Ownership Submission
FORM 4
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
HAVERTY MICHAEL R
   2. Issuer Name and Ticker or Trading Symbol
KANSAS CITY SOUTHERN [KSU] 		5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
__X__ Director _____ 10% Owner
__X__ Officer (give title below) _____ Other (specify below)
Chairman & CEO
(Last)
(First)
(Middle)
KANSAS CITY SOUTHERN, PO BOX 219335		 3. Date of Earliest Transaction (Month/Day/Year)
01/19/2007
(Street)

KANSAS CITY, MO 64121-9335		 4. If Amendment, Date Original Filed(Month/Day/Year)
 6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)		 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code
(Instr. 8)		 4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)		 5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)		 6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)		 7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
Common Stock 01/19/2007   F   3,679 D $ 29.89 1,076,845 (7) D  
Common Stock               412 I Held by child
Common Stock               10,950.988 I Held by 401(k) & P/S Plan (1)
Common Stock               29,732.645 I Held by ESOP (3)
Common Stock               19,622 I Held by trust f/b/o child
Common Stock               306,134 I Held by spouse

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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)		 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code
(Instr. 8)		 5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)		 6. Date Exercisable and Expiration Date
(Month/Day/Year)		 7. Title and Amount of Underlying Securities
(Instr. 3 and 4)		 8. Price of Derivative Security
(Instr. 5)		 9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)		 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)		 11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Option (Right to Buy) (2) $ 5.75             07/13/2003 07/12/2010 Common Stock 198,000   198,000 D  
LSAR (2) $ 5.75               (2)   (2) Common Stock 198,000   198,000 D  
Option (Right to Buy) (2) $ 5.75             07/13/2001 07/12/2010 Common Stock 990,000   990,000 D  
LSAR (2) $ 5.75               (2)   (2) Common Stock 990,000   990,000 D  
Option (Right to Buy) (2) $ 14.34             02/27/2001 02/26/2011 Common Stock 12,363   12,363 D  
LSAR (2) $ 14.34               (2)   (2) Common Stock 12,363   12,363 D  
Option (Right to Buy) (2) $ 13.42             02/06/2002 02/05/2012 Common Stock 13,207   13,207 D  
LSAR (2) $ 13.42               (2)   (2) Common Stock 13,207   13,207 D  
Option (Right to Buy) (2) $ 12.55             01/16/2003 01/15/2013 Common Stock 15,901   15,901 D  
LSAR (2) $ 12.55               (2)   (2) Common Stock 15,901   15,901 D  
Option (Right to Buy) (2) $ 12.55             01/16/2008 01/15/2013 Common Stock 90,000   90,000 D  
LSAR (2) $ 12.55               (2)   (2) Common Stock 90,000   90,000 D  
Option (Right to Buy) (2) $ 14.6             01/02/2005 01/01/2014 Common Stock 90,000   90,000 D  
LSAR (2) $ 14.6               (2)   (2) Common Stock 90,000   90,000 D  
Option (Right to Buy) (2) $ 14.53             02/09/2004 02/08/2014 Common Stock 13,689   13,689 D  
LSAR (2) $ 14.53               (2)   (2) Common Stock 13,689   13,689 D  
Variable pre-paid forward contract (put equivalent position) (4) (5) (6)               (4)(5)(6)   (4)(5)(6) Common Stock 350,000   350,000 D  

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
HAVERTY MICHAEL R
KANSAS CITY SOUTHERN
PO BOX 219335
KANSAS CITY, MO 64121-9335		   X     Chairman & CEO  

Signatures

 Julie D. Powell, Attorney-in-fact   01/23/2007
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) A total of 10,950.988 shares have accrued to the reporting person's account under the Company's 401(k) and Profit Sharing Plan.
(2) Limited Stock Appreciation Rights ("LSARs") are granted in tandem with stock options. LSARs become exercisable only following a change-in-control of the Company in lieu of related options and are exercisable only for cash. LSARs terminate when the related options are exercised or terminated.
(3) A total of 29,732.645 shares are held in the reporting person's account under the KCS Employee Stock Ownership Plan.
(4) On November 16, 2006, the reporting person entered into Prepaid Variable Forward Purchase Agreements ("Agreements") with UBS Securities LLC ("Buyer") . The Agreements obligate the reporting person to deliver to Buyer up to 350,000 Common Shares in the aggregate (or an equivalent amount of cash, if elected by him) on the Maturity Date of the Agreements (i.e., in December, 2009, or an earlier date if the parties agree to terminate the Agreement early). In exchange for assuming this obligation, the reporting person will receive a cash payment equal to approximately $7.9 million as of the date of entering into the Agreements (the actual amount to be determined upon completion of certain hedging transactions by Buyer). The reporting person pledged 350,000 Common Shares (the "Pledged Shares") to secure his obligations under the Agreements, and retained voting rights in the Pledged Shares during the period of the pledge. (Continued in footnote 5.)
(5) The number of Common Shares to be delivered to Buyer on the Maturity Date, if the reporting person does not elect a cash settlement, is to be determined as follows, on the basis of prices of the Common Shares that are subject to adjustment for events specified in the Agreements: * If the price per share of the Common Shares on the Maturity Date is less than or equal to the volume weighted average price at which Buyer completes its hedge execution (the "Initial Price"), the reporting person will deliver to the Buyer the entire amount of Pledged Shares; * If the price per share of the Common Shares on the Maturity Date is between 100% of the Initial Price (the "Lower Limit") and 140% of the Initial Price (the "Upper Limit"), the reporting person will deliver to the Buyer a number of shares determined by multiplying the number of the Pledged Shares by the Lower Limit, and dividing the resulting number by the price of the Common Shares on the Maturity Date; or (Continued in footnote 6.)
(6) * If the price per share of the Common Shares on the Maturity Date is greater than the Upper Limit, the reporting person will deliver to the Buyer a number of shares determined by reference to a formula specified in the Agreements that would result in the reporting person being obligated to deliver fewer than the number of Pledged Shares.
(7) Includes 1119 shares acquired through the KCS Employee Stock Purchase Plan.

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