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Automotive Sector Pushes Railways Forward

Admin | 09.08.2013

The arrival of new automotive plants to Mexico injects dynamism to Mexican railways.

The arrival of new automotive plants to Mexico injects dynamism to Mexican railways.

This year, Ferromex will invest US$109.8 million to expand their infrastructure. The purpose is responding to the increase in cargo moved from automotive sector in the export corridor running from Bajio to PiedrasNegras and from Bajio to Veracruz Port, due to the establishment of new plants, Alberto Varela, Deputy Director for Automotive Industry with Ferromex, informed.

From January to June this year, the number of finished vehicles transported by Ferromex went up 10%, while railroad transportation demand is expected to grow 19% in 2014, as a consequence of operations starting in Nissan’s new plant in Aguascalientes, as well as in Mazda and Honda plants in Guanajuato.

Ferromextransports Ford, Chrysler, Nissan and General Motors vehicles to the United States; while it takes VW, Ford and Nissan vehicles to the above-mentioned ports, to be exported to the United States, South America, Europe and the Middle East.

“The customs and ports with the highest movement of vehicles are PiedrasNegras, Nogales, Ciudad Juarez and Veracruz", Varela added.

Currently, the automotive industry is fourth in importance for Ferromex, but it has the potential to become the second most important segment, due to the arrival of the new plants. “We will see changes in vehicles every 4 or 5 years by the Detroit assemblers (Chrysler, Ford and General Motors), but we will also see new models that will be produced in Mexico; the four new plants coming to Mexico, BMW’s and Daimler’s expansions, they will all be reflected on the figures.