Regulatory Governance of the Rail Sector in Mexico
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.
Published on February 07, 2020Also available in: Spanish
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.