No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeTopicsBusinessMexico cancels Chinese bullet train deal

Mexico cancels Chinese bullet train deal

MEXICO CITY – Mexico abruptly withdrew a multi-billion-dollar deal Thursday with a Chinese-led consortium to build the country’s first bullet train after concerns were raised about the bidding process.

The government had awarded the $3.75 billion contract to the China Railway Construction Corp. and four Mexican partners on Monday after the group had been the only one to submit a bid.

But President Enrique Peña Nieto scrapped the deal to avoid “any doubts about the legitimacy and transparency” of the bidding process, said Transport Minister Gerardo Ruiz Esparza.

Ruiz Esparza told the Televisa network that Peña Nieto had made the decision “moments ago” and that the bidding would start over.

The transport ministry said in a statement that the president made the decision “due to the doubts and concerns that have emerged in public opinion.”

More time will be allotted to encourage more train-makers to make proposals, the ministry said.

The Chinese-Mexican consortium faced no opposition when it was picked Monday to build the 210-kilometer (130-mile) high-speed rail between the capital Mexico City and the central manufacturing hub of Queretaro.

Peña Nieto surprisingly revoked the deal three days before flying to China for an Asia-Pacific Economic Cooperation (APEC) summit and a two-day state visit in his latest effort to forge closer ties with the Asian powerhouse.

The high-speed rail project is part of Peña Nieto’s plan to bring back passenger trains to Latin America’s second-biggest economy.

But only one group submitted a proposal by the October 15 deadline.

The transport ministry said at the time that 16 companies decided against entering the contest, including industry giants Mitsubishi of Japan, Alstom of France, Bombardier of Canada and Siemens of Germany.

It did not explain why the companies shied away from making bids.

When announcing the winner on Monday, Ruiz Esparza said it was not unusual for just one group to bid for a high-speed train project, noting that on average, only two companies make bids for such projects worldwide.

Prior to scrapping the deal, the government had expected construction to start in December and operations to begin in 2017.

The project aims to carry 23,000 passengers per day at speeds of up to 300 kilometers per hour, reducing the commute between Mexico City and Queretaro from two-and-a-half hours to 58 minutes.

Mexico would become the first Latin American nation to have a bullet train after Brazil and Argentina postponed their own high-speed rail projects.

While Mexico has freight railways, the country now only boasts some tourist trains after regular passenger lines disappeared following the sector’s privatization in the 1990s.

Mexican and Central American migrants have illegally hitched rides on top of a cargo train dubbed “La Bestia” (The Beast) to head north to the United States, a risky trip that has killed or maimed many passengers.

Trending Now

Western Union Cuts Could Hit More Than 1,000 Jobs in Costa Rica

Western Union will shrink its Costa Rica operations center and move jobs to Guatemala, Lithuania and the Philippines.

Costa Ricans Back Fernández but Most Say Chaves Still Calls the Shots

President Laura Fernández has passed her first 100 days in office with the approval of nearly two-thirds of Costa Rica. She has also passed...

Costa Rica Tourism Drivers Protest Possible Airport Access for Ride-Hailing Apps

Tourism transportation operators plan to demonstrate outside Casa Presidencial tomorrow over a possible change to legislation that could allow Uber-type ride-hailing services to operate...

Costa Rica Supreme Court Considers Changes After Judicial Corruption Cases

Costa Rica’s Supreme Court has ordered a review of the rules judges use to determine whether suspects remain in jail or are released under restrictions as organized crime and corruption cases put new pressure on the justice system

Shelton Reaches First Grand Slam Final After US Open Comeback

Ben Shelton moved within one victory of ending a 23-year wait for an American men’s Grand Slam singles champion after beating Frances Tiafoe on...

Costa Rica’s Rincón de la Vieja Sends Plume 1,000 Meters Above Crater

Costa Rica’s Rincón de la Vieja volcano erupted yesterday sending a plume approximately 1,000 meters (3,280 feet) above its crater and bringing the number...

Snoop Dogg Announces First Ever Costa Rica Concert

Snoop Dogg will perform in Costa Rica for the first time on Thursday, December 3, at the Centro de Eventos Pedregal in Belén de...

Costa Rica Nears 49,000 Short-Term Rentals as Tourist Numbers Lag

A new study counts 48,985 short-term rental listings in Costa Rica, more than double 2019, while international arrivals remain below pre-pandemic levels.

Latin American Players Chase US Open Doubles Titles

Latin America’s singles challenge at the 2026 US Open has faded, but the region still has several legitimate shots at a Grand Slam title...
🌴 The Weekly Pura Vida

Costa Rica, Once a Week

The week's top stories, weather & insider tips — delivered every Sunday. One email, zero clutter.

🔒 Free. No spam. Unsubscribe anytime.

Loading…

Latest News from Costa Rica

Costa Rica Coffee Maker Chorreador
Costa Rica Car Rentals
Costa Rica Travel Insurance
Costa Rica Travel