Mexico approves rail reform

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Tuesday, December 16, 2014

Mexico will have a rail transport regulatory agency, following approval of amended rail reform legislation in congress.

The legislation also requires concessionaires and the government to contribute to a national fund for upgrading and maintaining railroad crossings.

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The bill was approved by the lower house on Monday in a 339-35 vote, with nine abstentions; the senate had approved it a day earlier. It has now been sent to the executive power to be signed into law.

The head of congress' transport committee, Juan Carlos Muñoz Márquez of the opposition PAN party, said the reform seeks to increase the country's competitiveness, while improving and regulating rail service. He also stressed that the legal framework of the sector had not been updated in 19 years.

Congressman Abel Guerra Garza of the ruling PRI party said that the reform will facilitate public and private investment to build new lines.