Founded in 1887, it operated in 10 Midwestern and Southeastern U.S. states: Illinois, Missouri, Kansas, Oklahoma, Arkansas, Tennessee, Alabama, Mississippi, Louisiana and Texas.

KCS owned the shortest north-south rail route between Kansas City, Missouri, and several key ports along the Gulf of Mexico.

[1] KCS operated over a railroad system consisting of 3,984 route miles (6,412 km) that extended south to the Mexico–United States border at which point another KCS-operated railroad, Kansas City Southern de México (KCSM), hauled freight into northeastern and central Mexico and to several Gulf of Mexico ports and the Pacific Port of Lázaro Cárdenas.

Together with Edward L. Martin, Stilwell built the Kansas City Suburban Belt Railway, a 20-mile long railroad, which was incorporated in 1887 and began operation in 1890.

This line, which carried a significant portion of Mexico's rail traffic and freight from the United States, was highly sought after due to its strategic location, including proximity to numerous auto assembly plants.

In 2005, TMM sold its share of TFM to KCSI, prompting a rename to Kansas City Southern de México (KCSM).

[11] However, CN's merger attempt would be blocked by a STB ruling in August 2021 that the company could not use a voting trust to assume control of KCS, due to concerns about potentially reduced competition in the railroad industry.

[15][16] KCS hauled freight for seven major government and business sectors: agriculture and minerals, military, automotive, chemical and petroleum, energy, industrial and consumer products and intermodal.

[citation needed] KCS had the shortest north-south rail route between Kansas City, Missouri, and several key ports along the Gulf of Mexico in Alabama, Louisiana, Mississippi and Texas.