Mexico's Parliament Puts Passenger Trains Back on Track

In a landmark decision for Mexico's transportation policy, the Chamber of Deputies voted unanimously to approve a reform allowing the Mexican state to reclaim control over the nation's railroad infrastructure for passenger transport services. The legislation, which passed with 472 votes in favor, marks a significant shift in the country’s transport policy, opening the door for a potential renaissance of passenger rail after decades of prioritizing freight.

The legislative proposal, now heading to the Senate for constitutional review, aims to reform Article 28 of the Mexican Constitution. Specifically, it restores the government’s ability to assign or concession railroad operations to public entities or private operators, effectively ending the long-standing dominance of freight transport on the nation's railway network.

A Revival of Passenger Rail

The initiative, a product of the LXV Legislature’s Constitutional Points Commission, signals the Mexican government’s ambition to diversify its transport infrastructure. Although freight trains have long monopolized the country’s railways, the new policy emphasizes passenger services as a priority area for national development, aligning with Article 25 of the Constitution, which governs public utility services.

According to Sergio Gutiérrez Luna, president of the Chamber of Deputies’ Board of Directors, the reform grants the Federal Executive branch the authority to allocate railway concessions for both cargo and passenger transport. Public companies may take up these assignments, while private companies can compete for concessions, pending approval from regulators.

“This reform reinstates the right of the Mexican state to use railroads for passenger transport services, providing a legal framework for concessions to both public and private sectors,” Gutiérrez Luna announced in the chamber.

This legislative action stems from an initiative introduced on February 5 by former President Andrés Manuel López Obrador. López Obrador, who has consistently advocated for greater government intervention in key sectors of the economy, had long pushed for the reinvigoration of passenger rail, an infrastructure that was systematically dismantled in favor of highway construction and freight services over the past three decades.

Support for the reform was widespread, cutting across party lines. Legislators from Morena, PAN, PT, and PRI all presented various reservations and amendments during the session. However, many of these were either withdrawn or not put to vote, resulting in the passage of the original proposal.

Deputy María de los Dolores Padierna Luna (Morena), the vice president of the Board of Directors, reported that 135 reservations had initially been put forward. These were ultimately streamlined into 38 interventions, which were not sufficient to alter the outcome.

A New Era for Mexican Rail?

Under the new provisions, private companies with existing freight transport concessions could also bid for passenger transport contracts. However, the reform clearly states that preference will be given to passenger services where conflicts of interest arise between freight and passenger transport—a move that signals the government's intent to prioritize public benefit over purely commercial interests.

The transitional clause gives the Congress of the Union 180 calendar days from the decree's enactment to update secondary legislation accordingly. These adjustments will be critical for ironing out the specifics of the concession model, as well as establishing operational standards for both freight and passenger services.

Analysts and industry insiders see the reform as an opportunity to better integrate Mexico's transportation network, where rail could serve as an alternative to road-based travel, which currently dominates long-distance routes. The high cost of road maintenance and the growing strain on highways has prompted many to call for a reevaluation of how transport infrastructure is managed.

While the promise of lower costs for passengers and diversified travel options holds much appeal, the reform also faces significant challenges. It emphasizes the need for considerable improvements in infrastructure, particularly in track quality, locomotives, carriages, transport times, safety, and service quality. A competitive rail system will have to significantly outpace road transport options in both price and convenience if it is to succeed.

Advocates of the reform argue that such improvements will naturally emerge as competition for concessions intensifies. As private operators and public companies vie for market share, they will be forced to enhance service offerings to meet regulatory standards. Critics, however, warn that the costs of modernizing Mexico’s aging railway infrastructure—particularly in terms of passenger rail—could be prohibitive without significant government investment.

Broader Economic Implications

In the broader context, the reform reflects López Obrador’s enduring vision of "Fourth Transformation" (La Cuarta Transformación), which emphasizes greater government oversight and involvement in strategic sectors of the economy, particularly those affecting infrastructure and public welfare. Passenger rail, a service that fell out of favor during the late 20th century due to liberalization policies and a shift toward private vehicle ownership, is now being reframed as a public good essential for Mexico’s social and economic development.

By prioritizing rail transport, Mexico hopes to replicate the success of countries like Japan and several European nations, where efficient, state-backed passenger rail networks offer affordable and sustainable travel alternatives. If implemented effectively, passenger rail could also play a critical role in Mexico’s efforts to reduce its carbon emissions, as rail travel generally produces less pollution than road or air transport.

With the reform now advancing to the Senate, attention will turn to how quickly the secondary laws can be updated to implement the new framework. Public companies, private operators, and government agencies will need to collaborate closely to navigate the complex logistics of revitalizing Mexico’s passenger rail network.

As Deputy Gutiérrez Luna concluded the session, he announced that the Chamber of Deputies will reconvene on Wednesday, October 9, at 11 a.m. The Senate's forthcoming decision on the reform will determine whether Mexico takes a significant step toward reshaping its transportation future—or whether challenges in execution stall the ambitious vision.

For now, the unanimous vote stands as a resounding mandate for change in one of the nation’s most critical infrastructure sectors, with the potential to shift Mexico’s transport landscape for decades to come.