Ferromex will invest US $250 million this year. Ferromex will invest US $250 million this year.

Railways will invest US $410 million

Two main carriers of freight will invest in infrastructure, equipment and maintenance

Mexico’s two biggest railway operators will invest a total of US $410 million this year in equipment and infrastructure.

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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.”

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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)

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  • cooncats

    The “Trump effect” is a great deal less significant than the “Corruption effect” here but it is a lot easier to scapegoat the U.S. than deal with the economic drag of politicians who steal billions and billions of pesos from the Mexican people annually. Not to mention being complicit in mass murders.

    And BTW, there would be no Trump if Mexico’s rules for the border going north were the same as their rules going south.

  • K. Chris C.

    They know too that the dollar has been pushed up against the peso, making Mexican goods cheaper in the US tyranny. The words of puppets and propaganda besides.

    An American citizen, not US subject.

  • A rail line passes near my house. At least a third of the spikes that hold the track down are simply not there.

  • Commander Barkfeather

    The authorities might want to apply a little more scrutiny as to how and to whom contracts are awarded before they are awarded, this time.

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