On February 4th, Mexico's lower house of congress overwhelmingly approved a reform of the rail freight law.
Under the terms of the bill, existing concession holders will be forced to share their lines with other concession holders or risk losing them. Railroads will also be forced to publish prices they charge for interconnections with routes owned by other companies.
"The rail proposal has angered Grupo Mexico's subsidiaries and Kansas City Southern de Mexico, who say the bill threatens the 14 years of exclusivity that remain in their concessions, fails to recognize their sizeable investments and sets a worrying precedent as Mexico tries to lure new investors into its oil and gas sector.
"We don't want to go down the legal path, but we're certainly looking at those options," said Kansas City Southern de Mexico's President Jose Zozaya, who added the company had already begun looking into using an arbitration panel set up as part of the North American Free Trade Agreement (NAFTA) treaty."