Thursday, February 19, 2009

Mexican commission fines two freight railroads

Written by  Luther S. Miller, Senior Consulting Editor

Mexico’s Federal Competition Commission (Cofeco) has fined two domestic rail companies a total of $27 million for monopolistic practices, according to Mexico City-based Reforma.com.

The ruling was hailed by competitor Kansas City Southern de Mexico, which in recent years has charged both Ferrocarril Mexicano (Ferromex) and Ferrocarril del Sureste, or Ferrosur, with acting in tandem, in essence as a single unit. KCSM charges that such action "contravenes the goals of the privatization of Mexico's rail network and the concession's bidding rules."

Cofeco rejected a proposed merger of Ferromex and Ferrosur in 2002.