Kansas City Southern will challenge Mexican court decision

Kansas City Southern said it will challenge a decision by a Mexican court that would allow a competing railroad to operate on the tracks of a subsidiary in Mexico.

The company said on Sept. 15, the Mexico Administrative Federal Court announced a decision, which if upheld, would permit Ferrocarril Mexicano, S.A. de C.V to serve customers on-rail lines of Kansas City Southern de Mico, S.A. de C.V. in Monterey, Nuevo Ln, by exercising trackage rights over lines of KCSM not mentioned in the description of mandatory trackage rights in KCSM's concession title.

Kansas City Southern said it believes the decision conflicts with current applicable law, with judicial precedents regarding the strict interpretation of trackage rights and with a resolution by the Mexico Fifth Collegiate Court of the First Circuit issued on April 30, instructing the Federal Administrative Law Court to issue a decision on the inclusion or exclusion of such additional lines based on the interpretation of KCSM's concession title. 

Source: American Shipper