Mexico aims to boost the local economy through the Tehuantepec Isthmus Train

The Mayan Train is not the only rail project launched by the federal government.

Through the Rail Transport Regulatory Agency (ARTF), Mexico’s federal government is working on a project known as the Tehuantepec Isthmus Train . The railway will cross from Salina Cruz, Oaxaca, to Coatzacoalcos, Veracruz.

Although the government has yet to reveal the cost of the project in its 2021 Budget, EL UNIVERSAL had access to official documents sent to the Investment Department under the Finance Ministry. The document explains the train will cross 788 communities located in 29 townships in Oaxaca and Veracruz . The project aims to boost the local economy in the Tehuantepec Isthmus.

The Tehuantepec Isthmus Train will have 9 stations: Tehuantepec, Ixtepec, Matías Romero, Mogoñé, Jesús Carranza, Medias Aguas, Jáltipan, Minatitlán, and Chinameca.

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Boosting the local economy

The document argues the new train is essential because there are no “passenger trains in the region,” and adds that available transport services are busses and taxis.

Moreover, it explains the need to boost the local economy, while also respecting the history, culture, and traditions of the Isthmus.

In a bid to improve the local economy in southern Mexico, the federal government created the Program for the Development of the Tehuantepec Isthmus. Its core will be the Interoceanic Multimodal Corridor. This way, the project will take advantage of the Isthmus’ position to compete in international export markets through the use of different transportation methods.

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Moreover, the project aims to modernize the Tehuantepec Isthmus railway, and the Coatzacoalcos and Salina Cruz ports to offer loading, transport, storage, and packing services.

At the same time, finance authorities plan to reduce the VAT and income tax in 76 townships in Oaxaca and Veracruz to overcome the social gap.

The Program for the Development of the Tehuantepec Isthmus also includes the construction of six or seven regional development centers such as industrial areas. These centers will provide transport for 1 million people who use transport services and new mobility schemes.

Abandoned communities

At the moment, the existing train stations are abandoned, as well as the areas surrounding the railway.

The Rail Transport Regulatory Agency explains that according to recent socioeconomic and transport studies launched by Mexico’s National Autonomous University (UNAM), the university found that 24 townships in the region the main reason behind transport use is work, with 45.5%; students represent 9.4%, and entertainment and shopping represent 9.5%.

In a broader context, people mostly use local busses, taxis, and vehicles.

Transport demand

The study indicated that people make 1.25 million trips each week. Therefore, authorities expect a 0.46% annual increase in the demand for transport services between 2020 and 2030. For example, authorities foresee a surge of 472,889 daily trips.

The railway would cross 310 kilometers from Salina Cruz, Oaxaca to Coatzacoalcos, Veracruz.

The Tehuantepec Isthmus would control around 213 kilometers, while Ferrosur would operate 97 kilometers.

The Rail Transport Regulatory Agency calculates it will spend MXN 21 million to hire a company to carry out pre-investment studies in January 2021.

The analysis must be ready by October 2021 so that the contraction on the railway begins. This will be the second major project after the Mayan Train.

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