Competitive Analysis

Rail Freight Transport, Mexico

The Mexican Association of Railroads (AMF) retained Oxford Competition Economics to produce an independent economic report titled “Competition in the Rail Freight Transportation Market in Mexico”. The first part of the report provided statistics on cargo transported in Mexico using railroads, disaggregated by product and distance, as well as an econometric analysis to measure the intensity of competition between rail freight transport and trucking.

The second part of the report provided: (a) estimations of the market share lost by rail freight transport in the Mexican cargo market due to regulatory and compliance distortions associated with trucking; (b) an analysis of the competition in tariffs observed between rail freight transport and trucking and, (c) a cluster analysis of tariff and distances between different modes of cargo transport to identify the competitive advantages of each.