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].
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!