MEXICO: In a bold move to revamp Mexico’s railway network, the government issued a decree mandating private freight railway lines to prioritize passenger train service over their regular freight operations. The decree, unveiled on Monday, aims to rejuvenate the long-forgotten passenger train services that existed before the entry of private concessionary operators.
Under this decree, the main private concessionary rail operators are required to submit proposals for offering passenger service by January 15. Should they decline, the responsibility for passenger services will be shifted to either the army or the navy, entities lacking prior experience in railway operations. Presently, almost all of Mexico’s railway traffic is freight-based, with minimal tourist train services like the Copper Canyon in northern Mexico and the tequila-producing region in Jalisco.
The government’s proposal entails establishing four short inter-city routes where passenger trains will operate on tracks primarily used for freight. However, the larger challenge lies in setting up three extensive passenger routes from central Mexico to the U.S. border, spanning distances of 700, 900, and 1,350 miles respectively. This decree reflects President Andrés Manuel López Obrador’s yearning for the reinstatement of passenger train services from the country’s past and his inclination towards involving the military in diverse government initiatives.
The principal private operators in Mexico, Canadian Pacific Kansas City (CPKS) and Ferromex, primarily focus on freight services. However, the feasibility of profitable passenger train systems without government subsidies remains questionable. The decree emphasizes the prioritization of public passenger rail service while ensuring the respect of freight rail transport according to corresponding concession terms. Yet, concerns linger over potential delays and operational efficiency, reminiscent of past state-owned passenger services that frequently faced timeliness issues in the 1990s.
While Ferromex refrained from commenting, CPKS expressed optimism, assuring minimal impact on its concession, provided that the Mexican government honors its commitment to prevent disruption to freight operations. CPKS de Mexico, the subsidiary of CPKC, is already engaged with the Mexican Federal Government in studying requirements for proposed new passenger rail service between Mexico City and Querétaro.
