Mexico's President to Require Private Freight Rail Companies to Offer Passenger Service
Government to introduce a decree prioritising passenger trains, and to bring back passenger service on private freight rail tracks; no details provided on potential government subsidies for such service.
- President Andrés Manuel López Obrador of Mexico has announced a decree requiring private rail companies to introduce passenger service on their freight rail tracks. If the companies refuse, the government will schedule its own trains on these tracks.
- The President insists this is not expropriation and is compliant with current laws that prioritize passenger trains.
- Passenger rail service has been minimal since 1995 when two private companies, Ferromex and a subsidiary of U.S. railway Kansas City Southern, were given concessions.
- President López Obrador has a track record of nurturing state-owned companies and has a nostalgic passion for passenger trains. He announced the creation of a government airline run by the army in September.
- Many questions still remain, including the possible requirement for railway network electrification, complications regarding train schedules, speeds, and stations, and how to manage passenger and freight trains sharing the same tracks.