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© Reuters. FILE PHOTO: The New Mexico Rail Runner Categorical, a commuter rail prepare operating between Albuquerque and Santa Fe is pictured, close to Santa Fe, New Mexico, U.S., March 14, 2023. REUTERS/Bing Guan/File Picture
MEXICO CITY (Reuters) -Mexico’s antitrust authority stated on Wednesday it was investigating the nation’s freight rail transportation market amid authorities plans to construct out railway infrastructure.
With out mentioning any corporations by title, the antitrust watchdog Cofece stated there have been parts suggesting the “absence of aggressive situations” within the trade.
Mexico’s rail sector, which strikes 1 / 4 of the overall merchandise transported by land, is dominated by Canadian Pacific (NYSE:) Kansas Metropolis (CPKC) and Grupo Mexico’s transport unit.
In a press release, Cofece stated that nearshoring – the pattern of transferring manufacturing from Asia to Mexico to be nearer to the US – meant that guaranteeing worth situations was “important.”
Canadian Pacific Kansas Metropolis’s native affiliate stated in a press release it could “absolutely cooperate” with the investigation, however that it does “not anticipate that this investigation may have a big impact” on its operations.
Grupo Mexico Transportes declined to remark.
In 2021, Cofece stated Mexico’s railroads have been practically fully managed by three teams: Grupo Mexico held 56% alongside its Ferromex and Ferrosur items; Kansas Metropolis Southern (NYSE:) (now referred to as CPKC) had 24%; and state-owned Ferrocarril del Istmo had 12%.
Cofece stated the investigation interval will take between 30 days and 120 enterprise days, and could also be prolonged as much as two occasions.
In November, the federal government printed a decree that offers desire to trains transporting passengers over these transporting freight on railways below concession.
Freight prepare corporations have till Jan. 15, 2024, to submit proposals of how their railways could be tailored to supply passenger transportation.
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