Mexico’s railway system is poised for meaningful modernization following a newly-signed $1.083 billion contract with French rail manufacturer Alstom. The deal, announced Friday, will bring 47 new trains – 33 long-distance and 14 suburban – to Mexican rails, alongside a five-year maintenance agreement. A majority of the train components will be assembled in Mexico, at Alstom’s Ciudad Sahagún facility, representing a substantial investment in local manufacturing and job creation.
Mexican railroads have secured a €920 million (approximately $1.083 billion USD) contract with Alstom to purchase 47 trains and provide maintenance services for five years, the French company announced Friday.
The deal, signed with the Mexican Agency for Railway Regulation (ARTF), encompasses 33 long-distance trains and 14 suburban trains, according to the company’s statement.
More than three-quarters of the trains’ components will be manufactured in Mexico, specifically in Ciudad Sahagún, near Mexico City, at Alstom’s first assembly plant in North America.
The project is expected to create and sustain hundreds of jobs in engineering, project management, and manufacturing, Alstom stated.
“This contract boosts the Mexican railway industry, fosters technical specialization, and strengthens the network of local suppliers,” said Maite Ramos, Alstom’s managing director for North Latin America, in the statement.
The diesel trains will operate on non-electrified lines and will reach a top speed of approximately 102 mph (165 km/h).
They will connect “key regions in central and northern Mexico,” the manufacturer said, with interurban services accommodating around 300 passengers and suburban services holding up to 600.
Alstom has been operating in Mexico since 1952 and played a role in the development of Mexico City’s first subway line, the company noted.
The contract will be recorded in Alstom’s fiscal year 2025/2026 during the third quarter, according to the company.
Mexican railroads will be upgrading their fleets with 47 new trains following a $1.083 billion contract signed with French manufacturer Alstom, a deal that promises to boost the country’s rail industry and create hundreds of jobs.
The agreement, finalized Friday with the Mexican Agency for Railway Regulation (ARTF), includes the purchase of 33 long-distance trains and 14 designed for suburban routes. Alstom will also provide maintenance for the trains over a five-year period.
A significant portion of the manufacturing will take place within Mexico itself. More than 75% of the trains’ components will be assembled at Alstom’s facility in Ciudad Sahagún, near Mexico City – the company’s first North American assembly plant.
According to Alstom, the project will not only modernize Mexico’s rail infrastructure but also generate employment opportunities in engineering, project management, and the manufacturing sector.
“This contract boosts the Mexican railway industry, fosters technical specialization, and strengthens the network of local suppliers,” said Maite Ramos, Alstom’s managing director for North Latin America.
The new diesel trains will primarily serve lines that are not yet electrified and are expected to reach speeds of up to 102 mph (165 km/h). They will connect key regions throughout central and northern Mexico.
The trains are designed to accommodate varying passenger loads, with interurban services capable of carrying approximately 300 people and suburban lines holding up to 600 passengers. This investment aims to improve transportation options for commuters and long-distance travelers alike.
Alstom has a long-standing presence in Mexico, dating back to 1952, and was involved in the construction of Mexico City’s original subway system. The new contract builds on that history of collaboration.
The company anticipates recording the contract within its 2025/2026 fiscal year, specifically during the third quarter.
