countries, U.S.-style equipment may be preferred in Mexico for both domestic and international

haulage. Nevertheless, the need to acquire new equipment may be an impediment for some

Mexican carriers wishing to operate into the U.S.


Roadway Condition

 The deplorable condition of much of Mexico's road system will be a barrier to U.S.

carriers. In addition to the problem of roadways which are in poor repair, there are some

significant design differences. For example, Mexican roadways allow for tighter turning radii

and, except for toll roads, shoulders are either minimal or absent. These conditions will result

in additional wear and tear on equipment and present safety hazards due to the lack of

experience with and tolerance for these conditions by U.S. drivers. In the eyes of most U.S.

carriers interviewed, the shortcomings of the road infrastructure is the single biggest impediment

to operating in Mexico. This was echoed by Mercer Management Consultants, which views the

time necessary for Mexico to upgrade its roadways as offering a 'window of opportunity' for

the railroads.

 To some extent poor roadways may be avoided by using toll roads. However, as

previously discussed, this can be quite costly.


Civil and Criminal Liabilities in Accidents

 One of the most serious and frequently overlooked impediment for U.S. carriers to

operate in Mexico relates to Mexican criminal law.

 Under Mexican civil law, motor vehicles and their cargos can be impounded after an

accident to ensure that damages will be covered. However, carriers can post bonds for the