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KCSM gains market share in Mexico, Ferromex loses

Kansas City Southern de México (KCSM) gained market share in the movement of freight by rail in Mexico in the first half of 2021, while Ferromex reduced its share.

On the one hand, KCSM moved 23 million 944,000 tons in the first half of the year, which represented a year-on-year increase of 14.4 percent.

Likewise, this result allowed it to increase its market share from 35.5% in the first half of 2020 to 36.4% in the same period of 2021.

Mexico’s rail system is divided into three regional lines, several short lines, and a rail terminal in the Valley of Mexico.

KCSM

The Railway Transport Regulatory Agency regulates, among other matters, the operation of the railways, rights of way and tracking, competition between carriers and the rates that can be charged.

On the other hand, KCSM’s main competitor, Ferromex, registered a movement of 32 million 093,000 tons in the first six months of the current year, an increase of 11.1% at an annual rate.

This dynamism was lower than that of the entire freight movement by rail in the country (11.7%), with 58 million 962,000 tons in the first half of the current year.

Therefore, Ferromex decreased its market share from 49 to 48.7%, comparing the first half of 2020 and 2021, respectively.

In general, the Mexican rail industry faces significant competition from motor transport, as well as from maritime transport, albeit on a smaller scale, both in imports and in cabotage service. This competition is especially important in the agricultural segment.

KCSM competes with Ferromex, as it represents an alternative for the transportation of goods to the North American market and some cities in Mexico that are served by both companies.

Comparing the same periods, Ferrosur had an increase of 3.1% in its cargo movement, to 7 million 044,000 tons.

Meanwhile, Ferrocarril y Terminal del Valle de México had an increase of 78%, to 1 million 504,000 tons.

At the same time, the government of Mexico has granted private sector companies the right to provide passenger rail transportation services and property rights at the terminal in the Valley of Mexico, as well as an allocation to the state of Jalisco to provide transportation. Tourist rail on a portion of the North-Pacific Railroad route.

 

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