Mexican govt announces US$8bn public investments in highways, railroads

The Mexican government has announced that it will launch major investment programs to improve the country's transport networks, with 150bn pesos (US$7.7 billion) for rail infrastructure and 4bn pesos for roads.

President Claudia Sheinbaum stated during her Wednesday morning press conference that her administration will be able to launch the programs thanks to the robust finances left by her predecessor, Andrés Manuel López Obrador.

“This year, we will begin a program to upgrade all federal highways. The previous administration left us in a very healthy financial position, which allows us to allocate nearly 4bn pesos for highway repairs. In fact, the tenders are already out,” she said, without providing further details of the bidding processes.

The President also announced that will invest spend heavily to advance her scheme to boost the rail sector, which includes building 3,000km of passenger lines, double the amount built by the previous administration.

“We have selected a scheme that avoids acquiring debt or putting pressure on the public budget. It can even generate opportunities for power generation. As for the trains, the investment will be nearly 150bn pesos and no one should worry about it –it’s all part of our republican austerity,” she was quoted as saying by news outlet Más Noticias.

Andrés Lajous, director of the rail regulator ARTF, will oversee the planned rail projects.

On Tuesday, after a six-hour debate, the lower house of congress approved a constitutional reform that classifies passenger and freight rail services as national development priorities.

“The Mexican state reclaims the right to use the railways for passenger transportation. For that purpose, the State will be able to grant assignments to public companies or concessions to private ones,” the approved bill reads. It will now move to the senate for final approval.

Lajous explained during the president’s press conference that the passenger rail projects will use existing rights of way for freight transportation.

“These reforms are intended to implement passenger rail projects on existing freight routes without affecting freight transportation services,” he said.