KCSM view on Mexico’s Public-Private Associations Law: Private-sector participation in infrastructure and transportation José Zozaya Délano Presidente y Representante Ejecutivo Kansas City Southern de México April 25, 2012

Introduction Mexico’s Public- Private Association Law: a step forward Mexico’s railway regulation: the concession KCSM investments: urban profit PPP impact on infrastructure and transportation 2

Mexico’s Public - Private Association Law: a step forward Published on January 16, The Act intends to encourage long- term contractual partnerships between the public and private sectors. Its objective is to increase social welfare and investment levels. It is a positive step toward boosting Mexico’s competitiveness. 3

Mexico’s railway regulation: the concession In 1997 the Federal Government decided to create concessions to exploit railroad lines, with the objective of having a solid growth in this sector. KCSM has the concession for the northeast route towards Laredo. KCSM has invested over 3 billion dollars in the concession title and on the maintenance of our network, infrastructure, and equipment. 4

KCSM investments: urban profit KCSM has invested in railroad terminals and in urban overpasses. These investments have a positive impact in urban communities. 5

The PPP is a modern scheme that encourages investment in different fields. PPP is a great tool for urban development such as overpasses and secure corridors, representing a better railroad operation within urban areas. 6

7 The new Act will attract more investment, because it will give companies more certainty. The new Act will have a positive impact on infrastructure and transportation.

8 Conclusion The Private-Public partnerships scheme brings great benefits. Share best practices within the NAFTA region. Will lead to a better integration of North America.

9 Thank you!