##### Table of Contents









SECURITIES AND EXCHANGE COMMISSION


Form 20-F


|   |  |                                                                                                  
|-- |  | -------------------------------------------------------------------------------------------------
|o  |  | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR(g)
    OF THE SECURITIES EXCHANGE ACT OF 1934
|  
|OR
|  
|þ  |  | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934         
|  
|   |  | For the fiscal year ended December 31, 2004                                                      
|  
|OR
|  
|o  |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934     

Commission file number 333-14194


GRUPO TMM, S.A.


(Exact name of Registrant as specified in its charter)


TMM GROUP


(Translation of Registrants name into English)


United Mexican States


(Jurisdiction of incorporation or organization)


Avenida de la Cuspide, No. 4755


Colonia Parques del Pedregal,


14010 Mexico City, D.F., Mexico


(Address of principal executive offices)


Securities registered or to be registered pursuant to
Section 12(b) of the Act:


|                                                                                                                                        |                                                                                                   |                                                     |                                                                                                            
|--------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------- | --------------------------------------------------- | -----------------------------------------------------------------------------------------------------------
|Title of Each Class                                                                                                                     |                                                                                                   | Name of Each Exchange on Which Registered          
|                                                                                                                                        |                                                                                                   |                                                    
|American Depositary Shares, each representing
    one Ordinary Participation Certificate(Certificado de Participación Ordinario)(CPO) |                                                                                                   | New York Stock Exchange                            
|CPOs, each representing one Series A Share,
    without par value (Series A Share)                                                    |                                                                                                   | New York Stock Exchange (for listing purposes only)
|                                                                                                                                        | Series A Shares
    101/4% Senior
    Notes due 2006
    101/2% Senior
    Secured Notes due 2007 |                                                     | New York Stock Exchange (for listing purposes only)
    New York Stock Exchange
    New York Stock Exchange




Securities registered or to be registered pursuant to
Section 12(g) of the Act:


None


Securities for which there is a reporting obligation pursuant
to Section 15(d) of the Act:


None






þ o


o þ










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TABLE OF CONTENTS


|                                                         |  |                                                                                  |  |      |     | 
|-------------------------------------------------------- |  | -------------------------------------------------------------------------------- |  | ---- | --- | 
|                                                         |  |                                                                                  |  | Page |    
|                                                         |  |                                                                                  |  |      |    
|PART I                                                  
|ITEM 1.                                                  |  | IDENTITY OF DIRECTORS, SENIOR MANAGEMENT
    AND ADVISERS                        |  |      | 3   | 
|ITEM 2.                                                  |  | OFFER STATISTICS AND EXPECTED TIMETABLE                                          |  |      | 3   | 
|ITEM 3.                                                  |  | KEY INFORMATION                                                                  |  |      | 3   | 
|ITEM 4.                                                  |  | INFORMATION ON THE COMPANY                                                       |  |      | 20  | 
|ITEM 5.                                                  |  | OPERATING AND FINANCIAL REVIEW AND
    PROSPECTS                                 |  |      | 46  | 
|ITEM 6.                                                  |  | DIRECTORS, SENIOR MANAGEMENT AND
    EMPLOYEES                                   |  |      | 72  | 
|ITEM 7.                                                  |  | MAJOR SHAREHOLDERS AND RELATED PARTY
    TRANSACTIONS                            |  |      | 80  | 
|ITEM 8.                                                  |  | FINANCIAL INFORMATION                                                            |  |      | 82  | 
|ITEM 9.                                                  |  | THE OFFER AND LISTING                                                            |  |      | 84  | 
|ITEM 10.                                                 |  | ADDITIONAL INFORMATION                                                           |  |      | 88  | 
|ITEM 11.                                                 |  | QUANTITATIVE AND QUALITATIVE DISCLOSURES
    ABOUT MARKET RISK                   |  |      | 98  | 
|ITEM 12.                                                 |  | DESCRIPTION OF SECURITIES OTHER THAN EQUITY
    SECURITIES                       |  |      | 100 | 
|PART II                                                 
|ITEM 13.                                                 |  | DEFAULTS, DIVIDEND ARREARAGES AND
    DELINQUENCIES                              |  |      | 100 | 
|ITEM 14.                                                 |  | MATERIAL MODIFICATIONS TO THE RIGHTS OF
    SECURITY HOLDERS AND USE OF PROCEEDS |  |      | 101 | 
|ITEM 15.                                                 |  | CONTROLS AND PROCEDURES                                                          |  |      | 101 | 
|ITEM 16A.                                                |  | AUDIT COMMITTEE FINANCIAL EXPERT                                                 |  |      | 101 | 
|ITEM 16B.                                                |  | CODE OF ETHICS                                                                   |  |      | 102 | 
|ITEM 16C.                                                |  | PRINCIPAL ACCOUNTANT FEES AND SERVICES                                           |  |      | 102 | 
|ITEM 16D.                                                |  | EXEMPTIONS FROM THE LISTING STANDARDS FOR
    AUDIT COMMITTEES                   |  |      | 102 | 
|ITEM 16E.                                                |  | PURCHASE OF EQUITY SECURITIES BY THE ISSUER
    AND AFFILIATED PURCHASERS        |  |      | 102 | 
|PART III                                                
|ITEM 17.                                                 |  | FINANCIAL STATEMENTS                                                             |  |      | 103 | 
|ITEM 18.                                                 |  | FINANCIAL STATEMENTS                                                             |  |      | 103 | 
|ITEM 19.                                                 |  | EXHIBITS                                                                         |  |      | 103 | 
|EX-1.1: BYLAWS OF GRUPO TMM SA                          
|EX-3.2: VOTING TRUST AGREEMENT                          
|EX-3.3: AMENDMENT TO VOTING TRUST AGREEMENT             
|EX-4.28: AMENDED ACQUISITION AGREEMENT                  
|EX-4.29: STOCKHOLDERS' AGREEMENT                        
|EX-4.30: REGISTRATION RIGHTS AGREEMENT                  
|EX-4.31: CONSULTING AGREEMENT                           
|EX-4.32: MARKETING AND SERVICES AGREEMENT               
|EX-4.33: RAIL TRANSPORTATION AGREEMENT                  
|EX-4.34: RAIL TRANSPORTATION AGREEMENT                  
|EX-6.1: COMPUTATION OF EARNINGS PER SHARE               
|EX-7.1: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGE
|EX-8.1: LIST OF SUBSIDIARIES                            
|EX-12.1: CERTIFICATION                                  
|EX-12.2: CERTIFICATION                                  
|EX-13.1: CERTIFICATION                                  
|EX-13.2: CERTIFICATION                                  







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##### Table of Contents



Introduction




Presentation of Financial Information




Forward-Looking Information








| |   |                                                                                                                                                                                                                                                                     
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The timing of the receipt by TFM, S.A. de C.V. (TFM)
    of the VAT award, the amount of such award and the form of such
    award;                                                                                                                               
|
| |  | Our ability to generate sufficient cash from operations to meet
    our obligations, including the ability of our subsidiaries to
    generate sufficient distributable cash flow and to distribute
    such cash flow in accordance with their existing agreements;
|
| |  | Mexican, U.S. and global economic, political and social
    conditions;                                                                                                                                                                                             
|
| |  | The effect of the North American Free Trade Agreement
    (NAFTA) on the level of U.S.-Mexico trade;                                                                                                                                                              
|
| |  | Conditions affecting the international shipping and
    transportation markets;                                                                                                                                                                                     
|
| |  | Our ability to reduce corporate overhead costs;                                                                                                                                                                                                                     
|
| |  | The availability of capital to fund our expansion plans;                                                                                                                                                                                                            
|
| |  | Our ability to utilize a portion of our current and future tax
    loss carryforwards (Net Operating Losses or
    NOLs);                                                                                                                                       
|
| |  | Changes in legal or regulatory requirements in Mexico or the
    U.S.;                                                                                                                                                                                              
|
| |  | The sale of the Companys investment in TFM to Kansas City
    Southern (KCS);                                                                                                                                                                                    
|
| |  | The outcome of pending litigation relating to the obligation to
    repurchase shares of TFM owned by the Mexican Government and the
    ability of the Company or its subsidiaries to fund any such
    purchase if required to do so;                             

2



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##### Table of Contents





| |   |                                                                                                                                                                                       
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The ability of management to manage growth and successfully
    compete in new businesses; and the ability of the Company to
    repay, restructure or refinance its indebtedness; and
|
| |  | Documents incorporated by reference in this Annual Report and
    the Companys Form 6-K as filed with the Securities
    and Exchange Commission (SEC) .                           




PART I







|        |                                                          
|------- | ---------------------------------------------------------
|ITEM 1. | IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND
    ADVISERS








|        |                                        
|------- | ---------------------------------------
|ITEM 2. | OFFER STATISTICS AND EXPECTED TIMETABLE








|        |                
|------- | ---------------
|ITEM 3. | KEY INFORMATION



|   |                        
|-- | -----------------------
|A. | Selected Financial Data







3



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##### Table of Contents





GRUPO TMM AND SUBSIDIARIES


SELECTED CONSOLIDATED FINANCIAL DATA


|                                                                                                      |  |                                                  |        |   |      |   |        |      |  |   |        |   |  |      |        |   |  |   |        |  
|----------------------------------------------------------------------------------------------------- |  | ------------------------------------------------ | ------ | - | ---- | - | ------ | ---- |  | - | ------ | - |  | ---- | ------ | - |  | - | ------ | -
|                                                                                                      |  | Year Ended December 31,                          |       
|                                                                                                      |  |                                                  |       
|                                                                                                      |  | 2004                                             |        |   | 2003 |   |        | 2002 |  |   | 2001   |   |  | 2000 |       
|                                                                                                      |  |                                                  |        |   |      |   |        |      |  |   |        |   |  |      |       
|                                                                                                      |  | ($ in millions except ratios and per share data) |       
|CONSOLIDATED INCOME STATEMENT DATA (IFRS)                                                             |  |                                                  |        |   |      |   |        |      |  |   |        |   |  |      |        |   |  |   |        |  
|Transportation revenues                                                                               |  | $                                                | 251.0  |   |      | $ | 226.9  |      |  | $ | 236.5  |   |  | $    | 270.8  |   |  | $ | 295.2  |  
|Income (loss) on
    transportation(a)                                                                |  |                                                  | 3.4    |   |      |   | (5.1   | )    |  |   | (3.4   | ) |  |      | 0.4    |   |  |   | 7.0    |  
|Other income (expense) 
    Net(b)                                                                   |  |                                                  | 16.3   |   |      |   | (58.7  | )    |  |   | (3.5   | ) |  |      | (8.9   | ) |  |   | 26.1   |  
|Operating income
    (loss)(c)                                                                        |  |                                                  | 19.7   |   |      |   | (63.8  | )    |  |   | (6.9   | ) |  |      | (8.5   | ) |  |   | 33.1   |  
|Interest income                                                                                       |  |                                                  | 1.5    |   |      |   | 8.7    |      |  |   | 1.6    |   |  |      | 9.9    |   |  |   | 7.3    |  
|Interest expense 
    Net(d)                                                                         |  |                                                  | 86.9   |   |      |   | 65.3   |      |  |   | 63.8   |   |  |      | 55.7   |   |  |   | 58.5   |  
|Loss before benefit (provision) for income taxes, minority
    interest and discontinued operations   |  |                                                  | (65.7  | ) |      |   | (120.4 | )    |  |   | (69.1  | ) |  |      | (54.3  | ) |  |   | (18.1  | )
|Benefit (provision) for income taxes                                                                  |  |                                                  | (43.7  | ) |      |   | (6.2   | )    |  |   | 20.9   |   |  |      | (10.5  | ) |  |   | 9.3    |  
|Loss before minority interest and discontinued operations                                             |  |                                                  | (109.4 | ) |      |   | (126.6 | )    |  |   | (48.1  | ) |  |      | (64.8  | ) |  |   | (8.8   | )
|Minority interest expense (income)                                                                    |  |                                                  | 2.7    |   |      |   | 2.0    |      |  |   | (0.6   | ) |  |      | 4.2    |   |  |   | 12.6   |  
|Net loss from continuing operations                                                                   |  |                                                  | (112.0 | ) |      |   | (128.6 | )    |  |   | (47.6  | ) |  |      | (69.0  | ) |  |   | (21.4  | )
|Net income from discontinued
    operations(e)                                                        |  |                                                  | 9.5    |   |      |   | 41.9   |      |  |   | 5.0    |   |  |      | 77.9   |   |  |   | 23.1   |  
|Net (loss) income                                                                                     |  |                                                  | (102.5 | ) |      |   | (86.7  | )    |  |   | (42.6  | ) |  |      | 8.9    |   |  |   | 1.7    |  
|Loss per share from continuing
    operations(f)                                                      |  |                                                  | (1.966 | ) |      |   | (2.257 | )    |  |   | (0.835 | ) |  |      | (3.691 | ) |  |   | (1.227 | )
|Income per share from discontinued
    operations(e)(f)                                               |  |                                                  | 0.166  |   |      |   | 0.736  |      |  |   | 0.087  |   |  |      | 4.168  |   |  |   | 1.324  |  
|(Loss) income per
    share(f)                                                                        |  |                                                  | (1.800 | ) |      |   | (1.521 | )    |  |   | (0.748 | ) |  |      | 0.477  |   |  |   | 0.097  |  
|Book value per
    share(g)                                                                           |  |                                                  | (0.867 | ) |      |   | 0.934  |      |  |   | 2.454  |   |  |      | 9.463  |   |  |   | 0.539  |  
|Weighted average shares outstanding (000s)                                                            |  |                                                  | 56,963 |   |      |   | 56,963 |      |  |   | 56,963 |   |  |      | 18,694 |   |  |   | 17,442 |  
|U.S. GAAP:                                                                                            |  |                                                  |        |   |      |   |        |      |  |   |        |   |  |      |        |   |  |   |        |  
|Transportation revenues                                                                               |  | $                                                | 251.0  |   |      | $ | 226.9  |      |  | $ | 236.5  |   |  | $    | 270.8  |   |  | $ | 295.2  |  
|Income (loss) on
    transportation(a)                                                                |  |                                                  | 4.4    |   |      |   | (8.5   | )    |  |   | 1.1    |   |  |      | 4.0    |   |  |   | 9.7    |  
|Operating income
    (loss)(c)                                                                        |  |                                                  | 23.7   |   |      |   | (60.3  | )    |  |   | 4.1    |   |  |      | (6.6   | ) |  |   | 21.6   |  
|(Loss) before benefit (provision) for income taxes,
    minority interest and discontinued operations |  |                                                  | (71.4  | ) |      |   | (123.3 | )    |  |   | (53.3  | ) |  |      | (50.4  | ) |  |   | (28.1  | )
|Net loss from continuing operations                                                                   |  |                                                  | (114.2 | ) |      |   | (153.7 | )    |  |   | (57.8  | ) |  |      | (42.5  | ) |  |   | (16.9  | )
|Net income from discontinued
    operations(e)                                                        |  |                                                  | (1.6   | ) |      |   | 106.7  |      |  |   | 68.4   |   |  |      | 60.3   |   |  |   | 15.7   |  
|Net (loss) income                                                                                     |  |                                                  | (115.8 | ) |      |   | (47.1  | )    |  |   | 10.6   |   |  |      | 17.9   |   |  |   | (1.3   | )
|Loss per share from continuing
    operations(f)                                                      |  |                                                  | (2.005 | ) |      |   | (2.698 | )    |  |   | (1.014 | ) |  |      | (2.271 | ) |  |   | (0.971 | )
|Income per share from discontinued
    operations(e)(f)                                               |  |                                                  | 0.027  |   |      |   | 1.872  |      |  |   | 1.201  |   |  |      | 3.225  |   |  |   | 0.896  |  
|(Loss) earnings per
    share(f)                                                                      |  |                                                  | (2.032 | ) |      |   | (0.826 | )    |  |   | 0.187  |   |  |      | 0.954  |   |  |   | (0.075 | )

4



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|                                                                          |  |                                                  |         |   |      |   |         |      |  |   |         |  |  |      |         |  |  |   |         |  
|------------------------------------------------------------------------- |  | ------------------------------------------------ | ------- | - | ---- | - | ------- | ---- |  | - | ------- |  |  | ---- | ------- |  |  | - | ------- | -
|                                                                          |  | Year Ended December 31,                          |        
|                                                                          |  |                                                  |        
|                                                                          |  | 2004                                             |         |   | 2003 |   |         | 2002 |  |   | 2001    |  |  | 2000 |        
|                                                                          |  |                                                  |         |   |      |   |         |      |  |   |         |  |  |      |        
|                                                                          |  | ($ in millions except ratios and per share data) |        
|BALANCE SHEET DATA (at end of period) (IFRS):                             |  |                                                  |         |   |      |   |         |      |  |   |         |  |  |      |         |  |  |   |         |  
|Cash and cash equivalents                                                 |  | $                                                | 46.3    |   |      | $ | 65.1    |      |  | $ | 27.3    |  |  | $    | 28.8    |  |  | $ | 44.0    |  
|Restricted cash                                                           |  |                                                  | 6.8     |   |      |   | 5.9     |      |  |   | 4.3     |  |  |      | 1.6     |  |  |   |        |  
|Non-current assets classified as held for
    sale(h)                     |  |                                                  | 2,080.5 |   |      |   | 2,142.2 |      |  |   | 2,347.7 |  |  |      | 2,425.5 |  |  |   | 2,210.8 |  
|Total current assets                                                      |  |                                                  | 2,218.7 |   |      |   | 2,287.4 |      |  |   | 2,458.8 |  |  |      | 2,553.6 |  |  |   | 2,340.3 |  
|Property, machinery and equipment  Net                                   |  |                                                  | 80.3    |   |      |   | 75.1    |      |  |   | 90.0    |  |  |      | 157.5   |  |  |   | 188.8   |  
|Concessions  Net                                                         |  |                                                  | 4.9     |   |      |   | 5.4     |      |  |   | 5.9     |  |  |      | 6.9     |  |  |   | 13.7    |  
|Total assets                                                              |  |                                                  | 2,352.0 |   |      |   | 2,466.6 |      |  |   | 2,679.7 |  |  |      | 2,797.6 |  |  |   | 2,652.9 |  
|Liabilities directly related with non-current assets held for
    sale(h) |  |                                                  | 1,054.6 |   |      |   | 1,139.2 |      |  |   | 1,167.4 |  |  |      | 907.8   |  |  |   | 954.8   |  
|Current portion of long-term
    debt(i)                                  |  |                                                  | 26.5    |   |      |   | 421.1   |      |  |   | 200.4   |  |  |      | 67.5    |  |  |   | 72.0    |  
|Long-term
    debt(i)                                                     |  |                                                  | 469.4   |   |      |   | 1.5     |      |  |   | 196.5   |  |  |      | 380.1   |  |  |   | 377.5   |  
|Minority equity interest in subsidiaries                                  |  |                                                  | 686.0   |   |      |   | 678.2   |      |  |   | 765.5   |  |  |      | 1,089.4 |  |  |   | 1,104.9 |  
|Capital
    stock(j)                                                      |  |                                                  | 121.2   |   |      |   | 121.2   |      |  |   | 121.2   |  |  |      | 121.2   |  |  |   | 29.9    |  
|Total stockholders
    equity(j)                                         |  |                                                  | (49.4   | ) |      |   | 53.2    |      |  |   | 139.9   |  |  |      | 176.9   |  |  |   | 9.4     |  
|U.S. GAAP:                                                                |  |                                                  |         |   |      |   |         |      |  |   |         |  |  |      |         |  |  |   |         |  
|Non-current assets classified as held for
    sale(h)                     |  | $                                                | 2,234.2 |   |      | $ | 2,357.6 |      |  | $ | 2,473.8 |  |  | $    | 2,360.8 |  |  | $ | 2,224.1 |  
|Total assets                                                              |  |                                                  | 2,538.4 |   |      |   | 2,679.5 |      |  |   | 2,800.2 |  |  |      | 2,717.6 |  |  |   | 2,566.5 |  
|Liabilities directly related with non-current assets held for
    sale(h) |  |                                                  | 1,054.6 |   |      |   | 1,167.3 |      |  |   | 1,201.5 |  |  |      | 919.4   |  |  |   | 968.2   |  
|Current portion of long-term debt                                         |  | $                                                | 26.5    |   |      | $ | 426.2   |      |  | $ | 200.5   |  |  | $    | 73.0    |  |  | $ | 73.0    |  
|Long-term debt                                                            |  |                                                  |         |   |      |   |         |      |  |   |         |  |  |      |         |  |  |   |         |  
|Minority equity interest in subsidiaries                                  |  |                                                  | 778.9   |   |      |   | 793.3   |      |  |   | 818.7   |  |  |      | 1,035.7 |  |  |   | 1,020.9 |  
|Total stockholders equity                                                |  |                                                  | (3.2    | ) |      |   | 112.6   |      |  |   | 159.7   |  |  |      | 129.4   |  |  |   | (9.4    | )
|OTHER DATA (IFRS):                                                        |  |                                                  |         |   |      |   |         |      |  |   |         |  |  |      |         |  |  |   |         |  
|Incremental capital
    investments(k)                                    |  | $                                                | 15.3    |   |      | $ | 9.4     |      |  | $ | 16.1    |  |  | $    | 38.8    |  |  | $ | 5.6     |  
|Depreciation and amortization                                             |  |                                                  | 10.3    |   |      |   | 12.4    |      |  |   | 19.6    |  |  |      | 24.0    |  |  |   | 23.9    |  






|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | See Results of Operations  Income on
    Transportation for further details.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   
|(b) |  | Includes mainly: (i) in the year ended December 31,
    2004: credits related to recoverable taxes and a loss from the
    sale of fixed assets; (ii) in the year ended
    December 31, 2003: credits related to recoverable taxes,
    restructuring expenses, a loss on the sale of subsidiaries and a
    loss from the sale of fixed assets; (iii) in the year ended
    December 31, 2002: credits related to recoverable taxes
    offset with a provision for a management fee payable to
    Promotora Servia; (iv) in the year ended December 31,
    2001: acquisitions in fixed assets; (v) in the year ended
    December 31, 2000: a gain on the sale of assets, a premium
    on the sale of shares of a subsidiary and a gain on the sale of
    subsidiaries.
|   
|(c) |  | Includes the reclassification of income (expense) 
    net in accordance with IAS No. 1: Presentation of
    Financial Statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   
|(d) |  | Interest expense, net of exchange gains and losses.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   
|(e) |  | The results of discontinued operations represent the results of
    our Ports and Terminals operations that were sold in May 2003
    and the results of our Railroad operations that were sold in
    April 2005. See Item 5 Results of
    Operations  Discontinued Operations and
    Note 2 and Note 26 to our Financial Statements.                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   
|(f) |  | Based on the weighted average of outstanding shares during each
    period, restated to reflect the reverse stock split, which
    occurred in October 2001, prior to the merger of TMM with and
    into Grupo TMM. As of December 31, 2002, 2003 and 2004, the
    number of Series A Shares outstanding was 56,963,137. See
    Item 4. Information on the Company 
    Business Overview  Reclassification of Series A
    and Series L Shares.                                                                                                                                                                                                                                                                                                                       

5



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|    |  |                                                                                                                                                                                                                              
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(g) |  | Book value per share: Results from dividing total
    stockholders equity by the outstanding shares at the end
    of each period.                                                                                          
|   
|(h) |  | See Note 2 to the Financial Statements 
    Non-current asset held for sale and discontinued
    operations for further details.                                                                                          
|   
|(i) |  | Proceeds received as borrowings are net of transaction costs
    incurred in accordance with IAS No. 39: Financial
    Instruments Recognition and Measurement.                                                            
|   
|(j) |  | The increase from 2000 to 2001 for capital stock and total
    stockholders equity resulted from the merger of our
    predecessor TMM with and into Grupo TMM and the additional
    shares issued in connection therewith.
|   
|(k) |  | See Item 5. Operating and Financial Review and
    Prospects  Liquidity and Capital
    Resources  Capital Expenditures and
    Divestitures for further details.                                                        

GRUPO TMM AND SUBSIDIARIES


SELECTED CONSOLIDATED OPERATING DATA


|                                           |       |                         |       |       |      |   |       |       |   |   |       |       |   |      |       |       |  |   |       |       | 
|------------------------------------------ | ----- | ----------------------- | ----- | ----- | ---- | - | ----- | ----- | - | - | ----- | ----- | - | ---- | ----- | ----- |  | - | ----- | ----- | 
|                                           |       | Year Ended December 31, |      
|                                           |       |                         |      
|                                           |       | 2004                    |       |       | 2003 |   |       | 2002  |   |   | 2001  |       |   | 2000 |      
|                                           |       |                         |       |       |      |   |       |       |   |   |       |       |   |      |      
|                                           |       | ($ in millions)         |      
|TRANSPORTATION REVENUES (IFRS):            |       |                         |       |       |      |   |       |       |   |   |       |       |   |      |       |       |  |   |       |      
|Mexrail
    operations(a)                  |       |                         |      |       |      |   |      |       |   | $ | 13.3  |       |   | $    | 54.9  |       |  | $ | 58.0  |      
|Ports and Terminals
    operations(b)      |       | $                       | 26.6  |       |      | $ | 21.5  |       |   |   | 21.5  |       |   |      | 27.5  |       |  |   | 32.4  |      
|Specialized Maritime
    operations(c)     |       |                         | 127.8 |       |      |   | 116.0 |       |   |   | 123.2 |       |   |      | 119.0 |       |  |   | 133.6 |      
|Logistics
    operations(d)                |       |                         | 97.6  |       |      |   | 89.5  |       |   |   | 79.1  |       |   |      | 77.4  |       |  |   | 84.0  |      
|Intercompany
    revenues(a)               |       |                         | (1.0  | )     |      |   | (0.1  | )     |   |   | (0.6  | )     |   |      | (8.0  | )     |  |   | (12.8 | )    
|                                           |       |                         |       |       |      |   |       |       |   |   |       |       |   |      |      
|                                           | Total |                         | $     | 251.0 |      |   | $     | 226.9 |   |   | $     | 236.5 |   |      | $     | 270.8 |  |   | $     | 295.2 | 
|                                           |       |                         |       |       |      |   |       |       |   |   |       |       |   |      |      
|INCOME ON TRANSPORTATION
    (IFRS):(h)(i) |       |                         |       |       |      |   |       |       |   |   |       |       |   |      |       |       |  |   |       |      
|Mexrail
    operations(f)                  |       |                         |      |       |      |   |      |       |   | $ | 0.1   |       |   | $    | (1.9  | )     |  | $ | 2.1   |      
|Ports and Terminals operations             |       | $                       | 0.4   |       |      | $ | 0.4   |       |   |   | 1.6   |       |   |      | 4.2   |       |  |   | 9.4   |      
|Specialized Maritime
    operations(g)     |       |                         | 14.7  |       |      |   | 8.0   |       |   |   | 8.7   |       |   |      | 9.0   |       |  |   | 7.6   |      
|Logistics operations                       |       |                         | 4.3   |       |      |   | 2.5   |       |   |   | 4.0   |       |   |      | 6.3   |       |  |   | 8.3   |      
|Shared corporate
    costs(n)(i)           |       |                         | (16.0 | )     |      |   | (16.0 | )     |   |   | (17.8 | )     |   |      | (17.2 | )     |  |   | (20.4 | )    
|                                           |       |                         |       |       |      |   |       |       |   |   |       |       |   |      |      
|                                           | Total |                         | $     | 3.4   |      |   | $     | (5.1  | ) |   | $     | (3.4  | ) |      | $     | 0.4   |  |   | $     | 7.0   | 
|                                           |       |                         |       |       |      |   |       |       |   |   |       |       |   |      |      






|    |  |                                                                                                                                                                    
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | The Mexrail operations consist of The Texas Mexican Railway
    Companys operations until March 2002, when Grupo TMM sold
    its controlling interest in Mexrail.
|   
|(b) |  | Ports and Terminals operations consist of Acapulco, Tuxpan,
    Shipping Agencies and Colombian companies.                                                         
|   
|(c) |  | Specialized Maritime operations primarily consist of supply
    ships, product tankers, parcel tankers and tugboats.                                               
|   
|(d) |  | Our Logistics operations consist of trucking and intermodal
    transport, container maintenance and repair and intermodal
    terminal operations.                
|   
|(e) |  | Represents intercompany transactions between segments.                                                                                                             
|   
|(f) |  | Includes a loss of $1.7 million as a result of
    reorganization costs in 2000.                                                                                   
|   
|(g) |  | Includes a $0.6 million profit on the sale of vessels at
    December 31, 2002 and a $2.0 million gain on the sale
    of vessels in 2001.                         

6



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##### Table of Contents





|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(h) |  | Includes restructuring expenses: In 2004: $0.2 million in
    Specialized Maritime operations and $0.6 million in shared
    corporate costs. In 2003: $1.3 million in Specialized
    Maritime operations, $0.1 million in Logistics operations
    and $1.8 million in shared corporate costs. In 2002:
    $0.1 million in Specialized Maritime operations,
    $0.2 million in Logistics operations and $0.6 million
    in shared corporate costs.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   
|(i) |  | Includes allocated administrative costs: In 2004:
    $3.5 million in Ports and Terminals operations,
    $4.5 million in Specialized Maritime operations,
    $5.4 million in Logistics operations and $15.9 million
    in shared corporate costs. In 2003: $3.1 million in Ports
    and Terminals operations, $9.0 million in Specialized
    Maritime operations, $4.6 million in Logistics operations
    and $16.3 million in shared corporate costs. In 2002:
    $2.4 million in Ports and Terminals operations,
    $10.2 million in Specialized Maritime operations,
    $5.9 million in Logistics operations, $1.1 million in
    The Tex-Mex Railway and $17.9 million in shared corporate
    costs. In 2001: $3.7 million in Ports and Terminals
    operations, $9.8 million in Specialized Maritime
    operations, $7.8 million in Logistics operations,
    $3.1 million in the Tex-Mex Railway and $17.3 million
    in shared corporate costs. In 2000: $7.8 million in Port
    and Terminal Operations, $8.5 million in Specialized
    Maritime operations, $7.9 million in Logistics operations,
    $3.8 million in The Tex-Mex Railway and $20.4 million
    in shared corporate costs.

Average Shares Outstanding




Dividends




Exchange Rates






|                        |  |         |       |  |        |  |       |            |  |  |         |  |  |  |       | 
|----------------------- |  | ------- | ----- |  | ------ |  | ----- | ---------- |  |  | ------- |  |  |  | ----- | 
|                        |  |         |       |  |        |  |       | End of     | 
|Year Ended December 31, |  | High(1) |       |  | Low(1) |  |       | Average(2) |  |  | Year(3) | 
|                        |  |         |       |  |        |  |       |            |  |  |         | 
|2000                    |  |         | 10.09 |  |        |  | 9.19  |            |  |  | 9.47    |  |  |  | 9.62  | 
|2001                    |  |         | 9.97  |  |        |  | 8.95  |            |  |  | 9.33    |  |  |  | 9.16  | 
|2002                    |  |         | 10.50 |  |        |  | 8.96  |            |  |  | 9.75    |  |  |  | 10.43 | 
|2003                    |  |         | 11.46 |  |        |  | 10.08 |            |  |  | 10.85   |  |  |  | 11.24 | 
|2004                    |  |         | 11.64 |  |        |  | 10.81 |            |  |  | 11.31   |  |  |  | 11.15 | 

7



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##### Table of Contents



|          |              |         |  |       |        |  |  |            |  |  |          |       |  |  |  |       | 
|--------- | ------------ | ------- |  | ----- | ------ |  |  | ---------- |  |  | -------- | ----- |  |  |  | ----- | 
|          |              |         |  |       |        |  |  | End of     | 
|Monthly   |              | High(4) |  |       | Low(4) |  |  | Average(5) |  |  | Month(6) |      
|          |              |         |  |       |        |  |  |            |  |  |          |      
|Year 2004 |              |         |  |       |        |  |  |            |  |  |          |       |  |  |  |      
|          | October      |         |  | 11.54 |        |  |  | 11.24      |  |  |          | 11.40 |  |  |  | 11.54 | 
|          | November     |         |  | 11.53 |        |  |  | 11.24      |  |  |          | 11.37 |  |  |  | 11.24 | 
|          | December     |         |  | 11.33 |        |  |  | 11.11      |  |  |          | 11.20 |  |  |  | 11.15 | 
|Year 2005 |              |         |  |       |        |  |  |            |  |  |          |       |  |  |  |      
|          | January      |         |  | 11.41 |        |  |  | 11.17      |  |  |          | 11.26 |  |  |  | 11.21 | 
|          | February     |         |  | 11.21 |        |  |  | 11.04      |  |  |          | 11.14 |  |  |  | 11.09 | 
|          | March        |         |  | 11.33 |        |  |  | 10.98      |  |  |          | 11.16 |  |  |  | 11.18 | 
|          | April        |         |  | 11.23 |        |  |  | 11.04      |  |  |          | 11.11 |  |  |  | 11.08 | 
|          | May          |         |  | 11.03 |        |  |  | 10.89      |  |  |          | 10.98 |  |  |  | 10.91 | 
|          | June         |         |  | 10.89 |        |  |  | 10.76      |  |  |          | 10.82 |  |  |  | 10.78 | 
|          | July         |         |  | 10.80 |        |  |  | 10.59      |  |  |          | 10.67 |  |  |  | 10.60 | 
|          | August       |         |  | 10.90 |        |  |  | 10.58      |  |  |          | 10.69 |  |  |  | 10.79 | 
|          | September(7) |         |  | 10.73 |        |  |  | 10.68      |  |  |          | 10.70 |  |  |  | 10.71 | 






|    |                                                                                                                                                                                                           
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The highest and lowest of the Noon Buying Rates for the peso per
    U.S. dollar reported by the Federal Reserve Bank of New
    York on the last business day of each month during the relevant
    year.
|   
|(2) | The average of the Noon Buying Rates on the last day of each
    month during the relevant year.                                                                                                          
|   
|(3) | The Noon Buying Rates on the last day of each relevant year.                                                                                                                                              
|   
|(4) | The highest and lowest of the Noon Buying Rates of each day in
    the relevant month.                                                                                                                    
|   
|(5) | The average of the Noon Buying Rates of each day in the relevant
    month.                                                                                                                               
|   
|(6) | The Noon Buying Rates on the last day of each relevant month.                                                                                                                                             
|   
|(7) | Through September 8, 2005.                                                                                                                                                                                





|   |                                
|-- | -------------------------------
|B. | Capitalization And Indebtedness





|   |                                          
|-- | -----------------------------------------
|C. | Reasons For The Offer And Use Of Proceeds





|   |             
|-- | ------------
|D. | Risk Factors

Risks Relating to Our Liquidity Position


We may not have sufficient liquidity to repay our existing
obligations at maturity




8



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##### Table of Contents



1 2


Grupo TMM is primarily a holding company and depends upon
funds received from its operating subsidiaries to make payments
on its indebtedness




(fondo de reserva)








Uncertainties relating to our financial condition and
other factors currently raise substantial doubt about our
ability to continue as a going concern and could result in our
dissolution under Mexican Corporate Law




9



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Risks Relating to the Company


Our substantial indebtedness could adversely affect our
business and, consequently, our ability to pay interest and
repay our indebtedness








| |   |                                                                                                                                                                                                                                       
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | limit cash flow available for capital expenditures,
    acquisitions, working capital and other general corporate
    purposes because a substantial portion of our cash flow from
    operations must be dedicated to servicing debt;
|
| |  | increase our vulnerability to general adverse economic and
    industry conditions;                                                                                                                                                   
|
| |  | expose us to risks inherent in interest rate fluctuations
    because some borrowings are at variable rates of interest, which
    could result in higher interest expenses in the event of
    increases in interest rates;          
|
| |  | limit our flexibility in planning for, or reacting to,
    competitive and other changes in our business and the industries
    in which we operate;                                                                                  
|
| |  | place us at a competitive disadvantage compared to our
    competitors that have less debt and greater operating and
    financing flexibility than we do; and                                                                        
|
| |  | limit, through covenants in our indebtedness, our ability to
    borrow additional funds.                                                                                                                                             









| |   |                                             
| | - | --------------------------------------------
| |  | incur indebtedness;                         
|
| |  | create or suffer to exist liens;            
|
| |  | make prepayments of particular indebtedness;
|
| |  | pay dividends;                              

10



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##### Table of Contents





| |   |                                                                            
| | - | ---------------------------------------------------------------------------
| |  | make investments;                                                          
|
| |  | engage in transactions with shareholders and affiliates;                   
|
| |  | use assets as security in other transactions;                              
|
| |  | create any unrestricted subsidiary;                                        
|
| |  | sell assets; and                                                           
|
| |  | engage in mergers and consolidations or in sale-leaseback
    transactions.



We may be unable to successfully expand our
business






| |   |                                                                                            
| | - | -------------------------------------------------------------------------------------------
| |  | identification and continued evaluation of niche markets;                                  
|
| |  | identification of joint venture opportunities or acquisition
    candidates;               
|
| |  | our ability to enter into acquisitions or joint ventures on
    favorable terms;           
|
| |  | our ability to hire and train qualified personnel;                                         
|
| |  | the successful integration of any acquired businesses with our
    existing operations; and
|
| |  | our ability to effectively manage expansion and to obtain
    required financing.          



The Company is controlled by the Serrano Segovia
family






Significant competition could adversely affect our future
financial performance




11



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##### Table of Contents





If our time charter arrangements are terminated or expire,
our business could be adversely affected




Our results from operations are dependent on fuel
expenses




Downturns in the U.S. economy or in trade between the
United States and Mexico and fluctuations in the peso-dollar
exchange rate would likely have adverse effects on our business
and results of operations






12



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##### Table of Contents





Downturns in certain cyclical industries in which our
customers operate could have adverse effects on our results of
operations




We are exposed to the risk of loss and liability






Our operations are subject to extensive environmental and
safety regulation and we face potentially significant
environmental liability


Secretaría del Medio Ambiente y Recursos Naturales,


13



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##### Table of Contents









Potential labor disruptions could adversely affect our
financial condition and our ability to meet our obligations
under our debt




14



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##### Table of Contents



Our customers may take actions that may reduce our
revenues




Risks Relating to the Transaction with KCS


Certain Payments to Grupo TMM may not be realized




Dilution of Grupo TMMs stake in the capital stock of
KCS




The value of the investment of Grupo TMM in KCS
shares will depend on KCS performance in the future




KCS obligations under the Amended and Restated
Acquisition Agreement are unsecured




15



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##### Table of Contents



As a result of the sale of our interest in Grupo TFM, we
may be classified as an investment company














We may be, or may become, subject to Passive Foreign
Investment Company rules






16



---



##### Table of Contents







Risks Relating to Mexico


Economic and political developments in Mexico may
adversely affect our business




Mexico is an emerging market economy, with attendant risks
to our results of operations and financial condition




(Partido
Revolucionario Institucional) (Partido Acción
Nacional)


17



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##### Table of Contents





Currency fluctuations or the devaluation and depreciation
of the peso could limit the ability of the Company and others to
convert Pesos into U.S. Dollars or other currencies which
could adversely affect our business, financial condition or
results of operations






High interest rates in Mexico could increase our financing
costs




Military operations in Iraq and elsewhere have negatively
affected industry and economic conditions globally, and these
conditions have had, and may continue to have, a negative effect
on our business




18



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##### Table of Contents





Developments in other emerging market countries or in the
U.S. may affect us and the prices for our securities










Mexico may experience high levels of inflation in the
future, which could adversely affect our results of
operations




|                                         |  |  |      |  
|---------------------------------------- |  |  | ---- | -
|2000                                     |  |  | 8.96 | %
|2001                                     |  |  | 4.40 | %
|2002                                     |  |  | 5.70 | %
|2003                                     |  |  | 3.98 | %
|2004                                     |  |  | 5.19 | %
|2005 (three-month period ended March 31) |  |  | 0.80 | %



19



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##### Table of Contents





Political events in Mexico could affect Mexican economic
policy and our business, financial condition and results of
operations






Mexican antitrust laws may limit our ability to expand
through acquisitions or joint ventures


Comisión
Federal de Competencia







|        |                           
|------- | --------------------------
|ITEM 4. | INFORMATION ON THE COMPANY



|   |                                       
|-- | --------------------------------------
|A. | History and Development of the Company

(sociedad anonima de
capital variable)




20



---



##### Table of Contents



escisión escisión




|   |                  
|-- | -----------------
|B. | Business Overview









Railroad Operations.








