Kansas City Southern eyes lower operating ratio
Third phase to focus on increasing network velocity, reducing train starts and lengthening trains 421 4 minutes read Kansas City Southern eyes a mid-50s OR in 2022. (Photo: Jim Allen/FreightWaves)
Kansas City Southern (NYSE: KSU) expects to execute the third phase of its version of precision scheduled railroading (PSR) this year in a bid to lower the company’s operating ratio (OR) to the mid-50s by 2022.
PSR is an operational tool that almost all of the Class I railroads deployed to streamline operations. Kansas City Southern (KCS) adopted PSR in 2019. Investors use OR to gauge the financial health of a company, with a lower OR implying improved health. OR is a company’s operating expenses as a percentage of its revenue.
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