MEXICO CITY — Grupo Mexico’s transportation division — which includes Ferromex, Ferrosur, Florida East Coast Railway, and Texas Pacifico — reported lower revenue and flat net income for the fourth quarter despite a 5.5% increase in traffic volume.
For the quarter, GMXT operating income declined 7.2%, to $197 million, as revenue declined 3.5%, to $763.9 million, Grupo Mexico reported this week. Net income was flat, at $108 million. The operating ratio was 74%.
The traffic growth came primarily from intermodal, agricultural, and chemical shipments. The intermodal volume increase was due to higher cross-border traffic, along with an increase in domestic intermodal traffic in both Mexico and the U.S.
Intermodal and agricultural revenue was up 26% and 24% in the quarter, respectively. Chemicals revenue grew 13% for the quarter.
Industrial products revenue fell 5% due to service disruptions, while energy revenue declined 14% due to a blockade that affected shipments of refined products and fuel oil.
Operational metrics largely improved for the quarter, with car velocity up 4% compared to a year ago. Train length and tonnage grew, while the number of crew starts per month declined by 5%.
GMXT plans to spend $410.3 million on capital projects this year, including $244.5 million for renewal and overhaul projects; $82.3 million for yard, terminal, and siding improvements; and $83.5 million on special projects, including a bypass in Celaya, Mexico, rehabilitation of the El Mexican Tunnel, and improvements to the Ferromex-Texas Pacifico corridor linking Chihuahua, Mexico, with San Angelo, Texas.
The terminal work includes a new intermodal terminal at Fort Pierce, Fla., on the FEC.
For 2024, GMXT’s volume increased 8.2%. Operating income declined 5.6% as costs rose 10.3%, partly due to congestion on Ferromex. The operating ratio for 2024 was 72%.
