Mexico's Congress has approved legislation aimed at reversing the privatization of the nation's rail industry, which was enacted in the 1990s. The new laws would grant the government increased control over rail operations, with a particular emphasis on passenger rail.

The Senate passed the bill with a unanimous vote of 123-0 on Wednesday. However, due to its nature as a constitutional reform, the legislation requires ratification by at least 17 of Mexico's 32 states to be enacted into law.

The bill empowers the government to utilize existing railway lines for passenger service. The president will have the authority to award concessions for this purpose to public companies or individuals. Companies currently holding concessions for freight operations will be given preference in becoming passenger operators, according to reports. Furthermore, the legislation designates railways as a priority for national development.

Official Senate data indicates that less than 1% of national passenger travel currently utilizes trains, highlighting an underutilization of the country's rail infrastructure.

President-elect Claudia Sheinbaum has signaled her commitment to continuing the rail development initiatives championed by her predecessor, Andrés Manuel López Obrador. She plans to secure an additional $4.4 billion to finalize or expand the recently launched Maya Train and Interoceanic Train projects. Additionally, Sheinbaum intends to develop three new passenger rail lines, including one connecting Mexico City.