Railways Opportunities in Mexico

An Expert's View about Freight Rail Transport in Mexico

Posted on: 5 Oct 2010

Under President Felipe Calderón’s National Infrastructure Programme, an unprecedented effort is being made toward improving the scope, quality, and coverage of infrastructure in the country—railways included.

Sector briefing Railways Opportunities in Mexico Why Mexico? Over the past decade, Mexico has re-evaluated the importance of railways as a competitive and efficient means of freight transportation. As of 2008, 99,857 million Tons of freight were moved by rail?a figure that has practically doubled in 10 years. Under President Felipe Calderón?s National Infrastructure Programme, an unprecedented effort is being made toward improving the scope, quality, and coverage of infrastructure in the country?railways included. As part of this programme, a $5 billion USD investment will be devoted to projects in this particular opportunities and an introduction to other sector. relevant issues. Key objectives include: building 1,418 km of ?As of 2008, 99,857 million railroad (adding to the current 26,667 km network), increasing average speed from 24 to Tons of freight were moved 40 km/hour, developing the first stages of a by rail?a figure that has Suburban Train network in Mexico City, and practically doubled in 10 building a variety of underpasses, overpasses, and bypasses with the appropriate signage. years.? Find general information on Mexican market conditions on UKTI?s website. The Doing Business Guide for Mexico gives an overview of Mexico?s economy, business culture, potential UK Trade & Investment Sector briefing: Railways opportunities in Mexico There is the possibility of expanding Line 1 (52 Opportunities kilometres) with 3 auxiliary lines, namely: Cuautitlán-Huehuetoca, San Rafael-Tacuba, Following a railways scoping mission to Mexico and Lechería-Jaltocan. that was conducted in early 2009, the following opportunity areas were identified for UK Further development of suburban rail companies: operations is planned with Lines 2 and 3 in the Mexico City Metropolitan Area. Metro ? Line 2 (20 km long) will connect the There are three cities in Mexico with a metro municipality of Ecatepec in the state of system network, namely Mexico City, Mexico with the Martín Carrera metro Monterrey, and Guadalajara. station in the Federal District. It is expected to begin operations in 2011. Mexico City operates the world?s 5th busiest Metro in terms of passengers and has 11 lines ? Line 3 will connect the municipalities of covering 175 stations. A 12th line is currently Chalco and Nezahualcóyotl along a 31- under construciton and is scheduled to be kilometre line in the State of Mexico. completed by September 2010. There are also extension plans for Lines 7 (to the south) The government is also considering new and 8 (to the north and south). suburban rail projects in the following cities: In Monterrey, the Metrorrey (its dedicated light ? Monterrey rail system) has two lines, and plans were ? Guadalajara announced last year to build a third line ? Aguascalientes connecting the municipality of Santa Catarina ? Mérida to the International Airport. ? Guanajuato In Guadalajara?whose metro system also has Since railways operators in Mexico have mostly 2 lines?there are plans to extend Line 2 from forgone passenger operations in favor of Telan to Tonalá and to create a 3rd line from freight transportation, and considering that the North-Central Ávila Camacho station to suburban rail transportation is a relatively new Tesistán in the municipality of Zapopan. These endeavor, opportunities exist for suburban projects are particularly important to train system specialists, project planners, and Guadalajara, as the city will be hosting the related tecnical advisors. Panamerican Games in 2011. Security All these projects call for qualified cost and project planners, as well as metro system An area that has become a growing concern for specialists. train operators is that of cargo security. In 2008, two thousand thefts to railways cars Suburban Lines were reported; the most popular items were autoparts, optic fibres, and steel. Thus, there Suburban Rail systems are a newly emerging is a growing demand for technology and transportation alternative in Mexico City that equipment that will ensure the safe arrival of operate on newly released tracks from freight merchadise to its destination. operations in city centres. Safety/Signalling In Mexico City, the first suburban rail line was inaugurated in late 2008, connecting the Last February, Mexico?s two largest railways Buenavista station in the Federal District with operators?Ferromex and Kansas City Southern the Cuautitlán station in the State of Mexico. Mexico?signed an agreement to establish the The 30-year concession was awaraded to a terms and conditions for the reciprocal use of consotrium led by CAF, a Spanish rail care rights of way. This should enable a more manufacturer. Line 1 runs over 27 km heading efficient use of the rail system. As the passing north and reduces travel time from 2 hours 30 of rail cars along the country?s network minutes by road to 24 minutes by train. becomes more fluid, so will the need for better signalling and safety devices. UK Trade & Investment Sector briefing: Railways opportunities in Mexico Finally, it should be mentioned that a lot of investment for the railways sector is planed on a mixed funding basis. Thus, the UK?s experience in PPP schemes could prove to be a major asset for UK companies seeking to enter the Mexican market. If you have any questions on the opportunities above, contact the UKTI Mexico Infrastructure Team contacts named in this report. Business opportunities aimed specifically at UK companies are added daily to UKTI?s website. These leads are sourced by our staff overseas in British Embassies, High Commissions and Consulates, across all sectors and in over 100 markets. You can be alerted to Mexico/railways business opportunities on a regular basis by registering on the UKTI website. More on UKTI?s business opportunities service UK Trade & Investment Sector briefing: Railways opportunities in Mexico Major events and activities UKTI contacts AMF Expo Rail 2011 (Monterrey, Mexico) Diana Leon Contact: TBC Trade & Investment Officer Email: TBC British Embassy Mexico City Time: Early 2011 Tel: +52 (55) 16 70 33 02 Email: Diana.Leon@fco.gov.uk Railways Trade Mission to Mexico www.ukti.gov.uk Contact: Derek Griffiths Email: derek.griffiths@ukti.gsi.gov.uk Lourdes Huelgas Time: January 2011 Trade and Investment Research Officer British Embassy Mexico City Tel: +52 (55) 16 70 32 80 Find full details of all railways events in Email: Lourdes.Huelgas@fco.gov.uk Mexico on the UKTI website. New export www.ukti.gov.uk events are added daily to the site and you can register to be alerted to them on a daily, weekly or monthly basis UKTI?s Tradeshow Access Programme (TAP) provides grant support for eligible Small & Medium Sized Enterprises (SME's) to attend trade shows overseas. Find out more about UKTI support for attendance at overseas events UK Trade & Investment Sector briefing: Railways opportunities in Mexico Next steps - How UKTI can help ? Arranging appointments British companies wishing to develop their ? Organise seminars or other events for business in the Mexican market are advised to you to meet contacts and promote your undertake as much market research and company in the Chinese market planning as possible in the UK. UKTI?s team in Mexico, with its wide local knowledge and This work is available via our Overseas Market experience, can provide a range of services to Introduction Service (OMIS) a chargeable British-based companies wishing to grow their service which assists British-based companies business in global markets. wishing to enter or expand their business in overseas markets. This can include: ? Provision of market information To find out more about commissioning this ? Validated lists of agents/distributors work, or accessing other UKTI services and ? Key market players or potential specialist advice, please visit the UKTI website customers in the Chinese market to find contact details for your local UKTI ? Establishment of interest of such office. contacts in working with you Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2010 by UK Trade & Investment. Crown Copyright © UK Trade & Investment Sector briefing: Railways opportunities in Mexico
Posted: 05 October 2010

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