2.6.2024

What changes does the Constitutional Reform Initiative promote in the Railway Sector?

In this article, we will explore the recent constitutional reform initiative presented by President Andrés Manuel López Obrador to the Chamber of Deputies, focusing on the Mexican railway sector.

The main objective of the initiative is to recover the relevance of rail passenger transport, focusing on its crucial role for the economic and social development of the country. It seeks to create sources of employment and improve people's accessibility and mobility.

Backgrounders

This proposal is framed in the context of the decree published in the Federal Official Gazette on November 20, 2023, declaring passenger rail transport as a priority area for national development.

Reform Proposals

The initiative proposes reforms to Article 28 of the Constitution, highlighting the following points:

Incorporation of rail transport. It seeks to amend the fourth paragraph of Article 28 to explicitly include rail passenger and cargo transportation as priority areas for national development.

Use of railways. A fifth paragraph has been added so that the Mexican State has the right to use railways to provide passenger transport services. This will allow the Federal Executive to grant allocations to public companies or concessions to individuals.

It is important to consider that the current concessions already provide that the Federal Government may grant additional concessions for the provision of passenger transportation services on currently concessioned roads. In the same way, assignment titles are also provided for in current law and function as a form similar to the concession to be granted to public bodies or Federal Entities so that they can participate in the provision of railway transport services.

Preference for transporting passengers: a seventh paragraph is introduced that establishes that individuals with concessions for the transport of cargo may obtain concessions for the transport of passengers, giving preference to it as determined by the applicable legislation.

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