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MTS responds to Baja Rail charges

In the four years I've followed this story, the ownership of PIR has been a tangled web. Lawsuits, some going back a decade, have been filed at almost every step along the way. The only way to clean it up to allow Baja Rail to take over may be in bankruptcy court. But with the objections now filed, even a bankruptcy reorganization plan may take years to sort out. There are claims and counterclaims. PIR was, according to the original timetable as I understood it,was supposed to be running test trains on the line by early 2013. That's four years ago, folks, and there's no evidence that any work has been done on the US portion of the line, nor that any equipment has been run on those rails. What we have been treated to is a series of revisions that MTS accepts instead of the milestones in the original lease. But even now Baja Rail has not submitted anything specific, nor has it done anything on the ground in the US. It does claim to have made major improvements on the Mexican part of the line, although those are very hard to verify. So, it enjoys a small business of taking cars into and out of Mexico through the San Ysidro border crossing, to the tune of between 1000 and 1500 cars each quarter. Virtually all of them arrive in Mexico carrying cargo of one sort of another, and most leave empty. That belies all the potential that PIR claims of having for outbound traffic to ship out to the east. Finally, Union Pacific has declined to comment on these plans, although it is that railroad that would receive the outbound shipments to their rails at Plaster City. I'd say UP knows that this is still a fanciful scheme. And yes, MTS needs to keep its buses on schedule, something it does poorly today, and serve the riders.
— February 4, 2017 12:57 p.m.

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