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by Marie Rodriguez

How is the rail transport industry normally dependent on your united states of America?

The Mexican Constitution establishes that railways are a priority place for national improvement. The federal government is the main authority in this industry because it plans and establishes regulations, in addition to coordinates, regulates and supervises the rail area. The rail transport enterprise is being developed specifically through concessions granted to personal events for the latter to render cargo and passenger shipping public offerings, even though passenger trains are nonetheless undeveloped. Ferrocarril del Istmo de Tehuantepec (FIT) is the only rail shipment line that is nonetheless owned and operated by the government via an entitlement this is granted to a nation-owned business entity.

Considering elements consisting of national security and sovereignty, the authorities keep complete domain over the general conversation networks and key infrastructure along with, as an instance, railways and related homes and workshops, in addition to proper of manner (ROW) and signaling. Private parties acting as concessionaires are obligated to make the most, growth, perform and maintain the community in addition to to render transport public offerings. However, the concessionaires are the owners of the rolling inventory and associated device. At the cease of the concession, concessionaires shall surrender to the authorities the network and the related key infrastructure, which include any improvements. The government has the proper of first refusal and preferential proper to collect the rolling inventory and associated system owned through the concessionaire.

The rail transport industry has been based under primary principles including free opposition, operative performance, decreased fees, and get entry to and interconnection among lines and systems.

Under the applicable prison framework, there are 3 styles of regulatory approvals:

concessions to personal parties to render the cargo or passenger transport public provider;
allows to private events to render ancillary services which include shipment terminals and preservation workshops, in addition to to conduct different activities, including building crossings or bridges over the railways; and
entitlements to nearby or municipal governments, in addition to to government-owned entities, which include FIT.
The Ministry of Communications and Transport (SCT) is in the rate of granting the concessions, permits, and entitlements, and supervising compliance with their terms. However, the Railway Transport Regulatory Agency (ARTF) is the organization expressly created by means of the government to, among different things, regulate the railway transport in general, which includes technical, operative and protection functions and requirements; supervise the services rendered by concessionaires; relaxed interconnection; and set up pointers to implement tariffs when there may be a loss of competition.

Ownership and manage

Does the authorities of your u. S. Have an ownership hobby in any rail transport companies or some other direct position in supplying rail delivery offerings?

Yes. For example, as stated in question 1, the authorities own FIT, which holds an entitlement due to the fact it’s far a country-owned entity. Although the rail region is open to private participation through the granting of concessions, the authorities decided it became vital to hold ownership of FIT for many motives, together with countrywide sovereignty and safety. FIT connects the Port of Coatzacoalcos (Gulf of Mexico) with the Port of Salina Cruz (Pacific Ocean) over a distance of approximately 300km, through the place called the Isthmus of Tehuantepec. Geographically and conceptually, the Isthmus of Tehuantepec divides the united states into northern Mexico and southern Mexico, and for many years many overseas governments and corporations have tried to reap get admission to to the Gulf of Mexico and the Pacific Ocean through it. Originally, FIT’s entitlement pondered retaining the railway as a key hobby as well as granting and receiving skip-via rights with other agencies. However, the entitlement has amended this yr to include exclusivity for the rendering of cargo transport public provider, among other matters.

Are freight and passenger operations usually controlled via separate groups?

Not always. Freight and passenger operations may be controlled by separate businesses depending on the terms and situations of the concession granted to each concession holder. For instance, the most applicable concessions in Mexico are entirely dedicated to rendering cargo shipping public service; this consists of corporations consisting of Kansas City Southern de México, Ferrocarril y Terminal del Valle de México, Ferromex and Ferrosur. However, by using law, rail delivery is contemplated for both passengers and freight. For instance, Grupo México, which owns Ferromex and Ferrosur, additionally owns Chepe, a passenger educate committed to the tourism enterprise. However, the Ojinaga-Topolobampo line carries freight and passengers, and each operation are managed through the equal corporation beneath one concession.

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