Grupo México Acquires Control of Ferrobuque

Grupo México Transportes (GMXT*), the railway division of Grupo México (GMEXICOB), has finalized the acquisition that will give it control over Ferrobuque, a maritime transport service for railway cars between the United States and Mexico.

This acquisition is aimed at capitalizing on the opportunities presented by the Transístmico Project, an initiative supported by the Mexican federal government to compete with the Panama Canal.

The agreement, signed with Rail Ferry Investment Holdings and G&W Agave Holdings, involves the purchase of 60% of the subsidiaries Golfo de Mexico Rail Ferry Holdings and Rail Ferry Vessel Holdings, which operate the transport service, as reported by Grupo México in a statement.

Aligning Operations

While the financial details of the transaction have not been disclosed, the purchase is expected to be completed in the second quarter of 2024, once the necessary regulatory approvals are obtained. In 2017, G&W Agave Holding acquired a stake in both subsidiaries for a total of five million dollars (USD).

With this acquisition, Grupo México aims to align its operations with the Transístmico Project, an initiative supported by President Andrés Manuel López Obrador (AMLO) to compete with the Panama Canal through the Isthmus of Tehuantepec.

It is essential to note that the Transístmico Corridor connects the port of Salina Cruz on the Pacific with the port of Coatzacoalcos on the Gulf of Mexico.

Specialized Construction

The company, led by businessman Germán Larrea, already holds a majority stake in Terminales Transgolfo, the operator of the Ferrobuque terminal in Coatzacoalcos, Veracruz. With this new acquisition, Grupo México will gain control over the Ferrobuque terminal in the United States, located in Mobile, Alabama.

Ferrobuque is a specialized construction designed to load railway units, completing its journey from port to port in approximately three days, according to information from CG Railway.

This mode of transportation has been considered by Constellation Brands for the transfer of beer produced at its new plant in Veracruz to the United States.