Grupo Transportación Ferroviaria Mexicana
Encyclopedia
Cargo
Cargo is goods or produce transported, generally for commercial gain, by ship, aircraft, train, van or truck. In modern times, containers are used in most intermodal long-haul cargo transport.-Marine:...
transportation using rail
Rail transport
Rail transport is a means of conveyance of passengers and goods by way of wheeled vehicles running on rail tracks. In contrast to road transport, where vehicles merely run on a prepared surface, rail vehicles are also directionally guided by the tracks they run on...
in the North Eastern part of Mexico
Mexico
The United Mexican States , commonly known as Mexico , is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of...
. KCSM is fully owned and operated by Kansas City Southern Industries
Kansas City Southern Railway
The Kansas City Southern Railway , owned by Kansas City Southern Industries, is the smallest and second-oldest Class I railroad company still in operation. KCS was founded in 1887 and is currently operating in a region consisting of ten central U.S. states...
, who owns its own fleet and the rights to operate and maintain a rail system through a concession
Concession (contract)
A concession is a business operated under a contract or license associated with a degree of exclusivity in business within a certain geographical area. For example, sports arenas or public parks may have concession stands. Many department stores contain numerous concessions operated by other...
from the Mexican government. The majority of the rail system spans from the Mexico City Valley
Greater Mexico City
Greater Mexico City refers to the conurbation around Mexico City, officially called Mexico City Metropolitan Area , constituted by the Federal District—itself composed of 16 boroughs—and 41 adjacent municipalities of the states of Mexico and Hidalgo...
to the United States border at Laredo, Texas
Laredo, Texas
Laredo is the county seat of Webb County, Texas, United States, located on the north bank of the Rio Grande in South Texas, across from Nuevo Laredo, Tamaulipas, Mexico. According to the 2010 census, the city population was 236,091 making it the 3rd largest on the United States-Mexican border,...
; there are also tracks that connect to the port cities of Lázaro Cárdenas
Lázaro Cárdenas, Michoacán
Lázaro Cárdenas is a port city that with its surrounding municipality is located in the southern part of the Mexican state of Michoacán. It was formerly known as Los Llanitos, but changed its name as a tribute to Lázaro Cárdenas del Río, a Michoacán-born politician who was president of Mexico from...
and Veracruz
Veracruz, Veracruz
Veracruz, officially known as Heroica Veracruz, is a major port city and municipality on the Gulf of Mexico in the Mexican state of Veracruz. The city is located in the central part of the state. It is located along Federal Highway 140 from the state capital Xalapa, and is the state's most...
, giving Kansas City Southern de Mexico a unique position because they connect both the Gulf of Mexico and the Pacific Ocean to the United States border.
History
Ernesto Zedillo
Ernesto Zedillo Ponce de León is a Mexican economist and politician. He served as President of Mexico from December 1, 1994 to November 30, 2000, as the last of the uninterrupted seventy year line of Mexican presidents from the Institutional Revolutionary Party...
who proposed the privatisation
Privatization
Privatization is the incidence or process of transferring ownership of a business, enterprise, agency or public service from the public sector to the private sector or to private non-profit organizations...
of the Mexican railways because the Mexican railway system had fallen into a state of disrepair and needed drastic work to become profitable. Since the late 1930s, Mexican trains and tracks were property of the government as Ferrocarriles Nacionales de México
Ferrocarriles Nacionales de México
Ferrocarriles Nacionales de México, was Mexico's state owned railroad company from 1938 to 1998, and prior to 1938 a major railroad controlled by the government that linked Mexico City to the major cities of Nuevo Laredo and Ciudad Juárez on the U.S. border...
(Mexican National Railways). The nationalized railroad operated successfully for many years, yet by the 1990s the system was so poorly run, that US railways would not even send rail cars into Mexico, for fear that they would not be returned. When the decision to privatize the railroad was made, only 15% of freight was moved by rail in Mexico (versus 42% in the US)
The most sought after portion of the concessions, called the Northeast Railroad, was bid on by many major companies, including the United States's largest railroad company, Union Pacific Railroad
Union Pacific Railroad
The Union Pacific Railroad , headquartered in Omaha, Nebraska, is the largest railroad network in the United States. James R. Young is president, CEO and Chairman....
