Grupo Mexico announced Thursday that Ferromex, the largest railroad company in Mexico, expects to invest $134 million for the year, mainly on infrastructure renewal, Octavio Ornelas, a director of the company’s transportation arm, said on a conference call for investors. He also said Grupo Mexico’s board authorized the acquisition of 44 new locomotives, which will increase cargo capacity by 7.5%.
Grupo Mexico said a proposed merger of Ferromex and Ferrosur, another railroad that is part of its transportation division, could come by the first quarter of next year, depending on approval by Mexico’s Competition Commission.
Antitrust regulators objected to the merger, but in May a federal court ruled in Grupo Mexico’s favor and said the commission should consider the merger approved. The commission could still appeal that decision.