News & Reviews News Wire UP, Ferromex limit grain traffic into Mexico following derailment

UP, Ferromex limit grain traffic into Mexico following derailment

By David Lassen | October 14, 2024

Permits suspended until traffic clears

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Union Pacific’s David Giandinoto, Jim Vena, and Beth Whited survey the railroad bridge in Eagle Pass, Texas, during a September 2023 visit. UP and Ferromex are currently limiting grain traffic through the Eagle Pass and El Paso gateways. UP

EAGLE PASS, Texas — Union Pacific and Mexican partner Ferromex have suspended permits for grain shuttles as a result of a derailment in Mexico, UP said in a notice to customers issued Saturday, Oct. 12.

The suspension of permits for two active Ferromex embargos reflects “the high volume of ag unit trains in the pipeline and additional volume forecasted over the next week,” according to the advisory. It will remain in effect “until the current train lineup is cleared and trains are able to launch upon release.”

Currently loading trains or those with an already forecast trip to Eagle Pass or El Paso, Texas, may utilize the permitting process for Mexico, according to the advisory. Those planning for a trip not in the current forecast will be required to find an alternative destination. The railroad says it expects to accept new forecasts for Eagle Pass or El Paso in approximately seven days (as of Saturday).

Permits for had previously been suspended Sept. 18, but resumed for Eagle Pass on Oct. 2.

Shippers said this summer that Ferromex was struggling to handle increasing grain shipments, asking for the U.S. government to intervene [see “U.S. grain shippers say Ferromex lacks capacity …,” Trains News Wire, Aug. 1, 2024]. The trade group representing Mexican railroads disputed that contention, saying efforts to deal with migrants had led to “major service disruptions” [see “Mexico rail group ‘surprised’ at capacity concerns …,” News Wire, Aug. 14, 2024].

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