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Kansas City Southern & CloudMoyo Tie Up for System Upgrade

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In a bid to improve efficiency, Kansas City Southern has partnered with CloudMoyo to enhance its railroad operating system. The CloudMoyo Rail Transportation Management (CRTM) system will be roped in for the task.

The CRTM built on CloudMoyo Transportation platform, is a next-generation system leveraging the scale of the Microsoft Azure cloud. This cloud-based solution will use analytics and artificial intelligence to improve operational performance and agility.

The railroad operator will deploy the CRTM technology in phases spanning up to three years. Also, each CRTM application will be tried and tested before being put to use. The company currently utilizes CloudMoyo’s Crew Management, Business Intelligence and Advanced Analytics.

The modernization efforts support Kansas City Southern’s objective of emerging as the most efficient and customer-oriented transportation provider in North America. The company aims to improve its operating ratio (operating expenses as a percentage of revenues) in the current-year.

The CRTM system is expected to enable Kansas City Southern to effectively meet current and future requirements plus get rid of lengthy deployment schedules as well as costly infrastructure investment.


With the earnings season on, the company recently reported first-quarter results. It posted lower-than-expected earnings as well as revenues. However, both the bottom and the top line improved year over year. A strong performance at the Chemical & Petroleum unit contributed to the year-over-year rise in revenues. While volume expansion led to the year-over-year bottom-line increase.

Zacks Rank & Key Picks

Kansas City Southern has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Transportation sector are Cathay Pacific Airways Ltd. (CPCAY - Free Report) , Gol Linhas Aereas Inteligentes S.A. and SkyWest, Inc. (SKYW - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Shares of Cathay Pacific Airways, Gol Linhas and SkyWest have rallied more than 12%, 61% and 53%, respectively, in a year.

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