Background on Ferrocarriles Nacionales de México (FNM)
Ferrocarriles Nacionales de México (FNM) was established on March 28, 1908, through the merger of two significant foreign-capitalized railway companies: Ferrocarril Central and Ferrocarril Nacional Mexicano. In 1937, President Lázaro Cárdenas nationalized these railways, transforming the private FNM into a state-owned enterprise. However, in 1995, under President Ernesto Zedillo’s administration, FNM was privatized. The resulting 1998 licitation led to the formation of Ferrocarriles Mexicanos (Ferromex), a joint venture between Grupo México and Union Pacific from the United States, which later became Grupo México Transportes – today’s largest railway operator in Mexico.
Liquidation Process
On June 4, 2001, the Decree was published in the Federal Register (DOF) extinguishing FNM as a public, decentralized organization and revoking its Organic Law. This marked the beginning of the liquidation process, with the latest deadline set for December 31, 2025.
FNM Pension Details in 2025
In its most recent report to the Chamber of Deputies on the liquidation process, the National Institute for the Return to the People of What Was Stolen (INDEPH) detailed that, during the first half of 2025, approximately 1,182 million pesos were allocated for pension and compensation payments to an average of 16,024 retirees.
- The amount included 34.58 million pesos for death compensation (previously life insurance).
- Pension payments were made through the FerronalesJub Trust, which funded its obligations by annually requesting resources from the Secretariat of Infrastructure, Communications, and Transportation (SICT) via Ramo 19 (Security Social Contributions).
According to the actuarial study submitted in February 2025, based on data up to December 31, 2024, the actuarial balance of the FerronalesJub Trust was -21.742 billion pesos for unpaid pensions, with projections indicating the trust’s obligation would conclude in 2085.
Key Questions and Answers
- What is FNM? Ferrocarriles Nacionales de México (FNM) was a state-owned railway company created in 1908 through the merger of two foreign-capitalized railway companies. It was later privatized in 1995, leading to the formation of Ferrocarriles Mexicanos (Ferromex), which is now Grupo México Transportes.
- Why is FNM being liquidated? The Mexican government initiated the liquidation process for FNM in 2001, aiming to dissolve the state-owned organization and distribute its assets.
- What is the current status of FNM pensions? As of 2025, approximately 16,024 retirees received pension payments funded by the FerronalesJub Trust, with an actuarial balance of -21.742 billion pesos for unpaid pensions, projected to conclude in 2085.
