Updated: Mexico, CPKC reach agreement on Monterrey passenger line

Editor's note: This story has been updated to clarify that CPKC de Mexico has agreed to participate in a study of the proposed passenger-rail service in the Monterray area.

Mexican federal and Nuevo Leon state officials have reached an agreement with Canadian Pacific Kansas City de Mexico on a proposed commuter-rail service in the Monterrey area, Mexican news media reported.

The agreement between the Mexican Ministry of Infrastructure, Communications and Transport (SICT), the state of Nuevo Leon and CPKC de Mexico was outlined last week in the Mexican federal government's official gazette.

Under the agreement, CPKC de Mexico has committed to provide information to the SICT and the government of Nuevo Leon, CPKC spokeswoman Rebecca Stephen said in an email.

The proposed plan calls for construction of a 75-kilometer (about 47 miles) commuter line between the city of Garcia, which is located west of Monterrey, and Pesqueria, which is east of Monterrey. The line is slated to have 26 stations and run through Garcia, Santa Catarina (where Tesla's factory will be located), San Pedro Garza Garcia, San Nicolas de los Garza, Apodaca and Pesqueria, where Kia has a plant, Mexico News Daily reported.

The project has been registered in the Ministry of Finance's investment programs, with an initial investment of $1.5 million slated for completing studies and drafting plans for the project, Mexico Business News reported. The General Directorate of Railway and Multimodal Development at SICT is the designated unit overseeing the project.

Last month, Mexican President Andres Manuel Lopez Obrador announced a draft decree for the creation of passenger-rail service on certain existing freight-rail corridors. CPKC officials said they were reviewing the decree. CPKC de Mexico previously reached an agreement with Mexico's federal government to study what would be required for new passenger-rail service along the corridor between Mexico City and Queretaro.