UP Joins Group Bidding for Mexico Rail Line

Union Pacific Corp. said it will join a consortium bidding for the 4,052-mile North-Pacific Railway, Mexico’s second-busiest line. The U.S. railroad joins construction company Ingenieros Civiles Asociados and copper-mining company Grupo Mexico in bidding for the potentially lucrative line, which is now owned by the state. Bethlehem, Pa.-based Union Pacific said it will take a 10% to 15% stake in the partnership. The North-Pacific is important to Union Pacific because it connects the Mexico-California border to Mexico City and serves Guadalajara, the country’s second-largest city, and major mining regions. UP’s decision comes after rival Kansas City Southern Industries Inc. and other partners in December beat out Union Pacific with a $1.4-billion bid for Mexico’s 2,455-mile Northeast rail line. UP shares rose $1.375 to close at $63.75 on the NYSE.