Mexico reforms its Constitution to prioritize passenger railway transportation

November 6, 2024

Galicia - On October 30, 2024, an amendment to article 28 of the Federal Constitution was published to establish passenger and freight railway transportation as a priority area for national development. This will allow the State to:

▪ Recover control over railway lines for passenger transport.

▪ Grant concessions to private entities or assignments to public companies for Passenger rail operations.

Among other purposes, the aim is to reduce traffic on highways and provide an accessible public transportation alternative.

The reform follows a November 2023 decree that declared passenger railway transportation as a priority area for national development. Said decree also established the following seven initial routes:

(i) Mexico-Veracruz-Coatzacoalcos; (ii) Interurban Train AIFA-Pachuca; (iii) MexicoQuerétaro-León-Aguascalientes; (iv) Manzanillo-Colima-Guadalajara-Irapuato; (v) Mexico-San Luis Potosí-Monterrey-Nuevo Laredo; (vi) Mexico-Querétaro-Guadalajara-Tepic-MazatlánNogales, and (vii) Aguascalientes-Chihuahua-Ciudad Juárez.

The transitory articles of the decree of October 30, 2024, sets out the following: (i) the amendment entered into force on October 31, 2024; (ii) Congress has 180 days to make corresponding adjustments to secondary laws, and (iii) freight rail concessionaires may obtain concessions to provide passenger rail service, with passenger transport having priority.

For further reference on the specific changes to the text of the Constitution, please refer to Annex A (Comparative Text of the Amendment).

galicia.com.mx