WASHINGTON, D.C. — Mexrail, the holding company that owns the Texas Mexican Railway, has been sold to Transportacion Ferroviaria Mexicana, Mexico’s largest railroad.
According to the Association of American Railroads, Mexrail and TFM are both jointly controlled by Grupo TMM and Kansas City Southern Industries, owner of Kansas City Southern Railway.
The sale was announced as part of an agreement between TMM and KCSI that ended a dispute between the two parties that arose at the end of last year. Grupo TMM received $32.64 million and KCSI $31.36 million from the sale.
The Texas Mexican Railway Company operates from Laredo to Corpus Christi, and over trackage rights to Beaumont, Texas, where it connects with Kansas City Southern. Mexrail also owns the northern half of the International Bridge at Laredo, the primary railway bridge connecting Mexico and the United States. The TFM rail system connects with the TexMex over the International Bridge.
In a joint statement, Grupo TMM Chairman and CEO Jose Serrano and KCSI Chairman, President and CEO Michael Haverty stated: “We are very pleased to have resolved and put behind us the disagreements regarding Grupo TFM in a way that is satisfactory to both parties. We also believe the consolidation of Mexrail into TFM will help better coordinate operationsbetween the companies and open up new rail market opportunities.”