RAILWAYS

closed

The proposed railway project forms part of the Mexican Government's effort to improve the efficiency of and reduce subsidies to the transport sector, particularly by helping to modernize the equipment of Nacionales, improve the utilization of its manpower and rolling stock, and reduce its financial deficit. The proposed Bank loan would cover the following items: 1,400 new freight cars, imported components for freight cars reserved for local procurement, 1,000 roller bearings and axles to rehabilitate old freight cars, workshop equipment, 690 Km of rails and fastenings, 2 million hardwood timber sleepers, way maintenance machinery and equipment, telecommunications equipment, and consultants' services.