New Rail Reform Prioritizes Passenger Transit

On July 16, 2025, President Claudia Sheinbaum published a decree in the Official Gazette of the Federation that reforms five laws governing the country’s railway and transport systems. This legislative change aims to modernize the legal framework, expand the role of passenger rail, improve regulatory enforcement, and advance a national vision for sustainable mobility. The reform is part of a broader package of eleven presidential decrees that also touched on telecommunications, digital identity, and national security.

One of the most significant changes introduced is the creation of the Agency for Trains and Integrated Public Transport (ATTRAPI), a decentralized agency under the Ministry of Infrastructure, Communications, and Transport (SICT). ATTRAPI will have technical autonomy and its own personnel and assets. It will be responsible for planning, constructing, maintaining, and operating railway infrastructure. In addition, it will be responsible for granting permits for new railway lines and multimodal hubs and for attracting public and private investment to develop the sector. This move centralizes oversight and execution of railway development, giving the federal government greater control over how the national network evolves.

The decree also strengthens regulatory oversight through the formal establishment of the Regulatory Agency for Railway Transport (ARTF), which will be in charge of supervising operators, issuing sanctions, and ensuring that both passenger and freight services comply with safety, quality, and infrastructure standards. This agency will also be responsible for promoting interconnectivity among railways and enhancing the efficiency of multimodal operations. The enhanced regulatory framework seeks to eliminate operational asymmetries and close loopholes that have hindered enforcement.

The decree officially designates passenger railway transport as a national priority. While Mexico’s rail network has historically focused on freight, this reform aims to reposition trains as vital tools for public mobility, regional integration, and tourism development. The law defines passenger rail service as a strategic, sustainable, and accessible option to address the country’s growing need for clean and efficient transport.

The decree also introduces new legal and operational figures such as concession, assignment, authorization, and project manager, which provide greater clarity in project execution and oversight. At the same time, it updates outdated financial references by replacing the minimum with the Unit of Measurement and Update (UMA). 

Railway operators will now be required to hold valid insurance and financial guarantees to cover damages to third parties. Non-compliance in areas such as safety standards, permit conditions, environmental obligations, or operating without authorization can result in fines ranging from one to 169 times the value of the UMA.

It entered into force on July 17, 2025, and mandates that the government create ATTRAPI within 90 business days. Furthermore, the existing Railway Service Regulations must be updated within 180 calendar days. Any ongoing procedures or pending applications will be automatically transferred to the new agency structure, ensuring continuity and minimizing disruption.