I suspected this would happen at some point but thought KCS would be first. Lets not get political here. I am only curious how critical the rail lines are they took over, it seems like they are just in the South in one province? Not sure.
https://money.usnews.com/investing/news/articles/2023-05-19/mexico-takes-over-part-of-grupo-mexico-railway-shares-fall
Not very important in and of itself. It is only important if it signals a wider nationalization threat. The Mexican Dept of Transportation recently asked if CPKC was interested in taking over this particular franchise, as it is mostly moribund though not abandoned. It runs from Salina Cruz on the Pacific to Coatzacoalcos on the Atlantic. President Obrador has dreams of it rivaling the Panama Canal.
This appears to be more a method of guaranteeing performance (a la Federal Control here in 1917) than a precursor of widespread further 'nationalization' -- the reference indicates that it is associated with the Isthmus of Tehuantepec Railway, which should have been a national crash priority 40 years ago, and now appears to be an important 'national security' related concern... now that container traffic from Asian points in the Pacific is dropping off.
What I think will be interesting is that the law involved states that 'compensation' must be paid if the line is actually 'seized' [note sp.; 's' is not 'c'] or 'nationalized'. I expect the Mexican government will claim inadequate service, deferred maintenance, etc. or even count some or all the 'remediation' cost against compensation to be paid.
Perhaps they are thinking of a "Panama Canal Railway" type of operation as opposed to actually constructing a canal.
From the Gulf of Mexico to Laguna Superior on the Pacific Ocean it is about 124 miles wide.
However, one wonders about the need for such an operation.
If containers are coming from China or Southeast Asia why not just disembark them at Lazero Cardenas?
I have not had time to dig into what the Great Circle sailing routes looks like from Vietnam, the Phillipines, Thailand, Indonesia to southern Mexico.
This sounds like something that would be a Belt and Road project that China would do in exchange for controlling and operating the harbors at either end, as they have done in other places as they expand their blue water navy.
The Isthmus of Tehuantepec Railway of course was initially surveyed, with some enthusiasm, in the early 1850s (in fact, there is a very detailed survey of the original proposed route that is, or was, accessible online about 25 years ago). The route is substantially north-south across the narrow portion of the Tehuantepec isthmus, and while there were a few grades to be overcome in Vanderbilt's day they pose little issue for the modern alternative traffic.
The actual project when I was looking at it was very different from anything involving existing railroad interchange. It was double- or triple-track a bit reminiscent of the German Breitspurbahn or the RRollway, allowing a very large number of containers stacked several across, as on a ship, at least double height, with the catenary arrangement made to clear during running.
The fly in the ointment since at least the 1980s is that the Mexican government du jour has considered this project one of the crown jewels of the nation, and has insisted that only Mexican engineering and Mexican construction be used to design and build it. To my knowledge neither Belt & Road financing nor Belt & Road engineering assistance would be tolerated, let alone welcome, for that particular line.
As you might guess, for the price of two intermodal lifts, the actual capacity between the Pacific and the Caribbean is dramatically greater as well as faster than a transit even for Panamax vessels; it also permits the use of very large modular container carriers (built like the spine tankers Aristotle Onassis was working on at the time of his son's death) on both ends. I was enthusiastic about the prospect then, and am still enthusiastic about the idea now... but with traffic other than raw materials dropping between the Orient and American ports,, the enormous fast excess capacity may no longer be relevant.
If the Government of Mexico nationalizes CPKC's Mexico lines, I suppose the US could nationalize the FEC which is owned by Grupo Mexico.
True that but preferably a forced divestiture rather than US Government ownership.
CMStPnP I suspected this would happen at some point but thought KCS would be first. Lets not get political here. I am only curious how critical the rail lines are they took over, it seems like they are just in the South in one province? Not sure. https://money.usnews.com/investing/news/articles/2023-05-19/mexico-takes-over-part-of-grupo-mexico-railway-shares-fall
The story was of the maiden voyage of the CG Lines new double decked ocean going railroad car carrier. From the Mexican port city to the Port of Nobile,Al.
The MV Cherokee . To be in reguilarly scheduled service between those two Ports. It was also noted, that the Cherokee would be joined by a second, similar, ocean going car ferry. (abilding, at that time)
This would seem to add some context to the rationale of the seizure by the Government of Mexico,and its 'push' to gain control of the cross-Mexico lline.(?)
UPDATE: FromTRAINS Newswire of this date June 2,2023...
An article regarding the problems with the cross istmus line;
FTA: "...MEXICO CITY — Mexican President Andres Manuel López Obrador said Thursday that that the government had extended a concession of rail operator Grupo Mexico’s Ferrosur unit for 8 years to compensate the company for the government’s seizure last month of a section of railway operated by Grupo Mexico.
BNAmericas reports the extension covers the Medias Aguas-Veracrus stretch of Ferrosur’s concession on the Tehuantepec Isthumus, in exchange for the 127 kilometers (79 miles) claimed by the government. It was based on an appraisal of the 127-kilometer stretch by a government agency.
The government sent Marines to take over the section of track operated by Grupo Mexico on May 19 [see “Mexico seizes rail line,” Trains News Wire, May 24, 2023], saying it needed the line to complete López Obrador’s plan for a rail line on the Isthmus to connect Pacific and Gulf ports [see “Digest: U.S., California in settlement talks …,” News Wire, March 23, 2021].
Reuters reports López Obrado said Grupo Mexico had also withdrawn its complaint against his Mayan Train project, a controversial tourist rail line in the Yucatan peninsula. Efforts continue in court to stop the Mayan Train project on environmental grounds, with a judge recently ordering a halt to vegetation clearing on much of the route..."
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