21



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##### Table of Contents





Port and Terminal Operations.


Specialized Maritime Operations.


Logistics Operations.


General Information


(sociedad
anónima)


Business Strategy




| |                         
| | ------------------------
| | Reducing Operating Costs



22



---



##### Table of Contents











| |                                                                                                                  
| | -----------------------------------------------------------------------------------------------------------------
| | Focus on Integrated Logistics Solutions and on the Expansion
    of our Ports and Specialized Maritime Businesses





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | To continue to expand our integrated logistics services such
    as dedicated truck transportation, warehousing, cargo handling
    and logistics support. We will also seek to continue to use
    railroad services provided by TFM through TMM Logistics,
    enhancing our position as a true door-to-door
    logistics and multimodal service provider. We intend to enter
    into additional dedicated logistics contracts, purchase
    equipment that will enable us to perform services we previously
    outsourced, and to expand our ports and terminals and
    specialized maritime businesses.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|
| |  | To expand our alliances with leading companies in specialized
    maritime, multimodal transportation and logistics. The
    success of our commercial and strategic alliances will enable us
    to market a full range of services in the context of a total
    supply chain distribution process. Through our existing
    alliances, we have been able to benefit not only from synergies,
    but also from the operational expertise of our alliance
    partners, enhancing our own competitiveness. We believe that
    such alliances enhance the likelihood of success and reduce
    risks associated with new business ventures and product
    offerings.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|
| |  | To expand our businesses as follows: (i) in our
    Logistics operations, we plan to consolidate Mixing
    Centers operations for the Mexican Automotive Industry;
    (ii) in our Specialized Maritime operations, we are
    currently in the process of participating in PEMEX bids for
    long-time charter contracts for product tankers (we were awarded
    two five-year contracts in May and June, which began related
    operations in July. To service these two five-year contracts, at
    the end of July, we completed the purchase of two product
    tankers which were previously under bareboat contracts. We
    purchased these two vessels through an asset back financing for
    approximately $68 million, which will be paid down
    throughout the life of such contracts; additionally, we intend
    to exercise lease-to-purchase options on 10 offshore vessels as
    part of our fleet renewal program, which could represent a price
    opportunity due to current market conditions); and (iii) in
    our Ports and Terminals operations, we are evaluating a project
    to build and operate a liquid terminal at the Port of Tuxpan to
    service PEMEX, under a long-term contract. See Item 5.
    Operating and Financial Review and Prospects 
    B. Liquidity and Capital Resources  Business
    Plan, for further details.





23



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##### Table of Contents



tm




| |                   
| | ------------------
| | The Mexican Market



Mexican Foreign Trade 
2002-2004(a)


|                         |  |                          |           |   |      |   |           |      |  |   |           |  
|------------------------ |  | ------------------------ | --------- | - | ---- | - | --------- | ---- |  | - | --------- | -
|                         |  | As of December 31,       |          
|                         |  |                          |          
|                         |  | 2004                     |           |   | 2003 |   |           | 2002 | 
|                         |  |                          |           |   |      |   |           |      | 
|                         |  | (In millions of dollars) |          
|Total Exports            |  | $                        | 189,130.0 |   |      | $ | 164,860.3 |      |  | $ | 160,762.7 |  
|Total Imports            |  | $                        | 197,246.8 |   |      | $ | 170,550.6 |      |  | $ | 168,678.9 |  
|Total Trade Flows        |  | $                        | 386,376.8 |   |      | $ | 335,410.9 |      |  | $ | 329,441.5 |  
|Growth Rate  Exports    |  |                          | 14.68     | % |      |   | 2.55      | %    |  |   | 1.46      | %
|Growth Rate  Imports    |  |                          | 15.66     | % |      |   | 1.11      | %    |  |   | 0.17      | %
|Growth Rate  Total      |  |                          | 15.18     | % |      |   | 1.83      | %    |  |   | 0.80      | %
|Growth Rate 
    GDP(b) |  |                          | 4.36      | % |      |   | 1.30      | %    |  |   | 0.73      | %






|    |  |                                                                                                                                                                           
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | The figures include the in-bound (maquiladora) industry.                                                                                                                  
|   
|(b) |  | The methodology for calculating Growth Rate-GDP was modified by
    the Instituto Nacional de Estadistica, Geografia e
    Informatica(INEGI) and is based on 1993 prices.







| |                               
| | ------------------------------
| | Certain Competitive Advantages





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | no other company offers a similar breadth and depth of services
    as a third-party logistics provider in Mexico;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|
| |  | the ability to contract for the transportation of large amounts
    of cargo by sea, as well as the transport by truck, enables us
    to provide value-added door-to-door service to our
    customers. The value of our transportation service is further
    enhanced by our ability to provide overland transportation by
    truck and storage and warehousing services for some types of
    cargo. Our ability to provide these integrated services gives us
    a competitive advantage over companies that provide only
    maritime transportation to, or overland transportation within,
    Mexico. See  Logistics
    Operations; and
|
| |  | we are a Mexican-owned and Mexican-operated company, a
    distinction that allows us marketing and operational advantages
    and, in certain cases, preferential treatment in certain niche
    markets within Mexico.                                                                                                                                                                                                                                                                                                                                                                                                                               

24



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##### Table of Contents



Ports and Terminals Operations






|         |  |                                                 |  |                    |  |                                             
|-------- |  | ----------------------------------------------- |  | ------------------ |  | --------------------------------------------
|Port     |  | Concession                                      |  | Date Awarded       |  | Duration                                    
|         |  |                                                 |  |                    |  |                                             
|Acapulco |  | Integral port administration                    |  | June 20, 1996      |  | 25 years (with the possibility of extension)
|Tuxpan   |  | Approximately 35,000 square yards of waterfront |  | September 25, 2000 |  | 20 years (with the possibility of extension)
|         |  | Approximately 9,500 square yards of land        |  | April 7, 1997      |  | 20 years (with the possibility of extension)
|         |  | Stevedoring Services                            |  | August 4, 1999     |  | 10 years (with the possibility of extension)



| |         
| | --------
| | Acapulco











| |       
| | ------
| | Tuxpan



25



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##### Table of Contents









| |                  
| | -----------------
| | Shipping Agencies



Specialized Maritime Services








| |                 
| | ----------------
| | Fleet Management





|                         |       |           |    |                |             |  |                |                |  |  |        |       |  |  |            |  | 
|------------------------ | ----- | --------- | -- | -------------- | ----------- |  | -------------- | -------------- |  |  | ------ | ----- |  |  | ---------- |  | 
|                         |       | Number of |    |                | Total Dead  |  |                | Total Cubic    |  |  |       
|Vessel Type              |       | Vessels   |    |                | Weight Tons |  |                | Meter Capacity |  |  | BHP(1) |      
|                         |       |           |    |                |             |  |                |                |  |  |        |      
|                         |       |           |    | (In thousands) |             |  | (In thousands) |                |  | 
|Offshore service vessels |       |           | 26 |                |             |  | 28.6           |                |  |  | *      |       |  |  | *4,730 BHP | 
|Product tankers          |       |           | 7  |                |             |  | 295.0          |                |  |  | 333.1  |       |  |  | *          | 
|Parcel tankers           |       |           | 5  |                |             |  | 63.3           |                |  |  | 69.2   |       |  |  | *          | 
|Tugboats                 |       |           | 3  |                |             |  | 1.2            |                |  |  | *      |       |  |  | *3,916 BHP | 
|                         |       |           |    |                |             |  |                |                |  |  |        |      
|                         | Total |           |    | 41             |             |  |                | 388.1          |  |  |        | 402.3 |  |  |            |  | 
|                         |       |           |    |                |             |  |                |                |  |  |        |      

26



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##### Table of Contents








|    |                          
|--- | -------------------------
|(1) | Average Brake Horse Power



| |   |                
| | - | ---------------
| | * | Not applicable.



| |                  
| | -----------------
| | Offshore Division





| |                                   
| | ----------------------------------
| | Product Tankers and Parcel Tankers











| |              
| | -------------
| | Harbor Towing



Logistics Operations






27



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##### Table of Contents











| |               
| | --------------
| | Mixing Centers





| |   |                                                                                    
| | - | -----------------------------------------------------------------------------------
| |  | automobile inventories are closer to market, shortening
    distribution distances;
|
| |  | cost savings;                                                                      
|
| |  | increased shipment frequency resulting from higher volumes;                        
|
| |  | optimal use of infrastructure; and                                                 
|
| |  | proration of fixed costs.                                                          



tm




28



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| |                                    
| | -----------------------------------
| | RoadRailertmand Intermodal Services

tm tm tm






| |                  
| | -----------------
| | Trucking Services









| |                                 
| | --------------------------------
| | Container Repair and Maintenance



29



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##### Table of Contents



Grupo TMMs Strategic Partners




|                     |  |         |                                        | 
|-------------------- |  | ------- | -------------------------------------- | 
|Business             |  | Partner |                                       
|                     |  |         |                                       
|Ports (Acapulco)     |  |         | SSA Mexico, Inc.                       | 
|Supply Vessels       |  |         | Seacor Marine Inc.                     | 
|Harbor Towing        |  |         | Smit International Americas, Inc.      | 
|Automotive Logistics |  |         | Auto Warehousing Co.; Schnellecke GmbH | 



Recent Developments


Debt Restructuring










Additional Financing From Certain Holders of Old Senior
Notes




30



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Disposition of Grupo TMMs interest in Grupo TFM to
KCS


The Amended Acquisition Agreement








| |          
| | ---------
| | Approvals







31



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##### Table of Contents







| |                      
| | ---------------------
| | Transaction Structure





| |               
| | --------------
| | Purchase Price





| |   |                                                                                                                                                                                                                                                                                                                                                                                
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | any amount in cash required to be paid to the Mexican Government
    to effect the Final Resolution of the VAT Claim and Put net of
    any cash payments received by KCS, TFM or affiliates from any
    such agency related to the Final Resolution of the VAT Claim and
    Put; less                                                                                       
|
| |  | 23% of the amount of any net operating losses available to TFM
    and its subsidiaries which are relinquished to the Mexican
    Government by TFM without any value other than the value
    received therefor (NOL Value); less                                                                                                                                           
|
| |  | 67% of the face amount of any other tax credits under Mexican
    law which TFM or any of its affiliates is required to relinquish
    to the Mexican Government without any value received in exchange
    therefor (other than the value resulting from the Final
    Resolution of the VAT Claim and Put), to obtain the Final
    Resolution of the VAT Claim and Put; less
|
| |  | any taxes incurred with respect to the Final Resolution of the
    VAT Claim and Put which are not offset by the NOL Value or the
    other tax credits referred to in the immediately preceding
    bullet point; less                                                                                                                                                        
|
| |  | contingency fees (Contingency Fees) in an amount of
    $3,000,000 (but not any portion of the ongoing legal fees and
    expenses) to the extent they are required to be paid by Grupo
    TFM or any Grupo TFM subsidiary in connection with the
    successful resolution of the VAT Claim and the Put (such sum as
    adjusted, the VAT Contingency Payment).         







32



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| |                 
| | ----------------
| | Indemnity Escrow







| |                                 
| | --------------------------------
| | Put Obligation and the VAT Award



Indemnification for Put Purchase Price.




Status of the VAT Claim.


33



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##### Table of Contents









| |                             
| | ----------------------------
| | Tax and Accounting Treatment





| |                                                       
| | ------------------------------------------------------
| | Suspension and Discontinuation of Litigation; Releases







| |                        
| | -----------------------
| | Stockholders Agreement





| |                      
| | ---------------------
| | Transfer Restrictions

Transfers to Competitors.


34



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##### Table of Contents





Sales to Certain Other Persons.


Pledges.


Termination.




| |                      
| | ---------------------
| | Standstill Provisions





| |   |                                                                                                                                                                                                                                                                                                                                                      
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | acquire any voting securities of KCS if such persons and their
    affiliates, in the aggregate, would beneficially own more than
    20% of the total voting power (other than shares acquired if KCS
    elects to pay a portion of the purchase price in stock and any
    shares acquired under the Consulting Agreement (as defined
    below));
|
| |  | publicly announce any proposed business combination by the
    parties to the Stockholders Agreement or any group of
    which they are a part involving KCS or a substantial portion of
    its assets;                                                                                                                                            
|
| |  | solicit proxies for any matter, call any special meeting of
    stockholders, propose any matter for submission to stockholders
    or grant a proxy to any person not approved by KCS;                                                                                                                                                              
|
| |  | initiate or participate in negotiations with third parties
    regarding any of these matters or take any action that would
    require KCS to publicly disclose any of these matters;                                                                                                                                                               
|
| |  | publicly request that KCS amend or waive the standstill
    provisions; or                                                                                                                                                                                                                                                                           
|
| |  | otherwise seek to control or materially influence the
    management, board of directors or policies of KCS.                                                                                                                                                                                                                                         





| |                   
| | ------------------
| | Pre-Emptive Rights



35



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##### Table of Contents







| |            
| | -----------
| | Termination



Voting Agreement




Registration Rights Agreement




Consulting Agreement






36



---



##### Table of Contents



Marketing Arrangements




tm




tm tm tm tm




Sale of The Tex-Mex Railway




37



---



##### Table of Contents









TFM VAT Award


(amparo)




38



---



##### Table of Contents



(Procuradria Fiscal de la Federacion)


(Servicio de Administracion
Tributaria SAT)
















39



---



##### Table of Contents











| |                           
| | --------------------------
| | The Mexican Government Put

Comision Nacional Bancaria y de
Valores Bolsa Mexicana de Valores








40



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##### Table of Contents



amparo




Regulatory Framework






(cláusula de exclusión de extranjeros) Ley de Caminos, Puentes y Autotransporte
Federal Ley de Vias Generales de Comunicacion.


Ley de Puertos. Ley de Puertos Ley de Puertos


Sales and Marketing




41



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##### Table of Contents









Systems and Technology






Competition




| |                                
| | -------------------------------
| | Specialized Maritime Operations











42



---



##### Table of Contents







| |                     
| | --------------------
| | Logistics Operations









Environmental Regulation








43



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##### Table of Contents









Insurance






44



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##### Table of Contents





|   |                         
|-- | ------------------------
|C. | Organizational Structure



|                                                               |  |               |        |  |              |  |      |           |  |  |          |   |  |  |     |  
|-------------------------------------------------------------- |  | ------------- | ------ |  | ------------ |  | ---- | --------- |  |  | -------- | - |  |  | --- | -
|                                                               |  | Country of    |        |  | First Year   |  |      | Ownership |  |  | Voting   |  
|Name                                                           |  | Incorporation |        |  | of Operation |  |      | Interest  |  |  | Interest |  
|                                                               |  |               |        |  |              |  |      |           |  |  |          |  
|TMM Multimodal S.A. de C.V.*                                   |  |               | México |  |              |  | 1986 | (1)       |  |  | 96.6     | % |  |  | 100 | %
|Administración Porturaria Integral de Acapulco S.A. de C.V.*   |  |               | México |  |              |  | 1994 |           |  |  | 51       | % |  |  | 51  | %
|Marítima Mexicana, S.A. de C.V.*                               |  |               | México |  |              |  | 1961 |           |  |  | 60       | % |  |  | 60  | %
|Servicios Mexicanos en Remolcadores, S.A. de C.V. (Tugboats)*  |  |               | México |  |              |  | 1996 |           |  |  | 60       | % |  |  | 60  | %
|Lacto Comercial Organizada, S.A. de C.V. (Trucking)            |  |               | México |  |              |  | 1961 |           |  |  | 100      | % |  |  | 100 | %
|Autotransportación y Distribución Logística, S.A.
    de C.V.* |  |               | México |  |              |  | 1998 |           |  |  | 51       | % |  |  | 51  | %
|Naviera del Pacífico, S.A. de C.V. (Parcel tankers)            |  |               | México |  |              |  | 1962 |           |  |  | 100      | % |  |  | 100 | %
|Terminal Marítima de Tuxpan, S.A. de C.V. (Ports)              |  |               | México |  |              |  | 1996 |           |  |  | 100      | % |  |  | 100 | %
|TMM Logistics, S.A. de C.V. (Logistics)                        |  |               | México |  |              |  | 2000 |           |  |  | 100      | % |  |  | 100 | %
|Seglo, S.A. de C.V. (Logistics)*                               |  |               | Mexico |  |              |  | 1997 |           |  |  | 39       | % |  |  | 39  | %






| |   |                                       
| | - | --------------------------------------
| | * | Less than wholly-owned by the Company.



|    |                                                                                                                                     
|--- | ------------------------------------------------------------------------------------------------------------------------------------
|(1) | See Item 5. Operating and Financial Review and
    Prospects  Results of Operations  Other
    Arrangements  The GM Put Option.

Reclassification of Series A and Series L Shares


(sociedad anonima)




|   |                              
|-- | -----------------------------
|D. | Property, Plant and Equipment



45



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| |                                     
| | ------------------------------------
| | Concession Rights and Related Assets

|                                           |  |              |        |   |             |   |        |         |  |  |    | 
|------------------------------------------ |  | ------------ | ------ | - | ----------- | - | ------ | ------- |  |  | -- | 
|                                           |  | Years Ended  |        |   |            
|                                           |  | December 31, |        |   | Estimated   |  
|                                           |  |              |        |   | Useful Life |  
|                                           |  | 2004         |        |   | 2003        |   |        | (Years) | 
|                                           |  |              |        |   |             |   |        |         | 
|API Acapulco                               |  | $            | 6,783  |   |             | $ | 6,783  |         |  |  | 25 | 
|Tugboats in the port of Manzanillo         |  |              | 2,170  |   |             |   | 2,170  |         |  |  | 10 | 
|                                           |  |              |        |   |             |   |        |         | 
|                                           |  |              | 8,953  |   |             |   | 8,953  |         |  |  |    | 
|Accumulated amortization                   |  |              | (4,024 | ) |             |   | (3,536 | )       |  |  |    | 
|                                           |  |              |        |   |             |   |        |         | 
|Concession rights and related assets  net |  | $            | 4,929  |   |             | $ | 5,417  |         |  |  |    | 
|                                           |  |              |        |   |             |   |        |         | 



|                                          |  |              |        |  |              |   |        |         |  |  |             | 
|----------------------------------------- |  | ------------ | ------ |  | ------------ | - | ------ | ------- |  |  | ----------- | 
|                                          |  | Years Ended  |        |  |             
|                                          |  | December 31, |        |  | Estimated    |  
|                                          |  |              |        |  | Useful Lives |  
|                                          |  | 2004         |        |  | 2003         |   |        | (Years) | 
|                                          |  |              |        |  |              |   |        |         | 
|Vessels                                   |  | $            | 14,356 |  |              | $ | 15,700 |         |  |  | 25          | 
|Dry-docks (major vessel repairs)          |  |              | 2,148  |  |              |   | 1,214  |         |  |  | 5           | 
|Buildings and installations               |  |              | 11,660 |  |              |   | 12,641 |         |  |  | 20 and 25   | 
|Warehousing equipment                     |  |              | 100    |  |              |   | 108    |         |  |  | 10          | 
|Computer equipment                        |  |              | 465    |  |              |   | 460    |         |  |  | 3 and 4     | 
|Terminal equipment                        |  |              | 1,901  |  |              |   | 2,251  |         |  |  | 10          | 
|Ground transportation equipment           |  |              | 9,837  |  |              |   | 11,597 |         |  |  | 4, 5 and 10 | 
|Other equipment                           |  |              | 4,101  |  |              |   | 2,465  |         |  |  | 5           | 
|                                          |  |              |        |  |              |   |        |         | 
|                                          |  |              | 44,568 |  |              |   | 46,436 |         |  |  |             | 
|                                          |  |              |        |  |              |   |        |         | 
|Land                                      |  |              | 14,268 |  |              |   | 14,228 |         |  |  |             | 
|Construction in progress                  |  |              | 21,500 |  |              |   | 14,438 |         |  |  |             | 
|                                          |  |              |        |  |              |   |        |         | 
|Total Property, Plant and Equipment  net |  | $            | 80,336 |  |              | $ | 75,102 |         |  |  |             | 
|                                          |  |              |        |  |              |   |        |         | 






|        |                                             
|------- | --------------------------------------------
|ITEM 5. | OPERATING AND FINANCIAL REVIEW AND PROSPECTS

Executive Overview










| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Reducing our corporate overhead: Since late 2002, we have
    been attempting to reduce significantly our operating costs. In
    2003, we reduced corporate staff headcount from 222 to
    97 full-time equivalent positions through the elimination
    of redundant functions and through the transfer of certain
    employees to other business areas within the Company. If
    necessary we will consider implementing further reductions in
    the future.

46



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##### Table of Contents





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Introducing cost-saving technology: In 2003, we developed
    and completed the first phase of an information systems platform
    that integrates logistics services using Internet technology,
    thereby increasing the efficiency of our logistics operations.
    The information systems platform supports dedicated logistics
    contracts and yard management. The second phase of this project,
    which is to be completed during 2005, will allow our customers
    to access information regarding the location and status of their
    cargo via touch-tone telephone or computer.                                                                                                                                                        
|
| |  | Selling our port businesses: On May 13, 2003, we
    sold our 51% interest in TMMPyT, included in our Ports and
    Terminals segment (which included our ports operations at
    Cozumel, Manzanillo, Veracruz and Progreso), for approximately
    $114 million in cash, subject to certain post-closing
    adjustments. Net proceeds from this sale were used to repay
    amounts under our securitization facility and other short-term
    debt.                                                                                                                                                                                                                                                                                                   
|
| |  | Extending the maturity of our debt: On August 11,
    2004, we completed our debt restructuring and exchanged 2007
    Notes for substantially the full principal amount of our
    outstanding Old Senior Notes.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|
| |  | Selling our interest in Grupo TFM to KCS: On
    April 1, 2005, we completed the sale of our interest in
    Grupo TFM to KCS. As consideration for this sale we received
    $200 million in cash, $47 million in a 2-year 5%
    promissory note and 18 million shares of KCS. An additional
    $110 million in cash and stock, less certain possible
    adjustments, will be paid to us by KCS upon completion of a
    settlement involving the VAT and Put lawsuits. Net proceeds
    received from this sale were used to repay remaining outstanding
    amounts under our securitization facility (as defined below) GM
    Put Option (as later defined) obligation and to repay a portion
    of the amounts outstanding under our 2007 Notes.

Information on Cash Flows






|                                                     |                      |                          |         |         |      |   |        |         |   |   |        |         |  
|---------------------------------------------------- | -------------------- | ------------------------ | ------- | ------- | ---- | - | ------ | ------- | - | - | ------ | ------- | -
|                                                     |                      | Years Ended December 31, |        
|                                                     |                      |                          |        
|                                                     |                      | 2004                     |         |         | 2003 |   |        | 2002    |  
|                                                     |                      |                          |         |         |      |   |        |         |  
|                                                     |                      | ($ in thousands)         |        
|                                                     | Operating activities |                          | $       | (1,813  | )    |   | $      | (38,692 | ) |   | $      | (19,589 | )
|                                                     | Investing activities |                          |         | (13,904 | )    |   |        | 126,825 |   |   |        | 2,428   |  
|                                                     | Financing activities |                          |         | (3,108  | )    |   |        | (50,285 | ) |   |        | 15,637  |  
|                                                     |                      |                          |         |         |      |   |        |         |  
|Net (decrease) increase in cash and cash equivalents |                      |                          | (18,825 | )       |      |   | 37,848 |         |   |   | (1,524 | )      
|Cash and cash equivalents at beginning of year       |                      |                          | 65,164  |         |      |   | 27,316 |         |   |   | 28,840 |        
|                                                     |                      |                          |         |         |      |   |        |         |  
|Cash and cash equivalents at end of year             |                      | $                        | 46,339  |         |      | $ | 65,164 |         |   | $ | 27,316 |        
|                                                     |                      |                          |         |         |      |   |        |         |  







47



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##### Table of Contents









Outlook on Capital Expenditures


tm


Operating Results


The following discussion should be read in conjunction with,
and is qualified in its entirety by reference to, our Financial
Statements and the notes thereto appearing elsewhere in this
Annual Report. Our Financial Statements have been prepared in
accordance with IFRS, which differ in certain respects from
U.S. GAAP. Note 26 to the annual audited Financial
Statements provides a description of the principal differences
between IFRS and U.S. GAAP as they relate to us, and a
reconciliation to U.S. GAAP of net income (loss) and total
stockholders equity.


RESULTS OF OPERATIONS


Discontinued Operations








48



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##### Table of Contents





Income Statement


|                         |  |                          |         |  |         |   |         |         |  |   |         | 
|------------------------ |  | ------------------------ | ------- |  | ------- | - | ------- | ------- |  | - | ------- | 
|                         |  | Years Ended December 31, |        
|                         |  |                          |        
|                         |  | 2004(1)                  |         |  | 2003(2) |   |         | 2002(2) | 
|                         |  |                          |         |  |         |   |         |         | 
|                         |  | ($ in thousands)         |        
|Transportation revenues  |  | $                        | 679,328 |  |         | $ | 711,146 |         |  | $ | 772,067 | 
|Income on transportation |  |                          | 125,870 |  |         |   | 142,114 |         |  |   | 187,410 | 






|    |                                                                                                                                                                
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Reflects Railroad operations as discontinued operations.                                                                                                       
|   
|(2) | Reflects: (i) Railroad operations as discontinued
    operations and (ii) Ports and Terminals operations (through
    May 13, 2003) as discontinued operations.

Transportation
Revenues


|                               |       |                          |         |         |         |   |         |         |  |   |         |         | 
|------------------------------ | ----- | ------------------------ | ------- | ------- | ------- | - | ------- | ------- |  | - | ------- | ------- | 
|                               |       | Years Ended December 31, |        
|                               |       |                          |        
|                               |       | 2004(1)                  |         |         | 2003(2) |   |         | 2002(2) | 
|                               |       |                          |         |         |         |   |         |         | 
|                               |       | ($ in thousands)         |        
|Railroad Operations            |       | $                        | 699,223 |         |         | $ | 698,528 |         |  | $ | 712,327 |        
|Ports and Terminals Operations |       |                          |        |         |         |   | 30,718  |         |  |   | 90,946  |        
|Intercompany Revenues          |       |                          | (19,895 | )       |         |   | (18,100 | )       |  |   | (31,206 | )      
|                               |       |                          |         |         |         |   |         |         | 
|                               | Total |                          | $       | 679,328 |         |   | $       | 711,146 |  |   | $       | 772,067 | 
|                               |       |                          |         |         |         |   |         |         | 






|    |                                                                                                                                                                
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Reflects Railroad operations as discontinued operations.                                                                                                       
|   
|(2) | Reflects: (i) Railroad operations as discontinued
    operations and (ii) Ports and Terminals operations (through
    May 13, 2003) as discontinued operations.











| |                 
| | ----------------
| | Operating Income

|                               |       |                          |         |         |         |   |         |         |  |   |         |         | 
|------------------------------ | ----- | ------------------------ | ------- | ------- | ------- | - | ------- | ------- |  | - | ------- | ------- | 
|                               |       | Years Ended December 31, |        
|                               |       |                          |        
|                               |       | 2004(1)                  |         |         | 2003(2) |   |         | 2002(2) | 
|                               |       |                          |         |         |         |   |         |         | 
|                               |       | ($ in thousands)         |        
|Railroad Operations            |       | $                        | 125,870 |         |         | $ | 132,006 |         |  | $ | 153,318 |        
|Ports and Terminals Operations |       |                          |        |         |         |   | 10,108  |         |  |   | 34,092  |        
|                               |       |                          |         |         |         |   |         |         | 
|                               | Total |                          | $       | 125,870 |         |   | $       | 142,114 |  |   | $       | 187,410 | 
|                               |       |                          |         |         |         |   |         |         | 

49



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|    |                                                                                                                                                                
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Reflects Railroad operations as discontinued operations.                                                                                                       
|   
|(2) | Reflects: (i) Railroad operations as discontinued
    operations and (ii) Ports and Terminals operations (through
    May 13, 2003) as discontinued operations.











| |                                                                                        
| | ---------------------------------------------------------------------------------------
| | Fiscal Year ended December 31, 2004 Compared to
    Fiscal Year ended December 31, 2003



|                                |       |                                      |       |           |          |  |      |       |          |   |          |       |  |          |      |       |   |  |        |       | 
|------------------------------- | ----- | ------------------------------------ | ----- | --------- | -------- |  | ---- | ----- | -------- | - | -------- | ----- |  | -------- | ---- | ----- | - |  | ------ | ----- | 
|                                |       | Consolidated Transportation Revenues |      
|                                |       | ($ in millions)                      |      
|                                |       | Years Ended December 31,             |      
|                                |       |                                      |      
|                                |       |                                      |       | Y2003 vs. |         
|                                |       |                                      |       | % of Net  |          |  |      |       | % of Net |   |          | Y2004 | 
|                                |       | 2004                                 |       |           | Revenues |  |      | 2003  |          |   | Revenues |       |  | % Change |     
|                                |       |                                      |       |           |          |  |      |       |          |   |          |       |  |          |     
|Ports and Terminals Operations  |       | $                                    | 26.6  |           |          |  | 10.6 | %     |          | $ | 21.5     |       |  |          | 9.5  | %     |   |  | 23.7%  |      
|Specialized Maritime Operations |       |                                      | 127.8 |           |          |  | 50.9 | %     |          |   | 116.0    |       |  |          | 51.1 | %     |   |  | 10.2%  |      
|Logistics Operations            |       |                                      | 97.6  |           |          |  | 38.9 | %     |          |   | 89.5     |       |  |          | 39.4 | %     |   |  | 9.1%   |      
|Intercompany Revenues(*)        |       |                                      | (1.0  | )         |          |  | (0.4 | )%    |          |   | (0.1     | )     |  |          | (0.0 | )%    |   |  | 900.0% |      
|                                |       |                                      |       |           |          |  |      |       |          |   |          |       |  |          |     
|                                | Total |                                      | $     | 251.0     |          |  |      | 100.0 | %        |   | $        | 226.9 |  |          |      | 100.0 | % |  |        | 10.6% | 
|                                |       |                                      |       |           |          |  |      |       |          |   |          |       |  |          |     






|    |                                                                              
|--- | -----------------------------------------------------------------------------
|(*) | Represents the elimination of intercompany transactions between
    segments.



| |                               
| | ------------------------------
| | Ports and Terminals Operations



50



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##### Table of Contents





| |                              
| | -----------------------------
| | Specialized Maritime Services





| |                     
| | --------------------
| | Logistics Operations



Income on Transportation






|                                |       |                                   |       |           |      |   |       |          |   |  |       |        | 
|------------------------------- | ----- | --------------------------------- | ----- | --------- | ---- | - | ----- | -------- | - |  | ----- | ------ | 
|                                |       | Grupo TMM Operations              |      
|                                |       | Income on Transportation(1)(2)(3) |      
|                                |       | ($ in millions)                   |      
|                                |       | Years Ended December 31,          |      
|                                |       |                                   |      
|                                |       |                                   |       | Y2003 vs. |     
|                                |       |                                   |       | Y2004     |     
|                                |       | 2004                              |       |           | 2003 |   |       | % Change |  
|                                |       |                                   |       |           |      |   |       |          |  
|Ports and Terminals Operations  |       | $                                 | 0.4   |           |      | $ | 0.4   |          |   |  | 0.0%  |       
|Specialized Maritime Operations |       |                                   | 14.7  |           |      |   | 8.0   |          |   |  | 83.7% |       
|Logistics Operations            |       |                                   | 4.3   |           |      |   | 2.5   |          |   |  | 72.0% |       
|Shared Corporate Costs          |       |                                   | (16.0 | )         |      |   | (16.0 | )        |   |  | 0.0%  |       
|                                |       |                                   |       |           |      |   |       |          |  
|                                | Total |                                   | $     | 3.4       |      |   | $     | (5.1     | ) |  |       | 166.7% | 
|                                |       |                                   |       |           |      |   |       |          |  






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Operating results are reported as Income on Transportation in
    our Financial Statements included elsewhere in this Annual
    Report.                                                                                                                                                                                                                                                                                                                                
|   
|(2) | Includes estimated allocated administrative costs. For 2004:
    $3.5 million in Ports and Terminals Operations,
    $4.5 million in Specialized Maritime Operations,
    $5.4 million in Logistics Operations and $15.9 million
    in Shared Corporate Costs. For 2003: $3.1 million in Ports
    and Terminals Operations, $9.0 million in Specialized
    Maritime Operations, $4.6 million in Logistics Operations
    and $16.3 million in Shared Corporate Costs.

51



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|    |                                                                                                                                                                                                                                                                                                                                                                                   
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(3) | Includes Restructuring Expenses. For 2004 Restructuring Expenses
    mainly include: $0.2 million in Specialized Maritime
    Operations and $0.6 million in Shared Corporate Costs. For
    2003 Restructuring Expenses mainly include: $1.3 million in
    Specialized Maritime Operations, $0.1 million in Logistics
    Operations and $1.8 million in Shared Corporate Costs.



| |                               
| | ------------------------------
| | Ports and Terminals Operations





| |                              
| | -----------------------------
| | Specialized Maritime Services





| |                     
| | --------------------
| | Logistics Operations



Financial Income and Expenses, Net


|                                   |  |                          |      |           |      |   |      |          |  |  |       | 
|---------------------------------- |  | ------------------------ | ---- | --------- | ---- | - | ---- | -------- |  |  | ----- | 
|                                   |  | Financial Income and     |     
|                                   |  | Expenses, Net            |     
|                                   |  | ($ in millions)          |     
|                                   |  | Years Ended December 31, |     
|                                   |  |                          |     
|                                   |  |                          |      | Y2003 vs. |     
|                                   |  |                          |      | Y2004     |     
|                                   |  | 2004                     |      |           | 2003 |   |      | % Change | 
|                                   |  |                          |      |           |      |   |      |          | 
|Financial income and expenses, net |  | $                        | 85.3 |           |      | $ | 56.6 |          |  |  | 50.7% | 



Other Income (Expenses)  Net


|                             |  |                              |      |           |      |   |       |          |  |  |        | 
|---------------------------- |  | ---------------------------- | ---- | --------- | ---- | - | ----- | -------- |  |  | ------ | 
|                             |  | Other Income (Expenses), Net |     
|                             |  | ($ in millions)              |     
|                             |  | Years Ended December 31,     |     
|                             |  |                              |     
|                             |  |                              |      | Y2003 vs. |     
|                             |  |                              |      | Y2004     |     
|                             |  | 2004                         |      |           | 2003 |   |       | % Change | 
|                             |  |                              |      |           |      |   |       |          | 
|Other income (expenses), net |  | $                            | 16.2 |           |      | $ | (58.7 | )        |  |  | 127.6% | 

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Provision for Income Taxes


|                           |  |                            |      |           |      |   |     |          |  |  |        | 
|-------------------------- |  | -------------------------- | ---- | --------- | ---- | - | --- | -------- |  |  | ------ | 
|                           |  | Provision for Income Taxes |     
|                           |  | ($ in millions)            |     
|                           |  | Years Ended December 31,   |     
|                           |  |                            |     
|                           |  |                            |      | Y2003 vs. |     
|                           |  |                            |      | Y2004     |     
|                           |  | 2004                       |      |           | 2003 |   |     | % Change | 
|                           |  |                            |      |           |      |   |     |          | 
|Provision for income taxes |  | $                          | 43.7 |           |      | $ | 6.1 |          |  |  | 616.4% | 



Minority Interest Expense (Income)


|                          |  |                           |     |           |      |   |     |          |  |  |       | 
|------------------------- |  | ------------------------- | --- | --------- | ---- | - | --- | -------- |  |  | ----- | 
|                          |  | Minority Interest Expense |    
|                          |  | ($ in millions)           |    
|                          |  | Years Ended December 31,  |    
|                          |  |                           |    
|                          |  |                           |     | Y2003 vs. |     
|                          |  |                           |     | Y2004     |     
|                          |  | 2004                      |     |           | 2003 |   |     | % Change | 
|                          |  |                           |     |           |      |   |     |          | 
|Minority interest expense |  | $                         | 2.7 |           |      | $ | 2.0 |          |  |  | 35.0% | 



Net Loss for the Period


|                        |  |                          |       |           |      |   |      |          |  |  |       | 
|----------------------- |  | ------------------------ | ----- | --------- | ---- | - | ---- | -------- |  |  | ----- | 
|                        |  | Net Loss for the Period  |      
|                        |  | ($ in millions)          |      
|                        |  | Years Ended December 31, |      
|                        |  |                          |      
|                        |  |                          |       | Y2003 vs. |     
|                        |  |                          |       | Y2004     |     
|                        |  | 2004                     |       |           | 2003 |   |      | % Change | 
|                        |  |                          |       |           |      |   |      |          | 
|Net loss for the period |  | $                        | 102.5 |           |      | $ | 86.7 |          |  |  | 18.2% | 





| |                                                                                        
| | ---------------------------------------------------------------------------------------
| | Fiscal Year ended December 31, 2003 Compared to
    Fiscal Year ended December 31, 2002



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|                                |       |                                      |       |           |          |  |      |       |          |   |          |       |  |          |      |       |   |  |      |      |   
|------------------------------- | ----- | ------------------------------------ | ----- | --------- | -------- |  | ---- | ----- | -------- | - | -------- | ----- |  | -------- | ---- | ----- | - |  | ---- | ---- | --
|                                |       | Consolidated Transportation Revenues |      
|                                |       | ($ in millions)                      |      
|                                |       | Years Ended December 31,             |      
|                                |       |                                      |      
|                                |       |                                      |       | Y2002 vs. |         
|                                |       |                                      |       | % of Net  |          |  |      |       | % of Net |   |          | Y2003 | 
|                                |       | 2003                                 |       |           | Revenues |  |      | 2002  |          |   | Revenues |       |  | % Change |     
|                                |       |                                      |       |           |          |  |      |       |          |   |          |       |  |          |     
|Mexrail
    Operations(*)       |       |                                      |      |           |          |  |     |       |          | $ | 13.3     |       |  |          | 5.6  | %     |   |  | (100 | )%  
|Ports and Terminals Operations  |       | $                                    | 21.5  |           |          |  | 9.5  | %     |          |   | 21.5     |       |  |          | 9.1  | %     |   |  | 0.0  | %   
|Specialized Maritime Operations |       |                                      | 116.0 |           |          |  | 51.1 | %     |          |   | 123.2    |       |  |          | 52.1 | %     |   |  | (5.8 | )%  
|Logistics Operations            |       |                                      | 89.5  |           |          |  | 39.4 | %     |          |   | 79.1     |       |  |          | 33.4 | %     |   |  | 13.1 |     
|Intercompany revenues           |       |                                      | (0.1  | )         |          |  | (0.0 | )%    |          |   | (0.6     | )     |  |          | (0.2 | )%    |   |  | 83.3 | %   
|                                |       |                                      |       |           |          |  |      |       |          |   |          |       |  |          |     
|                                | Total |                                      | $     | 226.9     |          |  |      | 100.0 | %        |   | $        | 236.5 |  |          |      | 100.0 | % |  |      | (4.1 | )%
|                                |       |                                      |       |           |          |  |      |       |          |   |          |       |  |          |     






|    |                                                                                                                                                                                                           
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(*) | Mexrail operations consist of The Texas-Mexican Railway
    Operations. Represents operations from January to March 2002.
    Grupo TMM sold its controlling interest in Mexrail to TFM in
    March 2002.



