail  transaction will make KCS, our TFM partner, a stronger
second U.S. rail carrier to the border at Laredo,  and will be highly beneficial
for TMM," said Jose  Serrano,  Chairman  and CEO of TMM. "We are pleased to have
completed this transaction."

Under the  agreement,  KCS has an exclusive  option to purchase the remaining 49
percent of Mexrail  through  October 31,  2005,  and an absolute  obligation  to
purchase  those shares on or before  October 31, 2005. KCS agrees to comply with
all prior STB rulings  concerning  the  international  bridge between Laredo and
Nuevo  Laredo (the  Bridge),  and to operate  the Bridge  under the terms of the
applicable bridge agreements and protocols.

KCS's  acquisition  of control of Tex Mex is subject to the approval of the STB.
KCS had  previously  submitted  an  application  to  control  Tex Mex,  but that
proceeding  was  suspended  by the  STB on  October  8,  2003,  following  TFM's
repurchase  of the  Mexrail  shares  from KCS under the terms of the April  2003
agreement.  KCS has notified the STB of the new  agreement and has requested the
STB  to  reinstate  the  procedural  schedule  and  to  move  forward  with  its
consideration of KCS's application to control Tex Mex.

Headquartered in Mexico City, TMM is a Latin American multimodal  transportation
company.  Through its branch  offices and network of subsidiary  companies,  TMM
provides a dynamic  combination of ocean and land transportation  services.  TMM
also has a significant  interest in TFM, S.A. de C.V.,  which operates  Mexico's
Northeast railway and carries over 40 percent of the country's rail cargo. Visit
TMM's   web   site   at   http://www.grupotmm.com   and   TFM's   web   site  at
http://www.tfm.com.mx.  Both sites offer Spanish/English language options. Grupo
TMM is listed on the New York Stock Exchange under the symbol "TMM" and Mexico's
Bolsa Mexicana de Valores under the symbol "TMM A."

KCS is a  transportation  holding  company that has railroad  investments in the
United States,  Mexico and Panama.  Its primary  holding in the United States is
The  Kansas  City  Southern  Railway  Company.  Headquartered  in  Kansas  City,
Missouri,  KCS serves  customers in the central and south central regions of the
United States.  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.

                                    - more -
Page 3 of 3

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 TMM's and KCS's  management 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. For additional information relating to
such  risks and  uncertainties,  readers  are  urged to  review  TMM's and KCS's
respective  filings and submissions with the Securities and Exchange  Commission
under the Securities Exchange Act of 1934, as amended.

                                      # # #