Suspension of “The Beast”, a hard economic blow for Mexico

by time news

2023-09-27 13:57:03

The largest railway network in Mexico, FERROMEX, of Grupo México, decided last Tuesday to suspend some 60 freight trains due to the accumulation of migrants in its railway cars, with the argument of avoiding accidents or loss of life. These railway networks – about 8,500 kilometers from Mexico City to the northern border, where trains known as “The Beast” circulate – are used by migrants traveling to the United States.

In the absence of knowing the duration of the suspension, the decision not only reveals the dimension of the flow of people to the neighboring country, but also the economic importance of these routes, according to the company itself and experts consulted by DW.

“Today we realize that the immigration problem has escalated to such uncontrollable levels that they have forced Ferromex to temporarily suspend its activities,” Pedro Tello, an economic and financial analyst, told DW.

Affected runner

The measure mainly affects the migratory route in the center of the country, which heads towards San Luis Potosí, Zacatecas, Torreón and Monterrey. In this last city the route divides, on the one hand, towards the border of Piedras Negras and, on the other, to Chihuahua, heading towards Ciudad Juárez and Ojinaga.

The company reported an accumulation of migrants in several points, specifically in Torreón (Coahuila), Irapuato (Guanajuato), San Francisco de los Romo (Aguascalientes) and the route between Chihuaha and Ciudad Juárez, in this last section with more than a thousand people on top. of the wagons, which has caused the border crossing with El Paso (Texas) to be closed.

It is estimated that between 400,000 and 500,000 migrants travel on these trains each year, Carlos Carabaña, from the investigative journalism unit of N+ (Mexico), tells DW. Through these trains, Ferromex moves products for the cement, metalworking, food, chemical, fertilizer production and construction industries.

Disruption in production chains

It is precisely the crossing between Ciudad Juárez (Mexico) and El Paso (Texas) – the most important border point for cargo transportation between both countries – that has been most affected due to the suspension of some points on its railway route. . According to José Medina, national president of Coparmex, the Employers’ Confederation of the Mexican Republic, daily losses are estimated at 33 million pesos due to the closure of this step.

“The flow of merchandise between Mexico and the United States is large due to the integration of both economies, so when there is a collapse like this, when the trains stop, when a bridge closes, it affects the entire production process,” Medina tells DW. And he emphasizes that now the waiting time to pass is up to 30 hours, when before it did not exceed four.

In Tello’s opinion, one of the greatest effects may be the advance of inflation, due to the delay in the supply of food, which can increase the price of products. The analyst also sees repercussions especially in the automotive industry, since Ferromex allocates up to 70% of its railways for the loading of supplies and automobiles between both countries. “This will cause a problem in the United States, but also compliance in delivery contracts for Mexican manufacturers,” he tells DW.

Alternatives for transportation

Alfredo Countiño, director for Latin America at Moody’s Analytics, highlights the option of transport by road using trailers, by sea with ships, or even by air, although this would make the transport itself even more expensive, in addition to involving other risks, such as crime in the case of road transport.

For Medina, the alternatives are to redirect the cargo to other border points, such as Matamoros, Nuevo Laredo, Tijuana or Mexicali, currently with normal traffic, although it is something that cannot be corrected quickly, and there would still be delays and economic losses. .

Migrants without options

Dr. Enrique Coraza de los Santos, researcher at the Migration and Cross-border Processes Studies Group of the Colegio de la Frontera Sur (ECOSUR), in Mexico, points out that migrants are not being given any alternative, but rather applying the scheme “containment, detention and deportation”, without understanding that the flow of people is not really going to stop.

“The suspension will result in these people surrendering to organized crime, delinquency, the violation of human rights through the corruption of the different State services,” Coraza told DW.

Carabaña, for his part, emphasizes that despite looking for other options to travel, such as traveling on foot, by road or following the layout of the roads, migrants will be more prone to extortion from criminal gangs.

Lack of policies

“The horror that migrants experience is a consequence of the anti-immigration policies that are implemented in Mexico and in most of the countries that receive immigrants,” explains Dr. Daniela Castro, an academic at the Economic Research Institute of the National University, to DW. Autonomous Community of Mexico (UNAM).

Similarly, Coraza points out that Ferromex’s decision reaffirms Mexico’s position as a restrictive country in terms of immigration policies.

“The idea that it is about rescuing the migrant population that travels on the trains is a euphemism. It is not a rescue but rather an arrest of people and the repressive use of the State security forces to prevent mobility,” he indicates. to DW.

According to experts, since May 2023, migratory transit through Mexico has intensified, with nearly 8,000 people arriving daily at the country’s northern border.

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