Ferromex, whose reporting mark is FXE (a syllabic abbreviation of Ferrocarril Mexicano, meaning "Mexican Railway"), is a private rail consortium that operates the largest railway network in Mexico. Their combined mileage, which includes Ferromex and Ferrosur lines, spans 12,100 kilometers (approximately 7,500 miles), and Ferromex is part of the North American Class I railroads.
Established on February 19, 1998, Ferromex commenced operations following the privatization of the majority of government-owned railways during the tenure of then Mexican President Ernesto Zedillo Ponce de León. With over 9,610 kilometers (about 5,970 miles) of track, Ferromex's extensive network links five major inland Mexican cities, five cities along the United States border, four seaports on the Pacific Ocean, and one on the Gulf of Mexico. Grupo México currently holds a 74% ownership stake, while the Union Pacific Corporation owns the remaining 26% of the company. In addition to Ferromex's own tracks, the company operates an additional 2,654 kilometers (approximately 1,649 miles) of Ferrosur tracks.
Ferromex also offers passenger services. They are home to the Ferrocarril Chihuahua al Pacífico, also known as "ChePe," a popular tourist railway that traverses the breathtaking Copper Canyon. Furthermore, they operate the Tequila Express, a unique rail journey from Guadalajara to a tequila distillery located in Amatitán.
In November 2005, Grupo México, the owner of Ferromex, acquired Infraestructura y Transportes Ferroviarios, the parent company of Ferrosur, another prominent Class I railroad in Mexico. This acquisition, valued at US$309 million, marked a significant merger in the Mexican rail industry. It's worth noting that a proposed merger between Ferromex and Ferrosur in 2002 was previously rejected by the Mexican Federal Competition Commission (CFC), following opposition from Ferromex's competitor, Grupo Transportación Ferroviaria Mexicana (TFM).
After Grupo México's purchase of Ferrosur in November 2005, Kansas City Southern de México (KCSM), the successor to TFM, expressed concerns about the merger and sought government intervention to prevent it. The CFC initially rejected the merger in June 2006, citing concerns over industry concentration and its potential negative impact on consumers and competing shippers. However, in March 2011, a tribunal ruled in favor of Grupo México, allowing the merger to proceed.
Ferromex expanded its rolling stock in January 2011 by placing an order for 44 new SD70ACe locomotives from EMD. This order marked a significant investment, representing Ferromex's first locomotive order since 2006.