. This concession included about 4000 km (2,485.5 mi) of track with connections to many key cities, including Monterrey
Monterrey
Monterrey , is the capital city of the northeastern state of Nuevo León in the country of Mexico. The city is anchor to the third-largest metropolitan area in Mexico and is ranked as the ninth-largest city in the nation. Monterrey serves as a commercial center in the north of the country and is the...
, Mexico City
Mexico City
Mexico City is the Federal District , capital of Mexico and seat of the federal powers of the Mexican Union. It is a federal entity within Mexico which is not part of any one of the 31 Mexican states but belongs to the federation as a whole...
, and Laredo
Laredo, Texas
Laredo is the county seat of Webb County, Texas, United States, located on the north bank of the Rio Grande in South Texas, across from Nuevo Laredo, Tamaulipas, Mexico. According to the 2010 census, the city population was 236,091 making it the 3rd largest on the United States-Mexican border,...
. This track carried 46% of all rail traffic in Mexico and 60% of all freight coming from the United States . KCSM and TMM bid and won the concession for $1.4 Billion USD for the rights to operate the concession, each paying 49% and 51%, respectively.
In 2005, Kansas City Southern Industries purchased Transportacion Maritima Mexicana's share in TFM, giving them full ownership of the company, and the TFM was officially renamed Kansas City Southern de Mexico, S.A. de C.V.. Today, KCSM includes 2661 miles (4,282.5 km) of track, serving northeastern and central Mexico and the port cities of Lazaro Cardenas, Tampico, and Veracruz among others.
Key Connections
- LaredoLaredo, TexasLaredo is the county seat of Webb County, Texas, United States, located on the north bank of the Rio Grande in South Texas, across from Nuevo Laredo, Tamaulipas, Mexico. According to the 2010 census, the city population was 236,091 making it the 3rd largest on the United States-Mexican border,...
- Lázaro CárdenasLázaro Cárdenas, MichoacánLázaro Cárdenas is a port city that with its surrounding municipality is located in the southern part of the Mexican state of Michoacán. It was formerly known as Los Llanitos, but changed its name as a tribute to Lázaro Cárdenas del Río, a Michoacán-born politician who was president of Mexico from...
- GuadalajaraGuadalajara, JaliscoGuadalajara is the capital of the Mexican state of Jalisco, and the seat of the municipality of Guadalajara. The city is located in the central region of Jalisco in the western-pacific area of Mexico. With a population of 1,564,514 it is Mexico's second most populous municipality...
- México CityMexico CityMexico City is the Federal District , capital of Mexico and seat of the federal powers of the Mexican Union. It is a federal entity within Mexico which is not part of any one of the 31 Mexican states but belongs to the federation as a whole...
- MonterreyMonterreyMonterrey , is the capital city of the northeastern state of Nuevo León in the country of Mexico. The city is anchor to the third-largest metropolitan area in Mexico and is ranked as the ninth-largest city in the nation. Monterrey serves as a commercial center in the north of the country and is the...
- Queretaro
- SaltilloSaltilloSaltillo is the capital city of the northeastern Mexican state of Coahuila and the municipal seat of the municipality of the same name. The city is located about 400 km south of the U.S. state of Texas, and 90 km west of Monterrey, Nuevo León....
- San Luis PotosíSan Luis Potosí, San Luis PotosíSan Luis Potosí, commonly called SLP or simply San Luis, is the capital of, and most populous city in the Mexican state of the same name. The city lies at an elevation of 1,850 meters...
- TampicoTampicoTampico is a city and port in the state of Tamaulipas, in the country of Mexico. It is located in the southeastern part of the state, directly north across the border from Veracruz. Tampico is the third largest city in Tamaulipas, and counts with a population of 309,003. The Metropolitan area of...
- VeracruzVeracruz, VeracruzVeracruz, officially known as Heroica Veracruz, is a major port city and municipality on the Gulf of Mexico in the Mexican state of Veracruz. The city is located in the central part of the state. It is located along Federal Highway 140 from the state capital Xalapa, and is the state's most...