The government of Mexico's Nuevo León state, railway firm Kansas City Southern de México (KCSM) and Mexican rail operator Ferromex signed an agreement to improve operations in the metropolitan area of Monterrey and reduce rail traffic.
Under the agreement, Ferromex, a unit of mining-logistics conglomerate Grupo México, will invest 700mn pesos (US$37mn) to conclude construction of 21km of the Libramiento de Monterrey and 18km of the Libramiento Lobos-San Juan lines.
The works will take 20 months, the state government said in a release.
With the infrastructure, rail traffic will be reduced from 19 freight trains a day crisscrossing the metropolitan area to 10, according to the statement.
The rest of will be eliminated once Kansas City Southern de México finds a location for its new depots. The state government intends to use the routes of the old lines for a light rail system, the statement said.
Meanwhile, Kansas City de México (KCSM) handed the state government land on Manuel L Barragán avenue.
The rail traffic that crosses Monterrey goes to the Matamoros-Brownsville and Nuevo Laredo-Laredo border crossings with the US.
Nearly US$1.5bn worth of goods crosses between the US and Mexico each day, and approximately 80% of the trade between the neighboring nations crosses the border via road or rail, according to Mexico's transport and communication ministry (SCT).