Mexican legislation seeks to reverse privatization of rail industry

Mexican legislation seeks to reverse privatization of rail industry

By Trains Staff | October 18, 2024

| Last updated on August 6, 2025


Passed by Senate, constitutional change must be ratified by majority of states

Three trains at station
Mexico’s Maya Train was built in part and is overseen by the country’s military. Mexico’s Congress has passed legislation to reverse the privatization of railways enacted in the 1990s. Maya Train via Facebook

MEXICO CITY — Mexico’s Congress has passed legislation which would reverse railroad privatization laws enacted in the 1990s and give the government more control over rail operations, particularly in terms of passenger rail.

Mexico News Daily reports the Senate passed the bill 123-0 on Wednesday. Because the legislation is a constitutional reform, it still must be ratified by at least 17 of Mexico’s 32 states to become law.

La Jornada reports the bill would give the government the right to use railway lines to provide passenger service, with the president allowed to award concessions to public companies or individuals toward that goal. Companies holding concessions for freight operations would receive preference as passenger operators, according to Infobae. It also makes railways a matter of priority for national development.

The Senate’s website says that the legislation notes less than 1% of national passenger travel results by train, which reflects an underutilization of the rail infrastructure.

Mexico’s new president, Claudia Sheinbaum, has indicated her intention to continue the rail building and development focus of predecessor Andrés Manuel López Obrador. She has indicated that the government will seek an additional $4.4 billion to complete or extend the fledgling Maya Train and Interoceanic Train opened under López Obrador [see “Incoming Mexican government will need $4.4 billion …,” Trains News Wire, Aug. 10, 2024]. She also wants to develop three new passenger rail lines, including one from Mexico City to Nuevo Laredo, just across the border from Laredo, Texas [see “Mexico’s president-elect announces plans …,” News Wire, July 11, 2024].

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