Ferrosur

The Ferrocarril del Sureste (reporting mark FSRR), commonly known as Ferrosur, is a railroad that serves the south-eastern regions of Mexico.

The company was formed by the granting of two concessions as part of the privatization of Mexico's railways in 1998 and the subsequent merger of those two concessions in 2000. The company operates the vital rail line between Mexico City and Mexico's busiest Gulf of Mexico/Atlantic port at Veracruz.

Merger with Ferromex

Ferrosur was owned by Grupo Carso and Grupo Financiero Inbursa (companies controlled by Carlos Slim Helu) until November 2005 when the company was sold to Grupo Mexico, owner of Ferromex, in a US$309 million stock transaction. The Mexican Federal Competition Commission (CFC) had rejected a proposed 2002 merger of Ferromex and Ferrosur amid opposition from Ferromex competitor, Grupo Transportación Ferroviaria Mexicana (TFM).

Following the November 2005 purchase of Ferrosur by Grupo Mexico, Kansas City Southern de México (KCSM), successor to TFM, petitioned the Mexican government to block the merger of Ferrosur and Ferromex. The CFC rejected the merger in June 2006 stating that the merger would have led to excessive concentration in the railroad industry to the detriment of consumers and competing shippers. However, in March 2011, a tribunal ruled in Grupo Mexico's favor, and the merger was permitted.