Ferromex (syllabic abbreviation of Ferrocarril Mexicano, 'Mexican Railway') is a private rail consortium that operates the largest (by mileage) railway in Mexico with combined mileage (Ferromex + Ferrosur) of 7500 mi and is often classed with North American Class I railroads.

Description

Ferromex began operating on February 19, 1998, following the privatization of most of the government-owned railways by Mexican President Ernesto Zedillo Ponce de León. Ferromex operates more than 9610 km of track and interconnects five major inland Mexican cities, five cities along the border with the United States, four seaports on the Pacific Ocean, and one more on the Gulf of Mexico. Grupo México owns 74% and Union Pacific Corporation owns 26% of the company. The Ferromex system operates 9,610 km of Ferromex tracks plus 2654 km of Ferrosur tracks.

Passenger services

Ferromex hosts the Ferrocarril Chihuahua al Pacífico "ChePe" railroad, a tourist line that runs through the Copper Canyon. Ferromex also operates the Tequila Express, which runs from Guadalajara to a tequila distillery in Amatitán.

Merger with Ferrosur

In November 2005, Grupo México, the majority owner of Ferromex, purchased Infraestructura y Transportes Ferroviarios, the parent company of Ferrosur, another of Mexico's Class I railroads, in a US$309 million stock transaction. The Mexican Federal Competition Commission (CFC) had rejected a proposed 2002 merger of Ferromex and Ferrosur amid opposition from Ferromex competitor Grupo Transportación Ferroviaria Mexicana (TFM). Following the November 2005 purchase of Ferrosur by Grupo México, Kansas City Southern de México (KCSM), successor to TFM, petitioned the Mexican government to block the merger of Ferrosur and Ferromex. The CFC rejected the merger in June 2006 and stated that the merger would have led to excessive concentration in the railway industry to the detriment of consumers and competing shippers. However, in March 2011, a tribunal ruled in Grupo México's favor, and the merger was permitted.

Rolling stock

In January 2011, Ferromex ordered 44 new SD70ACe locomotives from EMD, its first order since 2006.

Other

Grupo México Transportes, with Fundación Grupo México, operates Dr. Vagón, a hospital train that offers free, complete healthcare for hard to reach communities in Mexico.