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):

                               DECEMBER 10, 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 TMM AND KCS ANNOUNCE NEW DECISION OF MEXICAN  FISCAL COURT  DENYING  TFM'S
VAT CLAIM.  On December 9, 2002,  Grupo TMM, S.A.  ("Grupo TMM") and Kansas City
Southern,  ("KCS"),  owners through Grupo Transportacion  Ferroviaria  Mexicana,
S.A. de C.V.  ("Grupo  TFM") of the  controlling  interest in TFM,  S.A. de C.V.
("TFM"),  announced that the upper chamber of the Federal Tribunal of Fiscal and
Administrative  Justice (the "Fiscal  Court") has issued a ruling  denying TFM's
right to recovery  with  respect to its value  added tax ("VAT")  claim from the
Mexican  Federal  Government.  See the Press Release  attached hereto as Exhibit
99.1 for further 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 December 10, 2002 entitled, "Grupo TMM and KCS Announce
                   New  Decision  of Mexican  Fiscal  Court  Denying  TFM's VAT
                   Claim," 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: December 10, 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
011-525-55-629-8790                             investors, 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
816-983-1551
william.h.galligan@kcsr.com


         FOR IMMEDIATE RELEASE MONDAY, DECEMBER 9, 2002

         GRUPO TMM AND KCS  ANNOUNCE  NEW  DECISION  OF  MEXICAN  FISCAL  COURT
                               DENYING TFM'S VAT CLAIM

         MEXICO CITY,  DECEMBER 9, 2002 - GRUPO TMM,  S.A.  ("GRUPO TMM") (NYSE:
         TMM) AND  KANSAS  CITY  SOUTHERN  ("KCS")  (NYSE:  KSU),  owners of the
         controlling  interest in TFM, S.A. de C.V.  (TFM),  announced  that the
         upper  chamber of the  Federal  Tribunal  of Fiscal and  Administrative
         Justice (the "Fiscal Court") has issued a ruling denying TFM's right to
         receive  a value  added  tax  (VAT)  refund  from the  Mexican  Federal
         Government.  TFM has not yet  received the decision of the Fiscal Court
         and,  therefore,  cannot comment on the specific  reasoning  behind the
         Fiscal Court's  decision.  The companies  intend to review the decision
         once it is served upon TFM,  and to take all legal steps  necessary  to
         protect the  interests  of the  companies'  shareholders.  Based on the
         advice of TFM's legal counsel,  who have  carefully  reviewed the prior
         favorable   decision  of  the  appellate  court,  the  partners  remain
         confident of TFM's right under Mexican law to receive the VAT refund.

         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.
<PAGE>

         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.
[{"type": "8-K", "sequence": "1", "filename": "vatrulrev8k.txt", "secsgml_size_bytes": 7675}]
{"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": "02853098"}, "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):

                               DECEMBER 10, 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 TMM AND KCS ANNOUNCE NEW DECISION OF MEXICAN  FISCAL COURT  DENYING  TFM'S
VAT CLAIM.  On December 9, 2002,  Grupo TMM, S.A.  ("Grupo TMM") and Kansas City
Southern,  ("KCS"),  owners through Grupo Transportacion  Ferroviaria  Mexicana,
S.A. de C.V.  ("Grupo  TFM") of the  controlling  interest in TFM,  S.A. de C.V.
("TFM"),  announced that the upper chamber of the Federal Tribunal of Fiscal and
Administrative  Justice (the "Fiscal  Court") has issued a ruling  denying TFM's
right to recovery  with  respect to its value  added tax ("VAT")  claim from the
Mexican  Federal  Government.  See the Press Release  attached hereto as Exhibit
99.1 for further 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 December 10, 2002 entitled, "Grupo TMM and KCS Announce
                   New  Decision  of Mexican  Fiscal  Court  Denying  TFM's VAT
                   Claim," 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: December 10, 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
011-525-55-629-8790                             investors, 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
816-983-1551
william.h.galligan@kcsr.com

         FOR IMMEDIATE RELEASE MONDAY, DECEMBER 9, 2002

         GRUPO TMM AND KCS  ANNOUNCE  NEW  DECISION  OF  MEXICAN  FISCAL  COURT
                               DENYING TFM'S VAT CLAIM

         MEXICO CITY,  DECEMBER 9, 2002 - GRUPO TMM,  S.A.  ("GRUPO TMM") (NYSE:
         TMM) AND  KANSAS  CITY  SOUTHERN  ("KCS")  (NYSE:  KSU),  owners of the
         controlling  interest in TFM, S.A. de C.V.  (TFM),  announced  that the
         upper  chamber of the  Federal  Tribunal  of Fiscal and  Administrative
         Justice (the "Fiscal Court") has issued a ruling denying TFM's right to
         receive  a value  added  tax  (VAT)  refund  from the  Mexican  Federal
         Government.  TFM has not yet  received the decision of the Fiscal Court
         and,  therefore,  cannot comment on the specific  reasoning  behind the
         Fiscal Court's  decision.  The companies  intend to review the decision
         once it is served upon TFM,  and to take all legal steps  necessary  to
         protect the  interests  of the  companies'  shareholders.  Based on the
         advice of TFM's legal counsel,  who have  carefully  reviewed the prior
         favorable   decision  of  the  appellate  court,  the  partners  remain
         confident of TFM's right under Mexican law to receive the VAT refund.

         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.