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Regulatory Governance of the Rail Sector in Mexico

image of Regulatory Governance of the Rail Sector in Mexico

The report provides a description and an assessment of the recent actions carried out by the Mexican government to enhance the quality of regulation and regulatory governance in the rail sector in Mexico. In particular, the report identifies and describes recent regulatory reforms in the rail sector; the progress in implementing OECD recommendations relative to rail regulation issued in 2017; the reforms that led to the Mexican Rail Regulatory Agency, as well as the legal powers granted. It also documents the current regulatory practices of this Agency. The reforms and practices are assessed against OECD principles and country experiences. Finally, the report provides recommendations for continuing the reform efforts.

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Executive summary

In 1995, the government reformed Mexico’s railways by statute through the Law on the Regulation of Rail Services. This provided for the publicly run rail network to be divided into a small number of exclusive, vertically integrated private freight railway concessions. The 1995 railway reforms achieved a complete turnaround in the performance of the Mexican railway sector. GDP in rail freight transport grew on average 4.1% per year from 1995-2017, outperforming all other modes of transport.

English

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