Mexico opens bidding for Pacific-North Railway (April 1997)
4/13/2023The Mexican government has opened the bidding for a majority interest in the Pacific-North Railway.
Mexico's Ministry of Communications and Transportation is offering 80 percent of the 3,885-mile railroad, which contains two main lines running from the U.S.-Mexican border to Mexico City and the Pacific coast port of Manzanillo.
The government is offering an operating concession of 50 years, including 25 percent of the representative shares of the Valley of Mexico Terminal, which connects all three of the lines Mexico has earmarked for privatization.
The Ojingana-Topolobampo section of the Chihuahua-Pacific Railway also will be offered to the winning bidder of the Pacific-North. In October 1996, Mexico attempted to concession the 970-mile Chihuahua-Pacific, but the government canceled the sale because the sold bid — $28 million — was far below the $50 million the government had hoped to raise.
After the sale, the government plans to retain 20 percent of the Pacific-North's shares for 81 months. The shares then will be offered on the Mexican stock market.
Mexico plans to accept bids until June 19. The winners are expected to be announced July 7.
Among U.S. railroads, Union Pacific Railroad, RailTex Inc. and Burlington Northern Santa Fe are considered to be among the potential bidders. Through late March, none of the railroads had revealed their bid intentions.
Source: The April 1997 issue of Progressive Railroading