| |                               
| | ------------------------------
| | Ports and Terminals Operations





| |                              
| | -----------------------------
| | Specialized Maritime Services





| |                     
| | --------------------
| | Logistics Operations

tm




| |                         
| | ------------------------
| | Income on Transportation





54



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|                                |       |                                   |       |           |      |   |       |          |   |  |        |       |   
|------------------------------- | ----- | --------------------------------- | ----- | --------- | ---- | - | ----- | -------- | - |  | ------ | ----- | --
|                                |       | Grupo TMM Operations              |      
|                                |       | Income on Transportation(1)(2)(3) |      
|                                |       | ($ in millions)                   |      
|                                |       | Years Ended December 31,          |      
|                                |       |                                   |      
|                                |       |                                   |       | Y2002 vs. |     
|                                |       |                                   |       | Y2003     |     
|                                |       | 2003                              |       |           | 2002 |   |       | % Change |  
|                                |       |                                   |       |           |      |   |       |          |  
|Mexrail Operations(*)           |       | $                                 |      |           |      | $ | 0.1   |          |   |  | (100.0 | )%   
|Ports and Terminals Operations  |       |                                   | 0.4   |           |      |   | 1.6   |          |   |  | (75    | )%   
|Specialized Maritime Operations |       |                                   | 8.0   |           |      |   | 8.7   |          |   |  | (8.0   | )%   
|Logistics Operations            |       |                                   | 2.5   |           |      |   | 4.0   |          |   |  | (37.5  | )%   
|Shared Corporate Costs          |       |                                   | (16.0 | )         |      |   | (17.8 | )        |   |  | 10.1   | %    
|                                |       |                                   |       |           |      |   |       |          |  
|                                | Total |                                   | $     | (5.1      | )    |   | $     | (3.4     | ) |  |        | (50.0 | )%
|                                |       |                                   |       |           |      |   |       |          |  






|    |                                                                                                                                                                                                           
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(*) | Mexrail operations consist of The Texas-Mexican Railway
    Operations. Represents operations from January to March 2002.
    Grupo TMM sold its controlling interest in Mexrail to TFM in
    March 2002.



|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Operating results are reported as Income on Transportation in
    our Financial Statements included elsewhere in this Annual
    Report.                                                                                                                                                                                                                                                                                                                                                                                     
|   
|(2) | Includes estimated allocated administrative costs. For 2003:
    $3.1 million in Ports and Terminals Operations,
    $9.0 million in Specialized Maritime Operations,
    $4.6 million in Logistics Operations and $16.3 million
    in Shared Corporate Costs. For 2002: $1.1 million in the
    Tex-Mex Railway Operations, $2.4 million in Ports and
    Terminals Operations, $10.2 million in Specialized Maritime
    Operations, $5.9 million in Logistics Operations and
    $17.9 million in Shared Corporate Costs.
|   
|(3) | Includes Restructuring Expenses. For 2003 Restructuring Expenses
    mainly include: $1.3 million in Specialized Maritime
    Operations, $0.1 million in Logistics Operations and
    $1.8 million in Shared Corporate Costs. For 2002
    Restructuring Expenses mainly include $0.1 million in
    Specialized Maritime Operations, $0.2 million in Logistics
    Operations and $0.6 million in Shared Corporate Costs.                                                                                                  



| |                               
| | ------------------------------
| | Ports and Terminals Operations





| |                              
| | -----------------------------
| | Specialized Maritime Services



55



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| |                     
| | --------------------
| | Logistics Operations

tm


Financial Income and Expenses, Net


|                                   |  |                          |      |           |      |   |      |          |  |  |      |   
|---------------------------------- |  | ------------------------ | ---- | --------- | ---- | - | ---- | -------- |  |  | ---- | --
|                                   |  | Financial Income and     |     
|                                   |  | Expenses, Net            |     
|                                   |  | ($ in millions)          |     
|                                   |  | Years Ended December 31, |     
|                                   |  |                          |     
|                                   |  |                          |      | Y2002 vs. |     
|                                   |  |                          |      | Y2003     |     
|                                   |  | 2003                     |      |           | 2002 |   |      | % Change | 
|                                   |  |                          |      |           |      |   |      |          | 
|Financial income and expenses, net |  | $                        | 56.6 |           |      | $ | 62.2 |          |  |  | (9.0 | )%



Other Income and Expenses  Net


|                               |  |                          |      |           |      |   |     |          |  |  |          | 
|------------------------------ |  | ------------------------ | ---- | --------- | ---- | - | --- | -------- |  |  | -------- | 
|                               |  | Other Income and         |     
|                               |  | Expenses, Net            |     
|                               |  | ($ in millions)          |     
|                               |  | Years Ended December 31, |     
|                               |  |                          |     
|                               |  |                          |      | Y2002 vs. |     
|                               |  |                          |      | Y2003     |     
|                               |  | 2003                     |      |           | 2002 |   |     | % Change | 
|                               |  |                          |      |           |      |   |     |          | 
|Other income and expenses, net |  | $                        | 58.7 |           |      | $ | 3.5 |          |  |  | 1,577.1% | 



(Provision) Benefit for Income Taxes


|                                     |  |                          |      |           |      |   |      |          |  |  |        |   
|------------------------------------ |  | ------------------------ | ---- | --------- | ---- | - | ---- | -------- |  |  | ------ | --
|                                     |  | (Provision) Benefit for  |     
|                                     |  | Income Taxes             |     
|                                     |  | ($ in millions)          |     
|                                     |  | Years Ended December 31, |     
|                                     |  |                          |     
|                                     |  |                          |      | Y2002 vs. |     
|                                     |  |                          |      | Y2003     |     
|                                     |  | 2003                     |      |           | 2002 |   |      | % Change | 
|                                     |  |                          |      |           |      |   |      |          | 
|(Provision) benefit for income taxes |  | $                        | (6.1 | )         |      | $ | 20.9 |          |  |  | (129.2 | )%



56



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Minority Interest Expense (Income)


|                                   |  |                          |     |           |      |   |      |          |  |  |        | 
|---------------------------------- |  | ------------------------ | --- | --------- | ---- | - | ---- | -------- |  |  | ------ | 
|                                   |  | Minority Interest        |    
|                                   |  | Expense (Income)         |    
|                                   |  | ($ in millions)          |    
|                                   |  | Years Ended December 31, |    
|                                   |  |                          |    
|                                   |  |                          |     | Y2002 vs. |     
|                                   |  |                          |     | Y2003     |     
|                                   |  | 2003                     |     |           | 2002 |   |      | % Change | 
|                                   |  |                          |     |           |      |   |      |          | 
|Minority interest expense (income) |  | $                        | 2.0 |           |      | $ | (0.6 | )        |  |  | 433.3% | 



Net Loss for the Period


|                        |  |                          |      |           |      |   |      |          |  |  |       |  
|----------------------- |  | ------------------------ | ---- | --------- | ---- | - | ---- | -------- |  |  | ----- | -
|                        |  | Net Loss for the Period  |     
|                        |  | ($ in millions)          |     
|                        |  | Years Ended December 31, |     
|                        |  |                          |     
|                        |  |                          |      | Y2002 vs. |     
|                        |  |                          |      | Y2003     |     
|                        |  | 2003                     |      |           | 2002 |   |      | % Change | 
|                        |  |                          |      |           |      |   |      |          | 
|Net Loss for the period |  | $                        | 86.7 |           |      | $ | 42.6 |          |  |  | 103.5 | %



Critical Accounting Policies






Revenue Recognition.


Financial Statement Translations into U.S. Dollars.


57



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Financial Instruments.


Deferred Income Taxes.


Differences Between IFRS and U.S. GAAP






|                                                                    |  |                          |        |   |      |   |       |      |  |   |       |  
|------------------------------------------------------------------- |  | ------------------------ | ------ | - | ---- | - | ----- | ---- |  | - | ----- | -
|                                                                    |  | Years Ended December 31, |       
|                                                                    |  |                          |       
|                                                                    |  | 2004                     |        |   | 2003 |   |       | 2002 | 
|                                                                    |  |                          |        |   |      |   |       |      | 
|                                                                    |  | ($ in millions)          |       
|Net (loss) income for the period after discontinuing
    operations |  |                          |        |   |      |   |       |      |  |   |       |  
|IFRS                                                                |  | $                        | (102.5 | ) |      | $ | (86.7 | )    |  | $ | (42.6 | )
|U.S. GAAP                                                           |  |                          | (115.8 | ) |      |   | (47.1 | )    |  |   | 10.6  |  
|Total stockholders equity                                          |  |                          |        |   |      |   |       |      |  |   |       |  
|IFRS                                                                |  | $                        | (49.4  | ) |      | $ | 53.2  |      |  | $ | 139.9 |  
|U.S. GAAP                                                           |  |                          | (3.2   | ) |      |   | 112.6 |      |  |   | 159.7 |  



Recent Accounting Pronouncements




| |     
| | ----
| | IFRS



58



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59



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##### Table of Contents







| |          
| | ---------
| | U.S. GAAP











60



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|   |                                
|-- | -------------------------------
|B. | Liquidity and Capital Resources













61



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| |                                         
| | ----------------------------------------
| | Our Cash Flows From Operating Activities







|                                                                               |                                                   |                          |          |        |      |   |          |        |  |   |         |        | 
|------------------------------------------------------------------------------ | ------------------------------------------------- | ------------------------ | -------- | ------ | ---- | - | -------- | ------ |  | - | ------- | ------ | 
|                                                                               |                                                   | Years Ended December 31, |         
|                                                                               |                                                   |                          |         
|                                                                               |                                                   | 2004                     |          |        | 2003 |   |          | 2002   | 
|                                                                               |                                                   |                          |          |        |      |   |          |        | 
|                                                                               |                                                   | ($ in thousands)         |         
|Net (loss) income before discontinued operations                               |                                                   | $                        | (112,017 | )      |      | $ | (128,593 | )      |  | $ | (47,589 | )     
|Depreciation and amortization                                                  |                                                   |                          | 13,621   |        |      |   | 18,953   |        |  |   | 26,364  |       
|Amortization of discount on senior secured debentures and
    commercial paper |                                                   |                          | 983      |        |      |   | 1,255    |        |  |   | 6,674   |       
|Provision (benefit), for deferred income taxes                                 |                                                   |                          | 43,703   |        |      |   | 6,121    |        |  |   | (20,932 | )     
|Minority interest                                                              |                                                   |                          | 2,655    |        |      |   | 2,042    |        |  |   | (552    | )     
|(Loss) gain on sale of fixed assets  net                                      |                                                   |                          | (344     | )      |      |   | 25,972   | (1)    |  |   | (439    | )     
|                                                                               | Total changes in operating assets and liabilities |                          |          | 49,586 |      |   |          | 35,558 |  |   |         | 16,885 | 
|                                                                               |                                                   |                          |          |        |      |   |          |        | 
|Net cash used in operating activities                                          |                                                   | $                        | (1,813   | )      |      | $ | (38,692  | )      |  | $ | (19,589 | )     
|                                                                               |                                                   |                          |          |        |      |   |          |        | 






|    |                                                                                                            
|--- | -----------------------------------------------------------------------------------------------------------
|(1) | Includes a net gain of $62.7 million on the sale of our
    interest in the ports and terminals businesses.



| |                                         
| | ----------------------------------------
| | Our Cash Flows From Investing Activities











| |                                         
| | ----------------------------------------
| | Our Cash Flows From Financing Activities







62



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| |              
| | -------------
| | Business Plan













| |                                           
| | ------------------------------------------
| | Our Ability to Continue as a Going Concern



63



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Capital Expenditures and Divestitures




Our Principal Capital Expenditures for the Last Three
Years


|                                 |       |                          |     |      |         |   |     |         |  |   |     |      | 
|-------------------------------- | ----- | ------------------------ | --- | ---- | ------- | - | --- | ------- |  | - | --- | ---- | 
|                                 |       | Years Ended December 31, |    
|                                 |       |                          |    
|                                 |       | 2004(a)                  |     |      | 2003(b) |   |     | 2002(c) | 
|                                 |       |                          |     |      |         |   |     |         | 
|                                 |       | ($ in millions)          |    
|Capital Expenditures by Segment: |       |                          |     |      |         |   |     |         |  |   |     |     
|Ports and Terminals              |       | $                        | 0.6 |      |         | $ | 1.5 |         |  | $ | 2.0 |     
|Specialized Maritime             |       |                          | 4.3 |      |         |   | 5.7 |         |  |   | 2.7 |     
|Logistics                        |       |                          | 7.0 |      |         |   | 2.0 |         |  |   | 9.7 |     
|Corporate                        |       |                          | 3.4 |      |         |   | 0.2 |         |  |   | 1.7 |     
|                                 |       |                          |     |      |         |   |     |         | 
|                                 | Total |                          | $   | 15.3 |         |   | $   | 9.4     |  |   | $   | 16.1 | 
|                                 |       |                          |     |      |         |   |     |         | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | In 2004, capital expenditures include: (i) Ports and
    Terminals: $0.3 million in construction in process for the
    expansion and maintenance of port and terminal facilities and
    $0.3 million in other related assets; (ii) Specialized
    Maritime: $4.3 million in equipment improvements;
    (iii) Logistics: $6.8 million in construction in
    process and $0.2 million in other fixed assets; and
    (iv) Corporate: $3.4 million in strategic corporate
    projects and other shared fixed assets.                                                                                                                                    
|   
|(b) | In 2003, capital expenditures include: (i) Ports and
    Terminals: $0.6 million in construction in process for the
    expansion and maintenance of port and terminal facilities and
    $0.9 million in other related assets; (ii) Specialized
    Maritime: $1.7 million in construction in process,
    $1.4 million in equipment improvements, $2.5 million
    in the acquisition of vessels and $0.1 million in other
    fixed assets; (iii) Logistics: $1.8 million in
    construction in process and $0.2 million in other fixed
    assets; and (iv) Corporate: $0.2 million in strategic
    corporate projects and other shared fixed assets.



|    |                                                                                                                                                                                                                                                                                                                                                                                                                                             
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(c) | In 2002, capital expenditures include: (i) Ports and
    Terminals: $0.2 million in other fixed assets and
    $1.8 million in the acquisition of shares in subsidiaries;
    (ii) Specialized Maritime: $2.7 million in
    construction in process; (iii) Logistics: $5.2 million
    in construction in process and $4.5 million in acquisition
    of shares of subsidiaries and (iv) Corporate:
    $1.7 million in other fixed assets.

Our Principal Capital Divestitures for the Last Three
Years


|                      |                              |                          |   |     |         |  |   |         |       |  |   |      |      | 
|--------------------- | ---------------------------- | ------------------------ | - | --- | ------- |  | - | ------- | ----- |  | - | ---- | ---- | 
|                      |                              | Years Ended December 31, |  
|                      |                              |                          |  
|                      |                              | 2004(a)                  |   |     | 2003(b) |  |   | 2002(c) |      
|                      |                              |                          |   |     |         |  |   |         |      
|                      |                              | ($ in millions)          |  
|Capital Divestitures: |                              |                          |   |     |         |  |   |         |       |  |   |     
|                      | Sale of shares in subsidiary |                          |   |    |         |  | $ | 128.7   |       |  | $ | 14.9 |     
|                      | Other assets                 |                          | $ | 1.4 |         |  |   | 7.6     |       |  | $ | 3.6  |     
|                      |                              |                          |   |     |         |  |   |         |      
|                      |                              | Total                    |   | $   | 1.4     |  |   | $       | 136.3 |  |   | $    | 18.5 | 
|                      |                              |                          |   |     |         |  |   |         |      






|    |                                                                                                                                                
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------
|(a) | In 2004, capital divestitures include:
    (i) $0.6 million in the sale of vessels and
    (ii) $0.8 million in the sale of other fixed assets.

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|    |                                                                                                                                                                                                                                                                                  
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) | In 2003, capital divestitures include:
    (i) $128.7 million net in the sale of shares in our
    Ports and Terminals businesses and in the sale of another
    subsidiary, and (ii) $7.0 million in the sale of
    vessels and $0.6 million in the sale of other fixed assets.



|    |                                                                                                                                                                                                                    
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(c) | In 2002, capital divestitures include:
    (i) $14.9 million in the sale of our 51% interest in
    Mexrail; (ii) $2.4 million in the sale of vessels and
    (iii) $1.2 million in the sale of other fixed assets.

Indebtedness




| |                                                                                         
| | ----------------------------------------------------------------------------------------
| | Grupo TMM
    91/2
    Notes due 2003 and Grupo TMM
    101/4% Senior
    Notes due 2006

1 2 pari passu


1 4 pari passu








65



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| |                                        
| | ---------------------------------------
| | Grupo TMM Senior Secured Notes due 2007







| |                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Ranking. The Senior Secured Notes rank pari passuin right of payment with all of our existing and future
    senior indebtedness and senior to all of our existing and future
    subordinated indebtedness, subject to priorities recognized by
    statute, such as tax and labor obligations.                                                                                                                                         
|
| | Maturity Date. August 1, 2007 or August 1, 2008
    if we elect to extend the maturity as described below (the
    extension term).                                                                                                                                                                                                                                                                                                    
|
| | Interest. During the term of the Senior Secured Notes
    (except during the extension term), interest will accrue from
    the settlement date and be paid semi-annually on February 1 and
    August 1 of each year, beginning on February 1, 2005
    (an interest payment date). If we pay the interest
    entirely in cash, the interest rate will be
    101/2% per
    annum during the first three years from August 11, 2004.
|
| | At our option, we may elect to pay the interest due on any
    interest payment date within three years of August 11, 2004
    as follows:                                                                                                                                                                                                                                                                                               



| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | at least 2% per annum in cash (plus such additional cash
    interest payment as we may elect); and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|
| |  | the remainder through the issuance of additional Senior Secured
    Notes with a principal amount equal to the interest due on such
    interest payment date which is not paid in cash or through the
    issuance of our ADSs as described below, or through a
    combination thereof; provided, that if we elect to
    exercise our option to pay a portion of the interest due on any
    interest payment date through the issuance of additional Senior
    Secured Notes or ADSs, the annual interest rate applicable for
    such interest payment period will be as set forth below
    (inclusive of any portion of the interest payment made in cash):

|                      |  |               |        | 
|--------------------- |  | ------------- | ------ | 
|Interest Payment Date |  | Interest Rate |       
|                      |  |               |       
|February 1, 2005      |  |               | 12.00% | 
|August 1, 2005        |  |               | 12.00% | 
|February 1, 2006      |  |               | 12.00% | 
|August 1, 2006        |  |               | 12.00% | 
|February 1, 2007      |  |               | 12.50% | 
|August 1, 2007        |  |               | 13.00% | 



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Company Option to Extend Maturity. We may elect to extend
    the maturity of the Senior Secured Notes for an additional
    one-year period. If we elect to extend the maturity of the
    Senior Secured Notes, we will (i) pay each holder of the
    Senior Secured Notes on the original maturity date a pro rata
    portion of a cash fee equal to 4% of the principal amount of the
    then outstanding Senior Secured Notes, (ii) be required to
    pay interest only in cash at a rate of 12% per annum during
    the extension term, and (iii) pay such cash interest
    quarterly in advance beginning on the first day of the extension
    term and continuing on the first day of each successive three-
    (3) month period thereafter.

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| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Guarantees. The guarantors will irrevocably and
    unconditionally guarantee all of our obligations under the
    Senior Secured Notes and the indenture governing the Senior
    Secured Notes. The guarantors obligations under the
    guarantee are their senior secured obligations and are separate
    from, and in addition to, our obligations under the Senior
    Secured Notes. Any of our obligations that are not guaranteed
    would have no direct claim against the guarantors or their
    assets in the event of our bankruptcy.                                                                                                        
|
| | Optional Tax Redemption. We may at our option redeem the
    Senior Secured Notes at any time at 100% of the principal amount
    of the Senior Secured Notes, together with any accrued and
    unpaid interest, if the Mexican withholding tax rate on payments
    of interest in respect of the Senior Secured Notes is increased,
    as a result of a change in Mexican law, to a rate in excess of
    4.9%.                                                                                                                                                                                                                                           
|
| | Offer to Purchase Upon a Change of Control. Upon a change
    of control, we will be required, subject to certain restrictions
    and conditions, to purchase all or any part of the outstanding
    Senior Secured Notes at (i) 100% of the principal amount
    thereof plus accrued and unpaid interest and additional amounts,
    if any, until such time as we have repaid, redeemed or otherwise
    retired or offered to repurchase an aggregate principal amount
    of $150 million of Senior Secured Notes, and thereafter, at
    (ii) 101% of the principal amount thereof plus accrued and
    unpaid interest and additional amounts, if any.
|
| | Governing Law. The Senior Secured Notes are governed by
    the laws of the State of New York. The security agreements are
    governed either by the laws of Mexico or the laws of the State
    of New York, depending upon the character and location of the
    collateral subject to the security agreements.                                                                                                                                                                                                                                                                                                                                            



| |                         
| | ------------------------
| | Senior Convertible Notes





| |           
| | ----------
| | Other Debt





| |               
| | --------------
| | Capital Leases



Operating Leases




| |                                                                
| | ---------------------------------------------------------------
| | Vessel, Transportation Equipment and Other Operating
    Leases



67



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Other Arrangements




| |                        
| | -----------------------
| | Securitization Facility















| |                             
| | ----------------------------
| | Payments to Promotora Servia



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| |                  
| | -----------------
| | The GM Put Option







| |                                    
| | -----------------------------------
| | The Mexican Governments Put Option







| |               
| | --------------
| | J.B. Hunt Note



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| |                                                                       
| | ----------------------------------------------------------------------
| | Risks Associated With Our Ability to Service or Refinance Our
    Debt







|   |                                                     
|-- | ----------------------------------------------------
|C. | Research And Development, Patents And Licenses, Etc.





|   |                  
|-- | -----------------
|D. | Trend Information







70



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|   |                               
|-- | ------------------------------
|E. | Off-Balance Sheet Arrangements





|   |                        
|-- | -----------------------
|F. | Contractual Obligations



|                                     |       |                                                |        |        |           |   |         |           |           |         |   |       |  |  |   |   |  |   |         |         | 
|------------------------------------ | ----- | ---------------------------------------------- | ------ | ------ | --------- | - | ------- | --------- | --------- | ------- | - | ----- |  |  | - | - |  | - | ------- | ------- | 
|                                     |       | Less Than                                      |        |        |           |   |         |           | More Than |         |  
|Indebtedness(1)                      |       | 1 Year                                         |        |        | 1-3 Years |   |         | 3-5 Years |           | 5 Years |   | Total | 
|                                     |       |                                                |        |        |           |   |         |           |           |         |   |       | 
|                                     |       | (Dollars in thousands, unless noted otherwise) |       
|Senior Secured Notes due
    2007(2) |       | $                                              | 24,716 |        |           | $ | 508,703 |           |           |         |  |       |  |  |  |   |  | $ | 533,419 |        
|Senior Notes due 2006                |       |                                                |       |        |           |   | 2,879   |           |           |         |  |       |  |  |  |   |  |   | 2,879   |        
|Other debt                           |       |                                                | 1,674  |        |           |   | 150     |           |           |         |  |       |  |  |  |   |  |   | 1,824   |        
|Capital
    leases(3)                |       |                                                | 151    |        |           |   |        |           |           |         |  |       |  |  |  |   |  |   | 151     |        
|                                     |       |                                                |        |        |           |   |         |           |           |         |   |       |  |  |  
|                                     | Total |                                                | $      | 26,541 |           |   | $       | 511,732   |           |         | $ |      |  |  | $ |  |  |   | $       | 538,273 | 
|                                     |       |                                                |        |        |           |   |         |           |           |         |   |       |  |  |  

|                                                            |       |           |        |        |           |   |        |           |           |   |         |        |  |       |       |       |  |   |        |        | 
|----------------------------------------------------------- | ----- | --------- | ------ | ------ | --------- | - | ------ | --------- | --------- | - | ------- | ------ |  | ----- | ----- | ----- |  | - | ------ | ------ | 
|                                                            |       | Less Than |        |        |           |   |        |           | More Than |   |         |       
|Operating Lease Obligations(4)                              |       | 1 Year    |        |        | 1-3 Years |   |        | 3-5 Years |           |   | 5 Years |        |  | Total |      
|                                                            |       |           |        |        |           |   |        |           |           |   |         |        |  |       |      
|Vessel, Transportation Equipment and Other Operating Leases |       | $         | 14,354 |        |           | $ | 22,600 |           |           | $ | 12,765  |        |  | $     | 2,888 |       |  | $ | 52,607 |       
|                                                            |       |           |        |        |           |   |        |           |           |   |         |        |  |       |      
|                                                            | Total |           | $      | 14,354 |           |   | $      | 22,600    |           |   | $       | 12,765 |  |       | $     | 2,888 |  |   | $      | 52,607 | 
|                                                            |       |           |        |        |           |   |        |           |           |   |         |        |  |       |      

|                               |       |           |        |        |           |   |        |           |           |   |         |        |       |  |   |   |  |   |        |        | 
|------------------------------ | ----- | --------- | ------ | ------ | --------- | - | ------ | --------- | --------- | - | ------- | ------ | ----- |  | - | - |  | - | ------ | ------ | 
|                               |       | Less Than |        |        |           |   |        |           | More Than |   |        
|Other                          |       | 1 Year    |        |        | 1-3 Years |   |        | 3-5 Years |           |   | 5 Years |        | Total | 
|                               |       |           |        |        |           |   |        |           |           |   |         |        |       | 
|Securitization
    Facility(5) |       | $         | 20,590 |        |           | $ | 39,985 |           |           | $ | 14,994  |        |       |  |  |   |  | $ | 75,569 |       
|J.B.
    Hunt(6)               |       |           | 1,847  |        |           |   |       |           |           |   |        |        |       |  |  |   |  |   | 1,847  |       
|                               |       |           |        |        |           |   |        |           |           |   |         |        |       |  |  
|                               | Total |           | $      | 22,437 |           |   | $      | 39,985    |           |   | $       | 14,994 |       |  | $ |  |  |   | $      | 77,416 | 
|                               |       |           |        |        |           |   |        |           |           |   |         |        |       |  |  






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | These amounts include principal payments and interest as of
    December 31, 2004.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   
|(2) | In May 2005, the Company paid $70 million of its
    outstanding 2007 Notes including approximately
    $67.9 million of principal amount and cash interest of
    approximately $2.0 million.                                                                                                                                                                                                                                                                                                                                                                                                     
|   
|(3) | Includes $0.9 million of amounts paid in respect of option
    purchase prices.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   
|(4) | These amounts include the minimum lease payments.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   
|(5) | These amounts include principal payments under the
    securitization facility and interest as of December 31,
    2004. The principal balance due under this securitization
    facility was approximately $74.9 million as of
    December 31, 2004. On April 5, 2005, there was
    approximately $70.5 million outstanding under the
    securitization facility, which was paid by the Company on such
    date using part of the cash proceeds received from the sale of
    Grupo TMMs interest in TFM to KCS. See
     Indebtedness  Other
    Arrangements  Securitization Facility.
|   
|(6) | These amounts include principal payments and interest as of
    December 31, 2004.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

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|        |                                           
|------- | ------------------------------------------
|ITEM 6. | DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES

Directors and Senior Management




| |                   
| | ------------------
| | Board of Directors

Estatutos Sociales




|                            |  |                                                                |  |             |    |  |     |  |    | 
|--------------------------- |  | -------------------------------------------------------------- |  | ----------- | -- |  | --- |  | -- | 
|                            |  |                                                                |  | Years as a  |    |  |    
|                            |  |                                                                |  | Director or |    |  |    
|                            |  |                                                                |  | Alternate   |    |  |    
|Name                        |  | Principal Occupation                                           |  | Director    |    |  | Age | 
|                            |  |                                                                |  |             |    |  |     | 
|Directors                   |  |                                                                |  |             |    |  |     |  |    | 
|José F. Serrano Segovia     |  | Chairman of the Board and Chief Executive Officer of Grupo TMM |  |             | 33 |  |     |  | 64 | 
|Ramón Serrano Segovia       |  | Vice-Chairman of Grupo TMM                                     |  |             | 14 |  |     |  | 58 | 
|Javier Segovia Serrano      |  | President of Grupo TMM                                         |  |             | 13 |  |     |  | 44 | 
|José Luis Salas Cacho       |  | Private Investor                                               |  |             | 1  |  |     |  | 51 | 
|Ignacio Rodríguez Pullen    |  | Attorney                                                       |  |             | 2  |  |     |  | 32 | 
|Lorenzo Cué Sánchez Navarro |  | Private Investor                                               |  |             | 14 |  |     |  | 39 | 
|Robert Carl Rosenthal       |  | CEO of Savile Finance Group                                    |  |             | 2  |  |     |  | 43 | 
|Alternate Directors         |  |                                                                |  |             |    |  |     |  |    | 
|José Serrano Cuevas         |  | New Projects Manager, Grupo TMM                                |  |             | 6  |  |     |  | 25 | 
|Gerardo Primo Ramírez       |  | General Director, TMM Logistics                                |  |             | 13 |  |     |  | 52 | 
|Horacio Reyes Guzmán        |  | Corporate Administrative and Planning Director of Grupo TMM    |  |             | 4  |  |     |  | 48 | 
|Mario Mohar Ponce           |  | Private Investor                                               |  |             | 14 |  |     |  | 56 | 
|Ignacio Rodríguez Rocha     |  | Attorney                                                       |  |             | 14 |  |     |  | 69 | 
|Antonio Cué Sánchez Navarro |  | Private Investor                                               |  |             | 14 |  |     |  | 35 | 
|Juan Pablo Mariño           |  | Executive Director of Savile Finance Group                     |  |             | 2  |  |     |  | 38 | 

José F. Serrano Segovia




Ramón Serrano Segovia




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Javier Segovia Serrano




José Luis Salas Cacho




Ignacio Rodríguez Pullen




Lorenzo Cué Sánchez Navarro




Robert Carl Rosenthal




José Serrano Cuevas




Gerardo Primo Ramírez




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Horacio Reyes Guzmán




Mario Mohar Ponce




Ignacio Rodríguez Rocha




Antonio Cué Sánchez Navarro




Juan Pablo Mariño






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| |                   
| | ------------------
| | Executive Officers



|                           |  |                                                       |  |          |    |          |           |  |    | 
|-------------------------- |  | ----------------------------------------------------- |  | -------- | -- | -------- | --------- |  | -- | 
|                           |  |                                                       |  |          |    | Years as |          
|                           |  |                                                       |  | Years of |    |          | Officer   | 
|Name                       |  | Position                                              |  | Service  |    |          | Executive | 
|                           |  |                                                       |  |          |    |          |           | 
|Corporate Directors        |  |                                                       |  |          |    |          |           |  |    | 
|José F. Serrano Segovia    |  | Chairman of the Board and Chief Executive Officer     |  |          | 33 |          |           |  | 13 | 
|Javier Segovia Serrano     |  | President                                             |  |          | 17 |          |           |  | 8  | 
|Horacio Reyes Guzmán       |  | Corporate Administrative and Planning Director        |  |          | 12 |          |           |  | 6  | 
|Juan Fernández Galeazzi    |  | Finance Director and Treasurer                        |  |          | 9  |          |           |  | 3  | 
|Brad Lee Skinner           |  | Senior Vice President, Investor Relations             |  |          | 9  |          |           |  | 5  | 
|Elvira Ruiz Carreño        |  | Corporate Audit Director                              |  |          | 9  |          |           |  | 2  | 
|Business Unit Directors    |  |                                                       |  |          |    |          |           |  |    | 
|Gerardo Primo Ramírez      |  | General Director, TMM Logistics                       |  |          | 14 |          |           |  | 9  | 
|Eduardo Solórzano Caraza   |  | General Director, Ports and Terminals                 |  |          | 4  |          |           |  | 2  | 
|Silverio Di Costanzo Pérez |  | General Director, Specialized Maritime Transportation |  |          | 14 |          |           |  | 10 | 





|   |             
|-- | ------------
|B. | Compensation





| |                                        
| | ---------------------------------------
| | Pension, retirement or similar benefits





|   |                
|-- | ---------------
|C. | Board Practices



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| |                                          
| | -----------------------------------------
| | Special Committees and Statutory Auditors





| |                               
| | ------------------------------
| | Planning and Finance Committee





| |   |                                                                                          
| | - | -----------------------------------------------------------------------------------------
| |  | evaluating assumptions and verifying the completion of budgetary
    and strategic plans;
|
| |  | evaluating risk assessment with management;                                              
|
| |  | discussing risk assessment with management;                                              
|
| |  | reviewing investment and finance policies with
    management; and                       
|
| |  | presenting a report of the committees activities to the
    Board of Directors.         

Evaluation and
Compensation Committee






| |   |                                                                                                                                                        
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | reviewing procedures for hiring the Companys president and
    senior executive officers;                                                             
|
| |  | reviewing human resources policies, including employees
    performance evaluation policies, promotions and structural
    changes to the Company; and
|
| |  | presenting proposals concerning the structure and amount of
    compensation for senior executive officers.                                            



| |                
| | ---------------
| | Audit Committee





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| |                     
| | --------------------
| | Disclosure Committee





| |               
| | --------------
| | Code of Ethics

www.grupotmm.com




| |                  
| | -----------------
| | Statutory Auditor

comisario








| |   |                                                                                      
| | - | -------------------------------------------------------------------------------------
| |  | call Ordinary or Extraordinary General Shareholders
    Meetings;                   
|
| |  | place items on the agenda for meetings of shareholders or the
    Board of Directors;
|
| |  | attend meetings of shareholders, the Board of Directors, or the
    Audit Committee; 
|
| |  | review all of our transactions;                                                      
|
| |  | inspect our books of account and all other pertinent
    documents; and              
|
| |  | generally monitor our affairs.                                                       



Significant Differences Between Mexican and
U.S. Corporate Governance Standards




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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Boards of directors of U.S. domestic listed companies must
    have a majority of independent directors, non-management
    directors of U.S. domestic listed companies must meet at
    regularly scheduled executive sessions without management and
    U.S. domestic listed companies must have nominating/
    corporate governance and compensation committees composed
    entirely of independent directors. Under Mexican law there is no
    requirement for regularly scheduled executive sessions with
    management. In addition, domestic regulations do not require a
    lookback period in determining the independence of a
    director, as is the case in the U.S.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|
| |  | U.S. domestic listed companies must have an audit committee
    with a minimum of three members each of whom must be independent
    and financially literate in accordance with New York Stock
    Exchange rules, and at least one member must have accounting or
    related financial management expertise meeting NYSE standards.
    U.S. domestic listed company audit committees must also
    (1) have a written charter, (2) evaluate and review
    the lead partner of the independent auditor and assure its
    regular rotation, (3) discuss earnings press releases, as
    well as financial information and earnings guidance provided to
    analysts and rating agencies, (4) meet separately with
    management and with external and internal auditors, and
    (5) set clear hiring policies for employees of the
    independent auditors. Similarly, Mexican practices require that
    the audit committee should be composed of three to seven
    directors of which the president of the committee and a majority
    of the members should be independent. Moreover, some of the
    functions that the Audit Committee performs according to
    U.S. standards are currently required to be performed by
    the Planning and Financing Committee according to domestic
    practices, such as: control procedures, discussion of earnings
    guidance and financial information provided to analysts and
    credit agencies and discussion of risk assessment policies with
    management.
|
| |  | U.S. domestic listed companies must adopt corporate
    governance guidelines discussing specified subjects, such as
    director qualifications and responsibilities, responsibilities
    of key board committees and director compensation. Grupo TMM is
    working on completing and updating its corporate governance
    guidelines to align them with U.S. standards and
    requirements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|
| |  | U.S. domestic listed companies must adopt a code of
    business conduct and ethics for directors, officers and
    employees covering specified subjects and promptly disclose
    violations of the code. Domestic practices as per the Internal
    Regulations of the Bolsa Mexicana de Valores
    (Mexican Stock Exchange) contemplates that a private issuer must
    have a Code of Business Conduct and Ethics. Grupo TMM has
    updated its Code of Business Conduct and Ethics in alignment
    with U.S. standards and requirements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|
| |  | As per Mexican practice, the board of directors may appoint one
    or more Special Committees in order to delegate its supervisory
    authority. At least one member of each Special Committee should
    be an independent director. Grupo TMM has a standing Planning
    and Finance Committee and an Evaluation and Compensation
    Committee. These Committees, of which at least one director is
    independent, do comply with domestic corporate practices and are
    composed of members of the Board.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|
| |  | U.S. domestic listed companies are required to have a
    Nominating/ Corporate Governance Committee, while current
    domestic practices do not require so. In Mexico, a private
    issuer must have a Planning and Finance Committee that performs
    similar activities to those required by U.S. domestic
    listed companies.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|
| |  | U.S. corporate practices provide that the Compensation
    Committee must be composed entirely of independent directors,
    while Mexican regulations provide that the Compensation
    Committee can be composed of three to seven members of which at
    least one director should be independent.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|
| |  | U.S. domestic listed companies must obtain shareholder
    approval with respect to any equity compensation plan for any
    employee, director or service provider for compensation for
    services. U.S. domestic listed companies must also obtain
    shareholder approval (subject to certain exceptions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                

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| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | prior to the issuance of common stock or securities convertible
    into or exercisable for common stock (1) to a director, an
    officer, a substantial security holder or a party related to any
    of them if the number of shares of common stock which are to be
    issued or are issuable upon conversion exceeds 1% of the number
    of shares of common stock or voting power outstanding before the
    issuance, (2) in any transaction or series of transactions,
    if the voting power of the common stock is equal to or exceeds
    20% of the voting power outstanding before the issuance or if
    the number of shares of the common stock is equal to or exceeds
    20% of the number of shares outstanding before the issuance, and
    (3) that will result in a change of control of the issuer.
    Mexican companies are not subject to shareholder approval with
    respect to equity compensation plans.



|   |          
|-- | ---------
|D. | Employees







|   |                
|-- | ---------------
|E. | Share Ownership





(certificados de
participación ordinarios no amortizables)


79



---



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|        |                                                  
|------- | -------------------------------------------------
|ITEM 7. | MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS



|   |                   
|-- | ------------------
|A. | Major Shareholders



|                                                    |  |                  |           |  |      |  |                      |       |  |  |            |  |  |         |            |  |  |  |      |  
|--------------------------------------------------- |  | ---------------- | --------- |  | ---- |  | -------------------- | ----- |  |  | ---------- |  |  | ------- | ---------- |  |  |  | ---- | -
|                                                    |  | Actual Ownership |           |  |      |  | Beneficial Ownership |      
|                                                    |  |                  |           |  |      |  |                      |      
|Owner                                               |  | Series A Shares  |           |  | ADRs |  |                      | Total |  |  | Amount     |  |  | Percent |           
|                                                    |  |                  |           |  |      |  |                      |       |  |  |            |  |  |         |           
|José F. Serrano
    Segovia(a)(b)                   |  |                  | 4,021,568 |  |      |  | 6,394,556            |       |  |  | 10,416,124 |  |  |         | 25,949,825 |  |  |  | 45.6 | %
|Ramón Serrano
    Segovia(a)(b)                     |  |                  | 2,491,485 |  |      |  | 4,983,981            |       |  |  | 7,475,466  |  |  |         | 11,707,880 |  |  |  | 20.6 | %
|Teresa Serrano
    Segovia(a)(b)                    |  |                  | 956,950   |  |      |  | 2,868,871            |       |  |  | 3,825,821  |  |  |         | 3,825,821  |  |  |  | 6.7  | %
|Servicios Directivos Servia, S.A. de
    C.V.(a)(b) |  |                  | 425,850   |  |      |  | 3,806,064            |       |  |  | 4,231,914  |  |  |         | 4,231,914  |  |  |  | 7.4  | %
|Promotora Servia, S.A. de
    C.V.(a)(b)            |  |                  | 500       |  |      |  | 0                    |       |  |  | 500        |  |  |         | 4,232,414  |  |  |  | 7.4  | %
|Williams, Jones & Associates, Inc.
    (c)          |  |                  | 0         |  |      |  | 4,000,850            |       |  |  | 4,000,850  |  |  |         | 4,000,850  |  |  |  | 7.0  | %
|Litespeed Capital,
    LLC(d)                       |  |                  | 0         |  |      |  | 3,650,500            |       |  |  | 3,650,500  |  |  |         | 3,650,500  |  |  |  | 6.4  | %
|Chesapeake Partners Management Co,
    Inc.(e)      |  |                  | 0         |  |      |  | 2,595,500            |       |  |  | 2,595,500  |  |  |         | 2,595,500  |  |  |  | 4.6  | %






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Based upon information set Forth in a Schedule 13D filed on
    May 28, 2002. The Schedule 13D was filed by the
    following persons, all of whom disclaim membership in a group:
    José F. Serrano Segovia, who is deemed to beneficially own
    25,949,825 Series A Shares (45.6%), and who has the sole
    power to vote 21,717,408 of such shares, the sole power to
    dispose of 10,416,124 of such shares, and who has the shared
    power to vote and dispose of 4,232,414 of such shares;
    Ramón Serrano Segovia, who is deemed to beneficially own
    11,707,880 Series A Shares (20.6%), and who has the sole
    power to vote none of such shares, the sole power to dispose of
    7,475,466 of such shares and the shared power to vote and
    dispose of 4,232,914 of such shares; Teresa Serrano Segovia, who
    beneficially owns and has the sole power to dispose of 3,825,821
    Series A Shares (6.7%); Servicios Directivos Servia, which
    beneficially owns and has the shared power to vote and dispose
    of 4,231,914 Series A Shares (7.3%); and Promotora Servia,
    S.A. de C.V., which beneficially owns and has the shared power
    to vote and dispose of 4,232,414 Series A Shares (7.4%).                                                                                                                                                                                                                                                                                                                      
|   
|(b) | As of July 31st 2005, (i) 14,247,408 of the 21,717,411
    Series A Shares beneficially owned by José, Ramón
    and Teresa Serrano Segovia are represented by ADSs representing
    CPOs which correspondingly represent financial interests in the
    same number of Series A Shares and (ii) 3,806,064 of
    the 4,231,914 Series A Shares beneficially owned by
    Servicios Directivos Servia, S.A. de C.V. were represented by
    ADSs. José, Ramón and Teresa Serrano Segovia have
    jointly pledged 3,575,000 ADSs to Citibank, N.A. to secure a
    demand loan in the principal amount of $5.0 million.
    José and Ramón Serrano Segovia have jointly pledged
    (i) 6,513,053 Series A Shares to Ixe Banco, S.A.,
    Institución de Banca Múltiple, Ixe Grupo Financiero,
    to secure a loan in the principal amount of $5.0 million,
    (ii) 7,958,187 ADSs to Argyll Equities LLC to secure a loan
    in the aggregate amount of $17.0 million. Teresa Serrano
    Segovia has pledged (i) 960,000 ADSs to Ixe Banco, S.A.,
    Institución de Banca Múltiple, Ixe Grupo Financiero,
    to secure a loan in the aggregate amount of $3.0 million.
    Servicios Directivos Servia, S.A. de C.V. has pledged
    (i) 3,737,064 ADSs to Argyll Equities LLC to secure a loan
    in the aggregate amount of $17.0 million referenced above,
    (ii) 425,850 Series A Shares to Ixe Banco, S.A.,
    Institución de Banca Múltiple, Ixe Grupo Financiero,
    to secure a loan in the principal amount of $5.0 million
    referenced above.



|    |                                                                                               
|--- | ----------------------------------------------------------------------------------------------
|(c) | Based upon information contained in such companys
    Schedule 13F filed as of June 30, 2005.



|    |                                                                                               
|--- | ----------------------------------------------------------------------------------------------
|(d) | Based upon information contained in such companys
    schedule 13F filed as of June 30, 2005.



|    |                                                                                               
|--- | ----------------------------------------------------------------------------------------------
|(e) | Based upon information contained in such companys
    Schedule 13F filed as of June 30, 2005.

