The Surface Transportation Board (STB) in the United States approved the exemption of Grupo México Transportes (GMXT) to acquire 60% of CG Railway .
“The Board waives prior approval requirements for the control transaction, subject to employee protection conditions. “The petitioners must adhere to GMXT’s statement that it will not use the connection between CGR and Ferrosur to exclude vertical competition over efficient joint line routes with unaffiliated operators,” he indicated.
According to the document on the subject, the STB explained that the exemption will come into force as of September 12. However, petitions for reconsideration or reopening must be filed by September 3 of this year.
He said GMXT has reached agreements with Seacor and GWI to acquire an indirect 60% interest in the joint venture, which includes rail equipment and rights of way at the port of Mobile, Alabama, and rail ferry service between the docks and the maritime territorial border of the United States.
Specifically, GMXT (through GMXT Marine LLC, an indirect wholly owned subsidiary) will acquire all of Seacor’s 50% interest in the joint venture, and GWI’s 20% interest, resulting in Grupo México has an indirect 60% interest in the joint venture and control of the joint venture and CGR. While Seabulk Fleet Management LLC, a subsidiary of Seacor, will remain as ferry operator.
“In support of its petition, GMXT states that CGR will continue to operate in the same manner as it currently does. “It notes that concentrating ownership in GMXT will ensure that revenue from the service is used for rail purposes and will provide it with greater incentive and ability to invest in the rail ferry and improve operations, and will further several rail transportation policy objectives,” he said. .
It should be remembered that GMXT’s initial petition, submitted last April, was rejected for being incomplete and for not providing adequate supporting information. Therefore, the Board also required CGR and its owners to respond to questions regarding, respectively, authorization for current operations and for the purchase transaction.
In December 2023, GMXT reported that to reinforce its presence in the southeast of the country, it had acquired 60% of Golfo de Mexico Rail Ferry Holdings and Rail Ferry Vessel Holdings LLC, companies that are dedicated to the maritime transportation of rail cars between States. United States and Mexico, better known as Ferrobuque.
The acquisition is subject to certain conditions, including authorization from the Committee on Foreign Investment in the United States and the STB.
“The purchase allows GMXT to continue consolidating itself as a leading company in cargo transportation in the region, strengthening its commitment to Mexico and the southern United States,” he stated at the time.
The subsidiary of Grupo México already had a majority stake in the capital stock of Terminales Transgolfo, the entity that operates the rail ship terminal in Coatzacoalcos, Veracruz, and with the acquisition it will now also have a majority interest and control of the companies.
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