U.S. and Chinese rail companies have expressed interest in the Mexican rail freight market if a bill that seeks to open up the sector to more companies is approved, the head of the lower house of Congress' transport commission said on Tuesday. Earlier this month, Mexico's lower chamber overwhelmingly approved a reform of the rail freight law which would open up a sector controlled almost entirely by two concession-holders: Grupo Mexico's Ferromex and Ferrosur railroads, and Kansas City Southern de Mexico.Under the terms of the bill, which still has to be approved by the Senate, these concession-holders would be forced to share their lines or risk losing them. They would also have to publish prices they charge customers for interconnections with routes owned by other companies."What's this proposal aiming to do? Bring new players into the market," lawmaker Juan Carlos Munoz, a member of the opposition National Action Party, told Reuters."There's an interest in China to enter Mexico's rail market, the United States and China," he added.
Kansas City Southern (KCS) is a transportation holding company with domestic and international rail operations in North America that are strategically focused on the growing north/south freight corridor connecting key commercial and industrial markets in the central United States with industrial cities in Mexico. Shares of KSU fell by 1.28% or $-1.21/share to $93.39. In the past year, the shares have traded as low as $88.56 and as high as $125.96. On average, 1437460 shares of KSU exchange hands on a given day and today's volume is recorded at 2454519.
Source
