Grupo México depends on a limited number of suppliers of fuel and basic rail equipment, such as locomotives, rolling equipment, rails and sleepers.
The company is part of a fuel supply contract with Pemex Transformación Industrial, its main supplier in Mexico.
On the one hand, Ferromex signed a contract that entered into force on May 8, 2018 and is valid for 3 years, in which Ferromex is obliged to buy a minimum of 7,570 cubic meters and a maximum of 15,140 meters at market value. cubic meters of diesel per month.
On the other hand, Ferrosur entered into a contract that entered into force on August 30, 2018 with a duration of 3 years, in which it is obliged to purchase a minimum of 3,850 and a maximum of 7,700 cubic meters of diesel per month at market value.
Any party may terminate said contract by giving written notice 180 days in advance.
In the event that the fuel supply contract is terminated and we are unable to obtain fuel from alternative sources on acceptable terms, our operations could be materially affected.
Grupo México‘s main suppliers of locomotives are GE Transportation Systems and Progress Rail Locomotive, and of rail cars are Trinity Industries and Greenbrier.
Meanwhile, Grupo México’s main suppliers of track machinery and car spare parts are: Plasser & Theurer, Nordco, Harsco, Wabtec, Amsted and Brandt.
Likewise, the company acquires the majority of the rail from Sumitomo, Steel Dinamics, Inc. and from EVRAZ Rocky Mountain Steel, companies that meet Grupo México’s requirements and specifications.
The company also enters into maintenance contracts for the provision of ordinary maintenance and repair services for locomotives and equipment with Locomotive Manufacturing and Services, S.A. de C.V., Alstom Transport México, S.A. de C.V. and Progress Rail Maintenance de México, S.A. de C.V.
Grupo México’s Transportation Division sells most of its transportation services through direct distribution channels.
The company has a sales force dedicated to continuously contacting our clients. It serves its clients by focusing on two areas: sales and marketing, which are divided into nine subsegments: agricultural, intermodal, minerals, automotive, chemical, energy, industrial, metallurgical, and cement.