MEXICO CITY — Mexico’s Congress has passed legislation which would reverse railroad privatization laws enacted in the 1990s and give the government more control over rail operations, particularly in terms of passenger rail.
Mexico News Daily reports the Senate passed the bill 123-0 on Wednesday. Because the legislation is a constitutional reform, it still must be ratified by at least 17 of Mexico’s 32 states to become law.
La Jornada reports the bill would give the government the right to use railway lines to provide passenger service, with the president allowed to award concessions to public companies or individuals toward that goal. Companies holding concessions for freight operations would receive preference as passenger operators, according to Infobae. It also makes railways a matter of priority for national development.
The Senate’s website says that the legislation notes less than 1% of national passenger travel results by train, which reflects an underutilization of the rail infrastructure.
Mexico’s new president, Claudia Sheinbaum, has indicated her intention to continue the rail building and development focus of predecessor Andrés Manuel López Obrador. She has indicated that the government will seek an additional $4.4 billion to complete or extend the fledgling Maya Train and Interoceanic Train opened under López Obrador [see “Incoming Mexican government will need $4.4 billion …,” Trains News Wire, Aug. 10, 2024]. She also wants to develop three new passenger rail lines, including one from Mexico City to Nuevo Laredo, just across the border from Laredo, Texas [see “Mexico’s president-elect announces plans …,” News Wire, July 11, 2024].
Solutionary Rail: you need only consider Bright Line’s success and struggles. You ignore a multiple of factors that influence the success or failure of a very large capitlal project. I see you words as more sloganizing than substantive. Please show us market demand for passenger rail anywhere in Mexico, not just in the halls of power. Maya Rail? Pipe dreams…….
I can’t believe that any railfan who knows anything about Amtrak and the chaos and confusion that it has caused travelers would think that the government could do a better job of running the railroads than the private sector. We need the government to get out of the business sector all together not increase its presence.
@CL, that’s the best you can offer? What about something based on impact and outcomes? Wouldn’t someone who truly loves their country care about the public and national interest?
In the US, we too are confronted by the conundrum that in the current regulatory/financial environment, there’s no real safeguard from “asset stripping” behavior. Even if Class 1 management would like to operate rail for long term growth and resilience, financial forces/shareholder dictates wouldn’t let them.
At the April 2022 hearing, the “socialists” of Kinder Morgan complained about monopolistic behavior of the Class 1s. I was at the recent STB hearing and the folks testifying represented the political spectrum.
The consensus is clear: the current model is not working for shippers, or the public, or the workers. And, if we are talking about the long term, carload tends show that it’s not really working for the railroads either. That’s because the system is built to be extractive, not resilient, serve short term private, not long term private or public goals.
What was also clear at the recent STB hearing is that no one, not even the smartest analysts are brave enough to propose the systemic change to the DNA of this system that is so desperately needed.
It’s lazy and insulting to our intelligence to slip into red scare slogans and market fundamentalist dogma.
What our country deserves is leadership with the backbone and integrity to ask the hard questions and the courage and creativity to offer potential solutions.
I hope folks will engage with us at Solutionary Rail, where we are trying to do that.
Viva Mexico!
Bill Moyer
https://solutionaryrail.substack.com/
CPKC already said they would submit a bid for passenger service in Mexico.
The government is clearly having troubles trusting some in the private sector due to the amount of corruption involved. I got news for you, the more money you wave in front of everyone the more corruption and bribery it attracts,
Go Claudia! Railroads run for the public good and not foreigner “investors” (which are really asset strippers). Obviously the US class 1s with ownership stakes will try lawfare to prevent this. Fortunately Mexico is reforming its judicial system to root out narco corruption. Viva Mexico!
Go Claudia! Go Justin! Go Kamala! Pretty soon all three nations will be hard-left socialist. We” see if Claudia or Kamala can run trains, b/c Justin surely can’t.
Mexico has reformed its justice system various times and it has not succeeded in rooting out corruption, narco or otherwise. If you’ve been following the news lately, 2 mayors have been killed by the cartels this fall.