Mexico Links Gulf And Pacific Coasts With New Inter-Oceanic Railway

President Andres Manuel Lopez Obrador views this initiative as essential to stimulating investment in Mexico's economically disadvantaged southern regions.

Image used for representational purposes only.

Source : Getty Images

Mexico has initiated operations on a railway line that spans the nation's narrowest stretch, linking the Gulf coast with the Pacific Ocean. This move marks a significant milestone as the current administration nears the end of its tenure, according to statements from officials as reported by Reuters.

The newly inaugurated "Inter-Oceanic Train" will transport passengers and goods on a journey lasting approximately three hours. This route begins at Coatzacoalcos, a key coastal centre in Veracruz state, and concludes at Salina Cruz, a prominent Pacific port. President Andres Manuel Lopez Obrador views this initiative as essential to stimulating investment in Mexico's economically disadvantaged southern regions.

Furthermore, the Mexican government aims to lure investments from sectors including automotive manufacturers, technology companies, and semiconductor producers. These industries are expected to establish operations in twelve industrial zones located in proximity to the two port cities, both of which host significant facilities of the state-controlled oil firm Pemex. The Reuters report suggests that the new railway could emerge as a viable alternative to the Panama Canal, especially given the canal's reduced operations this year due to an unprecedented drought.

Lopez Obrador told Reuters: "All the Asian countries are very interested because Panama is at capacity".

Nevertheless, industry analysts project that the railway's capacity will remain considerably lower than that of the Panama Canal. Officials indicated that additional lines connected to the primary railway will be finalised in the coming year.

A forthcoming branch will link with the Mayan Train, another high-profile initiative inaugurated recently. Once fully operational, the Mayan Train will facilitate travel from Chiapas, a southern state, to the popular tourist destination of Cancun. However, Reuters notes that experts have expressed concerns regarding the Mayan Train's escalating costs and prolonged completion timeline.

In related developments earlier this year, Mexican authorities took control of segments of a rail network managed by Grupo Mexico's transportation division, ensuring its integration with the Inter-Oceanic Train project following subsequent negotiations.

Additionally, Lopez Obrador has expressed intentions to collaborate with major railway operator CPKC, which maintains a network extending through Canada and the US, concluding in Veracruz, the Reuters report said.