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US, Mexican partnership to expand international rail car-ferry service

Short line operator Genesee & Wyoming, Grupo Mexico to expand service capacity between ports of Mobile and Coatzacoalcos

Genesee & Wyoming announced that Grupo Mexico Transportes has purchased a stake in CG Railway LLC, the international rail car ferry service linking Mobile, Alabama, to Mexico’s Port of Coatzacoalcos. (Photo: Ferrosur Railway/CC BY-SA 4.0/via Wikimedia Commons)

Short line rail operator Genesee & Wyoming (G&W) announced Tuesday that Grupo Mexico Transportes (GMXT) will become its partner in CG Railway LLC, a rail car-ferry operation linking ports in the U.S. and Mexico.

GMXT is purchasing Seacor Holdings Inc.’s stake in CG Railway. Seacor and G&W initially formed the joint venture in 2017 to own and operate CGR, which provides rail car-ferry service between the ports of Mobile, Alabama, and Coatzacoalcos, Mexico.

“This further strengthens our partnership with GMXT, a leader in rail transportation services in Mexico with a strong presence in the southern U.S., including 13 ports between the two countries,” Michael Miller, CEO for G&W North America, said in a news release

Mobile-based CG Railway operates a U.S. Class III freight railroad and two ferry ships, transporting up to 10,000 carloads of commodities annually across the Gulf of Mexico.

CG Railway’s ferry service offers weekly trips between the ports of Mobile and Coatzacoalcos. The service gives shippers access to 13 ports in the U.S. and Mexico through rail interchanges in both countries.

“Their network access and expertise, coupled with G&W’s ability to deliver safe and customer-centric first- and last-mile rail service, will enhance CGR’s overall service offering while extending the reach of CGR’s efficient and secure rail service into and out of Mexico,” Miller said.


Terms of the agreement were not disclosed.

GMXT is a subsidiary of Grupo Mexico, the largest freight train company in Mexico. The conglomerate, which also includes rail company Ferromex, operates more than 6,835 miles of track that connects Mexican ports to major markets in the U.S. and Canada.

Grupo Mexico also recently purchased a 60% stake from Rail Ferry Investment Holdings Inc. in two Mexican companies providing maritime transport service for rail cars between the U.S. and Mexico.

Financial details of the transaction were not disclosed.

GMXT’s purchase of stakes in Golfo de Mexico Rail Ferry Holdings LLC and Rail Ferry Vessel Holdings LLC are also part of the company’s objective to capitalize on the $2.8 billion Interoceanic Corridor across the Isthmus of Tehuantepec from Mexico’s federal government.

“The acquisition allows GMXT to continue consolidating its position as a leading freight transportation company in the region, strengthening its commitment to Mexico and the south of the United States,” GMXT said in a news release.

The 188-mile corridor will include 10 new industrial parks along the railway connecting the country’s Pacific port of Salina Cruz with the Gulf Coast hub of Coatzacoalcos in Veracruz state.

A passenger rail component of the Interoceanic Corridor was launched on Dec. 22.

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Noi Mahoney

Noi Mahoney is a Texas-based journalist who covers cross-border trade, logistics and supply chains for FreightWaves. He graduated from the University of Texas at Austin with a degree in English in 1998. Mahoney has more than 20 years experience as a journalist, working for newspapers in Maryland and Texas. Contact [email protected]