The Federal Economic Competition Commission (Cofece) initiated an investigation to determine the existence of barriers to competition and free competition in the public rail freight transport service market.
In an agreement published in the Official Gazette of the Federation (DOF)the antitrust body warned about the existence of elements that suggest that there are no conditions of effective competition in said, as well as in its related services and rights.
The regulator highlighted that of the total merchandise transported by land in the country, 25.3% moves by rail. In 2022 alone, 128.46 million tons of cargo were transported in the Mexican Railway System5.3 percent more compared to 2016.
According to the Railway Transport Regulatory Agency (ARTF), Among the main companies that have concessions for the freight transfer service by train are Canadian Pacific Kansas City (CPKC), Ferrosur and Ferromex, both of Grupo México; and Ferrovalle.
“Barriers to competition are any fact, act, or regulation that prevents access to a market or limits the ability to compete in it,” said Cofece.
The organization added in a statement that this investigation that it began seeks to eliminate barriers and implement actions to guarantee the functioning of the markets.
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The investigation will be carried out in a period of 30 to 120 business days, which can be extended twice, and if the existence of barriers to competition or essential inputs is found, the Coffee may order the elimination of barriers that unduly affect the competition process, as well as order the divestment of assets, rights, corporate interests or shares for the benefit of the functioning of the market.