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THE IMPACT of MEXICAN RAIL PRIVATIZATION on the TEXAS February 2001 TRANSPORTATION SYSTEM 6

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THE IMPACT of MEXICAN RAIL PRIVATIZATION on the TEXAS February 2001 TRANSPORTATION SYSTEM 6 Technical Report Documentation Page 1. Report No. 2. Government Accession No. 3. Recipient's Catalog No. FHWA/TX-00/2128-2 4. Title and Subtitle 5. Report Date THE IMPACT OF MEXICAN RAIL PRIVATIZATION ON THE TEXAS February 2001 TRANSPORTATION SYSTEM 6. Performing Organization Code 7. Author(s) 8. Performing Organization Report No. Stephen S. Roop, Jeffery E. Warner, Felipe Zambrano, Roubabah Ismailova, Report 2128-2 and Dong-Hun Kang 9. Performing Organization Name and Address 10. Work Unit No. (TRAIS) Texas Transportation Institute The Texas A&M University System College Station, Texas 77843-3135 11. Contract or Grant No. Project No. 0-2128 12. Sponsoring Agency Name and Address 13. Type of Report and Period Covered Texas Department of Transportation Research: Research and Technology Implementation Office September 1999–November 2000 P. O. Box 5080 Austin, Texas 78763-5080 14. Sponsoring Agency Code 15. Supplementary Notes Research performed in cooperation with the Texas Department of Transportation and the U.S. Department of Transportation, Federal Highway Administration. Research Project Title: The Impact of Mexican Rail Privatization on International Trade Corridors with Mexico 16. Abstract The North American Free Trade Agreement (NAFTA) has increased truck traffic and infrastructure needs on the Texas highway network, which carried more than 70 percent of the total incoming U.S.-Mexico truck traffic due to trade in 1997. An opportunity to alleviate highway congestion on main highway corridors in Texas and the U.S. is through the encouragement of rail intermodal facilities that could divert freight from the highways. U.S. and Mexican railroad companies, created from the recent privatization of the Mexican Railroad System, are building intermodal facilities and rail yards and upgrading railroad infrastructure accessing Texas-Mexico rail border crossings, which could handle increasing amounts of transboundary freight via rail and/or intermodal, thus reducing the rates of deterioration of the highway systems in Texas and Mexico. The purpose of this project is to provide Texas Department of Transportation (TxDOT) with information on current and future infrastructure and operational plans conducted by the U.S. and Mexican railroad private sectors and their impact on TxDOT’s highway infrastructure needs. 17. Key Words 18. Distribution Statement Rail Planning, Rail Freight, U.S.-Mexico Trade, No Restrictions. This document is available to the Intermodal, U.S.-Mexico Border Railroad Infrastructure public through NTIS: National Technical Information Service 5285 Port Royal Road Springfield, Virginia 22161 19. Security Classif.(of this report) 20. Security Classif.(of this page) 21. No. of Pages 22. Price Unclassified Unclassified 202 Form DOT F 1700.7 (8-72) Reproduction of completed page authorized THE IMPACT OF MEXICAN RAIL PRIVATIZATION ON THE TEXAS TRANSPORTATION SYSTEM by Stephen S. Roop Research Scientist Texas Transportation Institute Jeffery E. Warner Engineering Research Associate Texas Transportation Institute Felipe Zambrano Assistant Research Scientist Texas Transportation Institute Roubabah Ismailova Graduate Research Assistant Texas Transportation Institute and Dong-Hun Kang Graduate Research Assistant Texas Transportation Institute Report 2128-2 Project Number 0-2128 Research Project Title: The Impact of Mexican Rail Privatization on International Trade Corridors with Mexico Sponsored by the Texas Department of Transportation In Cooperation with the U.S. Department of Transportation Federal Highway Administration February 2001 TEXAS TRANSPORTATION INSTITUTE The Texas A&M University System College Station, Texas 77843-3135 DISCLAIMER The contents of this report reflect the views of the authors, who are responsible for the facts and the accuracy of the data presented herein. The contents do not necessarily reflect the official view or policies of the Federal Highway Administration or the Texas Department of Transportation. This report does not constitute a standard, specification, or regulation. Texas Transportation Institute v Rail Research Center/AAR Affiliated Lab ACKNOWLEDGMENTS The authors would like to express their appreciation to the Texas Department of Transportation (TxDOT), Multimodal Operations Office of the Transportation Planning and Programming Division (TPP). In particular, Project Director Ms. Julie Brown of TPP was especially enjoyable to work with during the research. The authors would also like to thank Mr. Jim Randall and Mr. Wayne Dennis for information regarding the South Orient Rail line acquisition, the members of the Project Monitoring Committee and the Federal