MEXICO CITY, March 15 A lack of competition in
Mexico's rail freight sector, which is dominated by Grupo Mexico
and Kansas City Southern de Mexico, has resulted in high
customer prices, Mexico's antitrust watchdog said on Wednesday,
citing preliminary findings.
The probe, by regulator Cofece's investigations arm, said
miner Grupo Mexico, Kansas City Southern de Mexico
, and Ferrovalle control more than 72 percent of the
market which allows them to fix prices, restrict supply and
impede access to their networks.
Grupo Mexico, which owns Ferromex and Ferrosur, and Kansas
City Southern de Mexico together have a 75 percent stake in
The lack of competition leads to higher logistics costs and
longer wait times, which weigh on the economy, Cofece said.
If the full commission votes to approve the findings of the
preliminary probe, the railways regulator will have the ability
to force through new regulations on the sector.
(Reporting by Adriana Barrera; Editing by David Gregorio)