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 24, 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

TMM AND KCS PROVIDE  ADDITIONAL  INFORMATION  ABOUT FAVORABLE  RULING ON TFM VAT
SUIT.

On October 11, 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  a favorable  ruling on TFM's  value  added tax claim,  which has been
pending in the Mexican Courts since 1997. On October 24, 2002, Grupo TMM and KCS
issued a press  release  providing  additional  information  about  the VAT suit
ruling.  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 October 24,
                                        2002  entitled, "TMM  and KCS Provide
                                        Additional Infomation About Favorable
                                        Ruling on TFM VAT Suit," 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 24, 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:

William H. Galligan, Assistant Vice President
816-983-1551
william.h.galligan@kcsr.com


TMM AND KCS PROVIDE  ADDITIONAL  INFORMATION  ABOUT FAVORABLE  RULING ON TFM VAT
SUIT.

         Mexico City,  October 24, 2002 - On October 11, 2002,  Grupo TMM,  S.A.
("TMM") (NYSE: TMM) and Kansas City Southern ("KCS") (NYSE: KSU), owners through
Grupo  Transportacion  Ferroviaria  Mexicana,  S.A. de C.V.  of the  controlling
interest in TFM,  S.A.  de C.V.  ("TFM")  announced a favorable  ruling on TFM's
value added tax claim,  which has been pending in the Mexican courts since 1997.
The  claim  arose  out  of  the  Mexican  Treasury's  delivery  of a VAT  credit
certificate to a Mexican governmental agency, rather than to TFM.

         Since that  announcement,  TMM and KCS have received numerous questions
regarding  the amount and timing of the  expected  recovery on that claim.  By a
unanimous  decision,  a  three-judge  panel of the  Court of the  First  Circuit
("Federal  Court")  found that the Fiscal  Court's  ruling  had  violated  TFM's
constitutional  rights.  The Federal  Court has  remanded the case to the Fiscal
Court with specific  instructions  to vacate its prior  decision and enter a new
decision  consistent  with the guidance  provided by the Federal Court's ruling.
The Federal Court ruling requires the fiscal authorities to issue the VAT credit
certificate  only in the name of the interested party and not in the name of any
third party, to issue the VAT credit  certificate only in strict accordance with
the terms of the fiscal code, and to deliver the VAT credit  certificate only to
the beneficiary and not to any third party. The new decision of the Fiscal Court
must be issued in accordance  with the guidelines of the Federal Court.  TMM and
KCS have been advised that the Federal Court's order is not subject to appeal by
the  Mexican  government.  However,  the  Fiscal  Court's  new  decision  may be
challenged  by either of the parties if such party  believes that the new ruling
does not comply with the order of the Federal Court. In addition,  a third party
who can establish that its rights have been adversely and improperly affected by
the new ruling may seek to bring a claim  against TFM, but TFM believes  that it
would prevail in any such action.

         The face value of the VAT credit  certificate at issue is approximately
$206 million,  and the amount of any recovery will reflect that principal amount
adjusted for inflation and interest  accruals from 1997. Based upon the language
of the Federal Court's order and the advice of legal counsel, TMM and KCS remain
optimistic  about the ultimate  outcome of this matter;  however,  the recovery,
including the timing and final amount thereof,  must await the conclusion of the
legal process.
<PAGE>

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": "valueupdate8k.txt", "secsgml_size_bytes": 7758}]
{"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": "02798076"}, "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):

                                OCTOBER 24, 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

TMM AND KCS PROVIDE  ADDITIONAL  INFORMATION  ABOUT FAVORABLE  RULING ON TFM VAT
SUIT.

On October 11, 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  a favorable  ruling on TFM's  value  added tax claim,  which has been
pending in the Mexican Courts since 1997. On October 24, 2002, Grupo TMM and KCS
issued a press  release  providing  additional  information  about  the VAT suit
ruling.  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 October 24,
                                        2002  entitled, "TMM  and KCS Provide
                                        Additional Infomation About Favorable
                                        Ruling on TFM VAT Suit," 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 24, 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:

William H. Galligan, Assistant Vice President
816-983-1551
william.h.galligan@kcsr.com

TMM AND KCS PROVIDE  ADDITIONAL  INFORMATION  ABOUT FAVORABLE  RULING ON TFM VAT
SUIT.

         Mexico City,  October 24, 2002 - On October 11, 2002,  Grupo TMM,  S.A.
("TMM") (NYSE: TMM) and Kansas City Southern ("KCS") (NYSE: KSU), owners through
Grupo  Transportacion  Ferroviaria  Mexicana,  S.A. de C.V.  of the  controlling
interest in TFM,  S.A.  de C.V.  ("TFM")  announced a favorable  ruling on TFM's
value added tax claim,  which has been pending in the Mexican courts since 1997.
The  claim  arose  out  of  the  Mexican  Treasury's  delivery  of a VAT  credit
certificate to a Mexican governmental agency, rather than to TFM.

         Since that  announcement,  TMM and KCS have received numerous questions
regarding  the amount and timing of the  expected  recovery on that claim.  By a
unanimous  decision,  a  three-judge  panel of the  Court of the  First  Circuit
("Federal  Court")  found that the Fiscal  Court's  ruling  had  violated  TFM's
constitutional  rights.  The Federal  Court has  remanded the case to the Fiscal
Court with specific  instructions  to vacate its prior  decision and enter a new
decision  consistent  with the guidance  provided by the Federal Court's ruling.
The Federal Court ruling requires the fiscal authorities to issue the VAT credit
certificate  only in the name of the interested party and not in the name of any
third party, to issue the VAT credit  certificate only in strict accordance with
the terms of the fiscal code, and to deliver the VAT credit  certificate only to
the beneficiary and not to any third party. The new decision of the Fiscal Court
must be issued in accordance  with the guidelines of the Federal Court.  TMM and
KCS have been advised that the Federal Court's order is not subject to appeal by
the  Mexican  government.  However,  the  Fiscal  Court's  new  decision  may be
challenged  by either of the parties if such party  believes that the new ruling
does not comply with the order of the Federal Court. In addition,  a third party
who can establish that its rights have been adversely and improperly affected by
the new ruling may seek to bring a claim  against TFM, but TFM believes  that it
would prevail in any such action.

         The face value of the VAT credit  certificate at issue is approximately
$206 million,  and the amount of any recovery will reflect that principal amount
adjusted for inflation and interest  accruals from 1997. Based upon the language
of the Federal Court's order and the advice of legal counsel, TMM and KCS remain
optimistic  about the ultimate  outcome of this matter;  however,  the recovery,
including the timing and final amount thereof,  must await the conclusion of the
legal process.
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.