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Rail News: Federal Legislation & Regulation

STB rejects GMXT petition in CGR acquisition due to lack of info


The Surface Transportation Board this week determined that Grupo Mexico Transportes' (GMXT) application to acquire an interest in CG Railway LLC (CGR) is incomplete and will not be considered by the regulator until the company files a new, more thorough application.

In January, GMXT filed a petition to acquire an indirect controlling ownership interest in CGR, a short line wholly owned by Golfo de Mexico Rail Ferry Holdings LLC, a 50-50 joint venture between Seacor Holdings Inc. and Genesee & Wyoming Inc. CGR operates a rail ferry service between the Port of Mobile, Alabama, and the Port of Coatzacoalcos, Mexico, where the rail ferry operation connects to the Ferrosur Railway, a GMXT subsidiary in Mexico.

The proposed acquisition would give GMXT a 60% interest in the joint venture, which would include equipment, ferries, and trackage rights over less than a mile of railroad in the Port of Mobile.

However, the STB determined that GMXT’s petition was missing key information, including interchange commitments, corporate structure and holdings and competitive effects on the market.

In its decision, the STB said it rejected the GMXT’s petition "without prejudice" and that a new petition must respond to the board's questions. To read the STB's decision, click here.

Contact Progressive Railroading editorial staff.

More News from 4/5/2024