MEXICO CITY – Mexico is seeking to incorporate Canadian Pacific Kansas City (CPKC) into three projects, Business News Americas reported. After a meeting between Mexico President Andrés Manuel López Obrador, U.S. officials, and CPKC executives in Mexico City, the government said it invited CPKC to participate in the 932-mile Maya train that will connect five states in the southeast and rebuilding of the 186-mile Tehuantepec isthmus corridor between Oaxaca and Veracruz states.
The Maya train will traverse the Yucatán Peninsula. Construction began in June 2020 and is scheduled to be completed by 2024. The railway begins in Palenque in Chiapas and travels northeast towards Cancún in Quintana Roo via two routes that encircle the peninsula.
The Tehuantepec isthmus corridor, also known as the interoceanic corridor, involves the rehabilitation of the rail line between Coatzacoalcos port in Veracruz and Salina Cruz port in Oaxaca, Mexico’s narrowest stretch between the Pacific and Atlantic oceans, and the expansion and modernization of both ports.
López Obrador also said that he asked CPKC to take over the canceled Mexico City-Queretaro high speed project. “They are going to analyze the proposal we made. We want to have a passenger train to Querétaro because the highway is saturated. It is no longer advisable to continue expanding. What we look for is an alternate route. It could be the railway, there was already a project, remember that it was canceled,” he said.
The line was originally awarded in 2014 to a Chinese-Mexican consortium led by China Railway Construction Corp. It was dropped in 2015 amid corruption scandals, Business News Americas reported.
CPKC tweeted Wednesday that it shared with López Obrador “exciting plans about how CPKC will grow commerce and prosperity in Mexico, the United States & Canada.” The plan could expand CPKC’s network, as its current lines only reach Lázaro Cardenas port in Michoacán state and Veracruz port.
The KCS’ Mexican lease was extended 10 years for “a new investment in the Celaya-NBA Line Railway Bypass and other infrastructure.” So how many years more will this get CPKC?
I would assume CPKC and Brightline do the quick math on a dismal Maya train return on investment. Especially CPKC might have second thoughts consider that Vulcan had its huge limestone mine forcible seized because the govt wants a water theme park located there. So I can see CPKC being very cautious and politely saying no thanks on Maya train as soon it can.
However, Brightline might be more interested Maya train if the government can offer some serious real estate concessions. Plus, is Florida East Coast Railroad owner a Mexican company? or do I have that completely wrong?
Brightline has been exceptionally transparent in where they may be interested in operating a service. This is not on the map, the back burner nor lost in the mail.
Cross-comparing a few maps, it looks like the Maya Railroad is using existing trackage operated by the Mexican government. The Tehuantepec Isthmus Railroad is operated by Ferrosur. (Subsidary of Grupo Mexico who also owns Ferromex.) So would CPKC replace the existing operators of these two railroads if this goes though? I would assume so.
It would be interesting to have a partnership with Brightline to reach tourism sites in Mexico. Or at least copy the biz model. The biggest issue with tourism rail into Mexico is hijacking. It would be a John Wayne movie moved into current times. Banditos cut the power in a segment, train comes to a stop.
Then they kick into hydrogen back-up power thwarting the banditos and saving the day, Fritos everyone!