The company was founded in 1996 as Transportación Ferroviaria Mexicana (reporting mark TFM), a joint venture between KCS and Transportación Maritima Mexicana after the companies won a concession from the Mexican government to operate the 5,335-kilometer (3,315 mi) Northeast Railroad connecting Monterrey and Mexico City with a US port of entry at Laredo, Texas and seaports at Lázaro Cárdenas and Veracruz.

On April 14, 2023, KCS and KCSM became subsidiaries of CPR, and began conducting business under the name of their new parent, CPKC.

Kansas City Southern de México was originally formed in 1996 when Kansas City Southern Industries and Transportación Maritima Mexicana (TMM) purchased a government concession to operate on a rail system in Mexico.

When the decision to privatize the railroad was made, only 15% of freight was moved by rail in Mexico (versus 42% in the US[1]).

In 2005, Kansas City Southern Industries purchased Transportación Maritima Mexicana's share in TFM, giving them full ownership of the company, and the TFM was officially renamed Kansas City Southern de México.