TABLE 3: U.S.-MEXICAN RAIL BORDER CROSSING CONNECTIONS
 GATEWAY SOUTHERN UNION SANTA SOUTH TEX-MEX
 PACIFIC PACIFIC FE ORIENT
 LAREDO/ X X
 NUEVO LAREDO
 EAGLE PASS/ X
 PIEDRAS NEGRAS
 EL PASO/ X X X
 CIUDAD JUAREZ
 BROWNSVILLE/ X X
 MATAMOROS
 NOGALES/ X
 NOGALES
 MEXICALI/ X
 CALEXICO
 SAN YSIDRO/ X
 TIJUANA
 DOUGLAS/ X
 AGUA PRIETA
 PRESIDO/ X
 OJINAGA

 Source: Mercer Management Consulting, Inc.


 Switching Yards and Terminals

 FNM's switching yards and terminals are inadequate. These shortfalls are due primarily

to changes in the types of freight hauled and low levels of investment. FNM has been rapidly

de-emphasizing less-than-carload operations in favor of intermodal (primarily containers) and

unit trains. Much of the growth in these areas has been with U.S. trade. Cargos travelling by

rail between the U.S. and Mexico normally use U.S. cars. While this relieves FNM of the