ARLINGTON, VIRGINIA, US — US agriculture groups are calling on federal officials to address rail service capacity issues in Mexico that are hindering US agricultural trade.
The National Grain and Feed Association (NGFA) and members of the Agricultural Transportation Working Group sent a letter July 31 to Surface Transportation Board Chairman Robert Primus, Agriculture Secretary Tom Vilsack and US Trade Representative Katherine Tai outlining their concerns.
Demand for rail service and insufficient investment in rail infrastructure have led to embargoes, congestion and slowed servicing of US agricultural products by Ferromex, a main rail carrier in Mexico, the groups said in the letter.
Agricultural shippers have encountered rail service constraints with Ferromex for almost a year due to the rail line’s need for rationing and the relatively lower rates for agricultural products, they said.
“We urge you to speak with your colleagues in Mexico to encourage increased investment in the country’s rail network and to ensure US agricultural products do not disproportionately bear the burden of rail service constraints,” the letter said.
Mexico is the largest export market for US agricultural products with over $30 billion exported to Mexico in the past year.
“As our most natural trading partner, Mexico is a critical stakeholder for the US agricultural supply chain,” the groups said. “However, the United States’ proximity advantage over agricultural competitors like Brazil and Russia is reduced by the rail capacity problem, leading to higher exports into Mexico from these competitors.”
