President Unveils Decree to Modernize Mexican Rails

During the 113th anniversary of the Mexican Revolution, President Andrés Manuel López Obrador announced a decree through which the government aims to modernize 17,484km of railway infrastructure, allowing the provision of passenger services. The presidential decree, officially published in the Official Gazette of the Federation (DOF) on Nov. 20, designates passenger rail services as a priority for national development.

During the initial phase of the project, the government will invite concessionaires of freight rail services to submit proposals for passenger services, reads the decree. These concessionaires include Canadian Pacific Kansas City (CPKC), Ferromex, Ferrosur, and Ferrovalle, according to the Ministry of Infrastructure, Communications, and Transportation (SICT) and the Rail Transport Regulatory Agency (ARTF). The deadline for these companies to submit their proposals is Jan. 15, 2024.

Preference will be given to passenger rail services within the already concessioned rail corridors, ensuring that the terms of the respective concessions are respected. This move aims to optimize rail infrastructure for freight and passenger services.

If the concessionaires fail to present viable proposals within the specified time frame or decline to join the project, the Federal Government, through the SICT, may allocate titles to the Ministry of National Defense (SEDENA), the Mexican Navy (SEMAR), or interested private entities, under the Regulatory Law for Rail Services and its Regulations. 

López Obrador states that the decree aims to make train travel more affordable, comfortable, and less polluting, as the tracks can be electrified. The trains also aim to offer safe public transportation to increase mobility from the major cities in Mexico to the northern border. 

The project outlines seven key routes for passenger rail services, which aim to connect major cities and regions across Mexico. The routes include Mexico-Veracruz-Coatzacoalcos, Interurban AIFA-Pachuca, Mexico-Queretaro-Leon-Aguascalientes, Manzanillo-Colima-Guadalajara-Irapuato, Mexico-San Luis Potosi-Monterrey-Nuevo Laredo, Mexico-Queretaro-Guadalajara-Tepic-Mazatlan-Nogales, and Aguascalientes-Chihuahua-Ciudad Juarez.

Grupo México Transportes (GMXT) had previously said it was open to collaborating with the government in facilitating the smooth transition and development of passenger rail services. Additionally, CPKC released a statement confirming its active participation in reviewing the decree's draft. The company is working closely with government entities to explore its potential involvement in the project.

CPKC highlighted its collaboration with the Mexican Federal Government on a feasibility study for a passenger train connecting Mexico City and Queretaro. The San Luis Potosi-Monterrey-Laredo corridor, part of CPKC's concession, is also under consideration for passenger services.

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