80



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|   |                           
|-- | --------------------------
|B. | Related Party Transactions



| |                            
| | ---------------------------
| | Promotora Servia Agreements









| |       
| | ------
| | Seacor





|   |                                
|-- | -------------------------------
|C. | Interest of Experts and Counsel



81



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|        |                      
|------- | ---------------------
|ITEM 8. | FINANCIAL INFORMATION





|   |                  
|-- | -----------------
|A. | Legal Proceedings



| |                                  
| | ---------------------------------
| | Dispute with Kansas City Southern













82



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##### Table of Contents













| |                        
| | -----------------------
| | Other Legal Proceedings







83



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##### Table of Contents







(Tribunal
Federal de Justicia Fiscal y Administrativa)




Dividends






|   |                    
|-- | -------------------
|B. | Significant Changes








|        |                      
|------- | ---------------------
|ITEM 9. | THE OFFER AND LISTING



|   |                          
|-- | -------------------------
|A. | Offer and listing details



| |                             
| | ----------------------------
| | Nature of the trading market



84



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(sociedad anónima)






1 2 1 4




Mexican Stock Exchange


Price per Share


|                     |  |          |        |  |          |  |       |      |  |  |        |  |  |  |       | 
|-------------------- |  | -------- | ------ |  | -------- |  | ----- | ---- |  |  | ------ |  |  |  | ----- | 
|                     |  | A Shares |        |  | L Shares | 
|                     |  |          |        |  |          | 
|Previous Five Years: |  | High     |        |  | Low      |  |       | High |  |  | Low    | 
|                     |  |          |        |  |          |  |       |      |  |  |        | 
|                     |  | (Pesos)  |       
|2000                 |  |          | 93.00  |  |          |  | 42.00 |      |  |  | 103.00 |  |  |  | 39.00 | 
|2001                 |  |          | 123.85 |  |          |  | 47.30 |      |  |  | 128.38 |  |  |  | 48.80 | 
|2002(1)              |  |          | 106.00 |  |          |  | 51.60 |      |  |  | 106.40 |  |  |  | 56.00 | 
|2003                 |  |          | 55.00  |  |          |  | 16.61 |      |  |  | *      |  |  |  | *     | 
|2004                 |  |          | 47.50  |  |          |  | 25.00 |      |  |  | *      |  |  |  | *     | 






|    |                                                        
|--- | -------------------------------------------------------
|(1) | Series L Shares information through September 12, 2002.



| |   |     
| | - | ----
| | * | N.A.

85



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Mexican Stock Exchange


Price per Share


|                                 |  |          |       |  |          |  |       |      |  |  |     |  |  |  |   | 
|-------------------------------- |  | -------- | ----- |  | -------- |  | ----- | ---- |  |  | --- |  |  |  | - | 
|                                 |  | A Shares |       |  | L Shares | 
|                                 |  |          |       |  |          | 
|Previous Two Years (By Quarter): |  | High     |       |  | Low      |  |       | High |  |  | Low | 
|                                 |  |          |       |  |          |  |       |      |  |  |     | 
|                                 |  | (Pesos)  |      
|2003:                            |  |          |       |  |          |  |       |      |  |  |     |  |  |  |   | 
|First Quarter                    |  |          | 56.90 |  |          |  | 33.50 |      |  |  | *   |  |  |  | * | 
|Second Quarter                   |  |          | 45.00 |  |          |  | 16.61 |      |  |  | *   |  |  |  | * | 
|Third Quarter                    |  |          | 40.00 |  |          |  | 23.50 |      |  |  | *   |  |  |  | * | 
|Fourth Quarter                   |  |          | 48.00 |  |          |  | 35.00 |      |  |  | *   |  |  |  | * | 
|2004:                            |  |          |       |  |          |  |       |      |  |  |     |  |  |  |   | 
|First Quarter                    |  |          | 47.50 |  |          |  | 33.00 |      |  |  | *   |  |  |  | * | 
|Second Quarter                   |  |          | 30.00 |  |          |  | 28.70 |      |  |  | *   |  |  |  | * | 
|Third Quarter                    |  |          | 30.50 |  |          |  | 25.00 |      |  |  | *   |  |  |  | * | 
|Fourth Quarter                   |  |          | 40.51 |  |          |  | 26.01 |      |  |  | *   |  |  |  | * | 
|2005:                            |  |          |       |  |          |  |       |      |  |  |     |  |  |  |   | 
|First Quarter                    |  |          | 40.00 |  |          |  | 36.02 |      |  |  | *   |  |  |  | * | 
|Second Quarter                   |  |          | 34.00 |  |          |  | 31.40 |      |  |  | *   |  |  |  | * | 
|Third Quarter                    |  |          | 37.94 |  |          |  | 33.20 |      |  |  | *   |  |  |  | * | 






|    |                                                        
|--- | -------------------------------------------------------
|(1) | Series L Shares information through September 12, 2002.



| |   |     
| | - | ----
| | * | N.A.

Mexican Stock Exchange


Price per Share


|                     |  |          |       |  |     |  |       | 
|-------------------- |  | -------- | ----- |  | --- |  | ----- | 
|                     |  | A Shares |      
|                     |  |          |      
|Previous Six Months: |  | High     |       |  | Low | 
|                     |  |          |       |  |     | 
|                     |  | (Pesos)  |      
|*March 31, 2005      |  |          |      |  |     |  |      | 
|April 30, 2005 ,     |  |          | 31.40 |  |     |  | 31.40 | 
|May 31, 2005         |  |          | 34.00 |  |     |  | 33.79 | 
|June 30, 2005        |  |          | 33.25 |  |     |  | 33.20 | 
|July 31, 2005        |  |          | 37.94 |  |     |  | 35.00 | 
|*August 30, 2005     |  |          |      |  |     |  |      | 






|  |                                                                     
|- | --------------------------------------------------------------------
|* | Series A Shares did not trade in the months of March and
    August.

Source:     InfoSel Financiero


New York Stock Exchange


Price per Share


|                     |  |           |       |  |              |  |      |      |  |  |       |  |  |  |      | 
|-------------------- |  | --------- | ----- |  | ------------ |  | ---- | ---- |  |  | ----- |  |  |  | ---- | 
|                     |  | CPO ADS   |       |  | L Shares ADS | 
|                     |  |           |       |  |              | 
|Previous Five Years: |  | High      |       |  | Low          |  |      | High |  |  | Low   | 
|                     |  |           |       |  |              |  |      |      |  |  |       | 
|                     |  | (Dollars) |      
|2000                 |  |           | 10.38 |  |              |  | 4.19 |      |  |  | 11.13 |  |  |  | 4.50 | 
|2001                 |  |           | 13.60 |  |              |  | 4.00 |      |  |  | 13.95 |  |  |  | 4.61 | 
|2002(1)              |  |           | 11.23 |  |              |  | 4.60 |      |  |  | 11.50 |  |  |  | 4.95 | 
|2003                 |  |           | 5.43  |  |              |  | 1.45 |      |  |  | *     |  |  |  | *    | 
|2004                 |  |           | 4.56  |  |              |  | 1.85 |      |  |  | *     |  |  |  | *    | 






|    |                                                        
|--- | -------------------------------------------------------
|(1) | Series L Shares information through September 12, 2002.



| |   |     
| | - | ----
| | * | N.A.

86



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##### Table of Contents



New York Stock Exchange


Price per Share


|                                 |  |           |      |  |              |  |      |      |  |  |     |  |  |  |   | 
|-------------------------------- |  | --------- | ---- |  | ------------ |  | ---- | ---- |  |  | --- |  |  |  | - | 
|                                 |  | CPO ADS   |      |  | L Shares ADS | 
|                                 |  |           |      |  |              | 
|Previous Two Years (By Quarter): |  | High      |      |  | Low          |  |      | High |  |  | Low | 
|                                 |  |           |      |  |              |  |      |      |  |  |     | 
|                                 |  | (Dollars) |     
|2003:                            |  |           |      |  |              |  |      |      |  |  |     |  |  |  |   | 
|First Quarter                    |  |           | 5.43 |  |              |  | 2.83 |      |  |  | *   |  |  |  | * | 
|Second Quarter                   |  |           | 4.34 |  |              |  | 1.45 |      |  |  | *   |  |  |  | * | 
|Third
    Quarter(1)             |  |           | 3.80 |  |              |  | 2.82 |      |  |  | *   |  |  |  | * | 
|Fourth Quarter                   |  |           | 4.39 |  |              |  | 3.13 |      |  |  | *   |  |  |  | * | 
|2004:                            |  |           |      |  |              |  |      |      |  |  |     |  |  |  |   | 
|First Quarter                    |  |           | 4.56 |  |              |  | 2.74 |      |  |  | *   |  |  |  | * | 
|Second Quarter                   |  |           | 3.23 |  |              |  | 2.40 |      |  |  | *   |  |  |  | * | 
|Third Quarter                    |  |           | 2.76 |  |              |  | 1.85 |      |  |  | *   |  |  |  | * | 
|Fourth Quarter                   |  |           | 3.94 |  |              |  | 2.20 |      |  |  | *   |  |  |  | * | 
|2005:                            |  |           |      |  |              |  |      |      |  |  |     |  |  |  |   | 
|First Quarter                    |  |           | 3.69 |  |              |  | 3.00 |      |  |  | *   |  |  |  | * | 
|Second Quarter                   |  |           | 3.20 |  |              |  | 2.09 |      |  |  | *   |  |  |  | * | 
|Third Quarter                    |  |           | 3.75 |  |              |  | 2.40 |      |  |  | *   |  |  |  | * | 






|    |                                                        
|--- | -------------------------------------------------------
|(1) | Series L Shares information through September 12, 2002.



| |   |     
| | - | ----
| | * | N.A.

New York Stock Exchange


Price per Share


|                     |  |           |      |  |     |  |      | 
|-------------------- |  | --------- | ---- |  | --- |  | ---- | 
|                     |  | CPO ADS   |     
|                     |  |           |     
|Previous Six Months: |  | High      |      |  | Low | 
|                     |  |           |      |  |     | 
|                     |  | (Dollars) |     
|March 31, 2005       |  |           | 3.50 |  |     |  | 3.00 | 
|April 30, 2005       |  |           | 3.20 |  |     |  | 2.56 | 
|May 31, 2005         |  |           | 3.02 |  |     |  | 2.09 | 
|June 30, 2005        |  |           | 3.09 |  |     |  | 2.40 | 
|July 31, 2005        |  |           | 3.70 |  |     |  | 3.00 | 
|August 31, 2005      |  |           | 3.75 |  |     |  | 3.05 | 

Source: NYSE  Price history composite




|   |                     
|-- | --------------------
|B. | Plan of Distribution





|   |        
|-- | -------
|C. | Markets

1 2




|   |                     
|-- | --------------------
|D. | Selling Shareholders





|   |         
|-- | --------
|E. | Dilution



87



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##### Table of Contents





|   |                      
|-- | ---------------------
|F. | Expenses of the Issue








|         |                       
|-------- | ----------------------
|ITEM 10. | ADDITIONAL INFORMATION



|   |              
|-- | -------------
|A. | Share Capital





|   |                                       
|-- | --------------------------------------
|B. | Memorandum and Articles of Association

Estatutos
Sociales




| |                          
| | -------------------------
| | Organization and Register

sociedad anonima, Estatutos
Sociales Estatutos Sociales








| |                   
| | ------------------
| | Board of Directors







88



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##### Table of Contents









| |              
| | -------------
| | Capital Stock





| |                          
| | -------------------------
| | Registration and Transfer





| |                       
| | ----------------------
| | Shareholders Meetings

(Ley General de Sociedades
Mercantiles)




89



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##### Table of Contents











| |                              
| | -----------------------------
| | Limitation on Share Ownership





(Fideicomiso Maestro de
Inversion Neutra)  (certificados de participación ordinarios no
amortizables)






Ley General de Sociedades
Mercantiles (Ley del Mercado de
Valores)


90



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##### Table of Contents





| |                             
| | ----------------------------
| | Acquisition of Share Capital





| |                                                 
| | ------------------------------------------------
| | Limitation of Officers and Directors Liability

(Comisario)






| |                   
| | ------------------
| | Liquidation Rights





| |          
| | ---------
| | Dividends





| |                      
| | ---------------------
| | Certain Voting Rights





| |                            
| | ---------------------------
| | Preemptive and Other Rights



91



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##### Table of Contents





|   |                   
|-- | ------------------
|C. | Material Contracts





|   |                  
|-- | -----------------
|D. | Exchange Controls





|   |         
|-- | --------
|E. | Taxation

General






| |   |                                                                                                                                                                                                                                         
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | U.S. holders, who hold our securities as capital assets and
    whose functional currency is the United States Dollar, in
    the case of United States federal income tax
    consequences; and                                        
|
| |  | U.S. holders that are non-residents of Mexico for Mexican
    federal tax purposes and that do not have a permanent
    establishment in Mexico (a non-resident
    U.S. holder), in the case of Mexican federal tax
    consequences.







92



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Equity




| |                           
| | --------------------------
| | Mexican Tax Considerations



Dividends


Capital Gains








93



---



##### Table of Contents









Other Mexican Taxes




| |                                        
| | ---------------------------------------
| | United States Income Tax Considerations



Dividends






94



---



##### Table of Contents



Capital Gains




| |                                         
| | ----------------------------------------
| | Passive Foreign Investment Company Rules









95



---



##### Table of Contents



Debt




| |                           
| | --------------------------
| | Mexican Tax Considerations



Interest 




| |   |                                                                                                                                                                                                                                                                                                                                                                                              
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | our Notes are registered with the Special Section of the
    Registry maintained by the CNBV and evidence of the registration
    is filed with the Ministry of Finance and Public Credit;                                                                                                                                                                                                   
|
| |  | our Notes were placed outside of Mexico through banks or
    brokerage houses in a country with which Mexico has in force a
    treaty for the avoidance of double taxation;                                                                                                                                                                                                                 
|
| |  | we duly comply with the information requirements established in
    the general rules issued by the Ministry of Finance and Public
    Credit for those purposes; and                                                                                                                                                                                                                        
|
| |  | owners of more than 10% of our voting stock or entities in which
    we own more than 20% of the voting stock do not beneficially
    receive (as determined under Mexicos income tax laws) more
    than 5% of the aggregate interest paid on the relevant series of
    our Notes. Ownership of stock includes direct and indirect
    ownership, as well as ownership by related parties.





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Neither the 4.9% nor the 10% rate will be applied if owners of
    more than 10% of our voting stock or entities in which we own
    more than 20% of the voting stock do not beneficially receive
    (as determined under Mexicos income tax laws) more than 5%
    of the aggregate interest paid on the relevant series of our
    Notes. Ownership of stock includes direct and indirect
    ownership, as well as ownership by related parties. In such
    case, the withholding tax will be 30%.                                           
|
| |  | The Ministry of Finance and Public Credit issued rule 3.23.8
    which contains the information requirements for the application
    of the 4.9% withholding tax rate which is in force until
    March 31, 2006. We expect that this rule will be extended
    or that a substantially similar successor of such rule will be
    published; however we cannot assure you that this will happen.
    In any case, we expect to satisfy the information requirements,
    and accordingly, expect that the 4.9% withholding tax rate will
    apply.





| |   |                                                                                                                                                                                 
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 15%; or                                                                                                                                                                         
|
| |  | 4.9% in the event that our Notes are considered to be regularly
    and substantially traded on a recognized securities market as
    defined by the Protocol of the Tax Treaty.







| |   |                                                                                                                                                 
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the fund is duly incorporated pursuant to the laws of its
    country of residence and is the effective beneficiary of the
    interest payment;
|
| |  | the income is exempt from taxes in its country of
    residence; and                                                                            
|
| |  | the fund is registered with the Ministry of Finance and Public
    Credit for these purposes.                                                   

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Principal


Additional Amounts


Capital Gains


Other Mexican Taxes




| |                                        
| | ---------------------------------------
| | United States Income Tax Considerations

Interest


Capital Gains


Market Discount de minimis


97



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Amortizable Bond Premium




| |                                             
| | --------------------------------------------
| | Information Reporting And Backup Withholding





|   |                            
|-- | ---------------------------
|F. | Dividends and Paying Agents





|   |                      
|-- | ---------------------
|G. | Statements By Experts





|   |                     
|-- | --------------------
|H. | Documents On Display





|   |                       
|-- | ----------------------
|I. | Subsidiary Information








|         |                                                               
|-------- | --------------------------------------------------------------
|ITEM 11. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
    RISK





98



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Foreign Currency Risk






|            |  |              |         |   |      |   |         |  
|----------- |  | ------------ | ------- | - | ---- | - | ------- | -
|            |  | December 31, |        
|            |  |              |        
|            |  | 2003         |         |   | 2004 |  
|            |  |              |         |   |      |  
|Assets      |  | $            | 64,857  |   |      | $ | 103,709 |  
|Liabilities |  |              | (50,330 | ) |      |   | (70,602 | )
|            |  |              |         |   |      |  
|            |  | $            | 14,527  |   |      | $ | 33,107  |  
|            |  |              |         |   |      |  



Interest Rate Risk






|                      |  |                                          |       |   |      |   |         |      |  |  |            |  |  |       |   |  |            |   |         |   |  |   |         | 
|--------------------- |  | ---------------------------------------- | ----- | - | ---- | - | ------- | ---- |  |  | ---------- |  |  | ----- | - |  | ---------- | - | ------- | - |  | - | ------- | 
|                      |  | Breakdown of Fixed and Variable Rates of |       |   |     
|                      |  | Financial Obligations(1)                 |       |   |     
|                      |  |                                          |       |   |     
|Liabilities           |  | 2006                                     |       |   | 2007 |   |         | 2008 |  |  | Thereafter |  |  | Total |   |  | Fair Value |  
|                      |  |                                          |       |   |      |   |         |      |  |  |            |  |  |       |   |  |            |  
|                      |  | (In thousands of dollars)                |      
|Long-Term Debt        |  |                                          |       |   |      |   |         |      |  |  |            |  |  |       |   |  |            |   |         |   |  |   |         | 
|Fixed Rate            |  | $                                        | 2,879 |   |      | $ | 508,703 |      |  |  |            |  |  |       |   |  |            | $ | 511,582 |   |  | $ | 513,816 | 
|Average Interest Rate |  |                                          | 11.99 | % |      |   | 11.99   | %    |  |  | *          |  |  |       | * |  |            |   | 11.99   | % |  |   | *       | 
|Variable Rate         |  | $                                        | 151   |   |      |   |        |      |  |  |           |  |  |       |  |  |            | $ | 151     |   |  | $ | 151     | 
|Average Interest Rate |  |                                          | 9.14  | % |      |   | *       |      |  |  | *          |  |  |       | * |  |            |   | 9.14    | % |  |   | *       | 






|    |                                     
|--- | ------------------------------------
|(1) | Information as of December 31, 2004.



| |   |                
| | - | ---------------
| | * | Not applicable.

Commodity Price Risk




99



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Inflation Rate Risk




Derivatives Exposure













|         |                                                           
|-------- | ----------------------------------------------------------
|ITEM 12. | DESCRIPTION OF SECURITIES OTHER THAN EQUITY
    SECURITIES






PART II







|         |                                                
|-------- | -----------------------------------------------
|ITEM 13. | DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES





100



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|         |                                                                                 
|-------- | --------------------------------------------------------------------------------
|ITEM 14. | MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS
    AND USE OF PROCEEDS








|         |                        
|-------- | -----------------------
|ITEM 15. | CONTROLS AND PROCEDURES







An Audit of Internal Control
Over Financial Reporting Performed in Conjunction with an Audit
of Financial Statements,







|          |                                 
|--------- | --------------------------------
|ITEM 16A. | AUDIT COMMITTEE FINANCIAL EXPERT



101



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|          |               
|--------- | --------------
|ITEM 16B. | CODE OF ETHICS








|          |                                       
|--------- | --------------------------------------
|ITEM 16C. | PRINCIPAL ACCOUNTANT FEES AND SERVICES



GRUPO TMM, S.A.


Summary of Auditors Payments


|                  |          |                           |         |         |      |   |         |         |  |   |         |         | 
|----------------- | -------- | ------------------------- | ------- | ------- | ---- | - | ------- | ------- |  | - | ------- | ------- | 
|                  |          | As of December 31,        |        
|                  |          |                           |        
|                  |          | 2004                      |         |         | 2003 |   |         | 2002    | 
|                  |          |                           |         |         |      |   |         |         | 
|                  |          | (In thousands of dollars) |        
|Audit
    Fees(a) |          | $                         | 1,127.4 |         |      | $ | 1,163.7 |         |  | $ | 1,508.0 |        
|Tax
    Fees(b)   |          |                           | 90.1    |         |      |   | 698.9   |         |  |   | 110.4   |        
|Other
    Fees(c) |          |                           | 689.3   |         |      |   | 1.6     |         |  |   | 267.1   |        
|                  |          |                           |         |         |      |   |         |         | 
|                  | Total(d) |                           | $       | 1,906.8 |      |   | $       | 1,864.2 |  |   | $       | 1,885.5 | 
|                  |          |                           |         |         |      |   |         |         | 






|    |                                                                                                                                                           
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Audit Fees.  Fees related to the review of our Annual
    Financial Statements, and Annual Report filed with the SEC and
    review of other SEC filings.



|    |  |                                                                                                                                                                                                                                                               
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) |  | Tax Fees.  Fees related to specific tax issues, in
    compliance with the applicable tax laws in Mexico.                                                                                                                                                    
|   
|(c) |  | Other Fees.  Fees related to the compliance with
    foreign trade regulations and to the compliance with the
    Sarbanes-Oxley Act of 2002; supervision in the update of the
    Companys systems platform, in compliance with applicable
    regulations.
|   
|(d) |  | The Total amount does not include Mexican tax (Impuesto
    al Valor Agregado or IVA).                                                                                                                                                                    








|          |                                                               
|--------- | --------------------------------------------------------------
|ITEM 16D. | EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT
    COMMITTEES








|          |                                                                          
|--------- | -------------------------------------------------------------------------
|ITEM 16E. | PURCHASE OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED
    PURCHASERS



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PART III







|         |                     
|-------- | --------------------
|ITEM 17. | FINANCIAL STATEMENTS








|         |                     
|-------- | --------------------
|ITEM 18. | FINANCIAL STATEMENTS



|                                                                            |  |      |      | 
|--------------------------------------------------------------------------- |  | ---- | ---- | 
|Contents                                                                    |  | Page |     
|                                                                            |  |      |     
|Report of Independent Registered Public Accounting Firm                     |  |      | F-2  | 
|Consolidated Balance Sheets                                                 |  |      | F-3  | 
|Consolidated Statements of Income                                           |  |      | F-4  | 
|Consolidated Statements of Changes in Stockholders Equity                  |  |      | F-5  | 
|Consolidated Statements of Cash Flows                                       |  |      | F-6  | 
|Notes to the Consolidated Financial Statements                              |  |      | F-7  | 
|Index to TMM MultiModal, S.A. de C.V. Consolidated Financial
    Statements |  |      | F-69 | 
|Index to TMM Holdings, S.A. de C.V. Consolidated Financial
    Statements   |  |      | F-99 | 






|         |         
|-------- | --------
|ITEM 19. | EXHIBITS



|        |   |         |  |                                                                                                                                                                                                                                                                                                                                                                                                                                         
|------- | - | ------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |   |        
|No.     |   | Exhibit
|        |   |        
|        | 1 | .1*     |  | Bylaws of Grupo TMM, S.A., together with an English translation,
    as registered with the Public Registry of Commerce on
    September 26, 2002.                                                                                                                                                                                                                                                                                      
|       
|        | 1 | .2      |  | Bylaws of TMM Holdings, S.A. de C.V. registered with the Public
    Registry of Commerce on September 4, 2002 (incorporated by
    reference to Exhibit 3.2 of the Companys Registration
    Statement on Form F-4  Registration
    No. 333-99075).                                                                                                                                                                                  
|       
|        | 2 | .1      |  | Specimen Provision Certificate for Series L Shares
    (incorporated by reference to Exhibit 4.1 of the
    Companys Registration Statement on
    Form F-4  Registration No. 333-14194).                                                                                                                                                                                                                                             
|       
|        | 2 | .2      |  | Specimen Ordinary Participation Certificate, together with an
    English translation (incorporated herein by reference to
    Exhibit 4.1 of the Registration Statement on
    Form F-1  Registration No. 33-47334).                                                                                                                                                                                                                  
|       
|        | 2 | .3      |  | Form of Deposit Agreement for Series L American Depositary
    Shares among the Company, Citibank, N.A. (Citibank),
    as depositary and all holders and beneficial owners of American
    Depositary Shares evidenced by the American Depositary Receipts
    issued thereunder (incorporated by reference to Exhibit 4.3
    of the Companys Registration Statement on
    Form F-4  Registration No. 333-14194).                
|       
|        | 2 | .4      |  | Form of Deposit Agreement for Series A Ordinary
    Participation Certificate American Depositary Shares among the
    Company, Citibank, as depositary and all holders and beneficial
    owners of American Depositary Shares evidenced by the American
    Depositary Receipts issued thereunder (incorporated by reference
    to Exhibit 4.4 of the Companys Registration Statement
    on Form F-4  Registration No. 333-14194).
|       
|        | 2 | .5      |  | Trust Agreement, dated November 24, 1989 (the CPO
    Trust Agreement), between Nacional Financiera, S.N.C., as
    grantor, and as CPO Trustee, together with an English
    translation (incorporated herein by reference to
    Exhibit 4.4 of the Registration Statement on
    Form F-1  Registration No. 33-47334).                                                                                                            
|       
|        | 2 | .6      |  | Public Deed, dated January 28, 1992, together with an
    English translation (incorporated herein by reference to
    Exhibit 4.5 of the Registration Statement on
    Form F-1  Registration No. 33-47334).                                                                                                                                                                                                                          

103



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|        |   |         |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|------- | - | ------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |   |        
|No.     |   | Exhibit
|        |   |        
|       
|        | 2 | .9      |  | Amended and Restated Indenture, dated as of January 25,
    2001, to the Indenture dated as of May 12, 1993, between
    the Company and Citibank, as trustee (incorporated herein by
    reference to Exhibit 2.1 of TMMs Annual Report on
    Form 20-F for fiscal 2000).                                                                                                                                                                                     
|       
|        | 2 | .10     |  | Amended and Restated Indenture, dated as of January 25,
    2001, to the Indenture dated as of November 26, 1996,
    between the Company and The Bank of New York, as trustee
    (incorporated herein by reference to Exhibit 2.2 of
    TMMs Annual Report on Form 20-F for fiscal 2000).                                                                                                                                                                    
|       
|        | 2 | .11     |  | Indenture, dated as of June 16, 1997, among TFM, S.A. de
    C.V. (TFM), Grupo Transportación Ferroviaria
    Mexicana, S.A. de C.V. (Grupo TFM), The Bank of New
    York, as Trustee, and Bankers Trust Luxembourg, S.A., as a
    Paying Agent, covering up to $150,000,000 of TFMs
    101/4% Senior
    Notes due 2007 (incorporated herein by reference to
    Exhibit 4.1 of the Registration Statement on
    Form F-4  Registration No. 333-8322).
|       
|        | 2 | .12     |  | Indenture, dated as of June 16, 1997, among TFM, Grupo TFM,
    The Bank of New York, as Trustee, and Bankers Trust Luxembourg,
    S.A., as a Paying Agent, covering up to $443,500,000 of
    TFMs
    113/4% Senior
    Discount Debentures due 2009 (incorporated herein by reference
    to Exhibit 4.2 of the Registration Statement on
    Form F-4  Registration No. 333-8322).                                                                        
|       
|        | 2 | .13     |  | Specimen Global Note representing the 2003 Notes (incorporated
    herein by reference to Exhibit 4.3 of the Registration
    Statement on Form F-4  File No. 333-8322).                                                                                                                                                                                                                                                                                        
|       
|        | 2 | .14     |  | Specimen Global Note representing the 2006 Notes (incorporated
    herein by reference to Exhibit 4.3 of the Registration
    Statement of Form F-4  File No. 333-8322).                                                                                                                                                                                                                                                                                        
|       
|        | 2 | .15     |  | Stock Purchase Agreement, dated as of February 27, 2002,
    entered into, by and among TMM Multimodal, S.A. de C.V., the
    Company, The Kansas City Southern Railway Company, Kansas City
    Southern, Inc. and TFM (incorporated herein by reference to
    Exhibit 4.11 of TFMs Annual Report on Form 20-F
    for fiscal 2001).                                                                                                                          
|       
|        | 2 | .16     |  | Letter Agreement, dated as of May 22, 2002, by and between
    Citibank, N.A., as Depositary and the Company, supplementing the
    Deposit Agreement for the Series A Ordinary Participation
    Certificate American Depositary Shares (incorporated by
    reference to the Registration Statement on
    Form F-3  Registration No. 333-90710).                                                                                                             
|       
|        | 2 | .17     |  | Securities Purchase Agreement (including the schedules thereto),
    dated as of May 6, 2002, by and among the Company and the
    investors listed on the Schedule of Buyers attached thereto
    (incorporated herein by reference to Items 6 and 7 of the
    Companys Form 6-K dated May 9, 2002 and
    submitted to the Securities and Exchange Commission on
    May 10, 2002).                                                                          
|       
|        | 2 | .18     |  | Irrevocable Instruction Letter, dated as of May 22, 2002,
    between the Company and Citibank, as Depositary (incorporated by
    reference to the Registration Statement on
    Form F-3  Registration No. 333-90710).                                                                                                                                                                                                                                        
|       
|        | 2 | .19     |  | Form of Initial Convertible Note (incorporated herein by
    reference to Item 10 of the Companys Form 6-K
    dated May 9, 2002 and submitted to the Securities and
    Exchange Commission on May 10, 2002).                                                                                                                                                                                                                                                  
|       
|        | 2 | .20     |  | Form of Note-Linked Security (incorporated herein by reference
    to Item 12 of the Companys Form 6-K dated
    May 9, 2002 and submitted to the Securities and Exchange
    Commission on May 10, 2002).                                                                                                                                                                                                                                                      
|       
|        | 2 | .21     |  | Registration Rights Agreement, dated as of May 6, 2002, by
    and among Grupo TMM, and the buyers party thereto (incorporated
    herein by reference to Item 9 of the Companys
    Form 6-K dated May 9, 2002 and submitted to the
    Securities and Exchange Commission on May 10, 2002).                                                                                                                                                                   
|       
|        | 3 | .1      |  | CPO Trust Agreement (incorporated herein by reference to
    Exhibit 4.4 of the Registration Statement on
    Form F-1  Registration No. 33-47334).                                                                                                                                                                                                                                                                                                             
|       
|        | 3 | .2*     |  | Voting Trust Agreement dated as of December 15, 2004 by and
    among Sr. José F. Serrano, Sr. Ramon Serrano
    and Sra. Teresa Serrano, Servicios Directivos Servia S.A. de
    C.V. and the fiduciary parties named therein.                                                                                                                                                                                                                                  
|       
|        | 3 | .3*     |  | Amendment dated as of December 15, 2004 to Voting Trust
    Agreement dated as of September 19, 2002 by and among Sr.
    José F. Serrano, Sr. Ramon Serrano and Sra. Teresa
    Serrano and the fiduciary parties named therein.                                                                                                                                                                                                                                

104



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|        |   |         |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|------- | - | ------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |   |        
|No.     |   | Exhibit
|        |   |        
|       
|        | 4 | .1      |  | Termination Agreement (the Termination Agreement),
    dated August 23, 2001, between the Company and TMM
    (incorporated herein by reference to Exhibit 10.1 of the
    Registration Statement on Form F-4  Registration
    No. 333-14194).                                                                                                                                                                                                             
|       
|        | 4 | .2      |  | Amendment Agreement to the Termination Agreement, dated
    October 11, 2001, between the Company and TMM (incorporated
    herein by reference to Exhibit 10.2 of the Registration
    Statement on Form F-4  Registration
    No. 333-14194).                                                                                                                                                                                                               
|       
|        | 4 | .3      |  | Tax Benefits Agreement, dated December 5, 2001, between the
    Company and TMM, together with an English translation
    (incorporated herein by reference to Exhibit 10.3 of the
    Registration Statement on Form F-4  Registration
    No. 14194).                                                                                                                                                                                                       
|       
|        | 4 | .4      |  | Euro-Commercial Paper Dealer Agreement, dated April 30,
    1999, between TMM and Chase Manhattan International Limited
    (CMIL), as Dealer translation (incorporated herein
    by reference to Exhibit 4.2 of TMMs Annual Report on
    Form 20-F for fiscal 2000).                                                                                                                                                                                     
|       
|        | 4 | .5      |  | Supplemental Dealer Agreement, dated June 18, 1999, between
    TMM and CMIL (incorporated herein by reference to
    Exhibit 4.3 of TMMs Annual Report on Form 20-F
    for fiscal 2000).                                                                                                                                                                                                                                                                    
|       
|        | 4 | .6      |  | Issue and Paying Agency Agreement, dated April 30, 1999,
    among TMM, The Chase Manhattan Bank, London Branch, the Chase
    Manhattan Bank, New York City Office and the Chase Manhattan
    Bank Luxembourg, S.A. (incorporated herein by reference to
    Exhibit 4.4 of TMMs Annual Report on Form 20-F
    for fiscal 2000).                                                                                                                           
|       
|        | 4 | .7      |  | Master Trust Agreement, dated as of November 30, 2001,
    between TMM and its Subsidiaries, as Sellers, TMM as
    Sellers Representative, Guarantor and Servicer, and The
    Bank of New York, as Trustee (incorporated herein by reference
    to Exhibit 10.7 of the Registration Statement on
    Form F-4  Registration No. 333-14194).                                                                                                               
|       
|        | 4 | .8      |  | Series 2001-A Supplement to Master Trust Agreement, dated as of
    November 30, 2001, among TMM and its Subsidiaries, as
    Sellers, TMM as Sellers Representative, Guarantor and
    Servicer, The Bank of New York, as Trustee, and the Financial
    Institutions from time to time parties thereto, as Purchasers
    (incorporated herein by reference to Exhibit 10.8 of the
    Registration Statement on Form F-4  Registration
    No. 333-14194).
|       
|        | 4 | .9      |  | Concession title granted by the Secretaria de Comunicaciones y
    Transportes (SCT) in favor of Ferrocarril del
    Noreste, S.A. de C.V. (FNE), dated December 2,
    1996, together with an English translation (incorporated herein
    by reference to Exhibit 2.1 of the Registration Statement
    on Form F-4  Registration No. 333-8322).                                                                                                        
|       
|        | 4 | .10     |  | Amendment dated February 12, 2001, of Concession title
    granted by SCT in favor of TFM, formerly known as FNE,
    December 2, 1996, together with an English translation
    (incorporated herein by reference to Exhibit 4.2 of
    TFMs Annual Report on Form 20-F for fiscal 2000).                                                                                                                                                                    
|       
|        | 4 | .11     |  | Sale Purchase Agreement respecting Capital Stock of FNE, among
    the United Mexican States (through SCT), FNE and Ferrocarriles
    Nacionales de Mexico, S.A. de C.V. (FNM), dated
    December 2, 1996, together with an English translation
    (incorporated by reference herein to Exhibit 2.2 of the
    Registration Statement on Form F-4  Registration
    No. 333-8322).                                                                        
|       
|        | 4 | .12     |  | Sale Purchase Agreement respecting Property and Equipment, among
    the United Mexican States (through SCT), FNE and FNM, dated
    December 2, 1996, together with an English translation
    (incorporated by reference herein to Exhibit 2.3 of the
    Registration Statement on Form F-4  Registration
    No. 333-8322).                                                                                                                               
|       
|        | 4 | .13     |  | Management Services Agreement between TFM and TMM dated May 1997
    (incorporated herein by reference to Exhibit 10.1 of the
    Registration Statement on Form F-4  Registration
    No. 333-8322).                                                                                                                                                                                                                                                         
|       
|        | 4 | .14     |  | Management Services Agreement between TFM and KCS Transportation
    Company, dated May 1997 (incorporated herein by reference
    to Exhibit 10.2 of the Registration Statement on
    Form F-4  Registration No. 333-8322).                                                                                                                                                                                                                                 
|       
|        | 4 | .15     |  | Omnibus Agreement among Grupo TFM, Caymex Transportation, Inc.,
    TMM Multimodal, S.A. de C.V. and FNM, dated June 9, 1997,
    together with an English translation (incorporated herein by
    reference to Exhibit 10.5 of the Registration Statement on
    Form F-4  Registration No. 333-8322).                                                                                                                                                       

