MEXICO CITY — Mexican President Andrés Manuel López Obrador said Wednesday that he will issue a decree requiring the nation’s freight rail operators to offer passenger service or to allow government-operated passenger trains to run on their routes.
Reuters reports Lopez Obrador made the announcement at a Wednesday press conference. A clause in the concession agreements for CPKC de Mexico and Grupo Mexico allow for the railways to be used for passenger service and give the concession holders preference to operate the service. The Associated Press reports he disputed a suggestion that the move amounted to expropriation of private property: “This is not an expropriation, it is in the Constitution and the law,” he said. “According to the law, passenger trains have priority.”
Virtually no regular passenger service currently operates in Mexico.
López Obrador also said the railway network would have to be electrified to accommodate passenger service. The cost of such an undertaking was not mentioned, nor was the prospect of government subsidies for the passenger service, or the operating issues to result from introducing passenger service to currently freight-only routes.
Earlier this year, the government seized a line operated by Grupo Mexico’s Ferrosur, saying it needed the line to complete a route connecting ports on the Pacific Coast and the Gulf of Mexico. The government later extended Ferrosur’s concession for eight years in compensation for the move [see “Mexican government announces deal …,” Trains News Wire, June 2, 2023].
There is a lot of confusion in the comments applying US legal concepts to Mexico. The railways in Mexico are owned by the government which grants operating concessions to private operators. In that sense, it’s like Britain. The concessions always contained the terms requiring passenger service, they just weren’t enforced before now. As for ridership, there are far fewer automobiles in Mexico and less highways. Mexico has a younger and growing population. I suspect the trains will be very popular. Most people in Mexico travel by bus. This will be a great augmentation to the excellent bus service which is far better than US bus service. Of course, if US railways aren’t interested in providing service in this growing market, I’m sure companies like Deutsche Bahn and others would love to get a piece of the action and take over the concessions. CPKC management will see the opportunity and jump on it. They’ll negotiate an arrangement with the Mexican Government. As for AMLO being a lame duck, either of his two likely successors can be expected to continue this policy. Most train stations still exist in Mexico if only because nobody spends money or wastes time tearing things down. Also, it’s Mexico. Nobody is expecting a Cadillac train station. A waiting room and restrooms will be sufficient. It isn’t hard to accommodate passenger trains, it just requires sensible dispatching. One should learn the facts before expressing knee jerk negativity without even a basic understanding of the situation.
AMLO is an incompetent grandstander and lame duck, don’t hold your breath on this happening. Forgotten??? that Mexico built an electrified railroad from Mexico City north to Queretaro only to quickly abandon the white elephant decades ago under a nationalized operation.
Obrador said “electric” but he didn’t say what kind or how. Perhaps that is why CPKC is buying more of those hydrogen fuel cell based engines. Maybe this will give the Wabtec FLXDrive a kick start. Who knows?
HA. They’ll probably have trains before Amtrak ConnectUS succeeds in doing anything.
If this does actually happen, I expect that the freight railroads would subcontract with Amtrak, Brightline, or a similar company to provide equipment and on-train personnel, and the freight companies only provide the cab crew and decide the schedule.
A government that is forcing railroads to act in the public interest after benefitting from the massive public investment that created today’s network. How refreshing to see public interest being served instead of fealty to hedge funds, Wall Street and grossly overpaid executives. If only Amtrak Joe and Mayo Pete has such cajones.
On the one hand it looks like overreach. But on the other there is a history of carrot-and-stick negotiation between the railroads and Mexico City. Groupo Mexico and KCSM have had their concessions extended due to “circumstances” in the past. Electrification ain’t happening. And it will take more than an extension to cover pax train losses. IF, and it’s a big IF, Mexico City is serious about this then a deal could be made. Otherwise it’s just grandstanding.
The freight railroads do offer passenger service. You don’t even need a ticket.
Just hop on and hang on until you get to the border. Then walk across and repeat the procedure on the US side.
Mexico got rid of most of if not all their passenger trains years ago because of money losing lines and operation. Besides the freight carriers in Mexico, like the US do not want to have anything to do with passenger trains. This idea might sound nice on paper or in a speech but this goes a lot further when one considers what has to be spent and built. New stations, new trackage and upgrades as well as hiring a whole generation and population to run and manage passenger service. I can;t see the freigh lines getting involved or doing that and wreaking havoc on their earnings statements and reports. Also changing the mindset and culture of the Mexican people to actually ride in a train to get to where they need to go. the population like so many areas of the world no doubt have a car or two and since have gotten used to driving and owning a car are not going to change their traveling habits even if passenger rail makes a resurgence in Mexico. The freight carriers in Mexico are privately owned and no government can force a private company to do or operate something that will be a money loserto them Separation of private and public concerns is still the rule or should be honored. Just imagine here in this country, ordering the Big Four of the freight railroads to start operating passenger trains. What a protest and revolution that would be. The freight railroads gave up passenger service many years ago even before the creation of Amtrak and now the freight lines are determined to run Amtrak off their tracks and turf and would just as happy if they can crush Amtrak and end all passenger service in America with the help of their powerful friends and allies in Washington. Nice pipe dream and paper decree from the otgoing president of Mexico. We will see what his sucessor does with that decree.
