US Department of Agriculture, Mexico. US – Mexico agricultural traffic study. Seaport performed a transport cost analysis of wheat, corn, and high unit value commodities moving between Mexico and the US and Canada.  The primary focus was on the growth in market share of direct rail shipments of Midwestern grains to central Mexico, versus Mississippi river and rail movement to Gulf ports.  The study analyzed the possible effects of dredging at Veracruz in order to accommodate Panamax ships through the use of a vessel cost model developed for the project.  Also studied were possibilities for use of Mexican Pacific ports for Western US and Canadian grain destined to central Mexico, instead of direct rail movements.  The second phase of the analysis examined direct trucking versus intermodal rail or coastal ship for high unit value agricultural commodities, such as bananas, melons, and mangoes.  A paper describing the analysis was published by USDA in 2003 as part of “Transportation Bottlenecks in the U.S.-Mexican Food System: Impact on Bilateral Food and Agricultural Trade.”

Southeastern Mexico rail reconnaissance study. The project comprised a preliminary assessment of rail infrastructure and operational efficiencies of the Southeastern sector of the Ferrocarriles Nacionales de Mexico (Mexico City -Veracruz - Yucatan to Guatemala border), due to be privatized in 1997.

The client was a US investment and rail management firm contemplating financial participation in the project. The team performed an analysis of current traffic levels, tariff structures and levels of service. The team also assessed the operational status and reliability of the locomotive and wagon fleet, including shop operations and mechanical failure patterns, as well as yard operations.

The report concluded with negotiating strategy suggestions if privatization was pursued, and suggested institutional and operational improvements.