1E9Ct5D

These concessions can take two forms:a) For the construction, operation, and use of the railways as a general communicationroute;b) For the provision of railway transportation services to the public.256C H A P T E R X VOnce the concession is granted, those concession holders in the first category will beobliged to establish traffic control centers within the country. Furthermore, the constructionor reconstruction of concessioned railways requires the prior approval by theSCT of the project and of other documents related to the work to be carried out.The concession to provide railway transportation services to the public can be for passengeror cargo service and in both cases the concession holder must provide to the personnelthat operate or assist in the operation of the railway equipment the relevanttraining and education in accordance with the Federal Labor Law (Ley Federal del Trabajo,LFT). Said personnel must also obtain a federal railway license issued by the SCT andsubmit to medical exams.The concession for the provision of railway cargo transportation services to the publicallows the concession holder to transport any type of goods, imposing on such concessionholder liability for any loss or damage to property transported by the concessionholder’s railway. The SCT regulates the transport of hazardous materials by rail.The concession for the provision of railway transportation services to the publicrequires that the concession holder take measures to guarantee the safety and security ofthe passengers at all times, as well as to accept liability for injuries the passengers or theirbelongings may suffer. The concession holder must obtain insurance covering thesepotential liabilities.The SCT can also grant licenses for:a) The provision of auxiliary services, among which are passenger and cargo terminals,the transfer and containment of liquids, equipment maintenance workshops,and supply centers for equipment operation;b) The construction of access routes, crossings and peripheral installations in the railroadright of way;c) The installation of advertising and publicity billboards in the right of way;d) The construction and operation of bridges over railways. These permits can onlybe granted to Mexican companies.2.2. Air TransportationAir transportation has been highly regulated by the Mexican government due to the variousinternational treaties in which Mexico participates. The stipulations of these treatiesrequire the relevant Mexican law to be updated.