Ferromex HO Scale Models

Ferromex, operating under the reporting mark FXE, came into existence on February 19, 1998, as a direct result of the sweeping privatization of Mexico's state-owned rail network under President Ernesto Zedillo. The Mexican government had long operated its railways through Ferrocarriles Nacionales de México, but the privatization program broke that system into regional concessions and transferred operational control to private interests. Grupo México, a major mining and industrial conglomerate, emerged as the dominant partner in the new venture, ultimately holding approximately 74 percent of the company, while Union Pacific Corporation acquired a roughly 26 percent stake, giving one of North America's largest Class I carriers a significant foothold in the Mexican rail market. The new railroad took its name as a syllabic abbreviation of Ferrocarril Mexicano, and its headquarters were established in Mexico City. From its inception, Ferromex operated one of the most strategically important rail networks in Mexico, with more than 9,600 kilometers of track connecting five major interior cities, five border crossings with the United States, four Pacific seaports, and a Gulf of Mexico port. This geographic reach made the railroad a critical link in cross-border freight movements between the United States and Mexico, complementing Union Pacific's own transcontinental network north of the Rio Grande. The railroad's standard-gauge track allowed for relatively seamless interchange with its American counterparts, facilitating the growth of intermodal and industrial traffic across the border. The question of consolidation with Ferrosur, another privatized Mexican railroad also ultimately controlled by Grupo México, dominated much of Ferromex's corporate history during the 2000s. A proposed merger was rejected by Mexico's Federal Competition Commission in 2002, and again in June 2006 following Grupo México's November 2005 acquisition of Ferrosur's parent company for approximately 309 million dollars. Kansas City Southern de México, the successor to the competing TFM railroad, actively lobbied against the consolidation, arguing it would create harmful market concentration. The matter remained unresolved until March 2011, when a Mexican tribunal ruled in Grupo México's favor and permitted the combination, giving the unified system a combined network of roughly 12,100 kilometers and making it the largest railroad in Mexico by mileage. Beyond its core freight operations, Ferromex plays host to a pair of notable passenger services that have drawn attention in their own right. The Ferrocarril Chihuahua al Pacífico, known popularly as the ChePe, runs through the dramatic Copper Canyon region of the Sierra Madre and has become one of Mexico's premier tourist rail experiences. Ferromex also operates the Tequila Express, a leisure service running from Guadalajara to a distillery in the town of Amatitán. Though sometimes classified alongside North American Class I railroads given the scale of its operations, Ferromex is formally considered a Class III railroad under Mexican classification standards, reflecting the different regulatory frameworks that govern the industry south of the border.