105



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|        |   |         |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|------- | - | ------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |   |        
|No.     |   | Exhibit
|        |   |        
|       
|        | 4 | .16     |  | Credit Agreement, dated as of September 19, 2000, among
    TFM, the several Banks parties thereto, Westdeutsche Landesbank
    Girozentrale, New York Bank, as the Issuing Bank, Chase
    Securities Inc., as Lead Arranger, Banc of America Securities
    LLC and Westdeutsche Landesbank Girozentrale, New York Branch as
    Co-Syndication Agents and Co-Documentation Agents, and The Chase
    Manhattan Bank, as Administration Agent (the Commercial
    Paper Credit Agreement) (incorporated herein by reference
    to Exhibit 4.3 of TFMs Annual Report on
    Form 20-F for fiscal 2000).
|       
|        | 4 | .17     |  | Amendment, dated as of December 5, 2000, to the Commercial
    Paper Credit Agreement (the Commercial Paper Credit
    Agreement) (incorporated herein by reference to
    Exhibit 4.4 of TFMs Annual Report on Form 20-F
    for fiscal 2000).                                                                                                                                                                                                                                                                                                                                                          
|       
|        | 4 | .18     |  | Second Amendment, dated as of September 25, 2001, to the
    Commercial Paper Credit Agreement (incorporated by reference to
    Exhibit 10.18 of the Registration Statement on
    Form F-4  Registration No. 333-14194).                                                                                                                                                                                                                                                                                                                                                                                 
|       
|        | 4 | .19     |  | Amended and Restated Master Trust Agreement dated as of
    October 25, 2002, among Grupo TMM, S.A. and its
    subsidiaries, as sellers, Grupo TMM, S.A. as sellers
    representative, guarantor and servicer, and The Bank of New
    York, as trustee (incorporated by reference to
    Exhibit 10.19 of the Registration Statement on
    Form F-4  Registration No. 333-99075).                                                                                                                                                                                                                     
|       
|        | 4 | .20     |  | Amended and Restated Series 2001-A Supplement to Amended and
    Restated Master Trust Agreement, dated as of October 25,
    2002, among Grupo TMM, S.A. and its subsidiaries, as sellers,
    Grupo TMM, S.A. as sellers representative, guarantor and
    servicer, The Bank of New York, as trustee and the financial
    institutions from time to time parties thereto, as purchasers
    (incorporated by reference to Exhibit 10.20 of the
    Registration Statement on Form F-4  Registration
    No. 333-99075).                                                                               
|       
|        | 4 | .21     |  | Series 2002-A Supplement dated as of October 25, 2002,
    among Grupo TMM, S.A. and its subsidiaries, as sellers, Grupo
    TMM, S.A. as sellers representative, guarantor and
    servicer, The Bank of New York, as trustee and the financial
    institutions from time to time parties thereto, as purchasers
    (incorporated by reference to Exhibit 10.21 of the
    Registration Statement on Form F-4  Registration
    No. 333-99075).                                                                                                                                                        
|       
|        | 4 | .22     |  | Second Amended and Restated Master Trust Agreement dated as of
    December 10, 2002, among Grupo TMM, S.A. and its
    subsidiaries, as sellers, Grupo TMM, S.A., as sellers
    representative, guarantor and servicer, and The Bank of New
    York, as trustee (incorporated by reference to
    Exhibit 10.22 of the Registration Statement on
    Form F-4  Registration No. 333-99075).                                                                                                                                                                                                            
|       
|        | 4 | .23     |  | Second Amended and Restated Series 2001-A Supplement to the
    Second Amended and Restated Mater Trust Agreement dated as of
    December 10, 2002, among Grupo TMM, S.A. and its
    subsidiaries, as sellers, Grupo TMM, S.A., as sellers
    representative, guarantor and servicer, The Bank of New York, as
    trustee and the financial institutions from time to time parties
    thereto, as purchasers (incorporated by reference to
    Exhibit 10.23 of the Registration Statement on
    Form F-4  Registration No. 333-99075).                                                             
|       
|        | 4 | .24     |  | Amendment Number One to Series 2002-A Supplement and Consent
    dated as of December 10, 2002, among Grupo TMM, S.A. and
    its subsidiaries, as sellers, Grupo TMM, S.A. as sellers
    representative, guarantor and servicer, The Bank of New York, as
    trustee and the financial institutions from time to time parties
    thereto, as purchasers (incorporated by reference to
    Exhibit 10.24 of the Registration Statement on
    Form F-4  Registration No. 333-99075).                                                                                                                   
|       
|        | 4 | .25     |  | Acquisition Agreement dated as of April 21, 2003, by and
    among Kansas City Southern, KARA Sub, Inc., Grupo TMM, S.A., TMM
    Holdings, S.A. de C.V. and TMM Multimodal, S.A. de C.V.
    (incorporated by reference to Exhibit 10.25 of the
    Registration Statement on Form F-4  Registration
    No. 333-99075 submitted to the Securities and Exchange
    Commission on April 24, 2003).                                                                                                                                                                                                        
|       
|        | 4 | .26     |  | Stock Purchase Agreement dated as of April 21, 2003, by and
    among Kansas City Southern, Grupo TMM, S.A. and Grupo TFM,
    S.A. de C.V. (incorporated by reference to Exhibit 10.26 of
    the Registration Statement on Form F-4 
    Registration No. 333-99075 submitted to the Securities and
    Exchange Commission on April 24, 2003).                                                                                                                                                                                                                                                          

106



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|        |    |         |  |                                                                                                                                                                                                                                                                                                                                                                                                                                      
|------- | -- | ------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |        
|No.     |    | Exhibit
|        |    |        
|       
|        | 4  | .27     |  | Stock Purchase Agreement dated as of April 10, 2003, by and
    among Mexico Ports & Terminals Holdings, S.A. de C.V,
    SSA Mexico, Inc., División de Negocio Especializado, S.A.
    and Inmobiliaria TMM, S.A. de C.V. (incorporated by reference to
    Exhibit 10.27 of the Registration Statement on
    Form F-4  Registration No. 333-99075
    submitted to the Securities and Exchange Commission on
    April 24, 2003).
|       
|        | 4  | .28*    |  | Amended Acquisition Agreement dated as of December 15,
    2004, by and among Grupo TMM, S.A. de C.V., TMM Multimodal, S.A.
    de C.V., TMM Holdings, S.A. de C.V., Kansas City Southern,
    Caymex Transportation, Inc., KCS Finance, Inc., KCS Sub, Inc.,
    and KARA Sub, Inc.                                                                                                                                                 
|       
|        | 4  | .29*    |  | Stockholders Agreement dated as of December 15, 2004,
    by and among Kansas City Southern, Grupo TMM, S.A. de C.V. and
    certain of Grupo TMM, S.A. de C.V.s subsidiaries and
    affiliates                                                                                                                                                                                                                                   
|       
|        | 4  | .30*    |  | Registration Rights Agreement dated as of December 15,
    2004, by and among Kansas City Southern, Grupo TMM, S.A. de C.V.
    and certain of Grupo TMM, S.A. de C.V.s subsidiaries and
    affiliates                                                                                                                                                                                                                             
|       
|        | 4  | .31*    |  | Consulting Agreement dated as of December 15, 2004, by and
    between Kansas City Southern and José F. Serrano
    International Business, S.A. de C.V.                                                                                                                                                                                                                                                                             
|       
|        | 4  | .32*    |  | Marketing and Services Agreement dated as of December 15,
    2004, by and among TMM Logistics, S.A. de C.V., Kansas City
    Southern and TFM, S.A. de C.V.                                                                                                                                                                                                                                                                         
|       
|        | 4  | .33*    |  | Rail Transportation Agreement dated as of December 15,
    2004, by and between TMM Logistics, S.A. de C.V. and TFM, S.A.
    de C.V. (Containers)                                                                                                                                                                                                                                                                                   
|       
|        | 4  | .34*    |  | Rail Transportation Agreement dated as of December 15,
    2004, by and between TMM Logistics, S.A. de C.V. and TFM, S.A.
    de C.V.
    (RoadRailers)                                                                                                                                                                                                                                                                             
|       
|        | 6  | .1*     |  | Computation of earnings per share (IFRS &
    U.S. GAAP).                                                                                                                                                                                                                                                                                                                                                                            
|       
|        | 7  | .1*     |  | Computation of ratio of earnings to fixed charge
    (IFRS & U.S. GAAP).                                                                                                                                                                                                                                                                                                                                                             
|       
|        | 8  | .1*     |  | List of Subsidiaries                                                                                                                                                                                                                                                                                                                                                                                                                 
|       
|        | 12 | .1*     |  | Section 302 Certification of Chief Executive Officer                                                                                                                                                                                                                                                                                                                                                                                 
|       
|        | 12 | .2*     |  | Section 302 Certification of Chief Financial Officer                                                                                                                                                                                                                                                                                                                                                                                 
|       
|        | 13 | .1*     |  | Section 906 Certification of Chief Executive Officer                                                                                                                                                                                                                                                                                                                                                                                 
|       
|        | 13 | .2*     |  | Section 906 Certification of Chief Financial Officer                                                                                                                                                                                                                                                                                                                                                                                 






|  |                
|- | ---------------
|* | Filed herewith.

107



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##### Table of Contents



GRUPO TMM, S. A.


CONSOLIDATED FINANCIAL STATEMENTS


DECEMBER 31, 2002, 2003 AND 2004


INDEX


|                                                                            |  |      |      | 
|--------------------------------------------------------------------------- |  | ---- | ---- | 
|Contents                                                                    |  | Page |     
|                                                                            |  |      |     
|Report of Independent Registered Public Accounting Firm                     |  |      | F-2  | 
|Consolidated Balance Sheets                                                 |  |      | F-3  | 
|Consolidated Statements of Income                                           |  |      | F-4  | 
|Consolidated Statements of Changes in Stockholders Equity                  |  |      | F-5  | 
|Consolidated Statements of Cash Flows                                       |  |      | F-6  | 
|Notes to the Consolidated Financial Statements                              |  |      | F-7  | 
|Index to TMM Holdings, S.A. de C.V. Consolidated Financial
    Statements   |  |      | F-58 | 
|Index to TMM MultiModal, S.A. de C.V. Consolidated Financial
    Statements |  |      | F-82 | 

F-1



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##### Table of Contents



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM















| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | a. The accompanying consolidated financial statements have
    been prepared assuming that the Company will continue as a going
    concern. As discussed in Note 18 to the consolidated
    financial statements, the Company has suffered recurring losses
    from operations and has a net capital deficiency that raise
    substantial doubt about its ability to continue as a going
    concern. Managements plans in regard to these matters are
    also described in Note 18. The consolidated financial
    statements do not include any adjustments that might result from
    the outcome of this uncertainty.
|
| | b. As discussed in Note 12, as of December 31,
    2003, the Company was in default in its obligation to pay
    certain amounts related to its 2003 and 2006 Notes. On
    August 11, 2004, the Company was able to restructure its
    2003 and 2006 Notes with the exchange offer of New Senior
    Secured Notes which expire in 2007.                                                                                                                                                                                                                                                                                    





| |                       
| | ----------------------
| | PricewaterhouseCoopers





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##### Table of Contents



GRUPO TMM, S. A.


CONSOLIDATED BALANCE SHEETS


(amounts in thousands of US dollars)


|                                                                                              |  |              |           |   |      |   |           |  
|--------------------------------------------------------------------------------------------- |  | ------------ | --------- | - | ---- | - | --------- | -
|                                                                                              |  | December 31, |          
|                                                                                              |  |              |          
|                                                                                              |  | 2003         |           |   | 2004 |  
|                                                                                              |  |              |           |   |      |  
|ASSETS                                                                                       
|Current Assets:                                                                               |  |              |           |   |      |   |           |  
|Cash and cash equivalents                                                                     |  | $            | 65,164    |   |      | $ | 46,339    |  
|Restricted cash (Note 13)                                                                     |  |              | 5,866     |   |      |   | 6,809     |  
|Accounts receivable, net of provision for impairment of $1,857
    in 2003 and $1,795 in 2004 |  |              | 33,105    |   |      |   | 37,396    |  
|Amounts due from related parties (Note 15)                                                    |  |              | 593       |   |      |   | 448       |  
|Taxes recoverable (Note 4)                                                                    |  |              | 4,704     |   |      |   | 21,309    |  
|Other accounts receivable, net (Note 5)                                                       |  |              | 29,183    |   |      |   | 17,786    |  
|Materials and supplies                                                                        |  |              | 4,600     |   |      |   | 4,861     |  
|Other current assets (Note 6)                                                                 |  |              | 1,992     |   |      |   | 3,234     |  
|Non-current assets held for sale (Note 2)                                                     |  |              | 2,142,229 |   |      |   | 2,080,529 |  
|                                                                                              |  |              |           |   |      |  
|Total current assets                                                                          |  |              | 2,287,436 |   |      |   | 2,218,711 |  
|Concession rights  Net (Note 7)                                                              |  |              | 5,417     |   |      |   | 4,929     |  
|Property, machinery and equipment  Net (Note 8)                                              |  |              | 75,102    |   |      |   | 80,336    |  
|Prepaid expenses (Note 9)                                                                     |  |              | 12,114    |   |      |   | 4,580     |  
|Investment held in associated companies (Note 10)                                             |  |              | 14,247    |   |      |   | 15,131    |  
|Intangible assets (Note 11)                                                                   |  |              | 5,096     |   |      |   | 4,449     |  
|Deferred income taxes (Note 20)                                                               |  |              | 67,201    |   |      |   | 23,901    |  
|                                                                                              |  |              |           |   |      |  
|Total assets                                                                                  |  | $            | 2,466,613 |   |      | $ | 2,352,037 |  
|                                                                                              |  |              |           |   |      |  
|                                                                                             
|LIABILITIES AND STOCKHOLDERS EQUITY                                                         
|Current liabilities:                                                                          |  |              |           |   |      |   |           |  
|Current portion of long-term debt (Note 12)                                                   |  | $            | 421,077   |   |      | $ | 26,545    |  
|Amounts due to related parties (Note 15)                                                      |  |              | 6,500     |   |      |   |           |  
|Accounts payable                                                                              |  |              | 25,335    |   |      |   | 24,453    |  
|Accrued expenses (Note 16)                                                                    |  |              | 39,080    |   |      |   | 46,825    |  
|Obligations for sale of receivables (Note 13)                                                 |  |              | 15,317    |   |      |   | 19,956    |  
|Liabilities directly related with non-current assets held for
    sale (Note 2)               |  |              | 1,139,187 |   |      |   | 1,054,556 |  
|                                                                                              |  |              |           |   |      |  
|Total current liabilities                                                                     |  |              | 1,646,496 |   |      |   | 1,172,335 |  
|                                                                                              |  |              |           |   |      |  
|Long-term debt (Note 12)                                                                      |  |              | 1,470     |   |      |   | 469,449   |  
|Dividends payable                                                                             |  |              | 9,803     |   |      |   | 9,803     |  
|Reserve for pension and seniority premiums (Note 22)                                          |  |              | 8,752     |   |      |   | 9,189     |  
|Obligations for sale of receivables (Note 13)                                                 |  |              | 54,808    |   |      |   | 49,758    |  
|Other long-term liabilities (Note 17)                                                         |  |              | 13,892    |   |      |   | 4,836     |  
|                                                                                              |  |              |           |   |      |  
|Total non-current liabilities                                                                 |  |              | 88,725    |   |      |   | 543,035   |  
|                                                                                              |  |              |           |   |      |  
|Total liabilities                                                                             |  |              | 1,735,221 |   |      |   | 1,715,370 |  
|                                                                                              |  |              |           |   |      |  
|Minority interest (Note 3r.)                                                                  |  |              | 678,204   |   |      |   | 686,026   |  
|                                                                                              |  |              |           |   |      |  
|Stockholders equity (Note 18):                                                               |  |              |           |   |      |   |           |  
|Common stock, 56,963,137 shares authorized and issued
    without par value                   |  |              | 121,158   |   |      |   | 121,158   |  
|Statutory reserve                                                                             |  |              | 4,172     |   |      |   | 4,172     |  
|Retained deficit                                                                              |  |              | (59,913   | ) |      |   | (162,460  | )
|Convertible warrant                                                                           |  |              | 5,528     |   |      |   | 5,528     |  
|Initial accumulated translation loss                                                          |  |              | (17,757   | ) |      |   | (17,757   | )
|                                                                                              |  |              |           |   |      |  
|Total stockholders equity                                                                    |  |              | 53,188    |   |      |   | (49,359   | )
|                                                                                              |  |              |           |   |      |  
|Total liabilities and stockholders equity                                                    |  | $            | 2,466,613 |   |      | $ | 2,352,037 |  
|                                                                                              |  |              |           |   |      |  



F-3



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##### Table of Contents



GRUPO TMM, S. A.


CONSOLIDATED STATEMENTS OF INCOME


(amounts in thousands of US dollars, except per share
amounts)


|                                                                            |  |                         |         |   |      |   |          |      |  |   |          |  
|--------------------------------------------------------------------------- |  | ----------------------- | ------- | - | ---- | - | -------- | ---- |  | - | -------- | -
|                                                                            |  | Year Ended December 31, |        
|                                                                            |  |                         |        
|                                                                            |  | 2002                    |         |   | 2003 |   |          | 2004 | 
|                                                                            |  |                         |         |   |      |   |          |      | 
|Transportation revenues                                                     |  | $                       | 236,549 |   |      | $ | 226,897  |      |  | $ | 251,001  |  
|                                                                            |  |                         |         |   |      |   |          |      | 
|Costs and expenses:                                                         |  |                         |         |   |      |   |          |      |  |   |          |  
|Salaries, wages and employee benefits                                       |  |                         | 68,020  |   |      |   | 70,948   |      |  |   | 69,288   |  
|Leases                                                                      |  |                         | 69,835  |   |      |   | 73,813   |      |  |   | 84,656   |  
|Purchased services                                                          |  |                         | 54,951  |   |      |   | 52,314   |      |  |   | 55,582   |  
|Fuel, material and supplies                                                 |  |                         | 15,473  |   |      |   | 16,411   |      |  |   | 14,955   |  
|Other costs and expenses                                                    |  |                         | 12,101  |   |      |   | 6,067    |      |  |   | 12,839   |  
|Depreciation and amortization                                               |  |                         | 19,586  |   |      |   | 12,441   |      |  |   | 10,261   |  
|                                                                            |  |                         |         |   |      |   |          |      | 
|                                                                            |  |                         | 239,966 |   |      |   | 231,994  |      |  |   | 247,581  |  
|                                                                            |  |                         |         |   |      |   |          |      | 
|(Loss) income on transportation                                             |  |                         | (3,417  | ) |      |   | (5,097   | )    |  |   | 3,420    |  
|                                                                            |  |                         |         |   |      |   |          |      | 
|Other (expenses) income  Net (Note 19)                                     |  |                         | (3,470  | ) |      |   | (58,698  | )    |  |   | 16,232   |  
|                                                                            |  |                         |         |   |      |   |          |      | 
|Operating (loss) income                                                     |  |                         | (6,887  | ) |      |   | (63,795  | )    |  |   | 19,652   |  
|                                                                            |  |                         |         |   |      |   |          |      | 
|Interest income                                                             |  |                         | 1,619   |   |      |   | 8,701    |      |  |   | 1,541    |  
|Interest expense                                                            |  |                         | 61,632  |   |      |   | 61,297   |      |  |   | 89,317   |  
|Exchange (loss) income  Net                                                |  |                         | (2,173  | ) |      |   | (4,039   | )    |  |   | 2,465    |  
|                                                                            |  |                         |         |   |      |   |          |      | 
|Net financing cost                                                          |  |                         | (62,186 | ) |      |   | (56,635  | )    |  |   | (85,311  | )
|                                                                            |  |                         |         |   |      |   |          |      | 
|Loss before income taxes and minority interest                              |  |                         | (69,073 | ) |      |   | (120,430 | )    |  |   | (65,659  | )
|Benefit (provision) for income taxes (Note 20)                              |  |                         | 20,932  |   |      |   | (6,121   | )    |  |   | (43,703  | )
|                                                                            |  |                         |         |   |      |   |          |      | 
|Loss before minority interest                                               |  |                         | (48,141 | ) |      |   | (126,551 | )    |  |   | (109,362 | )
|Minority interest                                                           |  |                         | 552     |   |      |   | (2,042   | )    |  |   | (2,655   | )
|                                                                            |  |                         |         |   |      |   |          |      | 
|Net loss for continuing operations for the year                             |  |                         | (47,589 | ) |      |   | (128,593 | )    |  |   | (112,017 | )
|Net income for discontinued operations for the year                         |  |                         | 4,980   |   |      |   | 41,931   |      |  |   | 9,470    |  
|                                                                            |  |                         |         |   |      |   |          |      | 
|Net loss for the year                                                       |  | $                       | (42,609 | ) |      | $ | (86,662  | )    |  | $ | (102,547 | )
|                                                                            |  |                         |         |   |      |   |          |      | 
|Net loss for continuing operations for the year per share
    (Note 23)     |  | $                       | (0.835  | ) |      | $ | (2.257   | )    |  | $ | (1.966   | )
|                                                                            |  |                         |         |   |      |   |          |      | 
|Net income for discontinued operations for the year per share
    (Note 23) |  | $                       | 0.087   |   |      | $ | 0.736    |      |  | $ | 0.166    |  
|                                                                            |  |                         |         |   |      |   |          |      | 
|Net loss for the year per share (Note 23)                                   |  | $                       | (0.748  | ) |      | $ | (1.521   | )    |  | $ | (1.8     | )
|                                                                            |  |                         |         |   |      |   |          |      | 
|Weighted average shares outstanding                                         |  |                         | 56,963  |   |      |   | 56,963   |      |  |   | 56,963   |  
|                                                                            |  |                         |         |   |      |   |          |      | 



F-4



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##### Table of Contents



GRUPO TMM, S. A.


CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS
EQUITY


FOR THE YEARS ENDED DECEMBER 31, 2002, 2003 AND 2004


(amounts in thousands of US dollars)


|                             |  |        |         |  |           |          |       |           |  |         |             |   |  |             |       |  |       |   |         |   |  |   |          |  
|---------------------------- |  | ------ | ------- |  | --------- | -------- | ----- | --------- |  | ------- | ----------- | - |  | ----------- | ----- |  | ----- | - | ------- | - |  | - | -------- | -
|                             |  |        |         |  |           |          |       |           |  | Initial |             |   | 
|                             |  |        |         |  |           | Retained |       |           |  |         | Accumulated |   |  |            
|                             |  | Common |         |  | Statutory |          |       | Earnings  |  |         | Convertible |   |  | Translation |       |  |      
|                             |  | Stock  |         |  | Reserve   |          |       | (Deficit) |  |         | Warrant     |   |  | Loss        |       |  | Total |  
|                             |  |        |         |  |           |          |       |           |  |         |             |   |  |             |       |  |       |  
|Balance at January 1, 2002   |  | $      | 121,158 |  |           | $        | 4,172 |           |  | $       | 69,358      |   |  |             |       |  |       | $ | (17,757 | ) |  | $ | 176,931  |  
|Convertible warrant          |  |        |         |  |           |          |       |           |  |         |             |   |  | $           | 5,528 |  |       |   |         |   |  |   | 5,528    |  
|Net loss for the year        |  |        |         |  |           |          |       |           |  |         | (42,609     | ) |  |             |       |  |       |   |         |   |  |   | (42,609  | )
|                             |  |        |         |  |           |          |       |           |  |         |             |   |  |             |       |  |       |  
|Balance at December 31, 2002 |  |        | 121,158 |  |           |          | 4,172 |           |  |         | 26,749      |   |  |             | 5,528 |  |       |   | (17,757 | ) |  |   | 139,850  |  
|Net loss for the year        |  |        |         |  |           |          |       |           |  |         | (86,662     | ) |  |             |       |  |       |   |         |   |  |   | (86,662  | )
|                             |  |        |         |  |           |          |       |           |  |         |             |   |  |             |       |  |       |  
|Balance at December 31, 2003 |  |        | 121,158 |  |           |          | 4,172 |           |  |         | (59,913     | ) |  |             | 5,528 |  |       |   | (17,757 | ) |  |   | 53,188   |  
|Net loss for the year        |  |        |         |  |           |          |       |           |  |         | (102,547    | ) |  |             |       |  |       |   |         |   |  |   | (102,547 | )
|                             |  |        |         |  |           |          |       |           |  |         |             |   |  |             |       |  |       |  
|Balance at December 31, 2004 |  | $      | 121,158 |  |           | $        | 4,172 |           |  | $       | (162,460    | ) |  | $           | 5,528 |  |       | $ | (17,757 | ) |  | $ | (49,359  | )
|                             |  |        |         |  |           |          |       |           |  |         |             |   |  |             |       |  |       |  



F-5



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##### Table of Contents



GRUPO TMM, S. A.


CONSOLIDATED STATEMENTS OF CASH FLOWS


(amounts in thousands of US dollars)


|                                                                                                          |  |                         |         |   |      |   |          |      |  |   |          |  
|--------------------------------------------------------------------------------------------------------- |  | ----------------------- | ------- | - | ---- | - | -------- | ---- |  | - | -------- | -
|                                                                                                          |  | Year Ended December 31, |        
|                                                                                                          |  |                         |        
|                                                                                                          |  | 2002                    |         |   | 2003 |   |          | 2004 | 
|                                                                                                          |  |                         |         |   |      |   |          |      | 
|Cash flows from operating activities:                                                                     |  |                         |         |   |      |   |          |      |  |   |          |  
|Net loss for continuing operations for the year                                                           |  | $                       | (47,589 | ) |      | $ | (128,593 | )    |  | $ | (112,017 | )
|                                                                                                          |  |                         |         |   |      |   |          |      | 
|Adjustments to reconcile net loss for continuing operations to
    net cash used in operating activities: |  |                         |         |   |      |   |          |      |  |   |          |  
|Depreciation and amortization                                                                             |  |                         | 19,586  |   |      |   | 12,441   |      |  |   | 10,261   |  
|Other amortizations                                                                                       |  |                         | 6,778   |   |      |   | 6,512    |      |  |   | 3,360    |  
|Amortization and discount on obligations                                                                  |  |                         | 6,674   |   |      |   | 1,255    |      |  |   | 983      |  
|(Benefit) provision for income taxes                                                                      |  |                         | (20,932 | ) |      |   | 6,121    |      |  |   | 43,703   |  
|Minority interest                                                                                         |  |                         | (552    | ) |      |   | 2,042    |      |  |   | 2,655    |  
|Loss on sale of property, machinery and equipment  Net                                                   |  |                         | (439    | ) |      |   | 5,765    |      |  |   | (344     | )
|Loss on sale of other subsidiaries                                                                        |  |                         |         |   |      |   | 20,207   |      |  |   |          |  
|Changes in other assets and liabilities:                                                                  |  |                         |         |   |      |   |          |      |  |   |          |  
|Restricted cash                                                                                           |  |                         | (2,654  | ) |      |   | (1,575   | )    |  |   | (943     | )
|Accounts receivable                                                                                       |  |                         | (829    | ) |      |   | 5,444    |      |  |   | (4,063   | )
|Other accounts receivable and related parties                                                             |  |                         | (2,569  | ) |      |   | 17,980   |      |  |   | (17,823  | )
|Materials and supplies                                                                                    |  |                         | 1,367   |   |      |   | 46       |      |  |   | (261     | )
|Other current assets                                                                                      |  |                         | 877     |   |      |   | 8,316    |      |  |   | (1,242   | )
|Accounts payable and accrued expenses                                                                     |  |                         | (11,577 | ) |      |   | 11,186   |      |  |   | 74,402   |  
|Other non-current assets and long-term liabilities                                                        |  |                         | 32,270  |   |      |   | (5,839   | )    |  |   | (484     | )
|                                                                                                          |  |                         |         |   |      |   |          |      | 
|Total adjustments                                                                                         |  |                         | 28,000  |   |      |   | 89,901   |      |  |   | 110,204  |  
|                                                                                                          |  |                         |         |   |      |   |          |      | 
|Net cash used in operating activities                                                                     |  |                         | (19,589 | ) |      |   | (38,692  | )    |  |   | (1,813   | )
|                                                                                                          |  |                         |         |   |      |   |          |      | 
|Cash flows from investing activities:                                                                     |  |                         |         |   |      |   |          |      |  |   |          |  
|Sale of property, machinery and equipment                                                                 |  |                         | 3,588   |   |      |   | 7,570    |      |  |   | 1,374    |  
|Acquisition of property, machinery and equipment                                                          |  |                         | (14,281 | ) |      |   | (9,436   | )    |  |   | (15,278  | )
|Sales of shares of subsidiaries                                                                           |  |                         | 14,908  |   |      |   | 128,691  |      |  |   |          |  
|Acquisitions of associated companies                                                                      |  |                         | (1,787  | ) |      |   |          |      |  |   |          |  
|                                                                                                          |  |                         |         |   |      |   |          |      | 
|Net cash provided by (used in) investing activities                                                       |  |                         | 2,428   |   |      |   | 126,825  |      |  |   | (13,904  | )
|                                                                                                          |  |                         |         |   |      |   |          |      | 
|Cash flows from financing activities:                                                                     |  |                         |         |   |      |   |          |      |  |   |          |  
|Payments under capital lease obligations                                                                  |  |                         | (74     | ) |      |   | (833     | )    |  |   | (94      | )
|Payments of financial debt                                                                                |  |                         | (57,725 | ) |      |   | (17,737  | )    |  |   | (1,686   | )
|Convertible notes proceeds (payments)  Net                                                               |  |                         | 13,295  |   |      |   | (13,295  | )    |  |   |          |  
|Cash received (paid) from sale of accounts
    receivable  Net                                           |  |                         | 61,719  |   |      |   | (10,420  | )    |  |   | (1,328   | )
|Dividends paid to minority stockholders                                                                   |  |                         | (1,578  | ) |      |   | (8,000   | )    |  |   |          |  
|                                                                                                          |  |                         |         |   |      |   |          |      | 
|Net cash provided by (used in) financing activities                                                       |  |                         | 15,637  |   |      |   | (50,285  | )    |  |   | (3,108   | )
|                                                                                                          |  |                         |         |   |      |   |          |      | 
|Net (decrease) increase in cash and cash equivalents                                                      |  |                         | (1,524  | ) |      |   | 37,848   |      |  |   | (18,825  | )
|Cash and cash equivalents at beginning of the year                                                        |  |                         | 28,840  |   |      |   | 27,316   |      |  |   | 65,164   |  
|                                                                                                          |  |                         |         |   |      |   |          |      | 
|Cash and cash equivalents at end of the year                                                              |  | $                       | 27,316  |   |      | $ | 65,164   |      |  | $ | 46,339   |  
|                                                                                                          |  |                         |         |   |      |   |          |      | 
|Supplemental cash disclosures:                                                                            |  |                         |         |   |      |   |          |      |  |   |          |  
|Interest paid                                                                                             |  | $                       | 48,956  |   |      | $ | 6,970    |      |  | $ | 10,278   |  
|                                                                                                          |  |                         |         |   |      |   |          |      | 
|Income tax and asset tax paid                                                                             |  | $                       | 1,741   |   |      | $ | 2,615    |      |  | $ | 735      |  
|                                                                                                          |  |                         |         |   |      |   |          |      | 
|Non-cash transactions:                                                                                    |  |                         |         |   |      |   |          |      |  |   |          |  
|Convertible notes                                                                                         |  | $                       | 5,528   |   |      |   |          |      |  |   |          |  
|                                                                                                          |  |                         |         |   |      |   |          |      | 
|Assets acquired through capital lease obligations                                                         |  | $                       | 750     |   |      |   |          |      |  |   |          |  
|                                                                                                          |  |                         |         |   |      |   |          |      | 
|Sale of shares of subsidiaries                                                                            |  |                         |         |   |      |   | 6,509    |      |  |   |          |  
|                                                                                                          |  |                         |         |   |      |   |          |      | 



F-6



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##### Table of Contents



GRUPO TMM, S. A.


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS


DECEMBER 31, 2002, 2003 AND 2004


(amounts in thousands of U.S. dollars, except number of
shares)


NOTE 1  THE COMPANY:








|                                                                                                                                  |  |              |      |     |      |  |      | 
|--------------------------------------------------------------------------------------------------------------------------------- |  | ------------ | ---- | --- | ---- |  | ---- | 
|                                                                                                                                  |  | December 31, |     
|                                                                                                                                  |  |              |     
|                                                                                                                                  |  | 2003         |      |     | 2004 | 
|                                                                                                                                  |  |              |      |     |      | 
|Compañía Arrendadora TMM, S. A. de C. V. and
    subsidiaries                                                                     |  |              | 100% |     |      |  | 100% | 
|Contrataciones Marítimas, S. A. de C. V.                                                                                          |  |              |      | (a) |      |  |      | 
|Inmobiliaria TMM, S. A. and subsidiaries                                                                                          |  |              | 100% |     |      |  | 100% | 
|Línea Mexicana TMM, S. A. de C. V. and subsidiaries                                                                               |  |              | 100% |     |      |  | 100% | 
|Operadora de Apoyo Logístico, S. A. de C. V. and
    subsidiaries                                                                 |  |              | 100% |     |      |  | 100% | 
|Operadora Marítima TMM, S. A. de C. V.                                                                                            |  |              | 100% |     |      |  | 100% | 
|Servicios en Puertos y Terminales, S. A. de C. V. and
    subsidiaries                                                            |  |              | 100% |     |      |  | 100% | 
|Taxi Aéreo TMM, S. A. de C. V.                                                                                                    |  |              |      | (b) |      |  |      | 
|División de Negocios Especializados, S. A. de C. V. and
    subsidiaries (formerly Transportes Marítimos del Pacifico,
    S. A.) |  |              | 100% |     |      |  | 100% | 
|Transportes Marítimos México, S. A. and subsidiaries                                                                              |  |              | 100% |     |      |  | 100% | 
|TMM Holdings, S. A. de C. V. and subsidiaries                                                                                     |  |              | 100% |     |      |  | 100% | 
|TMM Division Puertos, S. A. de C. V. and subsidiary                                                                               |  |              |      | (c) |      |  |      | 
|Comercializadora Internacional de Carga, S. A. de C. V. and
    subsidiary (from March 2002)                                      |  |              |      | (d) |      |  |      | 

F-7



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##### Table of Contents



GRUPO TMM, S. A.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                                                                                                               |  |               |       |     |      |  |       |    
|---------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------- | ----- | --- | ---- |  | ----- | ---
|                                                                                                                                               |  | Percentage of |      
|                                                                                                                                               |  | ownership at  |      
|                                                                                                                                               |  | December 31,  |      
|                                                                                                                                               |  |               |      
|                                                                                                                                               |  | 2003          |       |     | 2004 | 
|                                                                                                                                               |  |               |       |     |      | 
|Administración Portuaria Integral Acapulco, S. A. de C.
    V.                                                                                 |  |               | 51    | %   |      |  | 51    | %  
|Seamex International, Ltd. (Liberia) and subsidiaries (merged on
    December 1, 2004 into Marítima Mexicana, S.A de C.V.)                     |  |               | 60    |     |      |  |       | (e)
|Servicios Administrativos en Puertos y Terminales, S. A. de C.
    V. (merged into TMM Puertos y Terminales, S. A. de C. V. in
    March 2003) |  |               |       | (c) |      |  |       |    
|Servicios Administrativos Portuarios S.A. de C.V. (merged into
    TMM Puertos y Terminales, S. A. de C. V. in July 2002)                      |  |               |       | (c) |      |  |       |    
|TMM Multimodal, S. A. de C. V. and subsidiaries                                                                                                |  |               | 96.64 | %   |      |  | 96.64 | %  
|TMM Puertos y Terminales, S. A. de C. V. (until December 2002)                                                                                 |  |               |       | (c) |      |  |       |    
|Seglo Operaciones Logísticas S.A. de C.V.                                                                                                      |  |               | 50    | %   |      |  | 50    | %  
|Repcorp, S.A. de C.V.                                                                                                                          |  |               |       |     |      |  |       | (f)



|                                                  |  |               |       |  |      |  |       | 
|------------------------------------------------- |  | ------------- | ----- |  | ---- |  | ----- | 
|                                                  |  | Percentage of |      
|                                                  |  | ownership at  |      
|                                                  |  | December 31,  |      
|                                                  |  |               |      
|                                                  |  | 2003          |       |  | 2004 | 
|                                                  |  |               |       |  |      | 
|Terminal del Valle de Mexico, S. A. de C. V.      |  |               | 25%   |  |      |  | 25%   | 
|Terminal de Contenedores de Cartagena, S.A.       |  |               | 32.8% |  |      |  | 32.8% | 
|Seglo, S. A. de C. V.                             |  |               | 39%   |  |      |  | 39%   | 
|Procesos Operativos de Materiales, S. A. de C. V. |  |               | 39%   |  |      |  | 39%   | 
|Promotora Intermodal de Carga, S. A. de C. V.     |  |               | 50%   |  |      |  | 50%   | 






|    |  |                                                                                                                                                                                                                                                                                         
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) |  | On August 1, 2003, Grupo approved the merger of
    Contrataciones Marítimas, S. A. de C. V. into Operadora
    Marítima TMM, S. A. de C. V.                                                                                                                                            
|   
|(b) |  | On November 13, 2003, Grupo agreed to sell Taxi Aéreo,
    S. A. de C. V. to Montacar, S. A. de C. V. (a non-related
    party). The effect of this transaction generated a loss in sale
    of subsidiaries of $1.4 million. (See Note 19).                                            
|   
|(c) |  | On May 13, 2003, División de Negocios Especializados,
    S. A. de C. V. sold its 100% ownership interest in TMM
    División Puertos, S. A. de C. V. to a related party of SSA
    Internacional, Inc. (SSA). (See Note 2).                                                          
|   
|(d) |  | On May 31, 2003, Grupo sold its holding interest in
    Comercializadora Internacional de Carga, S. A. de C. V.
    (CIC) to Operadora de Apoyo Logístico
    (OAL). CIC was merged into TMM Logistics, S. A. de
    C. V. (subsidiary of OAL) as of July 1, 2003.                  
|   
|(e) |  | On December 31, 2004 Seamex International, Ltd was merged
    into Marítima Mexicana, S.A. de C.V.                                                                                                                                                                                      
|   
|(f) |  | On August 16, 2004, Repcorp, S.A. de C.V. was incorporated
    and headquartered in Chalco, State of México, and renders
    overall administrative services to other companies within Grupo.
    Grupo owns 92.3% of this company and the remaining 7.7% is owned
    by third parties.



| |                           
| | --------------------------
| | Sale of other subsidiaries



F-8



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##### Table of Contents



GRUPO TMM, S. A.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




NOTE 2  NON-CURRENT ASSETS HELD FOR SALE AND
DISCONTINUED OPERATIONS




| |                              
| | -----------------------------
| | The sale of the Port Business





| |                                  
| | ---------------------------------
| | The sale of the Railroad Business







F-9



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##### Table of Contents



GRUPO TMM, S. A.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                                                         |  |              |           |  |      |   |           | 
|---------------------------------------------------------------------------------------- |  | ------------ | --------- |  | ---- | - | --------- | 
|                                                                                         |  | December 31, |          
|                                                                                         |  |              |          
|                                                                                         |  | 2003         |           |  | 2004 |  
|                                                                                         |  |              |           |  |      |  
|Non-current assets classified as held for sale:                                          |  |              |           |  |      |   |           | 
|Accounts receivable                                                                      |  | $            | 105,734   |  |      | $ | 106,014   | 
|Other current assets                                                                     |  |              | 118,047   |  |      |   | 148,410   | 
|Concession rights, net                                                                   |  |              | 1,174,217 |  |      |   | 1,130,917 | 
|Property, machinery and equipment, net                                                   |  |              | 632,430   |  |      |   | 558,669   | 
|Deferred income taxes                                                                    |  |              | 78,809    |  |      |   | 100,870   | 
|Other non-current assets                                                                 |  |              | 32,992    |  |      |   | 35,649    | 
|                                                                                         |  |              |           |  |      |  
|                                                                                         |  | $            | 2,142,229 |  |      | $ | 2,080,529 | 
|                                                                                         |  |              |           |  |      |  
|Liabilities directly associated with non-current assets
    classified as held for sale: |  |              |           |  |      |   |           | 
|Accounts payable                                                                         |  | $            | 161,649   |  |      | $ | 142,230   | 
|Debt                                                                                     |  |              | 943,811   |  |      |   | 887,122   | 
|Other current liabilities                                                                |  |              | 33,727    |  |      |   | 25,204    | 
|                                                                                         |  |              |           |  |      |  
|                                                                                         |  | $            | 1,139,187 |  |      | $ | 1,054,556 | 
|                                                                                         |  |              |           |  |      |  



|                                                 |  |              |          |   |         |   |          |         |  |   |          |  
|------------------------------------------------ |  | ------------ | -------- | - | ------- | - | -------- | ------- |  | - | -------- | -
|                                                 |  | December 31, |         
|                                                 |  |              |         
|                                                 |  | 2002(1)      |          |   | 2003(1) |   |          | 2004(2) | 
|                                                 |  |              |          |   |         |   |          |         | 
|Transportation revenues                          |  | $            | 772,067  |   |         | $ | 711,146  |         |  | $ | 679,328  |  
|Costs and expenses                               |  |              | 584,657  |   |         |   | 569,032  |         |  |   | 553,460  |  
|                                                 |  |              |          |   |         |   |          |         | 
|Income on transportation                         |  |              | 187,410  |   |         |   | 142,114  |         |  |   | 125,868  |  
|Other (expenses) income  Net                    |  |              | (31,722  | ) |         |   | 26,031   |         |  |   | (6,397   | )
|                                                 |  |              |          |   |         |   |          |         | 
|Operating income                                 |  |              | 155,688  |   |         |   | 168,145  |         |  |   | 119,471  |  
|Net financing cost                               |  |              | (112,878 | ) |         |   | (124,068 | )       |  |   | (111,029 | )
|                                                 |  |              |          |   |         |   |          |         | 
|Income before income taxes and minority interest |  |              | 42,810   |   |         |   | 44,077   |         |  |   | 8,442    |  
|(Provision) benefit for income taxes             |  |              | (40,733  | ) |         |   | (35,436  | )       |  |   | 15,195   |  
|                                                 |  |              |          |   |         |   |          |         | 
|Income before minority interest                  |  |              | 2,077    |   |         |   | 8,641    |         |  |   | 23,637   |  
|Minority interest                                |  |              | 2,903    |   |         |   | 33,290   |         |  |   | (14,167  | )
|                                                 |  |              |          |   |         |   |          |         | 
|Net income for the year                          |  | $            | 4,980    |   |         | $ | 41,931   |         |  | $ | 9,470    |  
|                                                 |  |              |          |   |         |   |          |         | 

F-10



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##### Table of Contents



GRUPO TMM, S. A.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                                       |  |              |          |   |         |   |         |         |  |   |         |  
|------------------------------------------------------ |  | ------------ | -------- | - | ------- | - | ------- | ------- |  | - | ------- | -
|                                                       |  | December 31, |         
|                                                       |  |              |         
|                                                       |  | 2002(1)      |          |   | 2003(1) |   |         | 2004(2) | 
|                                                       |  |              |          |   |         |   |         |         | 
|Cash Flows                                             |  |              |          |   |         |   |         |         |  |   |         |  
|Cash flows from operating activities:                  |  |              |          |   |         |   |         |         |  |   |         |  
|Net income for the year                                |  | $            | 4,980    |   |         | $ | 41,931  |         |  | $ | 9,470   |  
|                                                       |  |              |          |   |         |   |         |         | 
|Net cash provided by operating activities              |  |              | 117,295  |   |         |   | 110,789 |         |  |   | 76,827  |  
|                                                       |  |              |          |   |         |   |         |         | 
|Net cash used in investing activities                  |  |              | (305,351 | ) |         |   | (85,617 | )       |  |   | (4,711  | )
|                                                       |  |              |          |   |         |   |         |         | 
|Net cash provided by (used in) financing activities    |  |              | 164,915  |   |         |   | (55,585 | )       |  |   | (61,468 | )
|                                                       |  |              |          |   |         |   |         |         | 
|Net (decrease) increase in cash and cash equivalents   |  |              | (23,141  | ) |         |   | (30,413 | )       |  |   | 10,648  |  
|Cash and cash equivalents at the beginning of the year |  |              | 57,151   |   |         |   | 34,010  |         |  |   | 3,597   |  
|                                                       |  |              |          |   |         |   |         |         | 
|Cash and cash equivalents at the end of the year       |  | $            | 34,010   |   |         | $ | 3,597   |         |  | $ | 14,245  |  
|                                                       |  |              |          |   |         |   |         |         | 






|    |                           
|--- | --------------------------
|(1) | Railroad and Port business
|   
|(2) | Only Railroad business    





| |                      
| | ---------------------
| | Sale of Mexrail, Inc.











