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Ferrosur

From Wikipedia, the free encyclopedia
This article is about the Mexican rail company. For the Argentine rail company, seeFerrosur Roca.
This article needs to beupdated. Please help update this article to reflect recent events or newly available information.(March 2017)
Ferrosur
Map of the Ferrosur network in southern Mexico
A Ferrosur train inVeracruz, led by FSRR 4400, aGE AC4400CW
Overview
Parent companyGrupo México
Reporting markFSRR
LocaleSoutheasternMexico
Dates of operation1998–present
PredecessorFerrocarriles Nacionales de México
SuccessorFerromex (subsidiary)
Technical
Track gauge1,435 mm (4 ft 8+12 in)standard gauge
Length2,654 km (1,649 mi)
Other
Websiteferrosur.com

TheFerrocarril del Sureste (reporting markFSRR) (English: "Southeastern Railway"), commonly known by thesyllabic abbreviationFerrosur, is arailway that serves the southeastern regions ofMexico. The company was formed in 1998, following the privatization of Mexico's railways. Ferrosur won the concession to operate the southeastern railway, which includes the line betweenMexico City and Mexico's busiestGulf of Mexico/Atlantic Ocean port atVeracruz.Grupo México has owned the company since 2005. There are long-delayed plans to merge it with the company's other railway,Ferromex.

History

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Ferrosur began operation on December 18, 1998.[1] The original ownership group was the construction companyTribasa andGrupo Financiero Inbursa.Grupo Carso (like Inbursa, aCarlos Slim Helu company) bought out Tribasa in 1999.[2] Grupo México, owner ofFerromex, acquired the railroad in November 2005 in a US$309 million stock transaction.[3] The Mexican Federal Competition Commission (CFC) had rejected a proposed 2002 merger of Ferromex and Ferrosur amid opposition fromGrupo Transportación Ferroviaria Mexicana (TFM).[4]

Following the November 2005 purchase of Ferrosur by Grupo México,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 and stated that the merger would have led to excessive concentration in the railroad industry to the detriment of consumers and competing shippers.[5] However, in March 2011, a tribunal ruled in Grupo Mexico's favor, and the merger was permitted.[6] Grupo México continues to operate the two railways independently.[7]

Government occupation of railways

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In May 2023, theMexican Armed Forces occupied a portion of 127 kilometres (79 mi) of railways in Veracruz belonging to Ferrosur so that they could be used for theInteroceanic Corridor of the Isthmus of Tehuantepec, one of the government's most importantmegaprojects.[8]Mexican PresidentAndrés Manuel López Obrador said that occurred "to avoid the risk of a futureprivatization of the railways and as a matter of national security and public interest."[9][10][11]

The action was labeled as "unusual"[12] and was seen as anexpropriation.[9][13]Secretariat of the InteriorAdán Augusto López Hernández said that the action had been discussed with Grupo México, and he called it a "temporary occupation,"[14]

On late May 2023, several newspapers erroneously stated that the government of Mexico had paid Grupo Mexico 7 billion pesos for the occupation of the railway, 2.5 billion pesos lower than Groupo Mexico had wanted.[15][16] However, López Obrador stated in a morning press conference on May 24 that sought to reach an agreement with Ferrosur not involving financial compensation. He wanted an agreement by which Ferrosur would pay a fee to use the occupied railways, and theMexican Armed Forces would pay Ferrosur to use the railways heading to theport of Veracruz, in addition to a possible extension to a concession in exchange for the railways.[17] An agreement was ultimately reached on the night of May 31 by which, as López Obrador had intended, the concession granted to Ferrosur in 1998 for the railways, which included the occupied sections, was extended by eight years and so it remains in force until 2056. Ferrosur would cover a fee corresponding to the right of way, and the state-owned Ferrocarril del Istmo de Tehuantepec company would be responsible for the costs and spendings for the railway's operation, maintenance, and optimal safety conditions of the railways and for their optimal safety conditions.[8]

Territory

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Ferrosur operates the ports ofVeracruz and Coatzacoalcos and SC Line between Veracruz and Mexico City. The line has numerous tunnels east ofAcultzingo, including the longest one in Mexico. Ferrosur road locomotives are often seen coated in soot because they often pass through those tunnels.

See also

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Notes

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  1. ^Murray 2003, p. 39
  2. ^Murray 2003, p. 38
  3. ^FWN Select, "Grupo Mexico Buys Ferrosur Railway From Carso" (Nov. 25, 2005)
  4. ^FWN Select, "Mexico's Antitrust Agency To Study Railway Merger" (November 28, 2005)
  5. ^FWN Select, "Mexico's Antitrust Commission Rejects Rail Merger Appeal" (Nov. 15, 2006)
  6. ^"Mexican Tribunal OKs Grupo Mexico Railroad merger". Reuters. 2011-03-28. Archived fromthe original on 2011-04-01.
  7. ^Foran, Pat (September 2013)."Ferromex increases infrastructure investment to prepare for growth".Progressive Railroading.
  8. ^abDe la Rosa, Alejandro (2 June 2023)."Gobierno extenderá concesión de Ferrosur a cambio de tramos ferroviarios".El Economista (in Spanish). Retrieved18 July 2023.
  9. ^ab"AMLO turns to national security to defend rail expropriation".BN Americas. 22 May 2023. Retrieved25 May 2023.
  10. ^"AMLO Seizes Rail Line From Mexican Billionaire Germán Larrea's Grupo Mexico".Bloomberg L.P. 20 May 2023. Retrieved23 May 2023.
  11. ^Mahalingam, Eugene."Obrador seizes rail line from billionaire poised to buy Banamex".The Star. Retrieved23 May 2023.
  12. ^De Córdoba, José (19 May 2023)."Lopez Obrador Expropriates Stretch of Mexican Railroad".The Wall Street Journal. Retrieved25 May 2023.
  13. ^Staff, M. N. D. (22 May 2023)."Government takes over Veracruz sections of Ferrosur railway".Mexico News Daily. Retrieved23 May 2023.
  14. ^"'No estamos expropiando nada': Adán Augusto sobre 'toma' de Ferrosur" [We are not expropriating anything': Adán Augusto on the 'seizure' of Ferrosur].El Financiero (in Spanish). 20 May 2023. Retrieved25 May 2023.
  15. ^"AMLO y Grupo México habrían llegado a un acuerdo por Ferrosur".www.yucatan.com.mx (in Spanish). 24 May 2023. Retrieved11 June 2023.
  16. ^"Acuerdan Gobierno y Grupo México pago de 7 mil mdp por vías de Ferrosur".planoinformativo.com. 24 May 2023. Retrieved11 June 2023.
  17. ^Montesinos, Carlos (24 May 2023)."AMLO niega acuerdo por 7 mil mdp con Germán Larrea, pero confirma negociaciones por Ferrosur".Reporte Índigo (in Spanish). Retrieved18 July 2023.

References

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  • Murray, Tom (November 2003). "U.S. railroading's new frontier".Trains.63 (11):28–41.ISSN 0041-0934.

External links

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