Kansas City Southern on Tuesday reiterated that it expects its Mexican rail partner, Grupo TMM, to fulfill its obligations in a disputed sale of Mexico's biggest railroad.

Kansas City Southern sought to clarify an agreement signed by the company and TMM last week regarding the sale of Grupo TFM. Kansas City Southern has been seeking to buy TMM's interest in TFM to create a single railroad stretching from Kansas City to Mexico City.

After initially agreeing to a sale of TMM's stake in TFM, TMM's largest shareholder rejected the agreement last August. Last month, an arbitration panel backed Kansas City Southern's position that the purchase agreement remained valid.

Both companies agreed to suspend the next phase of the arbitration process last week, but confusion surfaced over what that meant. A TMM spokesman described last week's agreement as a