Ferromex
 | |
 | |
| Overview | |
|---|---|
| Headquarters | Mexico City[1] |
| Reporting mark | FXE |
| Locale | Mexico |
| Dates of operation | 1998–present |
Ferromex (reporting mark FXE) (a contraction of Ferrocarril Mexicano or "Mexican Railroad") is a private rail consortium that operates the largest (by mileage) railroad in Mexico.
Description
Ferromex began operating on February 19, 1998, following the privatization of most of the government-owned railroads by then president of Mexico Ernesto Zedillo Ponce de Leon who later after his presidency became executive of Union Pacific. The Ferromex system operates more than 8,500 kilometers (5,060 miles) of track and interconnects five major inland Mexican cities, five cities along the border with the United States, four seaports on the Pacific Ocean and one more on the Gulf of Mexico. Currently, Grupo Mexico owns 74% and Union Pacific 26% of the company.
Passenger Services
Ferromex operates the Chihuahua al Pacífico "ChePe" railroad, on which operates a tourist line that runs through the Copper Canyon. Ferromex also operates the Tequila Express which runs from Guadalajara, Jalisco to a tequila refinery in Amatitán, Jalisco.
Merger with Ferrosur
In November 2005, Grupo Mexico, owner of Ferromex purchased Infraestructura y Transportes Ferroviarios, the parent company of Ferrosur, another of Mexico's Class I railroads, in a US$309 million stock transaction.[2][3] The Mexican Federal Competition Commission (CFC) had rejected a proposed 2002 merger of Ferromex and Ferrosur amid opposition from Ferromex competitor, Grupo Transportación Ferroviaria Mexicana (TFM).[4]
Following the November 2005 purchase of Ferrosur by Grupo Mexico, Kansas City Southern de México (KCSM), successor to TFM, petitioned the Mexican government to block the merger of Ferrosur and Ferromex. The CFC rejected the merger in June 2006 stating that the merger would have led to excessive concentration in the railroad industry to the detriment of consumers and competing shippers.[5] The Supreme Court of Justice of the Nation upheld the CFC's rejection of the merger in April 2007 and the CFC has embarked on investigations into whether the two firms fix prices, agree on which markets each firm will compete in, or cut back supply, and has threatened sanctions against Grupo Mexico for anticompetitive practices.[6]
Grupo Mexico has stated that it would consider selling its railroad assets if its litigation to push through the merger of Ferromex and Ferrosur were to fail.
See also
References
- ^ "Grupo México, About us, Offices". Retrieved 2009-03-02.
- ^ FWN Select, "Grupo Mexico Buys Ferrosur Railway From Carso" (Nov. 25, 2005)
- ^
"Abandonments & Acquisitions". Trains Magazine. 66 (3): p 15. 2006. ISSN 0041-0934.
{{cite journal}}:|pages=has extra text (help); Unknown parameter|month=ignored (help) - ^ FWN Select, "Mexico's Antitrust Agency To Study Railway Merger" (Nov. 28, 2005)
- ^ FWN Select, "Mexico's Antitrust Commission Rejects Rail Merger Appeal" (Nov. 15, 2006)
- ^ The America's Intelligence Wire, "Supreme court upholds CFC suspension of Ferromex-Ferrosur merger - Mexico"(April 24, 2007)
External links
  | This article about a Mexico corporation or company is a stub. You can help Wikipedia by expanding it. |