F-11



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##### Table of Contents



GRUPO TMM, S. A.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




NOTE 3  SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES:










| |                 
| | ----------------
| | a. Consolidation





| |             
| | ------------
| | Subsidiaries









| |           
| | ----------
| | Associates





F-12



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##### Table of Contents



GRUPO TMM, S. A.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |               
| | --------------
| | b. Translation







| |                             
| | ----------------------------
| | c. Cash and cash equivalents





| |                   
| | ------------------
| | d. Restricted cash





| |                       
| | ----------------------
| | e. Accounts receivable





| |                          
| | -------------------------
| | f. Materials and supplies





| |                                        
| | ---------------------------------------
| | g. Concession rights and related assets





|   |                                  
|-- | ---------------------------------
|h. | Property, machinery and equipment



F-13



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##### Table of Contents



GRUPO TMM, S. A.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








|   |                 
|-- | ----------------
|i. | Prepaid expenses





|   |         
|-- | --------
|j. | Goodwill





|   |                    
|-- | -------------------
|k. | Deferred income tax









|   |                                    
|-- | -----------------------------------
|l. | Employees statutory profit-sharing





|   |           
|-- | ----------
|m. | Borrowings





|   |                                
|-- | -------------------------------
|n. | Pensions and seniority premiums





F-14



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##### Table of Contents



GRUPO TMM, S. A.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                    
|-- | -------------------
|o. | Revenue recognition









|   |                                
|-- | -------------------------------
|p. | Impairment of long-lived assets





|   |       
|-- | ------
|q. | Leases







|   |                  
|-- | -----------------
|r. | Minority interest





|   |         
|-- | --------
|s. | Segments





|   |                                 
|-- | --------------------------------
|t. | Non-current assets held for sale







F-15



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##### Table of Contents



GRUPO TMM, S. A.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                 
|-- | ----------------
|u. | Use of estimates





|   |              
|-- | -------------
|v. | Share capital







|   |                                    
|-- | -----------------------------------
|w. | Obligations for sale of receivables





|   |                          
|-- | -------------------------
|x. | Financial risk management



|   |                       
|-- | ----------------------
|i. | Financial risk factors





|    |                      
|--- | ---------------------
|ii. | Foreign exchange risk





|            |  |              |         |   |      |   |         |  
|----------- |  | ------------ | ------- | - | ---- | - | ------- | -
|            |  | December 31, |        
|            |  |              |        
|            |  | 2003         |         |   | 2004 |  
|            |  |              |         |   |      |  
|Assets      |  | $            | 64,857  |   |      | $ | 103,709 |  
|Liabilities |  |              | (50,330 | ) |      |   | (70,602 | )
|            |  |              |         |   |      |  
|            |  | $            | 14,527  |   |      | $ | 33,107  |  
|            |  |              |         |   |      |  





|     |                   
|---- | ------------------
|iii. | Interest-rate risk



F-16



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##### Table of Contents



GRUPO TMM, S. A.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|    |                             
|--- | ----------------------------
|iv. | Concentration of credit risk







|   |                                             
|-- | --------------------------------------------
|v. | Financial instruments and hedging activities













| |                                    
| | -----------------------------------
| | Fair value of financial instruments







F-17



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##### Table of Contents



GRUPO TMM, S. A.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                  
|-- | -----------------
|y. | Reclassifications





|   |                              
|-- | -----------------------------
|z. | New accounting pronouncements





| |                                                                          
| | -------------------------------------------------------------------------
| | IAS 1 Presentation of Financial Statements                               
| | IAS 2 Inventories                                                        
| | IAS 8 Accounting Policies, Changes in Accounting Estimates and
    Errors
| | IAS 10 Events after the Balance Sheet date                               
| | IAS 16 Property, Plant and Equipment                                     
| | IAS 17 Leases                                                            
| | IAS 21 The Effects of Changes in Foreign Exchange Rates                  
| | IAS 24 Related Party Disclosures                                         
| | IAS 27 Consolidated and Separate Financial Statements                    
| | IAS 28 Investments in Associates                                         
| | IAS 31 Interests in Joint Ventures                                       
| | IAS 32 Financial Instruments: Disclosure and Presentation                
| | IAS 33 Earnings per Share                                                
| | IAS 39 Financial Instruments: Recognition and Measurement                
| | IAS 40 Investment Property                                               







NOTE 4  TAXES RECOVERABLE:




|                                       |  |              |       |  |      |   |        | 
|-------------------------------------- |  | ------------ | ----- |  | ---- | - | ------ | 
|                                       |  | December 31, |      
|                                       |  |              |      
|                                       |  | 2003         |       |  | 2004 |  
|                                       |  |              |       |  |      |  
|Special tax on production and services |  | $            | 405   |  |      | $ | 206    | 
|Income Tax and recoverable VAT         |  |              | 3,087 |  |      |   | 19,351 | 
|Other                                  |  |              | 1,212 |  |      |   | 1,752  | 
|                                       |  |              |       |  |      |  
|                                       |  | $            | 4,704 |  |      | $ | 21,309 | 
|                                       |  |              |       |  |      |  

F-18



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##### Table of Contents



GRUPO TMM, S. A.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


NOTE 5  OTHER ACCOUNTS RECEIVABLE:


|                                                 |  |              |        |  |      |   |        | 
|------------------------------------------------ |  | ------------ | ------ |  | ---- | - | ------ | 
|                                                 |  | December 31, |       
|                                                 |  |              |       
|                                                 |  | 2003         |        |  | 2004 |  
|                                                 |  |              |        |  |      |  
|Services for port, maritime and other operations |  | $            | 15,252 |  |      | $ | 13,216 | 
|Insurance claims                                 |  |              | 1,247  |  |      |   | 935    | 
|Employees                                        |  |              | 2,967  |  |      |   | 1,481  | 
|Other                                            |  |              | 9,717  |  |      |   | 2,154  | 
|                                                 |  |              |        |  |      |  
|                                                 |  | $            | 29,183 |  |      | $ | 17,786 | 
|                                                 |  |              |        |  |      |  

NOTE 6  OTHER CURRENT ASSETS:


|                           |  |              |       |  |      |   |       | 
|-------------------------- |  | ------------ | ----- |  | ---- | - | ----- | 
|                           |  | December 31, |      
|                           |  |              |      
|                           |  | 2003         |       |  | 2004 |  
|                           |  |              |       |  |      |  
|Prepaid expenses           |  | $            | 1,241 |  |      | $ | 1,605 | 
|Insurance                  |  |              | 287   |  |      |   | 714   | 
|Prepaid insurance premiums |  |              | 437   |  |      |   | 287   | 
|Others                     |  |              | 27    |  |      |   | 628   | 
|                           |  |              |       |  |      |  
|                           |  | $            | 1,992 |  |      | $ | 3,234 | 
|                           |  |              |       |  |      |  

NOTE 7  CONCESSION RIGHTS:












|                                      |  |              |        |   |              |   |        |         |  |  |    | 
|------------------------------------- |  | ------------ | ------ | - | ------------ | - | ------ | ------- |  |  | -- | 
|                                      |  | December 31, |        |   | Estimated    |  
|                                      |  |              |        |   | Useful Lives |  
|                                      |  | 2003         |        |   | 2004         |   |        | (Years) | 
|                                      |  |              |        |   |              |   |        |         | 
|Integral Acapulco Port Administration |  | $            | 6,783  |   |              | $ | 6,783  |         |  |  | 25 | 
|Tugboats in the Port of Manzanillo    |  |              | 2,170  |   |              |   | 2,170  |         |  |  | 10 | 
|                                      |  |              |        |   |              |   |        |         | 
|                                      |  |              | 8,953  |   |              |   | 8,953  |         |  |  |    | 
|Accumulated amortization              |  |              | (3,536 | ) |              |   | (4,024 | )       |  |  |    | 
|                                      |  |              |        |   |              |   |        |         | 
|Concession rights  Net               |  | $            | 5,417  |   |              | $ | 4,929  |         |  |  |    | 
|                                      |  |              |        |   |              |   |        |         | 



F-19



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##### Table of Contents



GRUPO TMM, S. A.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


NOTE 8  PROPERTY, MACHINERY AND EQUIPMENT:


|                                 |  |               |        |  |           |   |       |           |           |   |        |                   |              |              |        |   |              |   |        |         |  |   |        |  |  |  |            | 
|-------------------------------- |  | ------------- | ------ |  | --------- | - | ----- | --------- | --------- | - | ------ | ----------------- | ------------ | ------------ | ------ | - | ------------ | - | ------ | ------- |  | - | ------ |  |  |  | ---------- | 
|                                 |  |               |        |  |           |   |       |           |           |   |        | December 31, 2003 |             
|                                 |  |               |        |  |           |   |       |           |           |   |        |                   |             
|                                 |  | Balance at    |        |  |           |   |       |           |           |   |        |                   | Balance at   |              |        |  
|                                 |  | Beginning of  |        |  |           |   |       |           |           |   |        |                   | End of Year, |              |        |  
|                                 |  | Year  Net of |        |  |           |   |       |           | Transfers |   |        |                   |              | Net of       |        |   | Estimated    |  
|                                 |  | Accumulated   |        |  |           |   |       |           | and       |   |        |                   |              | Accumulated  |        |   | Useful Lives |  
|                                 |  | Depreciation  |        |  | Additions |   |       | Disposals |           |   | Others |                   |              | Depreciation |        |   | Depreciation |   |        | (Years) | 
|                                 |  |               |        |  |           |   |       |           |           |   |        |                   |              |              |        |   |              |   |        |         | 
|Vessels                          |  | $             | 28,321 |  |           | $ | 2,498 |           |           | $ | 11,358 |                   |              |              |        |   |              | $ | 3,761  |         |  | $ | 15,700 |  |  |  | 25         | 
|Dry-docks (major vessel repairs) |  |               | 2,276  |  |           |   | 1,551 |           |           |   | 434    |                   |              |              | (36    | ) |              |   | 2,143  |         |  |   | 1,214  |  |  |  | 5          | 
|Buildings and installations      |  |               | 14,028 |  |           |   |       |           |           |   | 5      |                   |              |              | (376   | ) |              |   | 1,006  |         |  |   | 12,641 |  |  |  | 20 and 25  | 
|Warehousing equipment            |  |               | 116    |  |           |   |       |           |           |   |        |                   |              |              |        |   |              |   | 8      |         |  |   | 108    |  |  |  | 10         | 
|Computer equipment               |  |               | 536    |  |           |   | 140   |           |           |   | 13     |                   |              |              | 39     |   |              |   | 242    |         |  |   | 460    |  |  |  | 3 and 4    | 
|Terminal equipment               |  |               | 3,613  |  |           |   | 54    |           |           |   |        |                   |              |              | (666   | ) |              |   | 750    |         |  |   | 2,251  |  |  |  | 10         | 
|Ground transportation equipment  |  |               | 12,919 |  |           |   | 326   |           |           |   | 131    |                   |              |              | 551    |   |              |   | 2,068  |         |  |   | 11,597 |  |  |  | 4.5 and 10 | 
|Other equipment                  |  |               | 2,789  |  |           |   | 114   |           |           |   | 120    |                   |              |              | 337    |   |              |   | 655    |         |  |   | 2,465  |  |  |  | 5          | 
|                                 |  |               |        |  |           |   |       |           |           |   |        |                   |              |              |        |   |              |   |        |         | 
|                                 |  |               | 64,598 |  |           |   | 4,683 |           |           |   | 12,061 |                   |              |              | (151   | ) |              |   | 10,633 |         |  |   | 46,436 |  |  |  |            | 
|Land                             |  |               | 14,182 |  |           |   | 206   |           |           |   | 160    |                   |              |              |        |   |              |   |        |         |  |   | 14,228 |  |  |  |            | 
|Construction in progress         |  |               | 14,723 |  |           |   | 4,547 |           |           |   |        |                   |              |              | (4,620 | ) |              |   | 212    |         |  |   | 14,438 |  |  |  |            | 
|                                 |  |               |        |  |           |   |       |           |           |   |        |                   |              |              |        |   |              |   |        |         | 
|                                 |  | $             | 93,503 |  |           | $ | 9,436 |           |           | $ | 12,221 |                   |              | $            | (4,771 | ) |              | $ | 10,845 |         |  | $ | 75,102 |  |  |  |            | 
|                                 |  |               |        |  |           |   |       |           |           |   |        |                   |              |              |        |   |              |   |        |         | 

|                                 |  |               |        |  |           |   |        |           |           |   |        |                   |              |              |        |   |              |   |       |         |  |   |        |  |  |  |            | 
|-------------------------------- |  | ------------- | ------ |  | --------- | - | ------ | --------- | --------- | - | ------ | ----------------- | ------------ | ------------ | ------ | - | ------------ | - | ----- | ------- |  | - | ------ |  |  |  | ---------- | 
|                                 |  |               |        |  |           |   |        |           |           |   |        | December 31, 2004 |             
|                                 |  |               |        |  |           |   |        |           |           |   |        |                   |             
|                                 |  | Balance at    |        |  |           |   |        |           |           |   |        |                   | Balance at   |              |        |  
|                                 |  | Beginning of  |        |  |           |   |        |           |           |   |        |                   | End of Year, |              |        |  
|                                 |  | Year  Net of |        |  |           |   |        |           | Transfers |   |        |                   |              | Net of       |        |   | Estimated    |  
|                                 |  | Accumulated   |        |  |           |   |        |           | and       |   |        |                   |              | Accumulated  |        |   | Useful Lives |  
|                                 |  | Depreciation  |        |  | Additions |   |        | Disposals |           |   | Others |                   |              | Depreciation |        |   | Depreciation |   |       | (Years) | 
|                                 |  |               |        |  |           |   |        |           |           |   |        |                   |              |              |        |   |              |   |       |         | 
|Vessels                          |  | $             | 15,700 |  |           | $ | 1,826  |           |           | $ | 121    |                   |              | $            | (281   | ) |              | $ | 2,768 |         |  | $ | 14,356 |  |  |  | 25         | 
|Dry-docks (major vessel repairs) |  |               | 1,214  |  |           |   | 2,430  |           |           |   |        |                   |              |              | (408   | ) |              |   | 1,088 |         |  |   | 2,148  |  |  |  | 5          | 
|Buildings and installations      |  |               | 12,641 |  |           |   |        |           |           |   | 9      |                   |              |              | 142    |   |              |   | 1,114 |         |  |   | 11,660 |  |  |  | 20 and 25  | 
|Warehousing equipment            |  |               | 108    |  |           |   |        |           |           |   |        |                   |              |              |        |   |              |   | 8     |         |  |   | 100    |  |  |  | 10         | 
|Computer equipment               |  |               | 460    |  |           |   | 196    |           |           |   | 10     |                   |              |              | 157    |   |              |   | 338   |         |  |   | 465    |  |  |  | 3 and 4    | 
|Terminal equipment               |  |               | 2,251  |  |           |   | 68     |           |           |   |        |                   |              |              | 42     |   |              |   | 460   |         |  |   | 1,901  |  |  |  | 10         | 
|Ground transportation equipment  |  |               | 11,597 |  |           |   | 271    |           |           |   | 585    |                   |              |              | 1,022  |   |              |   | 2,468 |         |  |   | 9,837  |  |  |  | 4.5 and 10 | 
|Other equipment                  |  |               | 2,465  |  |           |   | 96     |           |           |   | 21     |                   |              |              | 1,993  |   |              |   | 432   |         |  |   | 4,101  |  |  |  | 5          | 
|                                 |  |               |        |  |           |   |        |           |           |   |        |                   |              |              |        |   |              |   |       |         | 
|                                 |  |               | 46,436 |  |           |   | 4,887  |           |           |   | 746    |                   |              |              | 2,667  |   |              |   | 8,676 |         |  |   | 44,568 |  |  |  |            | 
|Land                             |  |               | 14,228 |  |           |   | 40     |           |           |   |        |                   |              |              |        |   |              |   |       |         |  |   | 14,268 |  |  |  |            | 
|Construction in progress         |  |               | 14,438 |  |           |   | 10,351 |           |           |   | 284    |                   |              |              | (2,738 | ) |              |   | 267   |         |  |   | 21,500 |  |  |  |            | 
|                                 |  |               |        |  |           |   |        |           |           |   |        |                   |              |              |        |   |              |   |       |         | 
|                                 |  | $             | 75,102 |  |           | $ | 15,278 |           |           | $ | 1,030  |                   |              | $            | (71    | ) |              | $ | 8,943 |         |  | $ | 80,336 |  |  |  |            | 
|                                 |  |               |        |  |           |   |        |           |           |   |        |                   |              |              |        |   |              |   |       |         | 



F-20



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##### Table of Contents



GRUPO TMM, S. A.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


NOTE 9  PREPAID EXPENSES:


|                  |  |              |        |  |      |   |       | 
|----------------- |  | ------------ | ------ |  | ---- | - | ----- | 
|                  |  | December 31, |       
|                  |  |              |       
|                  |  | 2003         |        |  | 2004 |  
|                  |  |              |        |  |      |  
|Guarantee deposit |  | $            | 477    |  |      | $ | 967   | 
|Prepaid expenses  |  |              | 11,637 |  |      |   | 3,613 | 
|                  |  |              |        |  |      |  
|                  |  | $            | 12,114 |  |      | $ | 4,580 | 
|                  |  |              |        |  |      |  

NOTE 10  INVESTMENTS HELD IN ASSOCIATED
COMPANIES:


|                                                  |  |               |      |              |      |   |        |      |  |   |        | 
|------------------------------------------------- |  | ------------- | ---- | ------------ | ---- | - | ------ | ---- |  | - | ------ | 
|                                                  |  |               |      | December 31, |     
|                                                  |  | Percentage of |      |              |      |  
|                                                  |  | Ownership     |      |              | 2003 |   |        | 2004 | 
|                                                  |  |               |      |              |      |   |        |      | 
|Terminal de Contenedores de Cartagena, S. A.      |  |               | 32.8 | %            |      | $ | 7,689  |      |  | $ | 7,843  | 
|Seglo, S. A. de C. V.                             |  |               | 39   | %            |      |   | 2,384  |      |  |   | 3,114  | 
|Procesos Operativos de Materiales, S. A. de C. V. |  |               | 39   | %            |      |   | 5      |      |  |   | 12     | 
|Promotora Intermodal de Carga, S. A. de C. V.     |  |               | 50   | %            |      |   | 153    |      |  |   | 146    | 
|Joint Venture                                     |  |               |      |              |      |   | 2,192  |      |  |   | 2,192  | 
|Joint Venture Real Estate Business                |  |               |      |              |      |   | 1,824  |      |  |   | 1,824  | 
|                                                  |  |               |      |              |      |   |        |      | 
|                                                  |  |               |      |              |      | $ | 14,247 |      |  | $ | 15,131 | 
|                                                  |  |               |      |              |      |   |        |      | 

NOTE 11  INTANGIBLE ASSETS:


|         |  |               |       |  |           |   |     |           |               |               |   |                   |               |             |      |              |       |   |         |  |  |   |       |  |  |  |          | 
|-------- |  | ------------- | ----- |  | --------- | - | --- | --------- | ------------- | ------------- | - | ----------------- | ------------- | ----------- | ---- | ------------ | ----- | - | ------- |  |  | - | ----- |  |  |  | -------- | 
|         |  |               |       |  |           |   |     |           |               |               |   | December 31, 2003 |              
|         |  |               |       |  |           |   |     |           |               |               |   |                   |              
|         |  | Balance at    |       |  |           |   |     |           |               |               |   |                   | Balance at    |             |      |             
|         |  | Beginning of  |       |  |           |   |     |           |               |               |   |                   | End of        |             |      | Estimated    |      
|         |  | Year  Net of |       |  |           |   |     |           |               |               |   |                   | Year  Net of |             |      | Useful       |      
|         |  | Accumulated   |       |  |           |   |     |           | Transfers and |               |   |                   |               | Accumulated |      |              | Lives |  
|         |  | Depreciation  |       |  | Additions |   |     | Disposals |               | Cancellations |   |                   | Amortization  |             |      | Depreciation |       |   | (Years) | 
|         |  |               |       |  |           |   |     |           |               |               |   |                   |               |             |      |              |       |   |         | 
|Software |  | $             | 1,129 |  |           | $ | 133 |           |               |               |   |                   |               | $           | (810 | )            |       | $ | 277     |  |  | $ | 175   |  |  |  | 5        | 
|Goodwill |  |               | 5,495 |  |           |   |     |           |               |               |   |                   |               |             |      |              |       |   | 574     |  |  |   | 4,921 |  |  |  | 10 to 31 | 
|         |  |               |       |  |           |   |     |           |               |               |   |                   |               |             |      |              |       |   |         |  | 
|         |  | $             | 6,624 |  |           | $ | 133 |           |               | $             |  |                   |               | $           | (810 | )            |       | $ | 851     |  |  | $ | 5,096 |  |  |  |          | 
|         |  |               |       |  |           |   |     |           |               |               |   |                   |               |             |      |              |       |   |         |  | 

|         |  |               |       |  |           |   |    |           |               |               |   |                   |               |             |    |              |       |   |         |  |  |   |       |  |  |  |          | 
|-------- |  | ------------- | ----- |  | --------- | - | -- | --------- | ------------- | ------------- | - | ----------------- | ------------- | ----------- | -- | ------------ | ----- | - | ------- |  |  | - | ----- |  |  |  | -------- | 
|         |  |               |       |  |           |   |    |           |               |               |   | December 31, 2004 |              
|         |  |               |       |  |           |   |    |           |               |               |   |                   |              
|         |  | Balance at    |       |  |           |   |    |           |               |               |   |                   | Balance at    |             |    |             
|         |  | Beginning of  |       |  |           |   |    |           |               |               |   |                   | End of        |             |    | Estimated    |      
|         |  | Year  Net of |       |  |           |   |    |           |               |               |   |                   | Year  Net of |             |    | Useful       |      
|         |  | Accumulated   |       |  |           |   |    |           | Transfers and |               |   |                   |               | Accumulated |    |              | Lives |  
|         |  | Depreciation  |       |  | Additions |   |    | Disposals |               | Cancellations |   |                   | Amortization  |             |    | Depreciation |       |   | (Years) | 
|         |  |               |       |  |           |   |    |           |               |               |   |                   |               |             |    |              |       |   |         | 
|Software |  | $             | 175   |  |           | $ | 56 |           |               |               |   |                   |               | $           | (5 | )            |       | $ | 125     |  |  | $ | 101   |  |  |  | 5        | 
|Goodwill |  |               | 4,921 |  |           |   |    |           |               |               |   |                   |               |             |    |              |       |   | 573     |  |  |   | 4,348 |  |  |  | 10 to 31 | 
|         |  |               |       |  |           |   |    |           |               |               |   |                   |               |             |    |              |       |   |         |  | 
|         |  | $             | 5,096 |  |           | $ | 56 |           |               | $             |  |                   |               | $           | (5 | )            |       | $ | 698     |  |  | $ | 4,449 |  |  |  |          | 
|         |  |               |       |  |           |   |    |           |               |               |   |                   |               |             |    |              |       |   |         |  | 

F-21



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##### Table of Contents



GRUPO TMM, S. A.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


NOTE 12  DEBT:




|                   |  |                |         |  |                |   |        | 
|------------------ |  | -------------- | ------- |  | -------------- | - | ------ | 
|                   |  | 2003           |         |  | 2004           |  
|                   |  |                |         |  |                |  
|                   |  | Net Borrowings |         |  | Net Borrowings |  
|                   |  |                |         |  |                |  
|Short-term debt:   |  |                |         |  |                |   |        | 
|2006
    Notes(1)  |  | $              | 194,634 |  |                |   |        | 
|2003
    Notes(2)  |  |                | 176,875 |  |                |   |        | 
|Banca Mifel        |  |                | 1,200   |  |                | $ | 600    | 
|Banca
    Invex(4) |  |                | 989     |  |                |   | 1,071  | 
|Capital lease      |  |                | 94      |  |                |   | 151    | 
|Interest payable   |  |                | 47,285  |  |                |   | 24,723 | 
|                   |  |                |         |  |                |  
|                   |  | $              | 421,077 |  |                | $ | 26,545 | 
|                   |  |                |         |  |                |  

|                          |  |                |       |  |                |   |         | 
|------------------------- |  | -------------- | ----- |  | -------------- | - | ------- | 
|                          |  | 2003           |       |  | 2004           |  
|                          |  |                |       |  |                |  
|                          |  | Net Borrowings |       |  | Net Borrowings |  
|                          |  |                |       |  |                |  
|Long-term debt:           |  |                |       |  |                |   |         | 
|2006
    Notes(1)         |  |                |       |  |                | $ | 2,879   | 
|New Notes due
    2007(3) |  |                |       |  |                |   | 466,420 | 
|Banca Mifel               |  |                |       |  |                |   | 150     | 
|Banca
    Invex(4)        |  | $              | 1,319 |  |                |   |         | 
|Capital leases            |  |                | 151   |  |                |   |         | 
|                          |  |                |       |  |                |  
|                          |  | $              | 1,470 |  |                | $ | 469,449 | 
|                          |  |                |       |  |                |  






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The 2006 notes represent ten-year instruments bearing 10.25%
    annual interest (10% annually up to November 15, 2000)
    through November 15, 2006 (see point (2) below).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   
|(2) | The 2003 notes represent ten-year instruments bearing 9.50%
    annual interest (9.25% annually up to November 14, 2000)
    through May 15, 2003. On such date, the Company defaulted
    on its obligation to pay the principal amount and accrued unpaid
    interest on the 2003 notes, and the accrued unpaid interest on
    its 2006 notes. As a result, the Company began negotiations with
    a representative committee of holders of 2003 and 2006 notes,
    engaging the firms of Miller, Buckfire, Lewis LLC (now Miller,
    Buckfire, Ying LLC) and Milbank, Tweed, Hadley & McCloy
    LLP as its financial and legal advisors, respectively, in the
    United States; and the firms Elek, Moreno-Valle y Asociados,
    S.C. and Quijano, Cortina, Lopez y De la Torre, S.C. as its
    financial and legal advisors, respectively, in Mexico. The
    Company also supported the creation of an ad-hoc committee of
    holders for 2003 and 2006 notes, who engaged Houlihan, Lokey,
    Howard & Zukin and Akin, Gump, Strauss,
    Hauer & Feld as the committees financial and
    legal advisors, respectively, in the United States; and Franck,
    Galicia y Robles, S.C. (now Galicia y Robles, S.C.) as the
    committees legal advisors in Mexico.



F-22



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##### Table of Contents



GRUPO TMM, S. A.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)












|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(3) | The New Notes due 2007 represent a three-year senior and secured
    (by virtually all of the Companys assets, including a
    pledge of the Grupo TFM shares held by TMM Multimodal)
    obligation (extendable to four years at the option of the
    Company under certain circumstances), for an initial principal
    amount of $508,703 and with an annual interest of 10.5% if
    interest is paid entirely in cash, or of 12.0% if the Company
    elects to pay the interest due in a combination of a minimum due
    in cash of 2% annually and the remainder in kind (through the
    issuance of additional New Notes 2007 or Company ADSs).
    This payment-in-kind interest rate will increase to 12.5% for
    the period between August 1, 2006 and February 1,
    2007, and to 13.0% for the period between February 1, 2007
    and August 1, 2007. If the Company elects to extend the
    maturity of the New Notes due 2007 until August 1, 2008, it
    would have to pay a pro rata portion of a cash fee equal to 4%
    of the then outstanding principal amount under its New Notes due
    2007, and the applicable rate would be 12% payable in cash only.
|   
|(4) | Bank loan with Banco Invex at a rate of 9.75% due on
    December 21, 2005.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                

Covenants








|     |  |                |       |  |                |   |         | 
|---- |  | -------------- | ----- |  | -------------- | - | ------- | 
|     |  | December 31,   |      
|     |  |                |      
|     |  | 2003           |       |  | 2004           |  
|     |  |                |       |  |                |  
|     |  | Net Borrowings |       |  | Net Borrowings |  
|     |  |                |       |  |                |  
|2005 |  | $              | 1,470 |  |                |   |         | 
|2006 |  |                |       |  |                | $ | 3,028   | 
|2007 |  |                |       |  |                |   | 466,421 | 
|     |  |                |       |  |                |  
|     |  | $              | 1,470 |  |                | $ | 469,449 | 
|     |  |                |       |  |                |  

F-23



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##### Table of Contents



GRUPO TMM, S. A.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                  |  |                   |         |   |                   |   |         |            |  |   |            |  |  |   |       | 
|----------------- |  | ----------------- | ------- | - | ----------------- | - | ------- | ---------- |  | - | ---------- |  |  | - | ----- | 
|                  |  | December 31, 2003 |         |   | December 31, 2004 |  
|                  |  |                   |         |   |                   |  
|                  |  | Book Value        |         |   | Fair Value        |   |         | Book Value |  |   | Fair Value | 
|                  |  |                   |         |   |                   |   |         |            |  |   |            | 
|Short-term debt:  |  |                   |         |   |                   |   |         |            |  |   |            |  |  |   |       | 
|Fixed-rate        |  | $                 | 376,969 |   |                   | $ | 306,306 |            |  | $ | 151        |  |  | $ | 151   | 
|Variable-rate     |  |                   | 2,189   |   |                   |   | 2,189   |            |  |   | 1,671      |  |  |   | 1,671 | 
|Transaction costs |  |                   | (5,366  | ) |                   |   |         |            |  |   |            |  |  |   |       | 
|Interest payable  |  |                   | 47,285  |   |                   |   |         |            |  |   | 24,723     |  |  |   |       | 
|                  |  |                   |         |   |                   |   |         |            |  |   |            | 
|                  |  | $                 | 421,077 |   |                   | $ | 308,495 |            |  | $ | 26,545     |  |  | $ | 1,822 | 
|                  |  |                   |         |   |                   |   |         |            |  |   |            | 

|                 |  |                   |       |  |                   |   |       |            |  |   |            |   |  |   |         | 
|---------------- |  | ----------------- | ----- |  | ----------------- | - | ----- | ---------- |  | - | ---------- | - |  | - | ------- | 
|                 |  | December 31, 2003 |       |  | December 31, 2004 |  
|                 |  |                   |       |  |                   |  
|                 |  | Book Value        |       |  | Fair Value        |   |       | Book Value |  |   | Fair Value |  
|                 |  |                   |       |  |                   |   |       |            |  |   |            |  
|Long-term debt:  |  |                   |       |  |                   |   |       |            |  |   |            |   |  |   |         | 
|Fixed rate       |  | $                 | 151   |  |                   | $ | 151   |            |  | $ | 511,582    |   |  | $ | 513,816 | 
|Variable rate    |  |                   | 1,319 |  |                   |   | 1,319 |            |  |   | 150        |   |  |   | 150     | 
|Transaction cost |  |                   |       |  |                   |   |       |            |  |   | (42,283    | ) |  |   |         | 
|                 |  |                   |       |  |                   |   |       |            |  |   |            |  
|                 |  | $                 | 1,470 |  |                   | $ | 1,470 |            |  | $ | 469,449    |   |  | $ | 513,966 | 
|                 |  |                   |       |  |                   |   |       |            |  |   |            |  

NOTE 13  OBLIGATIONS FOR SALE OF
RECEIVABLES:






F-24



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##### Table of Contents



GRUPO TMM, S. A.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                              |  |      |         |   |      |   |         |  
|----------------------------- |  | ---- | ------- | - | ---- | - | ------- | -
|                              |  | 2003 |         |   | 2004 |  
|                              |  |      |         |   |      |  
|Series 2003-A Certificate I   |  | $    | 54,000  |   |      | $ | 54,000  |  
|Series 2003-A Certificate II  |  |      | 25,000  |   |      |   | 25,000  |  
|Series 2003-A Certificate III |  |      |         |   |      |   | 10,000  |  
|Series 2003-A Certificate IV  |  |      |         |   |      |   | 6,300   |  
|Interest payable              |  |      | 60      |   |      |   | 635     |  
|                              |  |      |         |   |      |  
|                              |  |      | 79,060  |   |      |   | 95,935  |  
|Payments                      |  | $    | (3,600  | ) |      | $ | (21,000 | )
|Deferred financing            |  |      | (5,335  | ) |      |   | (5,221  | )
|Current portion               |  |      | (15,317 | ) |      |   | (19,956 | )
|                              |  |      |         |   |      |  
|                              |  | $    | 54,808  |   |      | $ | 49,758  |  
|                              |  |      |         |   |      |  

NOTE 14  CONVERTIBLE NOTES:










F-25



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##### Table of Contents



GRUPO TMM, S. A.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


NOTE 15  BALANCES AND TRANSACTIONS WITH
RELATED PARTIES:


|                                                              |  |              |       |  |      |   |     | 
|------------------------------------------------------------- |  | ------------ | ----- |  | ---- | - | --- | 
|                                                              |  | December 31, |      
|                                                              |  |              |      
|                                                              |  | 2003         |       |  | 2004 |  
|                                                              |  |              |       |  |      |  
|(*)Accounts receivable:                                       |  |              |       |  |      |   |     | 
|Seacor Marine, Inc.
    (Seacor)(1)                         |  | $            | 593   |  |      | $ | 448 | 
|                                                              |  |              |       |  |      |  
|                                                              |  | $            | 593   |  |      | $ | 448 | 
|                                                              |  |              |       |  |      |  
|                                                             
|(*)Accounts payable:                                          |  |              |       |  |      |   |     | 
|Promotora Servia, S. A. de C. V. (Promotora Servia)
    (2) |  | $            | 6,500 |  |      |   |     | 
|                                                              |  |              |       |  |      |  
|                                                              |  | $            | 6,500 |  |      |   |     | 
|                                                              |  |              |       |  |      |  






|    |                                                                                                                                                               
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------
|(*) | The accounts receivable and payable due from or due to related
    parties were driven by the services disclosed in the
    transactions with related parties.



|   |                                                                    
|-- | -------------------------------------------------------------------
|1. | Seacor (strategic partner in the Specialized Maritime
    Division)





|   |                            
|-- | ---------------------------
|2. | Payment to Promotora Servia





|                                |  |                         |     |  |      |   |       |      |  |   |       | 
|------------------------------- |  | ----------------------- | --- |  | ---- | - | ----- | ---- |  | - | ----- | 
|                                |  | Year Ended December 31, |    
|                                |  |                         |    
|                                |  | 2002                    |     |  | 2003 |   |       | 2004 | 
|                                |  |                         |     |  |      |   |       |      | 
|Income:                         |  |                         |     |  |      |   |       |      |  |   |       | 
|Management
    fee(1)           |  | $                       | 452 |  |      | $ | 584   |      |  | $ | 234   | 
|                                |  |                         |     |  |      |   |       |      | 
|                               
|Expense:                        |  |                         |     |  |      |   |       |      |  |   |       | 
|Administrative
    services(2)  |  |                         |     |  |      | $ | 4,613 |      |  | $ | 4,908 | 
|                                |  |                         |     |  |      |   |       |      | 
|Fees(2)                         |  |                         |     |  |      | $ | 1,099 |      |  | $ | 1,043 | 
|                                |  |                         |     |  |      |   |       |      | 
|Personnel on board
    items(3) |  |                         |     |  |      | $ | 72    |      |  | $ | 61    | 
|                                |  |                         |     |  |      |   |       |      | 






|    |                                                                                                                                                         
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Includes Grupo invoicing to Seglo S.A. in the amount of $452,
    $119 and $127, for the years ended December 31, 2002, 2003
    and 2004, respectively.





|    |                                                                                   
|--- | ----------------------------------------------------------------------------------
|(2) | Operation between Seglo Operaciones Logisticas, S. A. de C. V.
    and Seglo S. A.
|   
|(3) | Personnel on board items between Marmex and Seacor Marine in
    2003 and 2004.   

