Coatzacoalcos Port - Merida Railway

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Genesse & Wyoming offered US$ 14.8 million for the right to rehabilitate and operate the railway connecting Coatzacoalcos Port and Merida for a 30-year period. The company will invest US$ 50.2 million during the concession period. The contract was awarded in July 1999, and the private sponsor took over the operation of the railway in September 1999. Financing for the rehabilitation works was granted from the IFC. In June 2007, Genesee & Wyoming Inc., put in a formal request to terminate their concession agreement with SCT due to damages incurred from Hurricane Stan in 2005. Genesee & Wyoming Inc claimed that the damage of 70 bridges and 175 miles of rail line made their business unprofitable. SCT refused to terminate the concession although Genesee & Wyoming Inc stopped operating the asset in July 2007. In 2008, Ferrocarriles Chiapas Mayab (FCCM) was sold to Viabilis Holding (wholly-owned by Mexican ICA), but the new sponsor only gained control over the concession in March 2013 due to legal hurdles regarding the transfer of ownership. The concession lenght was extended to 50 years and Viabilies committed to invest US$ 200 million in the rehabilitation of the fixed assets damaged by the hurricane.