Mexico: Rail Duopoly Hurts Competition, Cites High Prices

3/15/2017 New York Times

KCS trainMEXICO CITY — Mexican regulatory authorities say an investigation has found that an effective rail duopoly between Kansas City Southern and Grupo Mexico has increased transport costs and created a lack of competition in rail freight.

The Commission on Competition said Wednesday that the U.S. and Mexican firms own most of a third rail company, Ferrovalle. Together, the companies and their subsidiaries control 72.3 of the country’s rail lines under concessions from the government.

The commission said the lack of competition has caused higher rates for customers and delays.

Read more…

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s