Mexico City, May 21st, 2020.
On May 20th, 2020, the Federal Economic Competition Commission, («FECC») announced that it would initiate a competition analysis of the Freight Railroad Transportation Public Service («FRTPS»). Accordingly, it summoned decision-makers in the railroad sector, freight services users and any interested parties to respond to a competition questionnaire on the FRTPS («Questionnaire») between May 20th and June 26th, 2020.
The Questionnaire will serve FECC to assess possible barriers to the FRTPS market efficiency and to issue recommendations to the industry where appropriate. The responses to the Questionnaire will be published in an aggregated and anonymous manner.
FECC pointed out that the importance of this study lies in the fact that transportation is a transversal activity in the manufacturing chains and, therefore, it influences the determination of costs and prices of a wide variety of goods that are manufactured, imported, exported, traded and consumed in Mexico. In addition to the above, the exclusivity granted to three trunk line holders and one in short lines, to provide services within the FRTPS market will expire between 2027 and 2029. This may enable new operators to entry the market to render the SPTFC.
The Competition and Antitrust Practice of the firm will be pleased to provide any additional information on the topic.