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Railways, ports and shipping in Mexico: concessions, cabotage and foreign ownership

Last verified: 2026-10-26 · Status: Changing

Railways remain federal public domain: building and operating tracks or providing rail service needs a SICT concession won by public tender, for up to 50 years and renewable up to 50 more, and foreign ownership above 49 percent needs Foreign Investment Commission approval. Concessionaires must grant each other interconnection and trackage rights, with the rail agency setting terms if they do not agree within 60 days, and the State may give assignments to public entities without tender. Coastal and inland shipping (cabotage) is reserved to Mexican shipowners with Mexican flagged vessels, with three month temporary permits for foreign vessels only when no Mexican ship is available; integral port administration is capped at 49 percent foreign ownership.

USD conversions use MXN 18.6638 per US dollar, the US Federal Reserve H.10 noon buying rate in New York for 23 October 2026 (FRED series DEXMXUS), the latest observation available when this page was verified. Legal conversions in Mexico use the Banxico FIX, which differs slightly. Conversions are for orientation only. Fines set in UMA use the 2026 daily UMA of MXN 117.31 published by INEGI in the DOF of 9 January 2026.

Key facts

Maximum initial term of a rail concession50 yearsLRSF art. 11, as of 2026-10-26 · in force
Foreign ownership in railways allowed without CNIE approval49 %LIE art. 8, section XII, as of 2026-10-26 · in force
Foreign ownership cap in inland and cabotage shipping companies49 %LIE art. 7, section III, item v), as of 2026-10-26 · in force
Duration of a temporary cabotage permit (renewable at most seven times)3 monthsLNCM art. 40, as of 2026-10-26 · in force
Foreign ownership cap in integral port administration49 %LIE art. 7, section III, item t), as of 2026-10-26 · in force

The rule

1. Rail concessions. A concession or assignment is needed to build, operate and exploit railways that are general communication routes and to provide public rail transport. Concessions are granted by public tender, which an interested party may request (SICT must issue a call within 180 calendar days or explain refusal within 90); bidders need an antitrust opinion and must show legal, technical, administrative and financial capacity. The Finance Ministry must give a favorable opinion on profitability within 30 calendar days (silence is favorable). States, municipalities and federal entities may receive assignments without tender; federal entity assignments are indefinite and non transferable. Concessions last up to 50 years and may be renewed one or more times up to 50 more in total, if requested before the last tenth of the term. Track and right of way revert to the Nation at no cost at the end, and the State has a preference right to buy rolling stock.
Cost to do it: Considerations payable to the federal government are set per concession with the Finance Ministry (art. 8 Bis, section III).
Example: A logistics group that wants to build a 40 km spur to an industrial park asks SICT to open a tender; SICT has 180 calendar days to publish the call. / No statutory amount; considerations are set per project.Ley Reglamentaria del Servicio Ferroviario, DOF 12 May 1995, reformed DOF 16 July 2025, last reform DOF 14 November 2025, Arts. 2, 7 to 11 and 14, 2025-07-16 official text · verified 2026-10-26 · changed: Assignments to public entities without tender were introduced on 3 May 2023 and broadened on 16 July 2025, when the Agencia de Trenes y Transporte Público Integrado became the rail agency.
2. Interconnection and trackage rights. Concessionaires and assignees must provide each other interconnection, haulage and terminal services for agreed compensation; if they do not agree within 60 calendar days, the rail agency sets conditions within 30 calendar days. Mandatory trackage rights apply when stated in the title, agreed, or imposed by the agency after the antitrust authority finds no effective competition on a route. Foreign investment above 49 percent in building, operating and exploiting railways and in public rail transport needs a favorable CNIE resolution.
Cost to do it: CNIE application duty MXN 10,448 in 2026 (LFD art. 72, section I).
Example: A shipper's affiliate with a short line concession that cannot agree haulage terms with a trunk railroad within 60 days asks the agency to set them. / CNIE duty about USD 560.Ley Reglamentaria del Servicio Ferroviario; Ley de Inversión Extranjera, LRSF arts. 35 and 36; LIE art. 8, section XII, 2025-07-16 official text · verified 2026-10-26
3. Cabotage and inland shipping. Operating vessels in inland navigation and cabotage is reserved to Mexican shipowners with Mexican vessels, subject to treaties. Tourism, sports and recreational vessels and port construction and dredging may be operated by foreign shipowners or vessels with SICT authorization and reciprocity. If no Mexican vessel is available on equal technical terms, SICT may grant temporary cabotage permits, first to a Mexican shipowner with a bareboat chartered foreign vessel and then with a foreign vessel under any charter; each permit lasts three months and can be renewed no more than seven times, and a foreign vessel staying more than two years must be reflagged as Mexican. Foreign ownership of shipping companies in inland and cabotage trade is capped at 49 percent (except cruise ships and dredging), while companies only in deep sea trade may exceed 49 percent with CNIE approval.
Cost to do it: No fee restated; the cost is reflagging or chartering through a Mexican shipowner.
Example: An offshore services company brings a foreign supply vessel to the Gulf under a Mexican shipowner's temporary permit; after two years in Mexican waters it must reflag it or lose further permits. / No currency threshold applies.Ley de Navegación y Comercio Marítimos, DOF 1 June 2006, last reform DOF 14 November 2025; Ley de Inversión Extranjera, LNCM art. 40; LIE arts. 7 section III item v) and 8 section II, 2025-11-14 official text · verified 2026-10-26
4. Ports. Control, supervision and surveillance of ports are reserved to the State. Foreign investment may hold up to 49 percent in integral port administration companies and in pilotage services for inland navigation, while towing, mooring and launch services may exceed 49 percent with a favorable CNIE resolution.
Cost to do it: CNIE application duty MXN 10,448 in 2026 if approval is needed.
Example: A global terminal operator may own 100 percent of a Mexican company that holds a terminal sub concession, but at most 49 percent of an integral port administration. / CNIE duty about USD 560.Ley de Inversión Extranjera, DOF 27 December 1993, last reform DOF 27 May 2024, LIE arts. 5 section XIII, 7 section III items t) and u), and 8 section I, 2024-05-27 official text · verified 2026-10-26

Worked example

  • A US railroad wants 70 percent of a Mexican short line concessionaire. It files with the CNIE (above 49 percent needs approval), checks the concession's remaining term and renewal window (before the last tenth of the term) and confirms trackage rights in the title. For coastal shipping of the same cargo it must use a Mexican shipowner with a Mexican flagged vessel.

Step by step

  1. 1. Check the LIE cap for each activity: rail and deep sea above 49 percent with CNIE approval; cabotage and port administration capped at 49 percent.
  2. 2. For new rail lines, request a SICT tender and secure an antitrust opinion to bid.
  3. 3. Negotiate interconnection and haulage; escalate to the rail agency after 60 days.
  4. 4. For cabotage with foreign vessels, apply through a Mexican shipowner for three month permits and plan reflagging before two years.

Common traps

  • Assuming a rail concession can be owned 100 percent from day one: above 49 percent needs CNIE approval (LIE art. 8).
  • Renewing cabotage permits indefinitely: maximum seven renewals and reflagging after two years (LNCM art. 40).

Sources

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