Blockades at Mexican railways affecting local steel industry

Monday, 25 July 2016 23:42:52 (GMT+3)   |  
       

Blockades at Mexican railways by National Coordination of Education Workers (CNTE) demonstrations are affecting local steelmakers and other industrial segments, according to several media reports.

Mexican steel association Canacero said “a lot of plants” have been seriously affected by the blockades, which are aimed at opposing education reforms introduced by president Enrique Peña Nieto.

“We’re looking at [the] options [we have]. Despite [the fact] we can’t estimate the impact of the blockades, we know that [the impact of this] will be strong,” Canacero said.

A media report said global container operator Maersk Line has some 2,000 containers stopped at the Lázaro Cárdenas port, which can’t be loaded or shipped due to the blockades. The port is used by local steelmaker ArcelorMittal México.

In a letter asking for the government’s help, railroad operator Kansas City Southern Mexico (KCSM), which cannot receive containers due to the blockades, said other companies such as Mexican steelmaker AHMSA, KIA Motors, ArcelorMittal México, Honda, Mazda, Ternium, General Motors and Grupo Villacero are also feeling the impact of the blockades.

Mexican newspaper Reforma said the teachers have been blocking the railroad in seven different areas of Michoacán state.

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