Tuesday, January 26, 2010

Mexican railway operators to invest $242.6 million in 2010

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Mexico's two main private railway operators, Ferromex and Kansas City Southern de Mexico, or KCSM, plan to invest a combined $242.6 million this year in infrastructure and other projects.

Ferromex, a unit of mining and railroad concern Grupo Mexico, said in a statement that it expects to invest $121.6 million in infrastructure upgrades and development of a rail yard at Rio Escondido, in northern Coahuila state, to speed up movements at the Piedras Negras-Eagle Pass border crossing. Ferromex said it invested close to $100 million in 2009.

KCSM, the Mexico unit of Kansas City Southern, which operates the Laredo- Nuevo Laredo crossing, said in a separate statement that it plans to invest $121 million this year, including $80 million in infrastructure upgrades.

KCSM said additional investments would be made in longer-term, multi-annual projects that include a new terminal at the Pacific port of Lazaro Cardenas and cross-border bridges at Laredo-Nuevo Laredo and Matamoros, which lies across the U.S. border from Brownsville.

Ferromex said it transported 5.1 percent less cargo in 2009 than in 2008 as a result of the recession, while its sales in peso terms rose three percent.

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