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Industry and entrepreneurship

Regulatory Governance of the Rail Sector in Mexico

Published on February 07, 2020

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The report provides a description and an assessment of the recent actions carried out by the Mexican government to enhance the quality of regulation and regulatory governance in the rail sector in Mexico. In particular, the report identifies and describes recent regulatory reforms in the rail sector; the progress in implementing OECD recommendations relative to rail regulation issued in 2017; the reforms that led to the Mexican Rail Regulatory Agency, as well as the legal powers granted. It also documents the current regulatory practices of this Agency. The reforms and practices are assessed against OECD principles and country experiences. Finally, the report provides recommendations for continuing the reform efforts.

TABLE OF CONTENTS

Foreword
Acronyms and abbreviations
Legal instruments that affect rail services in Mexico
Executive summary
Assessment and recommendations
Performance of the rail sector of Mexico
State of play and reforms of the rail sector of Mexico
Internal governance of the Regulatory Agency for Rail Transport
Glossary and definitions
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KEY POINTS

  • This report assesses the regulatory governance of the rail sector. Recommendations include strengthening the capacities of the Regulatory Agency of Rail Transportation, increasing the implementation and coverage of the current regulatory framework and improving the methodologies to define fares.
  • In 1995, Mexico’s railway system moved from a publicly run service to one under private concessions.
  • During the period 1995-2017, the cargo transported by rail grew 141% in the country—driven by the transportation of industrial and agricultural products.
  • The Mexican government could address the issues related to funding, definition of attributions and regulatory gaps that hinder the performance of the Agency.
  • The exclusivity rights of most of the current concessions will expire in the next five to seven years. Although, extensions can be granted based on the context, the Mexican government could start considering the steps that should be taken before the rights expire.

 

CONTACT

For further information please contact Manuel Gerardo Flores, Regulatory Policy Division, OECD