Passenger trains are not a bad idea, but it is something that should not be forced, says BBVA México

The decree of federal government to resume the trains passengers on seven railway routes, although it is not a bad idea, it should be a decision of the private sectorestimated BBVA Mexico.

“It seems to us that It’s not necessarily a bad idea.but it is not something that should be forced and it is better to consult the private sector to know the demand to do it or not. What we do believe is that these railways should be prioritized for the Freight transportwhich is what generates the most growth,” said the chief economist of BBVA MexicoCarlos Serrano.

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In a press conference, the specialist recalled that the government impositions of this type generally do not obtain good results in addition to the subsidy that must be given to the operation of railways.

“A decision imposed like this, governmentally in the world, does not usually go well. Virtually all passenger trains in the world they have to be subsidizedFor example, in the United Kingdom the State has to cover 32% of this,” he commented.

In that sense, he said that it is necessary to analyze by the private sector whether there is sufficient demand to have passenger railways in the area framed this Monday by the presidential decree.

“Whether or not there is space for passenger trains should be a private decision where operators see that if there is enough demand, the trains should be installed and if not, no,” he said.

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