Tex-Mex goes to Kansas City Southern

Mexican Maritime Transportation (TMM), Mexico's largest intermodal carrier, will sell 51% of its shares in Mex-Rail, which manages the Tex-Mex lines in southeastern Texas, for $32.7 million to Kansas City Southern Industries (KSCI.) The track covers 521 kilometers from Laredo, Houston and Beaumont. Mex-Rail also connects with TMM's Mexican rail line, TFM, at Laredo, as well as with Union Pacific and BNSF railroads at Corpus Christi. The sale is subject to approval by the U. S. Surface Transportation Board.

In a related issue, Mexico's Foreign Investment Commission has turned down a joint request by TMM to sell shares to KCSI and have it become the majority rail line shareholder in TFM. Both companies will appeal the decision. The government says it will keep its 20% of the railroad, which services northeastern Mexico and has exclusive rights over the nation's main line, which runs from Mexico City to Laredo.

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