Ferrosur

The Ferrocarril del Sureste (English: "Southeastern Railway"), commonly known by the syllabic abbreviation Ferrosur, is a railway that serves the southeastern regions of Mexico. The company was formed in 1998 following the privatization of Mexico's railways. Ferrosur won the concession to operate the southeastern railway. This includes the line between Mexico City and Mexico's busiest Gulf of Mexico/Atlantic Ocean port at Veracruz. Grupo México has owned the company since 2005 and there are long-delayed plans to merge it with the company's other railway, Ferromex. History Ferrosur began operation on December 18, 1998. The original ownership group was the construction company Tribasa and Grupo Financiero Inbursa. Grupo Carso (like Inbursa, a Carlos Slim Helu company) bought out Tribasa in 1999. Grupo México, owner of Ferromex, acquired the railroad in November 2005 in a US$309 million stock transaction. The Mexican Federal Competition Commission (CFC) had rejected a proposed 2002 merger of Ferromex and Ferrosur amid opposition from Grupo Transportación Ferroviaria Mexicana (TFM). Following the November 2005 purchase of Ferrosur by Grupo México, Kansas City Southern de México (KCSM), successor to TFM, petitioned the Mexican government to block the merger of Ferrosur and Ferromex. The CFC rejected the merger in June 2006 stating that the merger would have led to excessive concentration in the railroad industry to the detriment of consumers and competing shippers. However, in March 2011, a tribunal ruled in Grupo Mexico's favor, and the merger was permitted. Grupo México continues to operate the two railways independently. Government occupation of railways In May 2023, the Mexican Armed Forces occupied a portion of of railways in Veracruz belonging to Ferrosur, so that they could be used for the Interoceanic Corridor of the Isthmus of Tehuantepec, one of the government's most important megaprojects. About it, Andrés Manuel López Obrador, the president of Mexico, said it occurred "to avoid the risk of a future privatization of the railways and as a matter of national security and public interest". The action was labeled as "unusual" and it was seen as an expropriation act. Adán Augusto López Hernández, secretary of the Interior, said that the action was previously discussed with Grupo México and he called it a "temporary occupation".