Mexico cancels rail concession in 'rescue' operation

The Mexican government has canceled the Chiapas-Mayab rail concession in what it called a "rescue" operation to safeguard national security and the public interest.

The concession had been awarded to Compañía de Ferrocarriles Chiapas-Mayab (FCCM) in 1999 with a title modification in 2012. The cancelation decision was published Wednesday in the federal gazette.

FCCM lawyer Paulo Díez said the cancelation is part of a political persecution against the company and its owner Pedro Topete, who controls FCCM through Viabilis, local press reported.

Topete-owned tech firm Infraiber was involved in a scandal last year when OHL México accused the company of leaking recorded calls which purport to capture OHL México executives arranging corrupt business deals with government officials, including communications and transportation minister Gerardo Ruiz Esparza.

From 2005-2007, the concession was operated by the federal government given the severe damages to the railway caused by Hurricane Stan.

When the concession title was modified in 2012, the term was extended from 30 to 50 years, while exclusivity rights to provide cargo services were changed from 18 to 30 years.