F-26



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##### Table of Contents



GRUPO TMM, S. A.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


NOTE 16  ACCRUED EXPENSES:


|                     |  |              |        |  |      |   |        | 
|-------------------- |  | ------------ | ------ |  | ---- | - | ------ | 
|                     |  | December 31, |       
|                     |  |              |       
|                     |  | 2003         |        |  | 2004 |  
|                     |  |              |        |  |      |  
|General expenses     |  | $            | 10,605 |  |      | $ | 10,414 | 
|Operational expenses |  |              | 3,048  |  |      |   | 2,791  | 
|Taxes payable        |  |              | 11,832 |  |      |   | 11,691 | 
|Purchased services   |  |              | 11,762 |  |      |   | 5,310  | 
|Salaries and wages   |  |              | 1,588  |  |      |   | 2,359  | 
|GM put option        |  |              |        |  |      |   | 13,545 | 
|Others               |  |              | 245    |  |      |   | 715    | 
|                     |  |              |        |  |      |  
|                     |  | $            | 39,080 |  |      | $ | 46,825 | 
|                     |  |              |        |  |      |  

NOTE 17  OTHER LONG-TERM LIABILITIES:


|             |  |              |        |  |      |   |       | 
|------------ |  | ------------ | ------ |  | ---- | - | ----- | 
|             |  | December 31, |       
|             |  |              |       
|             |  | 2003         |        |  | 2004 |  
|             |  |              |        |  |      |  
|LA, Inc.     |  | $            | 9,056  |  |      |   |       | 
|Dividend tax |  |              | 4,836  |  |      | $ | 4,836 | 
|             |  |              |        |  |      |  
|             |  | $            | 13,892 |  |      | $ | 4,836 | 
|             |  |              |        |  |      |  

NOTE 18  STOCKHOLDERS EQUITY:




| |              
| | -------------
| | Capital stock







| |              
| | -------------
| | Going Concern







| |          
| | ---------
| | Dividends



F-27



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##### Table of Contents



GRUPO TMM, S. A.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








|          |                               
|--------- | ------------------------------
|NOTE 19  | OTHER (EXPENSES) INCOME  NET:

|                                                                                                   |  |              |         |   |      |   |         |      |  |   |        |  
|-------------------------------------------------------------------------------------------------- |  | ------------ | ------- | - | ---- | - | ------- | ---- |  | - | ------ | -
|                                                                                                   |  | December 31, |        
|                                                                                                   |  |              |        
|                                                                                                   |  | 2002         |         |   | 2003 |   |         | 2004 | 
|                                                                                                   |  |              |         |   |      |   |         |      | 
|Recoverable income tax and VAT                                                                     |  | $            | 5,186   |   |      | $ | 12,890  |      |  | $ | 17,132 |  
|Gain on dilution of subsidiary shares (Note 1)                                                     |  |              | 8,111   |   |      |   |         |      |  |   |        |  
|Termination agreement                                                                              |  |              | (17,500 | ) |      |   |         |      |  |   |        |  
|Loss on sale of other subsidiaries (Note 1)                                                        |  |              |         |   |      |   | (20,208 | )    |  |   | (60    | )
|Restructuring costs and others                                                                     |  |              |         |   |      |   | (21,656 | )    |  |   |        |  
|Loss on sales of property and equipment  Net                                                      |  |              |         |   |      |   | (5,895  | )    |  |   |        |  
|Reserve for BIMMSA contingencies                                                                   |  |              |         |   |      |   | (6,168  | )    |  |   | (708   | )
|Cancellation of fees related with previous tranches of the
    obligations for sale of receivables |  |              |         |   |      |   | (6,190  | )    |  |   |        |  
|Loss on disposition of assets                                                                      |  |              |         |   |      |   | (5,000  | )    |  |   |        |  
|Other  Net                                                                                        |  |              | 733     |   |      |   | (6,471  | )    |  |   | (132   | )
|                                                                                                   |  |              |         |   |      |   |         |      | 
|                                                                                                   |  | $            | (3,470  | ) |      | $ | (58,698 | )    |  | $ | 16,232 |  
|                                                                                                   |  |              |         |   |      |   |         |      | 



|          |                                                                                           
|--------- | ------------------------------------------------------------------------------------------
|NOTE 20  | INCOME TAX, EMPLOYEES STATUTORY PROFIT-SHARING, ASSET
    TAX AND TAX LOSS CARRYFORWARDS:



| |           
| | ----------
| | Income tax







|                                     |  |                         |        |   |      |   |        |      |  |   |         |  
|------------------------------------ |  | ----------------------- | ------ | - | ---- | - | ------ | ---- |  | - | ------- | -
|                                     |  | Year Ended December 31, |       
|                                     |  |                         |       
|                                     |  | 2002                    |        |   | 2003 |   |        | 2004 | 
|                                     |  |                         |        |   |      |   |        |      | 
|Current income tax                   |  | $                       | (173   | ) |      | $ | (700   | )    |  | $ | (231    | )
|Deferred income tax                  |  |                         | 21,197 |   |      |   | (5,027 | )    |  |   | (43,300 | )
|                                     |  |                         |        |   |      |   |        |      | 
|Net benefit (provision)              |  |                         | 21,024 |   |      |   | (5,727 | )    |  |   | (43,531 | )
|Asset tax                            |  |                         | (92    | ) |      |   | (394   | )    |  |   | (172    | )
|                                     |  |                         |        |   |      |   |        |      | 
|Benefit (provision) for income taxes |  | $                       | 20,932 |   |      | $ | (6,121 | )    |  | $ | (43,703 | )
|                                     |  |                         |        |   |      |   |        |      | 

F-28



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##### Table of Contents



GRUPO TMM, S. A.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                                                                           |  |                         |         |   |      |   |          |      |  |   |          |  
|---------------------------------------------------------------------------------------------------------- |  | ----------------------- | ------- | - | ---- | - | -------- | ---- |  | - | -------- | -
|                                                                                                           |  | Year Ended December 31, |        
|                                                                                                           |  |                         |        
|                                                                                                           |  | 2002                    |         |   | 2003 |   |          | 2004 | 
|                                                                                                           |  |                         |         |   |      |   |          |      | 
|Loss before income taxes and minority interest                                                             |  | $                       | (69,073 | ) |      | $ | (120,430 | )    |  | $ | (65,659  | )
|                                                                                                           |  |                         |         |   |      |   |          |      | 
|Income tax at 35% in 2002, 34% in 2003 and 33% in 2004                                                     |  | $                       | 24,176  |   |      | $ | 40,946   |      |  | $ | 21,667   |  
|Increase (decrease) resulting from:                                                                        |  |                         |         |   |      |   |          |      |  |   |          |  
|Profits reported by the foreign subsidiaries                                                               |  |                         | 1,294   |   |      |   | 2,411    |      |  |   | 250      |  
|Inflationary effects on fixed assets and provisions                                                        |  |                         | (26,239 | ) |      |   | (33,191  | )    |  |   | 60,837   |  
|Inflationary effects related to indexing and exchange rate
    devaluation on tax loss carryforwards  Net |  |                         | 31,553  |   |      |   | (21,761  | )    |  |   | (136,008 | )
|Non-deductible expenses                                                                                    |  |                         | (3,216  | ) |      |   | 13,464   |      |  |   | 6,541    |  
|Change in tax rates                                                                                        |  |                         | (871    | ) |      |   | (1,722   | )    |  |   | 10,887   |  
|Other  Net                                                                                                |  |                         | (5,765  | ) |      |   | (6,268   | )    |  |   | (7,877   | )
|                                                                                                           |  |                         |         |   |      |   |          |      | 
|Net income tax benefit (provision)                                                                         |  | $                       | 20,932  |   |      | $ | (6,121   | )    |  | $ | (43,703  | )
|                                                                                                           |  |                         |         |   |      |   |          |      | 





|                                                        |  |              |         |   |      |   |         |  
|------------------------------------------------------- |  | ------------ | ------- | - | ---- | - | ------- | -
|                                                        |  | December 31, |        
|                                                        |  |              |        
|                                                        |  | 2003         |         |   | 2004 |  
|                                                        |  |              |         |   |      |  
|Tax-loss carryforwards                                  |  | $            | 46,306  |   |      | $ | 21,538  |  
|Income tax paid on dividends                            |  |              | 393     |   |      |   | 351     |  
|Inventories and provisions, net                         |  |              | 41,260  |   |      |   | 26,750  |  
|Concession rights and property, machinery and equipment |  |              | (20,758 | ) |      |   | (24,738 | )
|                                                        |  |              |         |   |      |  
|Net deferred tax assets                                 |  | $            | 67,201  |   |      | $ | 23,901  |  
|                                                        |  |              |         |   |      |  





| |          
| | ---------
| | Asset tax



F-29



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##### Table of Contents



GRUPO TMM, S. A.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                       
| | ----------------------
| | Tax loss carryforwards



|              |      |                   |               |   |         |            |  |  |      | 
|------------- | ---- | ----------------- | ------------- | - | ------- | ---------- |  |  | ---- | 
|              |      | Inflation-Indexed |               |   |        
|Year in Which |      |                   | Amounts as of |   |         | Year of    | 
|Loss Arose    |      |                   | June 30, 2004 |   |         | Expiration | 
|              |      |                   |               |   |         |            | 
|              | 1995 |                   |               | $ | 45,431  |            |  |  | 2005 | 
|              | 1997 |                   |               |   | 11,770  |            |  |  | 2007 | 
|              | 1998 |                   |               |   | 138,521 |            |  |  | 2008 | 
|              | 2000 |                   |               |   | 34,043  |            |  |  | 2010 | 
|              | 2001 |                   |               |   | 169,728 |            |  |  | 2011 | 
|              | 2002 |                   |               |   | 155,188 |            |  |  | 2012 | 
|              | 2003 |                   |               |   | 127,889 |            |  |  | 2013 | 
|              | 2004 |                   |               |   | 55,437  |            |  |  | 2014 | 
|              |      |                   |               |   |         |            | 
|              |      |                   |               | $ | 738,007 |            |  |  |      | 
|              |      |                   |               |   |         |            | 



| |                                    
| | -----------------------------------
| | Employees statutory profit-sharing



NOTE 21  FINANCIAL INFORMATION BY SEGMENT:




F-30



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##### Table of Contents



GRUPO TMM, S. A.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                         |  |             |          |   |           |   |           |           |  |             |          |                  |  |            |          |   |              |   |         |   |  |   |           |  
|---------------------------------------- |  | ----------- | -------- | - | --------- | - | --------- | --------- |  | ----------- | -------- | ---------------- |  | ---------- | -------- | - | ------------ | - | ------- | - |  | - | --------- | -
|                                         |  |             |          |   |           |   |           |           |  | Elimination |          |                  | 
|                                         |  | Specialized |          |   |           |   | Ports and |           |  |             |          | Between Segments |  |            |         
|                                         |  | Maritime    |          |   | Logistics |   |           | Terminals |  |             | Railroad |                  |  | and Shared |          |   | Total        |  
|December 31, 2002                        |  | Division    |          |   | Division  |   |           | Division  |  |             | Division |                  |  | Accounts   |          |   | Consolidated |  
|                                         |  |             |          |   |           |   |           |           |  |             |          |                  |  |            |          |   |              |  
|Total revenues                           |  | $           | 123,214  |   |           | $ | 79,057    |           |  | $           | 112,517  |                  |  | $          | 712,327  |   |              | $ | (18,499 | ) |  | $ | 1,008,616 |  
|Costs and expenses                       |  |             | (106,343 | ) |           |   | (70,817   | )         |  |             | (70,319  | )                |  |            | (474,042 | ) |              |   | 4,308   |   |  |   | (717,213  | )
|Depreciation and amortization            |  |             | (8,177   | ) |           |   | (4,214    | )         |  |             | (8,776   | )                |  |            | (82,553  | ) |              |   | (3,690  | ) |  |   | (107,410  | )
|                                         |  |             |          |   |           |   |           |           |  |             |          |                  |  |            |          |   |              |  
|Income on transportation                 |  | $           | 8,694    |   |           | $ | 4,026     |           |  | $           | 33,422   |                  |  | $          | 155,732  |   |              | $ | (17,881 | ) |  | $ | 183,993   |  
|                                         |  |             |          |   |           |   |           |           |  |             |          |                  |  |            |          |   |              |  
|Costs, expenses and income not allocated |  |             |          |   |           |   |           |           |  |             |          |                  |  |            |          |   |              |   |         |   |  |   | (226,602  | )
|                                         |  |             |          |   |           |   |           |           |  |             |          |                  |  |            |          |   |              |  
|Net loss for the year                    |  |             |          |   |           |   |           |           |  |             |          |                  |  |            |          |   |              |   |         |   |  | $ | (42,609   | )
|                                         |  |             |          |   |           |   |           |           |  |             |          |                  |  |            |          |   |              |  
|Total capital expenditures               |  |             |          |   |           |   |           |           |  |             |          |                  |  |            |          |   |              |   |         |   |  |   |           |  
|By segment                               |  | $           | 2,705    |   |           | $ | 5,132     |           |  | $           | 7,010    |                  |  | $          | 89,355   |   |              |   |         |   |  | $ | 104,202   |  
|Shared capital expenditures              |  |             |          |   |           |   |           |           |  |             |          |                  |  |            |          |   |              | $ | 2,769   |   |  |   | 2,769     |  
|                                         |  |             |          |   |           |   |           |           |  |             |          |                  |  |            |          |   |              |  
|Total capital expenditures               |  | $           | 2,705    |   |           | $ | 5,132     |           |  | $           | 7,010    |                  |  | $          | 89,355   |   |              | $ | 2,769   |   |  | $ | 106,971   |  
|                                         |  |             |          |   |           |   |           |           |  |             |          |                  |  |            |          |   |              |  
|Total non-cash transactions              |  | $           | 750      |   |           |   |           |           |  |             |          |                  |  | $          | (93,555  | ) |              |   |         |   |  | $ | (92,805   | )
|Shared non-cash transactions             |  |             |          |   |           |   |           |           |  |             |          |                  |  |            |          |   |              | $ | 5,528   |   |  |   | 5,528     |  
|                                         |  |             |          |   |           |   |           |           |  |             |          |                  |  |            |          |   |              |  
|Total non-cash transactions              |  | $           | 750      |   |           | $ |          |           |  | $           |         |                  |  | $          | (93,555  | ) |              | $ | 5,528   |   |  | $ | (87,277   | )
|                                         |  |             |          |   |           |   |           |           |  |             |          |                  |  |            |          |   |              |  

F-31



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##### Table of Contents



GRUPO TMM, S. A.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                         |  |             |          |   |           |   |           |           |  |             |          |                  |  |            |           |   |              |   |         |   |  |   |           |  
|---------------------------------------- |  | ----------- | -------- | - | --------- | - | --------- | --------- |  | ----------- | -------- | ---------------- |  | ---------- | --------- | - | ------------ | - | ------- | - |  | - | --------- | -
|                                         |  |             |          |   |           |   |           |           |  | Elimination |          |                  | 
|                                         |  | Specialized |          |   |           |   | Ports and |           |  |             |          | Between Segments |  |            |          
|                                         |  | Marítime    |          |   | Logistics |   |           | Terminals |  |             | Railroad |                  |  | and Shared |           |   | Total        |  
|December 31, 2003                        |  | Division    |          |   | Division  |   |           | Division  |  |             | Division |                  |  | Accounts   |           |   | Consolidated |  
|                                         |  |             |          |   |           |   |           |           |  |             |          |                  |  |            |           |   |              |  
|Transportation revenues                  |  | $           | 116,000  |   |           | $ | 89,531    |           |  | $           | 52,188   |                  |  | $          | 698,528   |   |              | $ | (18,204 | ) |  | $ | 938,043   |  
|Costs and expenses                       |  |             | (101,719 | ) |           |   | (83,645   | )         |  |             | (37,171  | )                |  |            | (481,327  | ) |              |   | 3,042   |   |  |   | (700,820  | )
|Depreciation and amortization            |  |             | (6,263   | ) |           |   | (3,367    | )         |  |             | (4,496   | )                |  |            | (85,195   | ) |              |   | (885    | ) |  |   | (100,206  | )
|                                         |  |             |          |   |           |   |           |           |  |             |          |                  |  |            |           |   |              |  
|Income on transportation                 |  | $           | 8,018    |   |           | $ | 2,519     |           |  | $           | 10,521   |                  |  | $          | 132,006   |   |              | $ | (16,047 | ) |  |   | 137,017   |  
|                                         |  |             |          |   |           |   |           |           |  |             |          |                  |  |            |           |   |              |  
|Costs, expenses and income not allocated |  |             |          |   |           |   |           |           |  |             |          |                  |  |            |           |   |              |   |         |   |  |   | (223,679  | )
|                                         |  |             |          |   |           |   |           |           |  |             |          |                  |  |            |           |   |              |  
|Net loss for the year                    |  |             |          |   |           |   |           |           |  |             |          |                  |  |            |           |   |              |   |         |   |  | $ | (86,662   | )
|                                         |  |             |          |   |           |   |           |           |  |             |          |                  |  |            |           |   |              |  
|Total assets by segment                  |  | $           | 224,662  |   |           | $ | 94,410    |           |  | $           | 43,452   |                  |  | $          | 2,121,733 |   |              |   |         |   |  | $ | 2,484,257 |  
|Shared assets                            |  |             |          |   |           |   |           |           |  |             |          |                  |  |            |           |   |              | $ | (17,644 | ) |  |   | (17,644   | )
|                                         |  |             |          |   |           |   |           |           |  |             |          |                  |  |            |           |   |              |  
|Total assets                             |  | $           | 224,662  |   |           | $ | 94,410    |           |  | $           | 43,452   |                  |  | $          | 2,121,733 |   |              | $ | (17,644 | ) |  | $ | 2,466,613 |  
|                                         |  |             |          |   |           |   |           |           |  |             |          |                  |  |            |           |   |              |  
|Total liabilities by segment             |  | $           | 74,881   |   |           | $ | 56,744    |           |  | $           | 38,125   |                  |  | $          | 1,141,880 |   |              |   |         |   |  | $ | 1,311,630 |  
|Shared liabilities                       |  |             |          |   |           |   |           |           |  |             |          |                  |  |            |           |   |              | $ | 423,591 |   |  |   | 423,591   |  
|                                         |  |             |          |   |           |   |           |           |  |             |          |                  |  |            |           |   |              |  
|Total liabilities                        |  | $           | 74,881   |   |           | $ | 56,744    |           |  | $           | 38,125   |                  |  | $          | 1,141,880 |   |              | $ | 423,591 |   |  | $ | 1,735,221 |  
|                                         |  |             |          |   |           |   |           |           |  |             |          |                  |  |            |           |   |              |  
|Total capital expenditures               |  |             |          |   |           |   |           |           |  |             |          |                  |  |            |           |   |              |   |         |   |  |   |           |  
|By segment                               |  | $           | 4,257    |   |           | $ | 2,029     |           |  | $           | 1,529    |                  |  | $          | 73,121    |   |              |   |         |   |  | $ | 80,936    |  
|Shared capital expenditures              |  |             |          |   |           |   |           |           |  |             |          |                  |  |            |           |   |              | $ | 172     |   |  |   | 172       |  
|                                         |  |             |          |   |           |   |           |           |  |             |          |                  |  |            |           |   |              |  
|Total capital expenditures               |  | $           | 4,257    |   |           | $ | 2,029     |           |  | $           | 1,529    |                  |  | $          | 73,121    |   |              | $ | 172     |   |  | $ | 81,108    |  
|                                         |  |             |          |   |           |   |           |           |  |             |          |                  |  |            |           |   |              |  
|Total non-cash transactions              |  |             |          |   |           |   |           |           |  | $           | 2,362    |                  |  | $          | 120       |   |              |   |         |   |  | $ | 2,482     |  
|Shared non-cash transactions             |  |             |          |   |           |   |           |           |  |             |          |                  |  |            |           |   |              | $ | 4,147   |   |  |   | 4,147     |  
|                                         |  |             |          |   |           |   |           |           |  |             |          |                  |  |            |           |   |              |  
|Total non-cash transactions              |  | $           |         |   |           | $ |          |           |  | $           | 2,362    |                  |  | $          | 120       |   |              | $ | 4,147   |   |  | $ | 6,629     |  
|                                         |  |             |          |   |           |   |           |           |  |             |          |                  |  |            |           |   |              |  

F-32



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##### Table of Contents



GRUPO TMM, S. A.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                         |  |             |          |   |           |   |           |           |  |             |          |                  |  |            |           |   |              |   |         |   |  |   |           |  
|---------------------------------------- |  | ----------- | -------- | - | --------- | - | --------- | --------- |  | ----------- | -------- | ---------------- |  | ---------- | --------- | - | ------------ | - | ------- | - |  | - | --------- | -
|                                         |  |             |          |   |           |   |           |           |  | Elimination |          |                  | 
|                                         |  | Specialized |          |   |           |   | Ports and |           |  |             |          | Between Segments |  |            |          
|                                         |  | Marítime    |          |   | Logistics |   |           | Terminals |  |             | Railroad |                  |  | and Shared |           |   | Total        |  
|December 31, 2004                        |  | Division    |          |   | Division  |   |           | Division  |  |             | Division |                  |  | Accounts   |           |   | Consolidated |  
|                                         |  |             |          |   |           |   |           |           |  |             |          |                  |  |            |           |   |              |  
|Transportation revenues                  |  | $           | 127,756  |   |           | $ | 97,583    |           |  | $           | 26,647   |                  |  | $          | 699,223   |   |              | $ | (20,880 | ) |  | $ | 930,329   |  
|Costs and expenses                       |  |             | (108,066 | ) |           |   | (90,411   | )         |  |             | (24,146  | )                |  |            | (486,850  | ) |              |   | 5,196   |   |  |   | (704,277  | )
|Depreciation and amortization            |  |             | (5,033   | ) |           |   | (2,842    | )         |  |             | (2,111   | )                |  |            | (86,503   | ) |              |   | (275    | ) |  |   | (96,764   | )
|                                         |  |             |          |   |           |   |           |           |  |             |          |                  |  |            |           |   |              |  
|Income on transportation                 |  | $           | 14,657   |   |           | $ | 4,330     |           |  | $           | 390      |                  |  | $          | 125,870   |   |              | $ | (15,959 | ) |  |   | 129,288   |  
|                                         |  |             |          |   |           |   |           |           |  |             |          |                  |  |            |           |   |              |  
|Costs, expenses and income not allocated |  |             |          |   |           |   |           |           |  |             |          |                  |  |            |           |   |              |   |         |   |  |   | (231,835  | )
|                                         |  |             |          |   |           |   |           |           |  |             |          |                  |  |            |           |   |              |  
|Net loss for the year                    |  |             |          |   |           |   |           |           |  |             |          |                  |  |            |           |   |              |   |         |   |  | $ | (102,547  | )
|                                         |  |             |          |   |           |   |           |           |  |             |          |                  |  |            |           |   |              |  
|Total assets by segment                  |  | $           | 196,077  |   |           | $ | 85,695    |           |  | $           | 74,013   |                  |  | $          | 2,057,950 |   |              |   |         |   |  | $ | 2,413,735 |  
|Shared assets                            |  |             |          |   |           |   |           |           |  |             |          |                  |  |            |           |   |              |   | (61,698 | ) |  |   | (61,698   | )
|                                         |  |             |          |   |           |   |           |           |  |             |          |                  |  |            |           |   |              |  
|Total assets                             |  | $           | 196,077  |   |           | $ | 85,695    |           |  | $           | 74,013   |                  |  | $          | 2,057,950 |   |              | $ | (61,698 | ) |  | $ | 2,352,037 |  
|                                         |  |             |          |   |           |   |           |           |  |             |          |                  |  |            |           |   |              |  
|Total liabilities by segment             |  | $           | 61,028   |   |           | $ | 43,778    |           |  | $           | 41,491   |                  |  | $          | 1,054,556 |   |              |   |         |   |  | $ | 1,200,853 |  
|Shared liabilities                       |  |             |          |   |           |   |           |           |  |             |          |                  |  |            |           |   |              | $ | 514,517 |   |  |   | 514,517   |  
|                                         |  |             |          |   |           |   |           |           |  |             |          |                  |  |            |           |   |              |  
|Total liabilities                        |  | $           | 61,028   |   |           | $ | 43,778    |           |  | $           | 41,491   |                  |  | $          | 1,054,556 |   |              | $ | 514,517 |   |  | $ | 1,715,370 |  
|                                         |  |             |          |   |           |   |           |           |  |             |          |                  |  |            |           |   |              |  
|Total capital expenditures by segment    |  | $           | 50       |   |           | $ | 6,982     |           |  | $           | 590      |                  |  | $          | 44,408    |   |              |   |         |   |  | $ | 52,030    |  
|Shared capital expenditures              |  |             |          |   |           |   |           |           |  |             |          |                  |  |            |           |   |              | $ | 81      |   |  |   | 81        |  
|                                         |  |             |          |   |           |   |           |           |  |             |          |                  |  |            |           |   |              |  
|Total capital expenditures               |  | $           | 50       |   |           | $ | 6,982     |           |  | $           | 590      |                  |  | $          | 44,408    |   |              | $ | 81      |   |  | $ | 52,111    |  
|                                         |  |             |          |   |           |   |           |           |  |             |          |                  |  |            |           |   |              |  

NOTE 22  PENSIONS AND SENIORITY PREMIUMS:








|                                                                            |  |                         |      |   |      |   |       |      |  |   |       |  
|--------------------------------------------------------------------------- |  | ----------------------- | ---- | - | ---- | - | ----- | ---- |  | - | ----- | -
|                                                                            |  | Year Ended December 31, |     
|                                                                            |  |                         |     
|                                                                            |  | 2002                    |      |   | 2003 |   |       | 2004 | 
|                                                                            |  |                         |      |   |      |   |       |      | 
|Labor cost                                                                  |  | $                       | 430  |   |      | $ | 546   |      |  | $ | 424   |  
|Financial cost                                                              |  |                         | 870  |   |      |   | 848   |      |  |   | 971   |  
|Return on plan assets                                                       |  |                         | (199 | ) |      |   | (204  | )    |  |   | (182  | )
|Amortization of the transitory obligation and variations in
    assumptions |  |                         | (124 | ) |      |   | (127  | )    |  |   |       |  
|                                                                            |  |                         |      |   |      |   |       |      | 
|Net period cost                                                             |  | $                       | 977  |   |      | $ | 1,063 |      |  | $ | 1,213 |  
|                                                                            |  |                         |      |   |      |   |       |      | 

F-33



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##### Table of Contents



GRUPO TMM, S. A.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                            |  |              |         |   |      |   |         |  
|------------------------------------------- |  | ------------ | ------- | - | ---- | - | ------- | -
|                                            |  | December 31, |        
|                                            |  |              |        
|                                            |  | 2003         |         |   | 2004 |  
|                                            |  |              |         |   |      |  
|Reserve for pension and seniority premiums: |  |              |         |   |      |   |         |  
|Projected benefit obligation                |  | $            | (10,600 | ) |      | $ | (11,498 | )
|Plan assets                                 |  |              | 1,953   |   |      |   | 1,842   |  
|Unamortized transition amount               |  |              | (105    | ) |      |   | 467     |  
|                                            |  |              |         |   |      |  
|Reserve for pensions and seniority premiums |  | $            | (8,752  | ) |      | $ | (9,189  | )
|                                            |  |              |         |   |      |  







NOTE 23  EARNINGS (LOSS) PER SHARE:




|                                                          |  |              |         |   |      |   |         |      |  |   |          |  
|--------------------------------------------------------- |  | ------------ | ------- | - | ---- | - | ------- | ---- |  | - | -------- | -
|                                                          |  | December 31, |        
|                                                          |  |              |        
|                                                          |  | 2002         |         |   | 2003 |   |         | 2004 | 
|                                                          |  |              |         |   |      |   |         |      | 
|Net loss for the year                                     |  | $            | (42,609 | ) |      | $ | (86,662 | )    |  | $ | (102,547 | )
|Weighted average number of shares outstanding (thousands) |  |              | 56,963  |   |      |   | 56,963  |      |  |   | 56,963   |  
|Basic loss per share                                      |  | $            | (0.748  | ) |      | $ | (1.521  | )    |  | $ | (1.80    | )

NOTE 24  COMMITMENTS AND CONTINGENCIES:




|   |             
|-- | ------------
|a. | Commitments:



| |                  
| | -----------------
| | Concession Duties





| |                    
| | -------------------
| | Leases and charters



F-34



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##### Table of Contents



GRUPO TMM, S. A.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                    |  |              |        |  |      |   |        | 
|------------------- |  | ------------ | ------ |  | ---- | - | ------ | 
|                    |  | December 31, |       
|                    |  |              |       
|Year                |  | 2003         |        |  | 2004 |  
|                    |  |              |        |  |      |  
|2004                |  | $            | 33,575 |  |      |   |        | 
|2005                |  |              | 20,785 |  |      | $ | 42,138 | 
|2006                |  |              | 15,201 |  |      |   | 19,623 | 
|2007                |  |              | 15,289 |  |      |   | 16,465 | 
|2008                |  |              | 9,473  |  |      |   | 11,105 | 
|2009 and thereafter |  |              |        |  |      |   | 190    | 
|                    |  |              |        |  |      |  
|                    |  | $            | 94,323 |  |      | $ | 89,521 | 
|                    |  |              |        |  |      |  



| |                          
| | -------------------------
| | Synthetic lease contracts



| |                                   
| | ----------------------------------
| | Keith G. McCall and Isla Guadalupe







| |                               
| | ------------------------------
| | Isla Azteca (ex-Seacor Alcina)





F-35



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##### Table of Contents



GRUPO TMM, S. A.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|      |  |      |        |  |      |   |        | 
|----- |  | ---- | ------ |  | ---- | - | ------ | 
|Year  |  | 2003 |        |  | 2004 |  
|      |  |      |        |  |      |  
|2003  |  | $    | 1,992  |  |      |   |        | 
|2004  |  |      | 2,869  |  |      | $ | 2,869  | 
|2005  |  |      | 3,125  |  |      |   | 3,125  | 
|2006  |  |      | 3,125  |  |      |   | 3,125  | 
|2007  |  |      | 3,125  |  |      |   | 3,125  | 
|2008  |  |      | 2,246  |  |      |   | 2,246  | 
|2009  |  |      | 1,954  |  |      |   | 1,954  | 
|      |  |      |        |  |      |  
|Total |  | $    | 18,436 |  |      | $ | 16,444 | 
|      |  |      |        |  |      |  



|   |               
|-- | --------------
|b. | Contingencies:



|   |                                                       
|-- | ------------------------------------------------------
|1) | TFM Value-Added Tax Lawsuit and Mexican Government Put











|   |                               
|-- | ------------------------------
|2) | Disputes between Grupo and KCS



F-36



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##### Table of Contents



GRUPO TMM, S. A.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)
















|   |                  
|-- | -----------------
|3) | The GM Put Option





| |   |                                                   
| | - | --------------------------------------------------
| |  | From June 30, 2000 to June 30, 2003: 15% per annum
|
| |  | From July 1, 2003 to June 30, 2005: 16% per annum 
|
| |  | From July 1, 2005 to June 30, 2007: 17% per annum 

F-37



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##### Table of Contents



GRUPO TMM, S. A.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |   |                                                  
| | - | -------------------------------------------------
| |  | From July 1, 2007 to June 30, 2010: 19% per annum
|
| |  | From July 1, 2010 onwards: 20% per annum         







|   |                        
|-- | -----------------------
|4) | Other legal proceedings



| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The Company is a party to various other legal proceedings and
    administrative actions, all of which are of an ordinary or
    routine nature and incidental to its operations. Although it is
    impossible to predict the outcome of any legal proceeding, in
    the opinion of the Companys Management, such proceedings
    and actions should not, individually or in the aggregate, have a
    material adverse effect on the Companys financial
    condition, results of operations or liquidity.
|
| |  | The Company has transactions and relationships with related
    parties. Because of these relationships, in accordance with the
    Mexican Income Tax Law, the Company must obtain a transfer
    pricing study for the transactions that took place during 2004
    that confirms that the terms of these transactions are the same
    as those that would result from transactions among wholly
    unrelated parties. The Company is in the process of completing
    this study.                         
|
| |  | During the years ended December 31, 2002, 2003 and 2004,
    Grupo and some of its subsidiaries assumed joint and several
    responsibility for the prepayment of federal taxes for some of
    the Grupos other subsidiaries, having informed the
    Ministry of Finance and Public Credit of the tax liabilities
    that such subsidiaries had generated, on the understanding that
    the former would be jointly and severally liable for payments of
    such taxes.                                 

