On April 21, 2020, the Ministry of Communications and Transport (SCT) published in the Federal Official Gazette the award granted to Fonatur Tren Maya, S.A. de C.V. (majority government owned-entity) to build, operate and exploit the general railroad communication route identified as Mayan Train, the rendering of public service of cargo and passengers rail transportation, including permits to provide the required ancillary services.
The Mayan Train, a tourist train which route should be through the states of Quintana Roo, Campeche, Chiapas, Tabasco and Yucatan, is considered by the National Development Plan 2019 – 2024 as the most important project of this six-year period in terms of infrastructure, socioeconomic development and tourism and seeks to increase the economic output of tourism in the Yucatan Peninsula, create jobs, promote sustainable development, protect the environment of the area by discouraging activities such as illegal logging and trafficking of species and promote land management in the region. According to the Federal Executive, the Mayan Train project will generate about 80,000 jobs and an economic flow of 35,000 million pesos in the southeastern states.
Below are the most relevant conditions included in the relevant award:
a) SURFACE. The extension, layout, limits and characteristics of the railway will be determined in the executive project, which must be submitted by Fonatur Tren Maya for approval by the SCT, within 12 months after the granting of the award, and the SCT will have a 6 months term to issue its approval. Both terms can be extended only once for an equal period.
b) TRACKAGE AND HAULAGE RIGHTS. Fonatur Tren Maya has been granted non-exclusive trackage and haulage rights (derechos de paso y de arrastre).
c) ANCILLARY SERVICES. Fonatur Tren Maya is entitled to provide ancillary services, including without limitation, the right to build, operate and exploit intermodal terminals and passenger terminals.
d) TERM. The award will be in force for a 50 years term from its execution date.
Pursuant to said award, Fonatur Tren Maya will be entitled to provide, for 30 years, both the cargo and passenger services.
At the termination of the mandatory term of the award, the railway and the goods that are part of it, will revert to the Nation.
e) CONSTRUCTION. Fonatur Tren Maya will build (directly or through third parties) the railroad on the lands that are necessary and that it acquires for such purpose, taking into consideration that such properties will become part of the public domain of the Federation jointly with the railroad and all the works that are carried out in the right-of-way.
The construction shall be carried out within forty-eight months starting on the date on which the award was granted.
In the next few days the award winning company will be announced to begin construction, which should begin in April 2020. According to the government, on April 30th the contract for the first section of the railway (Palenque-Escárcega) will be signed to start work the next day and sections two and three (Escárcega-Calkiní and Calkiní-Izamal) will be awarded in May 2020.
f) RIGHT-OF-WAY. Fonatur Tren Maya shall directly release the right-of-way (derecho de vía).
g) RAILWAY OPERATION. Fonatur Tren Maya has a period of 6 months, from the time the SCT verifies that the construction of the railroad was carried out in accordance with the executive project to begin its operation and exploitation. The above term may be extended once for an equal term prior approval of the SCT.
Fonatur Tren Maya may operate the railway directly or through a third party.
h) SERVICE PROGRAM. The first service program shall be submitted to the SCT at least 3 months before starting the transport service. Fonatur Tren Maya may provide the services directly or through a third party.
i) INVESTMENT. Fonatur Tren Maya shall comply, at least, with the investment commitments set forth in the business plan, which shall be updated from time to time and shall be considered confidential.
j) ENVIRONMENTAL PROTECTION. Fonatur Tren Maya shall comply with the legislative, regulatory and administrative provisions and with the applicable international treaties, regarding ecological balance and environmental protection. It will be responsible for the environmental remediation derived from the damages that in ecological matter and protection to the environment, are originated from the validity of the assignment, and that derive from acts or omissions to its charge.
We remain at your disposal for any questions or comments that may arise in connection with the information provided above that in any way impact our collaborators or business partners.
Cannizzo, Ortiz y Asociados, S.C.