(GMXT) reported this Wednesday that its revenues totaled 12,066 million pesos in the first quarter of 2021, an increase of 0.3% year-on-year.
Like Grupo México‘s Transportation Division, GMXT offers logistics and land transportation solutions.
At year-on-year rates in a disaggregated manner, GMXT’s revenues had the following performance in the first quarter of 2021:
- Energy (11 percent).
- Metals (7 percent).
- Minerals (6 percent).
- Agricultural (1 percent).
- Intermodal (0 percent).
- Chemicals and fertilizers (-1 percent).
- Automotive (-6 percent).
- Cement (-7 percent).
- Industrial (-11 percent).
The company is the leader in land transportation in Mexico with the highest coverage and connectivity.
To date, GMXT has a network of 11,136 kilometers of roads, in 24 states of the Mexican Republic, the state of Texas and Florida in the United States.
In addition, the company has one of the 8 Class 1 Railroads in North America that connects five border crossings with the United States, as well as five ports in the Pacific Ocean and four more in the Gulf of Mexico.
Until a year ago, the company’s main customers in terms of sales were: Ternium, Constellation Brands, Pemex, Cemex México, Grupo Proan, Almidones Mexicanos, Grupo Cargill, General Motors, Gavilon, Minera México and Nissan Mexicana.
The main subsidiaries of GMXT are:
- Ferrocarril Mexicano, S. A. de C. V. (Ferromex).
- Ferrosur, S. A. de C. V. (Ferrosur).
- Florida East Coast (FEC).
- Texas Pacifico Transportation, LTD. (TXP).
- Intermodal México, S. A. de C. V. (IMEX).
In general, most of the cargo in Mexico moves by motor transport or rail.
Competition with other means of transport is generally based on price, as well as the quality and reliability of the service provided.
For GMXT, other factors that affect competition in the trucking industry are delivery time, cargo security, and origin-destination cargo capacities.
Some sectors, especially intermodal, experience direct competition with trucking companies despite the economic advantages offered by rail due to double stowage.
Although trucking is generally more expensive, under certain circumstances the trucking industry can provide competitive rates and efficient service. Trucking requires lower maintenance and capital investment expenses and more flexible routes and schedules.