Mexico to Restart Bullet Train Bidding

In a surprise move, Mexico has abruptly withdrawn a multi-billion-dollar tender it had awarded a Chinese-led consortium to build the first bullet train in Latin America.

Transport Minister Gerardo Ruiz Esparza said the country revoked the Nov 3 ruling and restart the bidding process.

China Railway Construction Corp had been the only bidder for the 210-kilometre railway between the capital and the central Mexico manufacturing hub of Queretaro.

More than 16 other companies decided against making a proposal, including industry giants Mitsubishi of Japan, Alstom of France, Bombardier of Canada and Siemens of Germany.

The Chinese-led consortium, which includes Mexican firms, said the project would cost $3.75 billion pre-tax and $4.3 billion with value-added tax.

Mexico’s bullet train project is part of President Enrique Pena Nieto's decision to bring back passenger trains, which all but disappeared more than a decade ago, except for some tourist lines.