SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                    FORM 8-K


                                 CURRENT REPORT
                     Pursuant to Section 13 or 15(d) of the
                         Securities Exchange Act of 1934


                Date of Report (Date of earliest event reported):
                                  APRIL 4, 2004


                              KANSAS CITY SOUTHERN
               ---------------------------------------------------
               (Exact name of company as specified in its charter)


         DELAWARE                       1-4717                 44-0663509
- ----------------------------   ------------------------   ----------------------
(State or other jurisdiction   (Commission file number)       (IRS Employer
     of incorporation)                                    Identification Number)

                427 WEST 12TH STREET, KANSAS CITY, MISSOURI 64105
               ---------------------------------------------------
               (Address of principal executive offices) (Zip Code)


                COMPANY'S TELEPHONE NUMBER, INCLUDING AREA CODE:
                ------------------------------------------------
                                (816) 983 - 1303


                                 NOT APPLICABLE
          (Former name or former address if changed since last report)









ITEM 5. OTHER EVENTS

Claimants Kansas City Southern  ("KCS") and Kara Sub Inc. and Respondents  Grupo
TMM,  S.A.,  TMM Holdings,  S.A. de C.V. and TMM  Multimodal,  S.A. de C.V. have
entered into a Stipulation in connection with the arbitration  currently pending
before the AAA International Centre for Dispute Resolution.  See the Stipulation
attached hereto as Exhibit 99.1 for further information.


ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS

(c)  Exhibits

     EXHIBIT NO.    DOCUMENT

     (99)           Additional Exhibits

     99.1           Stipulation,  dated April 4, 2004,  between Claimants Kansas
                    City Southern and Kara Sub Inc. and  Respondents  Grupo TMM,
                    S.A., TMM Holdings, S.A. de C.V. and TMM Multimodal, S.A. de
                    C.V., attached hereto as Exhibit 99.1

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company
has duly  caused  this  Report  to be signed  on its  behalf by the  undersigned
hereunto duly authorized.


                                              Kansas City Southern


Date: April 6, 2004                         By: /s/ Mark W. Osterberg
                                                --------------------------------
                                                Mark W. Osterberg
                                                Vice President and Comptroller
                                                (Principal Accounting Officer)