Kansas City Southern (KSU) is a US/Mexico railroad with a very different strategy from its competitors. The company's small but efficient network gives it exclusive control over multiple high-value transportation corridors. This unique asset base has translated to industry-leading revenue growth and pricing power over the past 5 years. Because freight rail is an industry with high barriers to entry (capital-intensive and highly regulated), these competitive advantages can be expected to hold up over the long term, generating significant shareholder value.
US Freight Rail - Overview
The freight rail industry in the US