Two consortiums featuring U.S. railroad interests were preparing last month to make a run at winning Mexico’s third big railway concession.
On Feb. 16, Mexico’s Ministry of Communications and Transportation opened the bidding for the Southeast or Gulf Railway, a 1,400-mile route that links the Mexico City Terminal with the Gulf port of Veracruz.
Through the port of Coatzacoalcos, the line can link with the Yucatan Peninsula, the U.S. East Coast and South America. The line, which serves a number of chemical shippers, handles 9 percent of the national system’s total volume. It also connects with Mexico’s Pacific-North and Northeast railways, which are operated by consortiums including Union Pacific Railroad and Kansas City Southern Railway, respectively.
Interested bidders also can acquire the Mayab railway, which runs from the port of Coatzacoalcos to Merida.
As of press time, rail interests preparing to submit bids included a consortium featuring Illinois Central Corp. and one linked to Anacostia & Pacific Corp. Inc.
IC is partnering with Grupo Acerero del Norte, a chemical and mining entity, and Penoles, a mining and chemical manufacturing company. Officials at IC, which recently entered into a merger agreement with Canadian National Railway Co., believe the rail corridor offers solid potential for industrial development.
The other potential bidder — Group Mexgal — comprises Unirail, a group headed by Larry McCafferey, a managing director at Anacostia & Pacific, and Chile-based Cruz Blanca.
Bids for the rail network are due June 11, with the winner to be announced in early July. The winning bidder will receive a 50-year concession to operate the railway.
— Pat Foran, managing editor
Source: The March 1998 issue of Progressive Railroading
