Mexico’s two biggest railway operators will invest a total of US $410 million this year in equipment and infrastructure.
Ferromex-Ferrosur will spend $250 million on railway maintenance, bridge work, tunnels and telecommunications and other infrastructure, the company said in a statement. The company is Mexico’s largest in terms of track length, operating on 12,070 kilometers.
Kansas City Southern de México (KCSM), meanwhile, will spend $160 million on infrastructure and locomotives.
No discussion about investment in Mexico comes without a reference to what is now commonly known as “the Trump effect,” and railway investment was no exception.
KCSM president José Zozaya said despite the uncertainty created by U.S. President Donald Trump’s policy pronouncements, his company moved the same amount of freight in January as last year and hopes that will continue.
However, the railway sector will be watching closely when negotiations begin over the North American Free Trade Agreement, he said, pointing out that “NAFTA is 20 years old and requires changes.”
According to the Communications and Transportation Secretariat, 65% of Mexico’s foreign trade goods are shipped by rail.
Railway investment in Mexico grew 50% between 2013 and 2016, the Secretariat said this week.
Source: CNN Expansión (sp)