Mexico’s largest rail operators, Ferromex, Ferrosur and Kansas City Southern de México (KCSM), are set to invest a combined USD 410 million to maintain and upgrade the country’s rail infrastructure.
Ferromex and Ferrosur, both owned by Grupo México, are planning to invest USD 250 million in 2017, 45% of which will be used to maintain and rehabilitate rail tracks, bridges and tunnels, according to the local newspaper El Financiero.
Kansas City Southern de México will invest USD 150 million to improve railway infrastructure and some of its existing locomotive fleet.
Private investment in the Mexican railway sector has grown 50% during the past three years, helping the government achieve its goal of turning Mexico into a global logistics platform, according to federal transport minister Gerardo Ruiz Esparza.
Minister Esparza said that, to date, the Mexican government has awarded 20 freight and passenger rail concessions. Of these, 10 of them went to private companies, nine were awarded to state governments and one to state-owned company Ferrocarril del Istmo de Tehuantepec.
“Mexico’s railway network has become a concession-based system, which has been proven to be productive, efficient and competitive,” Ruiz Esparza said.
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