TRANSPORTATION - PRIVATIZATION OF HIGHWAYS, RAILROADS, AIRLINES, AIRPORTS AND PORTS

The Railroad Sector

In line with its policy of encouraging investment in transportation infrastructure, the Mexican government has reclassified railroad services from a strategic activity reserved to the State to a priority area, paving the way for increased private participation.

A concession is required to provide construction, maintenance and managerial services, as well as to allow companies to provide passenger and cargo service and operate railways for a profit. Foreign investment may reach 100 percent in Mexican companies carrying out said activities upon receiving approval from the Foreign Investment Commission. If such permission is not received, foreign investment is limited to 49 percent. A permit is required to provide auxiliary services, and foreign investment may reach 100 percent in these companies without the need for prior approval.

The Port Sector

In 1993, the Mexican government provided opportunities for both Mexican and foreign investors in this vital area.

Concessions are granted for integral port administration and the construction, operation and exploitation of terminals, marinas and port facilities, and permits are granted for the rendering of port services and to build piers, wharves, launching docks and other similar facilities on the general waterways outside of ports, terminals and marinas.

Foreign investment may reach 100 percent in Mexican companies granted permits and/or concessions, except in the case of companies providing integral port administration and piloting services related to internal navigation, where foreign investment is limited to 49 percent.