CANCUN — Mexico’s Maya Train continues to sustain massive losses as it marks two years of operation, and one year as a completed route. Latest figures show subsidies are nearly 10 times the operation’s revenue from tickets and merchandise, according to a report by the newspaper Reforma.
Mexico News Daily, quoting the paywalled Reforma report, says January-to-September financial statements for the tourism-oriented rail operation on the Yucatan Peninsula show revenue of 387 million pesos ($21.5 million) and public funding of 3.345 billion pesos ($186 million). Iberoamericana University professor told Reforma the government has no choice but to subsidize the rail line “since at the current rate, it will take 10 to 20 years to become profitable.” Over the next decade, those subsidies could reach 25 billion pesos, or about $1.39 billion, he said.
The Yucatan Times reports that the project’s debts reached 2.47 billion pesos ($140 million) as of September, a 298% increase from the debt figure of 620 million pesos ($35.6 million) in January. Those debts reportedly include money owed to construction companies, equipment manufacturers, and workers.
The first Maya Train segment opened on Dec. 15, 2023 [see “Long delays, late trains …,” Trains.com, Dec. 17, 2023]. The final portion of the looping, 966-mile route began operations a year later [see “Mexican president opens final segment …,” Dec. 16, 2024].
Government officials have admitted the project, promoted as a passenger operation to boost tourism in less-developed portions of the peninsula, is unlikely to become profitable without the development of freight service [see “Mexico’s Maya Train sustains heavy losses …,” Trains.com, May 27, 2025]. Construction of the first freight infrastructure was approved this fall, but freight operations are unlikely to begin before 2027 [see “First freight facilities …,” Trains.com, Sept. 8]. The region’s economy is driven by tourism, but the federal government is attempting to encourage more industry, particularly in the tech sector. Unanswered is the degree to which that form of development is compatible with freight rail operations.
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Hazy whether or not the subsidy includes capital amortization, or else capital amortization is above and beyond the subsidy. If the second case (after the comma in the sentence) then it’s far worse.
Which is exactly point. Passenger rail advocates, including readers of these pages, can be very hazy about capital costs over and above O+M.
Really is anyone surprised? Could it happen here? You bet! (No pun intended on the word “bet”), Las Vegas to Rancho Cucamonga.
Has anyone calculated the subsidy cost of any highway?