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

How to Avoid Fake Weight-Loss Injections in Costa Rica

If you are shopping for a weekly weight-loss shot in Costa Rica, start with one fact that changes everything else: the drug most people...

Costa Rica Faces Water Rationing and Wildfire Risk as El Niño Deepens

A strong El Niño has taken hold over Costa Rica and will keep much of the country drier and hotter than normal through the...

San José Official Resigns After Nightlife Rules Are Halted

A senior San José municipal official who helped develop controversial new rules for bars, restaurants and live entertainment has resigned, days after the city...

Carlos Alcaraz Return Leads Latin Charge at 2026 Cincinnati Open

Carlos Alcaraz will return to competition at the Cincinnati Open, where the defending champion will lead a powerful field that includes 10 former tournament...

Costa Rica’s Waldorf Astoria Named to Forbes List of Five Vacation-Worthy Resorts

Costa Rica's Waldorf Astoria Punta Cacique has landed on a short Forbes list of luxury properties the magazine says are worth building an entire...

Dollar hits record low in Costa Rica for third straight day

If your income arrives in dollars — a pension, Social Security, remote-work pay or rent from a property back home — this week quietly...

Costa Rica’s San Jose Airport Is Getting Its First Hotel

Costa Rica's San Jose airport is about to gain something no other airport in Central America has: a hotel guests can reach on foot...

Costa Rica Faces a Proposed 12.5 Percent US Tariff

Costa Rica is among 60 economies that the United States has targeted for new tariffs tied to a federal investigation into forced labor in...

Dead Sperm Whale Removed From Natural Pool Near Cahuita

A sperm whale measuring between eight and nine meters (26 to 30 feet) was found dead in a natural pool near Cahuita, on Costa...
🌴 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