A railway project without the proper backing of insurance and surety bonds is exposed to risks that can stop operations and compromise the investment.
Sectors / Infrastructure /
Railways
The construction, operation, and maintenance of railway tracks, stations, and railway bridges present significant technical, operational, and contractual risks.
These projects require specialized insurance and surety bonds that guarantee service continuity and regulatory compliance before the Ministry of Infrastructure, Communications and Transport (SICT), the Railway Transport Regulatory Agency (ARTF), and public or private concessionaires.
Main risks:
- Derailments or collisions causing damage to infrastructure and third parties
- Natural phenomena that damage the tracks (rain, earthquakes, landslides)
- Damage to stations, tunnels, or railway bridges
- Theft or vandalism of signaling, equipment, or critical infrastructure
- Operational shutdowns with loss of income or contractual penalties
What happens if a derailment or collision occurs?
Such an event may cause:
- Damage to railway infrastructure (tracks, bridges, signaling).
- Loss or damage to rolling stock (locomotives, railcars).
- Injuries or fatalities of personnel or third parties.
- Environmental contamination if hazardous materialswerebeing transported.
- Loss of income due to interruption of operations.
- Legal claims from third parties or authorities.
Having the appropriate coverage allows you to respond quickly, comply with the law, and protect the viability of the project.
What insurance is required to operate a railway line or railway concession in Mexico?
The Railway Transport Regulatory Agency and concession contracts require coverages such as:
- General and Cross Civil Liability: damage to third parties and other concessionaires.
- Property Damage to Infrastructure (All Risk).
- Rolling Stock Insurance: locomotives and railcars against collision, overturning, fire, or theft.
- Business Interruption: loss of income due to a loss.
- Environmental Insurance: spills or leaks of hazardous materials.
What surety bonds do railway authorities require in Mexico?
The ARTF and the Ministry of Infrastructure, Communications and Transport (SICT) usually require:
- Performance Bonds: guarantee compliance with the obligations of the concession title.
- Quality Bonds: ensure that the works and servicesremainin optimal condition during the agreed period.
