KCSM view on

Mexico’s Public-Private Associations Law: Private-sector participation in infrastructure and

transportationJosé Zozaya Délano

Presidente y Representante EjecutivoKansas City Southern de México

April 25, 2012

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Introduction• Mexico’s Public- Private Association Law: a

step forward

• Mexico’s railway regulation: the concession

• KCSM investments: urban profit

• PPP impact on infrastructure and transportation

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Mexico’s Public - Private Association Law: a step forward

• Published on January 16, 2012.

• The Act intends to encourage long-term contractual partnerships between the public and private sectors.

• Its objective is to increase social welfare and investment levels.

• It is a positive step toward boosting Mexico’s competitiveness.

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Mexico’s railway regulation: the concession• In 1997 the Federal

Government decided to create concessions to exploit railroad lines, with the objective of having a solid growth in this sector.

• KCSM has the concession for the northeast route towards Laredo.

• KCSM has invested over 3 billion dollars in the concession title and on the maintenance of our network, infrastructure, and equipment.

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KCSM investments: urban profit

• KCSM has invested in railroad terminals and in urban overpasses.

• These investments have a positive impact in urban communities.

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• The PPP is a modern scheme that encourages investment in different fields.

• PPP is a great tool for urban development such as overpasses and secure corridors, representing a better railroad operation within urban areas.

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• The new Act will attract more investment, because it will give companies more certainty.

• The new Act will have a positive impact on infrastructure and transportation.

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Conclusion• The Private-Public

partnerships scheme brings great benefits.

• Share best practices within the NAFTA region.

• Will lead to a better integration of North America.

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Thank you!