Joseph C. Markfelder
Pretty sure the intricacies of Mexican law (a lot of differences to the US) absolutely allow for this, plus the Mexican Supreme Court is pretty pro-rail, so the freights are going to have to play ball or see their lines seized.
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The freight railroads gave up passenger service many years ago even before the creation of Amtrak and now the freight lines are determined to run Amtrak off their tracks and turf and would just as happy if they can crush Amtrak and end all passenger service in America with the help of their powerful friends and allies in Washington.
”
Good news. There may be a market for this sort of fantasy fiction. You may be able to make money making up more of these stories.
There is a lot of confusion in the comments applying US legal concepts to Mexico. The railways in Mexico are owned by the government which grants operating concessions to private operators. In that sense, it’s like Britain. The concessions always contained the terms requiring passenger service, they just weren’t enforced before now. As for ridership, there are far fewer automobiles in Mexico and less highways. Mexico has a younger and growing population. I suspect the trains will be very popular. Most people in Mexico travel by bus. This will be a great augmentation to the excellent bus service which is far better than US bus service. Of course, if US railways aren’t interested in providing service in this growing market, I’m sure companies like Deutsche Bahn and others would love to get a piece of the action and take over the concessions. CPKC management will see the opportunity and jump on it. They’ll negotiate an arrangement with the Mexican Government. As for AMLO being a lame duck, either of his two likely successors can be expected to continue this policy. Most train stations still exist in Mexico if only because nobody spends money or wastes time tearing things down. Also, it’s Mexico. Nobody is expecting a Cadillac train station. A waiting room and restrooms will be sufficient. It isn’t hard to accommodate passenger trains, it just requires sensible dispatching. One should learn the facts before expressing knee jerk negativity without even a basic understanding of the situation.
It is only fair that railways be offered incentives to operate passenger trains with upgrading and maintaining infrastructure to accommodate both passenger and freight trains. Additional tracks would minimise traffic congestion and delays for passenger trains to be competitive in speed and punctuality.
Other transportation modes have enjoyed support of their infrastructure by the government on highways, airports, and seaports.
López Obrador is at the end of his term. Do to term limits he can not run again. I believe this qualifies as statements from a “lame duck” president.
Bottom line, who cares, ask the Ladies who are running for his office.
Well, Gavin Newsom won’t be governor when his EV mandate takes effect, 2035 or something like that. Either way he has absolutely no authority to make law from the governor’s desk.
How is it that Canadians, Americans and now Mexicans no longer know anything about the rule of law. That is, laws passed by Congress (state legislatures, etc.), not by the executive or judicial branches.
Good points in Mr. Landey’s response, RE: collapse of the ‘Rule-of-Law’ in Canada, the U.S., and Mexico. Of course, Mexico’s constitution isn’t exactly similar to that of the United States and Mexico has been, for the most part, ruled by one party, the PRI party.
Even, though the United States nominally has two major political parties and is (supposed) to be a constitutional ‘republic’, clearly a number of major leaders (i.e. Prez. Biden, Governor Nuisance) have forgotten this point. They don’t seem to understand the US constitution (have they ever read it?…).
The ‘Banana-republic’ political model seems to be creeping up from South/Central America to Mexico and the United States. Canada currently is the exception and is basically a Marxist-socialist police-state under its pretty-boy Trotskyite-dictator, Justin Trudeau.
Yes, AMLO is a lame-duck in Mexico and so this pronouncement of his for passenger trains in Mexico is just so much grandstanding on the way out the door ….
The Mexican president rules by decree. Sounds like USA and Canada.
Electrification of the lines. Bet CP wasn’t counting on that when they bought the KCS.
Uh Oh. Definitely something for CPAK to now consider. Of course the old problem. Where will the equipment come from? I can imagine we would see persons hanging on top of overcrowded trains such as in India & Bangladesh.
If and only a big if this goes thru. Can be that Amtrak might provide service to Laredo??
Mr. Jones, I’m surprised Gov Abbot from TX hasn’t already started Amtrak from Laredo, with direct non-stop service to NYC…
Hasn’t Mexico always had a past problem of passenger train delays back in the day. Don’t even mention PSR.
Every time I go to Mexico, I’m amazed at how much it’s coming up. Mexico is benefitting greatly from reshoring manufacturing from China. There’s a large and growing middle class. Mexico is incredible. You won’t see third world railroading there.