Highway Administration (FHWA). The binational cooperative aspect of this study is unique and required innovative and thoughtful preparations. The authors would like to acknowledge the support and work performed by the Instituto Mexicano del Transporte (IMT-Mexican Transportation Institute). Mr. Alfonso Rico Rodríguez, General Director of the IMT, was instrumental in establishing the working relationships and facilitating cooperation between the researchers at the Texas Transportation Institute (TTI) and the IMT for this study. IMT researchers who participated and contributed to the study were: - Ing. Roberto Aguerrebere Salido, Coordinator, Coordination of Transport Integration; - Dr. Alberto Mendoza Díaz, Coordinator, Coordination of Transport Safety and Operation; - Ing. Antonio García Chávez, Chief of the Promotion Unit, Coordination of Transport Safety and Operation; Ing. Eric Moreno Quintero, Senior Researcher, Coordination of Transport Integration; - Ing. Luis Fernando Miranda-Moreno, Associate Researcher, Coordination of Transport Integration; and - Ing. José Alfonso Balbuena, Associate Researcher, Coordination of Transport Integration. Finally, this study could not have been produced without the cooperation and information provided by the following Mexican transportation agencies and entities. From the Secretaría de Comunicaciones y Transportes (SCT-Secretariat of Communications and Transportation): - Dr. Aaron Dychter Poltolarek, Undersecretary of Transportation, SCT; - Lic. Oscar Santiago Corzo Cruz, General Director, General Directorate of Tariffs, Rail and Multimodal Transport; - Lic. Eduardo Escamilla Castillo, Associate Director for Coordination and Multimodal Transport, General Directorate of Tariffs, Rail and Multimodal Transport. From Transportación Ferroviaria Mexicana (TFM): - Ing. Jorge A. Licón Avila, Chief Operations Officer, - Lic. Oscar del Cueto Cuevas, Projects and Liaison, and - Lic. Martín Quinzaños, Public Relations Manager. From Ferrocarril Mexicano (Ferromex): - Ing. Lorenzo Reyes Retana, Director of Operations, and - Ing. Juan Carlos Miranda Hernández, Subdirector of Planning and Operation Systems. Texas Transportation Institute vi Rail Research Center/AAR Affiliated Lab TABLE OF CONTENTS Page List of Figures ..............................................................................................................................xiii List of Tables................................................................................................................................xiv Chapter 1 – Introduction ................................................................................................................. 1 Background ............................................................................................................................... 1 Study Objectives............................................................................................................. .......... 3 Research Approach ................................................................................................................... 4 Organization of Report.............................................................................................................. 4 Chapter 2 – The Impact of NAFTA ................................................................................................ 7 NAFTA Analysis....................................................................................................................... 7 Impact of NAFTA-Related Truck Traffic........................................................................... 8 Costs to Texas ............................................................................................................... 8 Research Focus........................................................................................................................ 10 Rail Network Capacity Factors ............................................................................................... 11 Track Availability ............................................................................................................. 11 Classification and Intermodal Yards................................................................................. 12 Improved Equipment......................................................................................................... 12 Crew Availability.............................................................................................................. 13 Chapter 3 – Privaitization of the Mexican Railroad System......................................................... 15 Introduction............................................................................................................................. 15 Development of the Mexican Railroad System: 1824 – 1994 ................................................ 17 Development of
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