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Weekly Roundups

Mayan Train Rail Supply Contract Granted

Thu, 11/19/2020 - 19:21

A contract has been granted for the supply of all rails to be used on the first segment of the Mayan Train, reports FONATUR. Asimex del Caribe together with Steel Dynamics have been awarded the contract. This consortium is expected to supply 29,573.79 metric tons of rails, which must all comply with the American Railway Engineering and Maintenance-of-Way Association’s (AREMA) security standards, which are used in US railroads. FONATUR expects to make the pool of suppliers as diverse as possible for the subsequent rail supply tenders and not rely on a small number of manufacturers.   

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Water Supply Infrastructure and Availability Tied to Brewery Relocation

President López Obrador said that breweries should be installed in areas near the Grijalva and Usumacinta rivers and not in the northern part of the country where water is scarce. “Permits are given, nevertheless, in the center and north of the country. What must be guaranteed is that there is no shortage of water for human use and for agriculture,” he said. The president was referring to heavy rains that have flooded Tabasco and the cancellation of the Constellation Brands plant in Mexicali early in March, a project worth US$1.4 billion that was 70 percent complete. It was canceled after 27,973 people voted for its termination in a public referendum. 

Braskem-Idesa Contract Canceled

President López Obrador announced that the contract signed by PEMEX with Braskem-Idesa to refuel the Etileno XXI plant will be canceled “because this administration will not fuel corruption,” he said. “We are not going to keep a relationship of corruption, since those are leonine contracts from Felipe Calderón’s administration,” President López Obrador added. The president noted that  PEMEX head Octavio Romero told him that payments to the consortium had stopped, after the company, an Odebrecht subsidiary, refused to reach a new agreement on gas supply. “They do not want any arrangement and will have to cancel the contract. They are no longer going to be supplied with gas,” he concluded.

Outsourcing to End

President López Obrador said that all outsourcing that exists within the government will be eliminated. “I have no information on outsourcing among federal workers. Any outsourcing that may exist in the government is going to be eliminated,” he said. In recent days, there have been several reports of massive contracts given to outsourcing firms by the current federal administration. The president explained that eliminating the hiring scheme will benefit workers, so he expects that the reform sent to legislators will be approved soon. López Obrador noted that business representatives have contacted him to discuss the topic, but he already told them he will not be an accomplice to any action that affects workers.

Rail Cargo Now Safer

A press release published on Monday by the SCT reveals the latest figures on security regarding the Mexican rail system, reported by the Rail Transport Regulating Agency (ARTF). Train robberies went down 47.28 percent in 3Q20 when compared to 3Q19 numbers. In fact, this quarter marks the lowest theft rate in 2019 and 2020. Numbers also show a decrease of 24.94 percent when compared to 2Q20, including product theft with a 21.58 percent decrease and train component theft with a 27.57 percent decrease. Accidents in the rail cargo system have also decreased 34.75 percent when compared to 2Q20 and 31.40 percent against 3Q19. Vandalism has also seen a decrease of 23.03 percent when compared to the same period in 2019, offering reliability for both users and investors.

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