Deutsche Bahn Interested in Mexican Passenger Train Projects

The German state-owned company Deutsche Bahn has expressed interest in investing in the construction of eight passenger train lines proposed by Mexico's president-elect, Claudia Sheinbaum. This announcement comes as Mexico seeks to utilize existing freight railroads for passenger trains, a move that requires specialized expertise in the field.

According to Fernando Tehuintle, Director of Transport Projects, National Infrastructure Fund (FONADIN), the fund has allocated approximately MX$20 billion (US$1 billion) in non-recoverable support funds for the construction of various railway projects during López Obrador’s administration. 

According to Tehuintle, the primary sources of financing for these railway projects include resources from the Expenditure Budget and non-recoverable support funds from FONADIN. He noted that the nearly MX$20 billion in funds were allocated to key projects such as the Mexico-Toluca Interurban Train, the branch line of the Suburban Train to the Felipe Angeles International Airport (AIFA), Section 4 of the Mayan Train crossing from Izamal to Cancun, Line 4 of the Urban Electric Train System (SITEUR) in Guadalajara, and financial support to the government of Nuevo Leon for the development of its Suburban Train, as reported by TyT.

Following his participation in the German Symposium on Railway Transport, Tehuintle emphasized that one of the biggest challenges for passenger train projects is securing adequate financing. He stated that FONADIN draws resources from the toll roads it manages, creating a fund from the surplus that is then invested in infrastructure projects.

Tehuintle highlighted the importance of conducting serious studies with experienced companies to ensure an accurate total investment amount for each project. This approach aims to minimize significant investment deviation. He stressed the importance of selecting technology that is compatible with existing infrastructure. He provided the example of rolling stock for interurban passenger transport services, which must align with the specific infrastructure and geographical conditions. He noted that the infrastructure and railway equipment would likely differ from those used in urban and light rail systems, emphasizing the need for a relevant technological correlation.

In this sense, during the symposium, Gorden Rumpff, Executive Director for Mexico, Central America, and the Caribbean, Deutsche Bahn, said the company is interested in participating in the development of Mexico’s railway sector saying Deutsche Bahn offers extensive operational experience in freight and passenger train services acquired through their operation in Germany and Europe. Rumpff said they can combine the company’s experience with Mexican specific needs in railroads. "There is already significant experience in the operation of freight and passenger trains in Mexico, and combined with our background in Germany and other countries, we believe we can bring considerable value," he added.

Rumpff noted that Deutsche Bahn is eager to participate in the upcoming public tenders for the construction of these new passenger train lines. The company already operates a freight train service in Uruguay and is involved in a railway project in Toronto, Canada. 

Passenger Trains in Mexico 

On Nov. 20, 2023, President López Obrador published a decree aimed to enhance passenger service through already existing freight rail tracks. The decree encompasses the modernization of 17,484 km of railway infrastructure. In its initial phase, the government plans to invite railway concessionaires, including Canadian Pacific Kansas City (CPKC), Ferromex, Ferrosur, and Ferrovalle, to submit proposals for passenger services.

Minister of Infrastructure Jorge Nuño highlighted the collaboration with private companies in the development of projects and the design of business plans. He assured that promoting passenger trains will not compromise cargo transportation. Nuño stated that potential subsidies would be addressed in future discussions as the passenger train plans become more concrete, as reported by MBN. 

Promoting railway passenger services is crucial for improving mobility within and between cities in Mexico. According to the German Embassy in Mexico, trains are among the most sustainable modes of transportation, with long-distance railways producing just over 30g CO2Eq per person per kilometer, compared to over 238g CO2Eq for domestic flights. “The railway system, with over 23,000km of tracks in Mexico, is a key component in contributing to the economic, ecological, and social development of countries,” reads the German Embassy’s Twitter.