Mexico has scrapped the $3.75bn contract with Chinese-led consortium for the construction of a high-speed passenger rail link between Mexico City and the central city of Queretaro.

The move comes after the government was accused of favouring the group consisting of China Railway Construction Corporation and CSR Corporation. It was the only firm that submitted the bid for the tender to design, build, operate and maintain a 210km-long high-speed line.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Other bidders, including Siemens, Bombardier and Alstom, had requested for extension of the tender period.

"The project is expected to carry 27,000 daily passengers from Queretaro to Mexico City at a maximum speed of 300km/h (186mph)."

However, the government did not consider their requests and awarded the contract to the Chinese consortium that submitted the bid before the deadline.

Mexico’s Communications and Transport Ministry said that it will launch a new auction in late November under the same terms, and would keep it open for six months to enable all interested parties to participate.

See Also:

However, the contract value will change by the time of contract is signed, depending on the inflation, exchange rates and other variables.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The Export-Import Bank of China (EximBank) is expected to finance 85% of the project’s costs.

The project is expected to carry 27,000 daily passengers from Queretaro to Mexico City at a maximum speed of 300km/h (186mph).

According to estimates, the project will produce 20,000 direct jobs and take 18,000 passenger cars off the road.

The government also has plans for two other projects, including the construction of a line linking Mexico City with Toluca, as well as a rail track to Yucatan.