Abstract :
The Mexican Railway Company, Ltd., locally known as Ferrocarril Mexicano, was the first railway built in Mexico, having been opened to traffic January 1, 1873. The main line runs between Mexico City and Vera Cruz and is 264 mi. in length. There are six branch lines which increase the route miles to a total of 482. The most difficult portion of the line consists of 19 mi. of 4.7 per cent grade between Encinar and Boca del Monte where the table-land is reached. In 1921, when the road was returned to its owners, following five years of government operation, the property was found to be in an unsatisfactory condition, with operating expenses more than doubled, thereby increasing the operating ratio from 0.51 in 1914 to 0.79 in 1920. Higher wages and new working agreements were largely responsible and continued to become more difficult. The mountain division had about reached its maximum capacity with the existing equipment, making it necessary to consider improvements. A study of the operating costs of this section was made in 1921 from which it was apparent that the electrification of that section would readily relieve the congestion and make it possible to more than double the capacity of the line and at the same time accomplish a yearly saving of $523,000 in operating expense. The electrification was estimated to cost $2,420,000, thus indicating a return of 21 per cent on the gross investment including electric locomotives, in addition to the increased capacity and many other advantages.
