Project

MODERNIZATION, OPERATION, MAINTENANCE, CONSERVATION AND EXPLOITATION OF THE NORTHEASTERN GENERAL RAILWAY LINE.

Sector: Transport


Last Revision

May 02, 2024
Short Name of the Project:
0271 Northeastern Railroad
Type of Investment:
Brownfield
Subsector:
Railways
Asset (s):
 Freight Train 4,282.69 KM 
Contract Currency:
Mexican Pesos MXN
Estimated Investment MXN:

N.A.

Estimated Investment USD:

N.A.

Exchange rate (USD/MXN) used by the Ministry of Finance for the economic plan 2025: $ 18.5
Contract Scope:
  Modernization,  Operation,  Maintenance,  Conservation,  Exploitation

DESCRIPTION

AGREEMENT (Nov. 29, 1996). The assets that are part of the Northeast general rail communication line, and the buildings and facilities for the delivery of auxiliary services are destined to the service of the Ministry of Communications and Transportation.

The Northeast general railway communication line has a total length of 4,282.69 km. The main routes of this line are Mexico - Nuevo Laredo (1,292 km), Mexico - Veracruz (through Jalapa, 470 km), and Mexico - Lazaro Cardenas (788 km). This line connects the states of Nuevo León, Tamaulipas, Coahuila, San Luis Potosí, Zacatecas, Guanajuato, Querétaro, Hidalgo, Mexico, Tlaxcala, Puebla, Veracruz and Michoacán, the ports of Lazaro Cardenas and Tampico, the Nuevo Laredo and Matamoros border lines, and the Union Pacific, Tex-Mex, Southern Pacific and Burlington Northern-Santa Fe railways.

ORIGINAL TITLE (Feb. 3, 1997). The concession of the general communication railway line that corresponds to the Northeast trunk line was granted to Ferrocarril del Noreste, S.A. de C.V. The concession includes the railway, right-of-way, traffic control centers and railway operation signals.

The term of the concession is 50 years, starting on the date of completion of the delivery -reception due diligence of the railroad track and the assets, or as of July 31st, 1997, whatever occurs first.

FIRST AMENDMENT (Mar. 20, 2001). The section of the Morelos highway (km M-229+364.75 to km M-262+094.30) is reverted to the Federal Government.
SECOND AMENDMENT (Dec. 19, 2006). Annexes are modified to incorporate details on the maintenance workshops, as well as adaptations to the business plan of the catenary of the Buenavista-Huehuetoca section.
THIRD AMENDMENT (Mar. 26, 2014). Lands, where platforms are located at the New Passenger Railway Station in the city of San Luis Potosí are excluded.
FOURTH AMENDMENT (Apr. 17, 2018). The Matamoros-Brownsville railway bypass, maneuver yard, administrative buildings and international bridge are included
FIFTH AMENDMENT (Dec. 20, 2017). The property "La Cedrera" in the municipality of Uruapan, Michoacán is excluded.
SIXTH AMENMENT (Aug. 18, 2022). Includes the conclusion of the construction of works related to the bypass in the city of Celaya, Gto. and the exclusivity of the public cargo transportation service increased 40 years.

LEGAL AND FINANCIAL STRUCTURE

Type of Project
  Public / Private
Type of Contract
  Concession
Term
50 years
Payment Source
Project revenues / Rate
The main source of payment are the rail freight service charges collected by the concessionaire.

STATUS

Stage
  Operation
Substage
  > 5 years of operation
RELEVANT DATES
Contract Signing February 03, 1997
Term of the Contract 2047
Contractor
Kansas City Southern de México  

GEOLOCATION

State(s)
Nuevo Leon, Tamaulipas, Coahuila, San Luis Potosi, Zacatecas, Guanajuato, Queretaro, Hidalgo, State of Mexico, Tlaxcala, Puebla, Veracruz, Michoacan   

SPONSOR

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Entity
Secretaría de Infraestructura, Comunicaciones y Transportes
Department
Dirección General de Desarrollo Ferroviario y Multimodal
Contact
Ing. Jorge Luis Hernández Luna
E-mail
jorge.hernandezl@sct.gob.mx

SUSTAINABLE INFORMATION

PROJECT’S SUSTAINABILITY SUMMARY

The project consists of the modernization, operation and maintenance of the Northeast trunk road for cargo transportation, which contributes to the reduction of GHG emissions.

* This summary was prepared based on the methodological framework defined by the Inter-American Development Bank (IDB) in the document entitled: “Attributes and Framework for Sustainable Infrastructure”, which is You can check Here.

Additionally, a brief explanation of the methodology and a summary of the questions applied can be consulted in this Document.

ADDITIONAL INFORMATION

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Source
Diario Oficial de la Federación
Description
A Constitutional Government of the United Mexican States Body, which has the function of publishing in the national territory: laws, regulations, agreements, circulars, orders and other acts issued by the powers of the Federation.
Responsive image
Source
Concessionaire / Related Company

REMARKS

On March 15, 2023, the merger of Canadian Pacific and Kansas City Southern was approved. On April 14, 2023, both companies form CPKC.

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