The Americas

Mexico: rail duopoly hurts competition, cites high prices

Mexican regulatory authorities say an investigation has found that an effective rail duopoly between Kansas City Southern and Grupo Mexico has increased transport costs and created a lack of competition in rail freight.

The Commission on Competition said Wednesday that the U.S. and Mexican firms own most of a third rail company, Ferrovalle. Together, the companies and their subsidiaries control 72.3 of the country's rail lines under concessions from the government.

The commission said the lack of competition has caused higher rates for customers and delays.

The commission has called on rail regulatory authorities to work out rules to more effectively allow third parties to use the three companies' lines.