NOTE 25  EVENTS AFTER BALANCE SHEET DATE:




| |                                                                    
| | -------------------------------------------------------------------
| | Amended Acquisition Agreement (AAA) with
    Kansas City Southern









F-38



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##### Table of Contents



GRUPO TMM, S. A.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








| |              
| | -------------
| | GM Put Option



NOTE 26  RECONCILIATION OF DIFFERENCES
BETWEEN IFRS AND U.S. GAAP:




|   |                                           
|-- | ------------------------------------------
|a. | Reconciliation of consolidated net income:

|                                                     |  |      |       |                         |      |   |         |      |  |   |         |   |  |   |          |  
|---------------------------------------------------- |  | ---- | ----- | ----------------------- | ---- | - | ------- | ---- |  | - | ------- | - |  | - | -------- | -
|                                                     |  |      |       | Year Ended December 31, |     
|                                                     |  |      |       |                         |     
|                                                     |  | Note |       |                         | 2002 |   |         | 2003 |  |   | 2004    |  
|                                                     |  |      |       |                         |      |   |         |      |  |   |         |  
|Consolidated net loss under IFRS                     |  |      |       |                         |      | $ | (42,609 | )    |  | $ | (86,662 | ) |  | $ | (102,547 | )
|Sale and lease back transactions                     |  |      | i.    |                         |      |   | 9,858   |      |  |   | 3,220   |   |  |   | 3,220    |  
|Pensions and seniority premium                       |  |      | ii.   |                         |      |   | (43     | )    |  |   | (304    | ) |  |   | 88       |  
|Foreign exchange effect adjustments                  |  |      | iii.  |                         |      |   | 4,699   |      |  |   | (60     | ) |  |   | (1,755   | )
|Deferred taxes                                       |  |      | iv.   |                         |      |   | (26,060 | )    |  |   | (22,428 | ) |  |   | 3,500    |  
|Goodwill amortization                                |  |      | v.    |                         |      |   | 1,259   |      |  |   | 762     |   |  |   | 762      |  
|Debt restructuring fees and expenses                 |  |      | vi.   |                         |      |   |         |      |  |   |         |   |  |   | (14,829  | )
|Gain (loss) on valuation of put option               |  |      | vii.  |                         |      |   |         |      |  |   | (6,779  | ) |  |   | 6,779    |  
|Effect of U.S. GAAP adjustments on minority interest |  |      | viii. |                         |      |   | 117     |      |  |   | 225     |   |  |   | 20       |  
|U.S. GAAP adjustments on discontinued operations     |  |      | ix.   |                         |      |   | 63,427  |      |  |   | 64,956  |   |  |   | (11,031  | )
|                                                     |  |      |       |                         |      |   |         |      |  |   |         |  
|Consolidated net income (loss) under U.S. GAAP       |  |      |       |                         |      | $ | 10,648  |      |  | $ | (47,070 | ) |  | $ | (115,793 | )
|                                                     |  |      |       |                         |      |   |         |      |  |   |         |  

F-39



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##### Table of Contents



GRUPO TMM, S. A.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                        
|-- | ---------------------------------------
|b. | Reconciliation of stockholders equity:

|                                                         |  |         |       |                         |      |   |         |      |  |   |         |  
|-------------------------------------------------------- |  | ------- | ----- | ----------------------- | ---- | - | ------- | ---- |  | - | ------- | -
|                                                         |  |         |       | Year Ended December 31, |     
|                                                         |  |         |       |                         |     
|                                                         |  | Note d. |       |                         | 2003 |   |         | 2004 | 
|                                                         |  |         |       |                         |      |   |         |      | 
|Stockholders equity (deficit) under IFRS                |  |         |       |                         |      | $ | 53,188  |      |  | $ | (49,359 | )
|Sale and lease back transactions                         |  |         | i.    |                         |      |   | (4,558  | )    |  |   | (1,339  | )
|Pensions and seniority premium                           |  |         | ii.   |                         |      |   | 240     |      |  |   | 208     |  
|Deferred taxes                                           |  |         | iv.   |                         |      |   | 1,656   |      |  |   | 3,526   |  
|Investments                                              |  |         | v.    |                         |      |   | (2,979  | )    |  |   | (2,216  | )
|Debt restructuring fees and expenses                     |  |         | vi.   |                         |      |   |         |      |  |   | (14,829 | )
|Loss on valuation of put option                          |  |         | vii.  |                         |      |   | (6,779  | )    |  |   |         |  
|Effect of U.S. GAAP adjustments on minority interest     |  |         | viii. |                         |      |   | 44      |      |  |   | 287     |  
|U.S. GAAP adjustments related to discontinued operations |  |         | ix.   |                         |      |   | 71,814  |      |  |   | 60,555  |  
|                                                         |  |         |       |                         |      |   |         |      | 
|Stockholders equity (deficit) under U.S. GAAP           |  |         |       |                         |      | $ | 112,626 |      |  | $ | (3,167  | )
|                                                         |  |         |       |                         |      |   |         |      | 



|   |                                                                 
|-- | ----------------------------------------------------------------
|c. | Analysis of changes in stockholders equity under
    U.S. GAAP:

|                               |  |              |         |   |      |   |          |  
|------------------------------ |  | ------------ | ------- | - | ---- | - | -------- | -
|                               |  | December 31, |        
|                               |  |              |        
|                               |  | 2003         |         |   | 2004 |  
|                               |  |              |         |   |      |  
|Balance at beginning of period |  | $            | 159,696 |   |      | $ | 112,626  |  
|Net income (loss)              |  |              | (47,070 | ) |      |   | (115,793 | )
|                               |  |              |         |   |      |  
|Balance at end of period       |  | $            | 112,626 |   |      | $ | (3,167   | )
|                               |  |              |         |   |      |  



|   |                                                        
|-- | -------------------------------------------------------
|d. | Significant differences between IFRS and
    U.S. GAAP:



|   |                                 
|-- | --------------------------------
|i. | Sale and lease back transactions





|    |                               
|--- | ------------------------------
|ii. | Pensions and seniority premium



F-40



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##### Table of Contents



GRUPO TMM, S. A.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                            |  |              |        |  |      |   |        | 
|----------------------------------------------------------- |  | ------------ | ------ |  | ---- | - | ------ | 
|                                                            |  | December 31, |       
|                                                            |  |              |       
|                                                            |  | 2003         |        |  | 2004 |  
|                                                            |  |              |        |  |      |  
|Actuarial present value of benefit obligations:             |  |              |        |  |      |   |        | 
|Vested benefit obligation                                   |  | $            | 7,366  |  |      | $ | 7,543  | 
|Non-vested benefit obligation                               |  |              | 1,531  |  |      |   | 2,045  | 
|                                                            |  |              |        |  |      |  
|Accumulated benefit obligation                              |  |              | 8,897  |  |      |   | 9,588  | 
|Additional benefits related to future compensation increase |  |              | 1,588  |  |      |   | 1,911  | 
|                                                            |  |              |        |  |      |  
|Projected benefit obligation                                |  | $            | 10,485 |  |      | $ | 11,499 | 
|                                                            |  |              |        |  |      |  



|                                            |  |              |        |   |      |   |        |  
|------------------------------------------- |  | ------------ | ------ | - | ---- | - | ------ | -
|                                            |  | December 31, |       
|                                            |  |              |       
|                                            |  | 2003         |        |   | 2004 |  
|                                            |  |              |        |   |      |  
|Benefit obligation at beginning of year     |  | $            | 10,523 |   |      | $ | 10,485 |  
|Service cost                                |  |              | 565    |   |      |   | 388    |  
|Interest cost                               |  |              | 953    |   |      |   | 911    |  
|Actuarial (gain) loss                       |  |              | (805   | ) |      |   | 481    |  
|Benefits paid                               |  |              | (751   | ) |      |   | (766   | )
|                                            |  |              |        |   |      |  
|Benefit obligation at end of year or period |  | $            | 10,485 |   |      | $ | 11,499 |  
|                                            |  |              |        |   |      |  



|                                               |  |              |       |   |      |   |       |  
|---------------------------------------------- |  | ------------ | ----- | - | ---- | - | ----- | -
|                                               |  | December 31, |      
|                                               |  |              |      
|                                               |  | 2003         |       |   | 2004 |  
|                                               |  |              |       |   |      |  
|Fair value of plan assets at beginning of year |  | $            | 2,252 |   |      | $ | 1,953 |  
|Exchange gain on plan assets                   |  |              | 640   |   |      |   | 833   |  
|Actual return on plan assets                   |  |              | (188  | ) |      |   | (178  | )
|Benefits paid                                  |  |              | (751  | ) |      |   | (766  | )
|                                               |  |              |       |   |      |  
|Fair value of plan assets at end of year       |  | $            | 1,953 |   |      | $ | 1,842 |  
|                                               |  |              |       |   |      |  

|                                                            |  |              |        |   |      |   |        |  
|----------------------------------------------------------- |  | ------------ | ------ | - | ---- | - | ------ | -
|                                                            |  | December 31, |       
|                                                            |  |              |       
|                                                            |  | 2003         |        |   | 2004 |  
|                                                            |  |              |        |   |      |  
|Funded status                                               |  | $            | (8,532 | ) |      | $ | (9,657 | )
|Unrecognized net actuarial (gain) loss                      |  |              | (536   | ) |      |   | 137    |  
|Unrecognized net transition obligation and intangible asset |  |              | 556    |   |      |   | 539    |  
|                                                            |  |              |        |   |      |  
|Accrued benefit obligation                                  |  | $            | (8,512 | ) |      | $ | (8,981 | )
|                                                            |  |              |        |   |      |  

F-41



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##### Table of Contents



GRUPO TMM, S. A.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                          |  |                         |        |   |      |   |        |      |  |   |        |  
|----------------------------------------- |  | ----------------------- | ------ | - | ---- | - | ------ | ---- |  | - | ------ | -
|                                          |  | Year Ended December 31, |       
|                                          |  |                         |       
|                                          |  | 2002                    |        |   | 2003 |   |        | 2004 | 
|                                          |  |                         |        |   |      |   |        |      | 
|Net periodic pension cost under IFRS      |  | $                       | 976    |   |      | $ | 1,017  |      |  | $ | 1,213  |  
|Net periodic pension cost under U.S. GAAP |  |                         | (1,019 | ) |      |   | (1,321 | )    |  |   | (1,125 | )
|                                          |  |                         |        |   |      |   |        |      | 
|U.S. GAAP net income adjustment           |  | $                       | (43    | ) |      | $ | (304   | )    |  | $ | 88     |  
|                                          |  |                         |        |   |      |   |        |      | 

|                                               |  |              |        |   |      |   |        |  
|---------------------------------------------- |  | ------------ | ------ | - | ---- | - | ------ | -
|                                               |  | Year Ended   |       
|                                               |  | December 31, |       
|                                               |  |              |       
|                                               |  | 2003         |        |   | 2004 |  
|                                               |  |              |        |   |      |  
|Accumulated benefit obligation under IFRS      |  | $            | 8,752  |   |      | $ | 9,189  |  
|Accumulated benefit obligation under U.S. GAAP |  |              | (8,512 | ) |      |   | (8,981 | )
|                                               |  |              |        |   |      |  
|U.S. GAAP stockholders equity adjustment      |  | $            | 240    |   |      | $ | 208    |  
|                                               |  |              |        |   |      |  



|     |                             
|---- | ----------------------------
|iii. | Foreign exchange adjustments



|                               |  |                         |       |  |      |   |      |      |  |   |        |  
|------------------------------ |  | ----------------------- | ----- |  | ---- | - | ---- | ---- |  | - | ------ | -
|                               |  | Year Ended December 31, |      
|                               |  |                         |      
|                               |  | 2002                    |       |  | 2003 |   |      | 2004 | 
|                               |  |                         |       |  |      |   |      |      | 
|Pensions and seniority premium |  | $                       | 762   |  |      | $ | 478  |      |  | $ | (119   | )
|Deferred taxes                 |  |                         | 3,937 |  |      |   | (538 | )    |  |   | (1,636 | )
|                               |  |                         |       |  |      |   |      |      | 
|                               |  | $                       | 4,699 |  |      | $ | (60  | )    |  | $ | (1,755 | )
|                               |  |                         |       |  |      |   |      |      | 



|    |               
|--- | --------------
|iv. | Deferred taxes









|   |         
|-- | --------
|v. | Goodwill



F-42



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##### Table of Contents



GRUPO TMM, S. A.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








|    |                                     
|--- | ------------------------------------
|vi. | Debt restructuring fees and expenses







|     |                             
|---- | ----------------------------
|vii. | Valuation of the Put Options





|      |                                                      
|----- | -----------------------------------------------------
|viii. | Effects of U.S. GAAP adjustments on minority interest





|    |                        
|--- | -----------------------
|ix. | Discontinued operations



| |                          
| | -------------------------
| | Sale of the Port Business





F-43



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##### Table of Contents



GRUPO TMM, S. A.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                              
| | -----------------------------
| | Sale of the Railroad Business









|                                              |  |                         |         |   |      |   |         |      |  |   |         |  
|--------------------------------------------- |  | ----------------------- | ------- | - | ---- | - | ------- | ---- |  | - | ------- | -
|                                              |  | Year Ended December 31, |        
|                                              |  |                         |        
|Net income                                    |  | 2002                    |         |   | 2003 |   |         | 2004 | 
|                                              |  |                         |         |   |      |   |         |      | 
|Sale and lease back transactions (note i)     |  | $                       | 387     |   |      | $ | 579     |      |  |   |         |  
|Foreign exchange effect adjustment (note iii) |  |                         | 2,705   |   |      |   | 15      |      |  |   |         |  
|Deferred taxes (note iv)                      |  |                         | 160,661 |   |      |   | 127,095 |      |  | $ | (13,461 | )
|Deferred charges (note x)                     |  |                         | 702     |   |      |   | 34      |      |  |   | (323    | )
|Dilution in sale of Mexrail (note xi)         |  |                         | (8,111  | ) |      |   |         |      |  |   | (9,165  | )
|Depreciation of step-up in Mexrail (note xi)  |  |                         | (459    | ) |      |   | (612    | )    |  |   | (357    | )
|Minority interest (note v)                    |  |                         | (92,458 | ) |      |   | (62,155 | )    |  |   | 12,275  |  
|                                              |  |                         |         |   |      |   |         |      | 
|                                              |  | $                       | 63,427  |   |      | $ | 64,956  |      |  | $ | (11,031 | )
|                                              |  |                         |         |   |      |   |         |      | 

|                                             |  |                         |          |   |      |   |         |  
|-------------------------------------------- |  | ----------------------- | -------- | - | ---- | - | ------- | -
|                                             |  | Year Ended December 31, |         
|                                             |  |                         |         
|Stockholders equity                         |  | 2003                    |          |   | 2004 |  
|                                             |  |                         |          |   |      |  
|Deferred taxes (note iv)                     |  | $                       | 167,672  |   |      | $ | 154,211 |  
|Deferred charges (note x)                    |  |                         | (197     | ) |      |   | (520    | )
|Dilution in sale of Mexrail (note xi)        |  |                         | 6,036    |   |      |   |         |  
|Depreciation of step-up in Mexrail (note xi) |  |                         | (1,071   | ) |      |   |         |  
|Minority interest (note v)                   |  |                         | (100,626 | ) |      |   | (93,136 | )
|                                             |  |                         |          |   |      |  
|                                             |  | $                       | 71,814   |   |      | $ | 60,555  |  
|                                             |  |                         |          |   |      |  





F-44



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##### Table of Contents



GRUPO TMM, S. A.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                 
|-- | ----------------
|x. | Deferred charges







|    |                                   
|--- | ----------------------------------
|xi. | Dilution in sale of Mexrail to TFM











|     |                         
|---- | ------------------------
|xii. | Deferred financing costs







|      |                                               
|----- | ----------------------------------------------
|xiii. | Effect of recently issued accounting standards



F-45



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##### Table of Contents



GRUPO TMM, S. A.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)












F-46



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##### Table of Contents



GRUPO TMM, S. A.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|   |                             
|-- | ----------------------------
|e. | Concentration of credit risk





|   |                    
|-- | -------------------
|f. | Environmental risks









|   |                                                              
|-- | -------------------------------------------------------------
|g. | Condensed consolidated balance sheet and income
    statement



Condensed consolidated balance sheet


|                                               |  |              |           |  |      |   |           | 
|---------------------------------------------- |  | ------------ | --------- |  | ---- | - | --------- | 
|                                               |  | December 31, |          
|                                               |  |              |          
|                                               |  | 2003         |           |  | 2004 |  
|                                               |  |              |           |  |      |  
|Current assets                                 |  | $            | 145,206   |  |      | $ | 138,249   | 
|Non-current assets classified as held for sale |  |              | 2,357,645 |  |      |   | 2,234,220 | 
|Concession rights and related assets, net      |  |              | 5,417     |  |      |   | 4,929     | 
|Property, machinery and equipment, net         |  |              | 53,571    |  |      |   | 78,931    | 
|Deferred income taxes                          |  |              | 72,864    |  |      |   | 27,424    | 
|Other non-current assets                       |  |              | 44,828    |  |      |   | 54,619    | 
|                                               |  |              |           |  |      |  
|Total assets                                   |  | $            | 2,679,531 |  |      | $ | 2,538,372 | 
|                                               |  |              |           |  |      |  

F-47



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##### Table of Contents



GRUPO TMM, S. A.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                                                                        |  |              |           |   |      |   |           |  
|--------------------------------------------------------------------------------------- |  | ------------ | --------- | - | ---- | - | --------- | -
|                                                                                        |  | December 31, |          
|                                                                                        |  |              |          
|                                                                                        |  | 2003         |           |   | 2004 |  
|                                                                                        |  |              |           |   |      |  
|Liabilities directly associated with non-current assets
    classified as held for sale |  | $            | 1,167,304 |   |      | $ | 1,054,556 |  
|Short-term debt                                                                         |  |              | 426,242   |   |      |   | 26,545    |  
|Other short-term liabilities                                                            |  |              | 86,230    |   |      |   | 91,234    |  
|                                                                                        |  |              |           |   |      |  
|Total short-term liabilities                                                            |  |              | 1,679,776 |   |      |   | 1,172,335 |  
|                                                                                        |  |              |           |   |      |  
|Long-term debt                                                                          |  |              | 1,470     |   |      |   | 511,732   |  
|Other long-term liabilities                                                             |  |              | 92,351    |   |      |   | 78,604    |  
|                                                                                        |  |              |           |   |      |  
|Total long-term liabilities                                                             |  |              | 93,821    |   |      |   | 590,336   |  
|                                                                                        |  |              |           |   |      |  
|Total liabilities                                                                       |  |              | 1,773,597 |   |      |   | 1,762,671 |  
|                                                                                        |  |              |           |   |      |  
|Minority interest                                                                       |  |              | 793,308   |   |      |   | 778,868   |  
|                                                                                        |  |              |           |   |      |  
|Capital stock                                                                           |  |              | 121,158   |   |      |   | 121,158   |  
|Accumulated deficit                                                                     |  |              | (8,532    | ) |      |   | (124,325  | )
|                                                                                        |  |              |           |   |      |  
|Total stockholders equity (deficit)                                                    |  |              | 112,626   |   |      |   | (3,167    | )
|                                                                                        |  |              |           |   |      |  
|Total liabilities and stockholders equity                                              |  | $            | 2,679,531 |   |      | $ | 2,538,372 |  
|                                                                                        |  |              |           |   |      |  

Condensed consolidated statement of income


|                                                                            |  |                         |         |   |      |   |          |      |  |   |          |  
|--------------------------------------------------------------------------- |  | ----------------------- | ------- | - | ---- | - | -------- | ---- |  | - | -------- | -
|                                                                            |  | Year Ended December 31, |        
|                                                                            |  |                         |        
|                                                                            |  | 2002                    |         |   | 2003 |   |          | 2004 | 
|                                                                            |  |                         |         |   |      |   |          |      | 
|Transportation revenues                                                     |  | $                       | 236,549 |   |      | $ | 226,897  |      |  | $ | 251,001  |  
|Costs and expenses                                                          |  |                         | 235,442 |   |      |   | 235,359  |      |  |   | 246,632  |  
|                                                                            |  |                         |         |   |      |   |          |      | 
|Income (loss) on transportation                                             |  |                         | 1,107   |   |      |   | (8,462   | )    |  |   | 4,369    |  
|Other income (expenses), net                                                |  |                         | 2,964   |   |      |   | (51,815  | )    |  |   | 19,352   |  
|                                                                            |  |                         |         |   |      |   |          |      | 
|Operating income (loss)                                                     |  |                         | 4,071   |   |      |   | (60,277  | )    |  |   | 23,721   |  
|Net financing cost                                                          |  |                         | (57,371 | ) |      |   | (63,021  | )    |  |   | (95,115  | )
|                                                                            |  |                         |         |   |      |   |          |      | 
|Loss before income taxes, minority interest and discontinued
    operations |  |                         | (53,300 | ) |      |   | (123,298 | )    |  |   | (71,394  | )
|Provision for income taxes                                                  |  |                         | (5,128  | ) |      |   | (28,844  | )    |  |   | (40,203  | )
|Minority interest                                                           |  |                         | 669     |   |      |   | (1,588   | )    |  |   | (2,635   | )
|                                                                            |  |                         |         |   |      |   |          |      | 
|Loss before discontinued operations                                         |  |                         | (57,759 | ) |      |   | (153,730 | )    |  |   | (114,232 | )
|Discontinued operations, net                                                |  |                         | 68,407  |   |      |   | 106,660  |      |  |   | (1,561   | )
|                                                                            |  |                         |         |   |      |   |          |      | 
|Net income (loss) for the year                                              |  | $                       | 10,648  |   |      | $ | (47,070  | )    |  | $ | (115,793 | )
|                                                                            |  |                         |         |   |      |   |          |      | 
|(Loss) income per share:                                                    |  |                         |         |   |      |   |          |      |  |   |          |  
|From continuing operations                                                  |  | $                       | (1.014  | ) |      | $ | (2.698   | )    |  | $ | (2.005   | )
|From discontinued operations                                                |  |                         | 1.201   |   |      |   | 1.872    |      |  |   | (0.027   | )
|                                                                            |  |                         |         |   |      |   |          |      | 
|Net                                                                         |  | $                       | 0.187   |   |      | $ | (0.826   | )    |  | $ | (2.032   | )
|                                                                            |  |                         |         |   |      |   |          |      | 
|Weighted average of shares (thousands)                                      |  |                         | 56,963  |   |      |   | 56,963   |      |  |   | 56,963   |  
|                                                                            |  |                         |         |   |      |   |          |      | 

F-48



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##### Table of Contents



GRUPO TMM, S. A.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


NOTE 27  GUARANTOR FINANCIAL INFORMATION:






| |                                                            
| | -----------------------------------------------------------
| | TMM Holdings, S. A. de C. V.                               
| | Operadora de Apoyo Logístico, S. A. de C. V.               
| | Compañía Arrendadora TMM, S. A. de C. V.                   
| | Transportes Marítimos México, S. A. de C. V.               
| | División de Negocios Especializados, S. A.                 
| | Inmobiliaria TMM, S. A. de C. V.                           
| | Lacto Comercial Organizada, S. A. de C. V.                 
| | Línea Mexicana TMM, S. A. de C. V.                         
| | Naviera del Pacífico, S. A. de C. V.                       
| | Operadora Marítima TMM, S. A. de C. V.                     
| | Operadora Portuaria de Tuxpan, S. A. de C. V.              
| | Personal Marítimo, S. A. de C. V.                          
| | Servicios Administrativos de Transportación, S. A. de C. V.
| | Servicios de Logística de México, S. A. de C. V.           
| | Servicios en Operaciones Logísticas, S. A. de C. V.        
| | Servicios en Puertos y Terminales, S. A. de C. V.          
| | Tecomar, S.A. de C.V.                                      
| | Terminal Marítima de Tuxpan, S. A. de C. V.                
| | TMG Overseas, S. A. de C. V.                               
| | TMM Agencias, S. A. de C. V.                               
| | TMM Logistics, S. A. de C. V.                              
| | Transportadores de Tuxpan, S.A. de C.V.                    







F-49



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##### Table of Contents



GRUPO TMM, S. A.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


GRUPO TMM, S. A. AND SUBSIDIARIES


CONDENSED CONSOLIDATING BALANCE SHEET


As of December 31, 2004


(amounts in thousands of U.S. Dollars)


|                                                          |  |           |          |     |              |   |          |              |  |          |               |   |  |              |           |   |              |   |            |   |  |   |           |  
|--------------------------------------------------------- |  | --------- | -------- | --- | ------------ | - | -------- | ------------ |  | -------- | ------------- | - |  | ------------ | --------- | - | ------------ | - | ---------- | - |  | - | --------- | -
|                                                          |  |           |          | TMM |              |   | Combined |              |  | Combined |               |   |  |              |          
|                                                          |  | Grupo TMM |          |     | Holdings     |   |          | Guarantor    |  |          | Non-guarantor |   |  |              |           |  
|                                                          |  | S.A.      |          |     | S.A. de C.V. |   |          | Subsidiaries |  |          | Subsidiaries  |   |  | Eliminations |           |   | Consolidated |  
|                                                          |  |           |          |     |              |   |          |              |  |          |               |   |  |              |           |   |              |  
|Total current assets                                      |  | $         | 48,785   |     |              | $ | 12       |              |  | $        | 151,050       |   |  | $            | 69,579    |   |              | $ | (131,244   | ) |  | $ | 138,182   |  
|Noncurrent assets held for sale                          |  |           | 17,364   |     |              |   |          |              |  |          |               |   |  |              | 2,063,165 |   |              |   |            |   |  |   | 2,080,529 |  
|Concession rights and related assets  Net                |  |           |          |     |              |   |          |              |  |          |               |   |  |              | 4,929     |   |              |   |            |   |  |   | 4,929     |  
|Property, machinery and equipment  Net                   |  |           | 5,550    |     |              |   |          |              |  |          | 51,885        |   |  |              | 22,901    |   |              |   |            |   |  |   | 80,336    |  
|Deferred costs and other assets                           |  |           | 9,549    |     |              |   |          |              |  |          | 7,555         |   |  |              | 9,293     |   |              |   | (17,368    | ) |  |   | 9,029     |  
|Deferred income tax                                       |  |           |          |     |              |   |          |              |  |          | 35,191        |   |  |              | (11,290   | ) |              |   |            |   |  |   | 23,901    |  
|Equity investments                                        |  |           | 483,679  |     |              |   | 277,799  |              |  |          | 659,130       |   |  |              | 20,708    |   |              |   | (1,426,185 | ) |  |   | 15,131    |  
|                                                          |  |           |          |     |              |   |          |              |  |          |               |   |  |              |           |   |              |  
|Total assets                                              |  | $         | 564,927  |     |              | $ | 277,811  |              |  | $        | 904,811       |   |  | $            | 2,179,285 |   |              | $ | (1,574,797 | ) |  | $ | 2,352,037 |  
|                                                          |  |           |          |     |              |   |          |              |  |          |               |   |  |              |           |   |              |  
|Total short-term liabilities                              |  | $         | 113,348  |     |              | $ | 99       |              |  | $        | 51,075        |   |  | $            | 1,148,057 |   |              | $ | (140,244   | ) |  | $ | 1,172,335 |  
|Total long-term liabilities                               |  |           | 500,938  |     |              |   |          |              |  |          | 42,065        |   |  |              | 32        |   |              |   |            |   |  |   | 543,035   |  
|                                                          |  |           |          |     |              |   |          |              |  |          |               |   |  |              |           |   |              |  
|Total liabilities                                         |  |           | 614,286  |     |              |   | 99       |              |  |          | 93,140        |   |  |              | 1,148,089 |   |              |   | (140,244   | ) |  |   | 1,715,370 |  
|                                                          |  |           |          |     |              |   |          |              |  |          |               |   |  |              |           |   |              |  
|Minority interest                                         |  |           |          |     |              |   |          |              |  |          |               |   |  |              | 686,026   |   |              |   |            |   |  |   | 686,026   |  
|                                                          |  |           |          |     |              |   |          |              |  |          |               |   |  |              |           |   |              |  
|Capital stock                                             |  |           | 121,158  |     |              |   | 415,952  |              |  |          | 294,131       |   |  |              | 364,179   |   |              |   | (1,074,262 | ) |  |   | 121,158   |  
|Accumulated (deficit) retained earnings                   |  |           | (170,517 | )   |              |   | (138,240 | )            |  |          | 517,540       |   |  |              | (19,009   | ) |              |   | (360,291   | ) |  |   | (170,517  | )
|                                                          |  |           |          |     |              |   |          |              |  |          |               |   |  |              |           |   |              |  
|Total stockholders equity                                |  |           | (49,359  | )   |              |   | 277,712  |              |  |          | 811,671       |   |  |              | 345,170   |   |              |   | (1,434,553 | ) |  |   | (49,359   | )
|                                                          |  |           |          |     |              |   |          |              |  |          |               |   |  |              |           |   |              |  
|Total liabilities and stockholders equity                |  | $         | 564,927  |     |              | $ | 277,811  |              |  | $        | 904,811       |   |  | $            | 2,179,285 |   |              | $ | (1,574,797 | ) |  | $ | 2,352,037 |  
|                                                          |  |           |          |     |              |   |          |              |  |          |               |   |  |              |           |   |              |  
|Reconciliation of differences between IFRS and U.S. GAAP: |  |           |          |     |              |   |          |              |  |          |               |   |  |              |           |   |              |   |            |   |  |   |           |  
|Total stockholders equity under IFRS                     |  | $         | (49,359  | )   |              | $ | 277,712  |              |  | $        | 811,671       |   |  | $            | 345,170   |   |              | $ | (1,434,553 | ) |  | $ | (49,359   | )
|                                                          |  |           |          |     |              |   |          |              |  |          |               |   |  |              |           |   |              |  
|U.S. GAAP adjustments:                                    |  |           |          |     |              |   |          |              |  |          |               |   |  |              |           |   |              |   |            |   |  |   |           |  
|Deferred taxes                                            |  |           | 4,846    |     |              |   |          |              |  |          | (608          | ) |  |              | (712      | ) |              |   |            |   |  |   | 3,526     |  
|Equity investment                                         |  |           | 57,306   |     |              |   | 60,557   |              |  |          | 60,124        |   |  |              |           |   |              |   | (177,987   | ) |  |   |           |  
|Sale and lease-back transactions                          |  |           | (1,339   | )   |              |   |          |              |  |          |               |   |  |              |           |   |              |   |            |   |  |   | (1,339    | )
|Debt restructuring fees and expenses                      |  |           | (14,829  | )   |              |   |          |              |  |          |               |   |  |              |           |   |              |   |            |   |  |   | (14,829   | )
|US GAAP adjustments on discontinued operations            |  |           |          |     |              |   |          |              |  |          |               |   |  |              | 60,555    |   |              |   |            |   |  |   | 60,555    |  
|Effect of U.S. GAAP adjustments on minority interest      |  |           |          |     |              |   |          |              |  |          |               |   |  |              | 287       |   |              |   |            |   |  |   | 287       |  
|Others                                                    |  |           | 208      |     |              |   |          |              |  |          | (2,216        | ) |  |              |           |   |              |   |            |   |  |   | (2,008    | )
|                                                          |  |           |          |     |              |   |          |              |  |          |               |   |  |              |           |   |              |  
|Total U.S. GAAP adjustments                               |  |           | 46,192   |     |              |   | 60,557   |              |  |          | 57,300        |   |  |              | 60,130    |   |              |   | (177,987   | ) |  |   | 46,192    |  
|                                                          |  |           |          |     |              |   |          |              |  |          |               |   |  |              |           |   |              |  
|Total stockholders equity under U.S. GAAP                |  | $         | (3,167   | )   |              | $ | 338,269  |              |  | $        | 868,971       |   |  | $            | 405,300   |   |              | $ | (1,612,540 | ) |  | $ | (3,167    | )
|                                                          |  |           |          |     |              |   |          |              |  |          |               |   |  |              |           |   |              |  

F-50



---



##### Table of Contents



GRUPO TMM, S. A.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


GRUPO TMM, S. A. AND SUBSIDIARIES


CONDENSED CONSOLIDATING INCOME STATEMENT


For the year ended December 31, 2004


(amounts in thousands of U.S. Dollars)


|                                                          |  |           |          |     |                |   |          |              |  |          |               |   |  |              |         |   |              |   |         |   |  |   |          |  
|--------------------------------------------------------- |  | --------- | -------- | --- | -------------- | - | -------- | ------------ |  | -------- | ------------- | - |  | ------------ | ------- | - | ------------ | - | ------- | - |  | - | -------- | -
|                                                          |  |           |          | TMM |                |   | Combined |              |  | Combined |               |   |  |              |        
|                                                          |  | Grupo TMM |          |     | Holdings,      |   |          | Guarantor    |  |          | Non-guarantor |   |  |              |         |  
|                                                          |  | S. A.     |          |     | S. A. de C. V. |   |          | Subsidiaries |  |          | Subsidiaries  |   |  | Eliminations |         |   | Consolidated |  
|                                                          |  |           |          |     |                |   |          |              |  |          |               |   |  |              |         |   |              |  
|Transportation revenues                                   |  | $         | 69,073   |     |                |   |          |              |  | $        | 155,773       |   |  | $            | 101,716 |   |              | $ | (75,561 | ) |  | $ | 251,001  |  
|Costs and expenses                                        |  |           | 21,407   |     |                | $ | 43       |              |  |          | 154,962       |   |  |              | 147,074 |   |              |   | (75,905 | ) |  |   | 247,581  |  
|                                                          |  |           |          |     |                |   |          |              |  |          |               |   |  |              |         |   |              |  
|Income (loss) income on transportation                    |  |           | 47,666   |     |                |   | (43      | )            |  |          | 811           |   |  |              | (45,358 | ) |              |   | 344     |   |  |   | 3,420    |  
|Net gain on the sale of the port business                 |  |           |          |     |                |   |          |              |  |          |               |   |  |              |         |   |              |   |         |   |  |   |          |  
|Other (expenses) income  Net                             |  |           | (3,452   | )   |                |   |          |              |  |          | 18,669        |   |  |              | 233     |   |              |   | 782     |   |  |   | 16,232   |  
|                                                          |  |           |          |     |                |   |          |              |  |          |               |   |  |              |         |   |              |  
|Operating income                                          |  |           | 44,214   |     |                |   | (43      | )            |  |          | 19,480        |   |  |              | (45,125 | ) |              |   | 1,126   |   |  |   | 19,652   |  
|Net financing cost                                        |  |           | (70,191  | )   |                |   |          |              |  |          | (9,686        | ) |  |              | (5,434  | ) |              |   |         |   |  |   | (85,311  | )
|Provisions for taxes                                      |  |           | (27,882  | )   |                |   | (16      | )            |  |          | (12,753       | ) |  |              | (3,052  | ) |              |   |         |   |  |   | (43,703  | )
|Minority interest                                         |  |           |          |     |                |   |          |              |  |          |               |   |  |              | (2,655  | ) |              |   |         |   |  |   | (2,655   | )
|Equity interest                                           |  |           | (48,688  | )   |                |   |          |              |  |          | (39,322       | ) |  |              | 2,474   |   |              |   | 85,536  |   |  |   |          |  
|Net (loss) income from discontinued operations            |  |           |          |     |                |   | (55,274  | )            |  |          |               |   |  |              | 9,470   |   |              |   | 55,274  |   |  |   | 9,470    |  
|                                                          |  |           |          |     |                |   |          |              |  |          |               |   |  |              |         |   |              |  
|Net (loss) income for the year under IFRS                 |  | $         | (102,547 | )   |                | $ | (55,333  | )            |  | $        | (42,281       | ) |  | $            | (44,322 | ) |              | $ | 141,936 |   |  | $ | (102,547 | )
|                                                          |  |           |          |     |                |   |          |              |  |          |               |   |  |              |         |   |              |  
|Reconciliation of differences between IFRS and U.S. GAAP: |  |           |          |     |                |   |          |              |  |          |               |   |  |              |         |   |              |   |         |   |  |   |          |  
|Net (loss) income for the year under IFRS                 |  | $         | (102,547 | )   |                | $ | (55,333  | )            |  | $        | (42,281       | ) |  | $            | (44,322 | ) |              | $ | 141,936 |   |  | $ | (102,547 | )
|                                                          |  |           |          |     |                |   |          |              |  |          |               |   |  |              |         |   |              |  
|U.S. GAAP adjustments:                                    |  |           |          |     |                |   |          |              |  |          |               |   |  |              |         |   |              |   |         |   |  |   |          |  
|Deferred taxes                                            |  |           | 5,357    |     |                |   |          |              |  |          | (726          | ) |  |              | (1,131  | ) |              |   |         |   |  |   | 3,500    |  
|Equity investment                                         |  |           | (4,798   | )   |                |   | (4,214   | )            |  |          | (4,851        | ) |  |              |         |   |              |   | 13,863  |   |  |   |          |  
|Sale and lease-back transactions                          |  |           | 3,220    |     |                |   |          |              |  |          |               |   |  |              |         |   |              |   |         |   |  |   | 3,220    |  
|Debt restructuring fees and expenses                      |  |           | (14,829  | )   |                |   |          |              |  |          |               |   |  |              |         |   |              |   |         |   |  |   | (14,829  | )
|Gain on valuation of put option                           |  |           |          |     |                |   |          |              |  |          |               |   |  |              | 6,779   |   |              |   |         |   |  |   | 6,779    |  
|U.S. GAAP adjustments on discontinued operations          |  |           |          |     |                |   |          |              |  |          |               |   |  |              | (11,031 | ) |              |   |         |   |  |   | (11,031  | )
|Effect of U.S. GAAP adjustments on minority interest      |  |           |          |     |                |   |          |              |  |          |               |   |  |              | 20      |   |              |   |         |   |  |   | 20       |  
|Others                                                    |  |           | (2,196   | )   |                |   |          |              |  |          | 783           |   |  |              | 508     |   |              |   |         |   |  |   | (905     | )
|                                                          |  |           |          |     |                |   |          |              |  |          |               |   |  |              |         |   |              |  
|Total U.S. GAAP adjustments                               |  |           | (13,246  | )   |                |   | (4,214   | )            |  |          | (4,794        | ) |  |              | (4,855  | ) |              |   | 13,863  |   |  |   | (13,246  | )
|                                                          |  |           |          |     |                |   |          |              |  |          |               |   |  |              |         |   |              |  
|Net (loss) income for the year under U.S. GAAP            |  | $         | (115,793 | )   |                | $ | (59,547  | )            |  | $        | (47,075       | ) |  | $            | (49,177 | ) |              | $ | 155,799 |   |  | $ | (115,793 | )
|                                                          |  |           |          |     |                |   |          |              |  |          |               |   |  |              |         |   |              |  

F-51



---



##### Table of Contents



GRUPO TMM, S. A.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


GRUPO TMM, S. A. AND SUBSIDIARIES


CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS


For the year ended December 31, 2004


(amounts in thousands of U.S. Dollars)


|                                                                                                      |  |           |          |     |                |   |          |              |  |          |               |   |  |              |         |   |              |   |         |   |  |   |          |  
|----------------------------------------------------------------------------------------------------- |  | --------- | -------- | --- | -------------- | - | -------- | ------------ |  | -------- | ------------- | - |  | ------------ | ------- | - | ------------ | - | ------- | - |  | - | -------- | -
|                                                                                                      |  |           |          | TMM |                |   | Combined |              |  | Combined |               |   |  |              |        
|                                                                                                      |  | Grupo TMM |          |     | Holdings,      |   |          | Guarantor    |  |          | Non-guarantor |   |  |              |         |  
|                                                                                                      |  | S. A.     |          |     | S. A. de C. V. |   |          | Subsidiaries |  |          | Subsidiaries  |   |  | Eliminations |         |   | Consolidated |  
|                                                                                                      |  |           |          |     |                |   |          |              |  |          |               |   |  |              |         |   |              |  
|Cash flows from operating activities:                                                                 |  |           |          |     |                |   |          |              |  |          |               |   |  |              |         |   |              |   |         |   |  |   |          |  
|Net (loss) income for the year                                                                        |  | $         | (102,547 | )   |                | $ | (59      | )            |  | $        | (42,282       | ) |  | $            | (53,793 | ) |              | $ | 86,664  |   |  | $ | (112,017 | )
|Adjustments to reconcile net (loss) income to net cash provided
    by (used in) operating activities |  |           | 81,432   |     |                |   | 16       |              |  |          | 56,187        |   |  |              | 7,178   |   |              |   | (85,138 | ) |  |   | 59,675   |  
|Net change in working capital                                                                         |  |           | 44,540   |     |                |   | 43       |              |  |          | (32,181       | ) |  |              | 61,623  |   |              |   | (23,496 | ) |  |   | 50,529   |  
|                                                                                                      |  |           |          |     |                |   |          |              |  |          |               |   |  |              |         |   |              |  
|Net cash provided by (used in) operating activities                                                   |  |           | 23,425   |     |                |   |          |              |  |          | (18,276       | ) |  |              | 15,008  |   |              |   | (21,970 | ) |  |   | (1,813   | )
|                                                                                                      |  |           |          |     |                |   |          |              |  |          |               |   |  |              |         |   |              |  
|Cash flows from investing activities:                                                                 |  |           |          |     |                |   |          |              |  |          |               |   |  |              |         |   |              |   |         |   |  |   |          |  
|Sale of property, machinery and equipment                                                             |  |           | 22       |     |                |   |          |              |  |          | 736           |   |  |              | 616     |   |              |   |         |   |  |   | 1,374    |  
|Acquisition of property, machinery and equipment                                                      |  |           | (3,610   | )   |                |   |          |              |  |          | (9,078        | ) |  |              | (2,590  | ) |              |   |         |   |  |   | (15,278  | )
|Sales of shares of subsidiaries                                                                       |  |           |          |     |                |   |          |              |  |          |               |   |  |              |         |   |              |   |         |   |  |   |          |  
|                                                                                                      |  |           |          |     |                |   |          |              |  |          |               |   |  |              |         |   |              |  
|Net cash used in investing activities                                                                 |  |           | (3,588   | )   |                |   |          |              |  |          | (8,342        | ) |  |              | (1,974  | ) |              |   |         |   |  |   | (13,904  | )
|                                                                                                      |  |           |          |     |                |   |          |              |  |          |               |   |  |              |         |   |              |  
|Cash flows from financing activities:                                                                 |  |           |          |     |                |   |          |              |  |          |               |   |  |              |         |   |              |   |         |   |  |   |          |  
|Short-term bank payments  Net                                                                        |  |           | (450     | )   |                |   |          |              |  |          |               |   |  |              |         |   |              |   |         |   |  |   | (450     | )
|Payments under capital lease obligations                                                              |  |           |          |     |                |   |          |              |  |          | (94           | ) |  |              |         |   |              |   |         |   |  |   | (94      | )
|Payments under long-term debt                                                                         |  |           |          |     |                |   |          |              |  |          | (1,236        | ) |  |              |         |   |              |   |         |   |  |   | (1,236   | )
|Cash paid from sale of accounts receivable  Net                                                      |  |           | (332     | )   |                |   |          |              |  |          | (996          | ) |  |              |         |   |              |   |         |   |  |   | (1,328   | )
|                                                                                                      |  |           |          |     |                |   |          |              |  |          |               |   |  |              |         |   |              |  
|Net cash used in financing activities                                                                 |  |           | (782     | )   |                |   |          |              |  |          | (2,326        | ) |  |              |         |   |              |   |         |   |  |   | (3,108   | )
|                                                                                                      |  |           |          |     |                |   |          |              |  |          |               |   |  |              |         |   |              |  
|Net increase (decrease) in cash and cash equivalents                                                  |  |           | 19,055   |     |                |   |          |              |  |          | (28,944       | ) |  |              | 13,034  |   |              |   | (21,970 | ) |  |   | (18,825  | )
|Cash and cash equivalents at beginning of the year                                                    |  |           | 10,271   |     |                |   |          |              |  |          | 37,032        |   |  |              | 17,861  |   |              |   |         |   |  |   | 65,164   |  
|                                                                                                      |  |           |          |     |                |   |          |              |  |          |               |   |  |              |         |   |              |  
|Cash and cash equivalents at end of the year                                                          |  | $         | 29,326   |     |                | $ |         |              |  | $        | 8,088         |   |  | $            | 30,895  |   |              | $ | (21,970 | ) |  | $ | 46,339   |  
|                                                                                                      |  |           |          |     |                |   |          |              |  |          |               |   |  |              |         |   |              |  

F-52



---



##### Table of Contents



GRUPO TMM, S. A.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


GRUPO TMM, S. A. AND SUBSIDIARIES


CONDENSED CONSOLIDATING BALANCE SHEET


As of December 31, 2003


(amounts in thousands of U.S. Dollars)


|                                                          |  |           |         |     |                |   |          |              |  |          |               |  |  |              |           |   |              |   |            |   |  |   |           |  
|--------------------------------------------------------- |  | --------- | ------- | --- | -------------- | - | -------- | ------------ |  | -------- | ------------- |  |  | ------------ | --------- | - | ------------ | - | ---------- | - |  | - | --------- | -
|                                                          |  |           |         | TMM |                |   | Combined |              |  | Combined |               |  |  |              |          
|                                                          |  | Grupo TMM |         |     | Holdings,      |   |          | Guarantor    |  |          | Non-guarantor |  |  |              |           |  
|                                                          |  | S. A.     |         |     | S. A. de C. V. |   |          | Subsidiaries |  |          | Subsidiaries  |  |  | Eliminations |           |   | Consolidated |  
|                                                          |  |           |         |     |                |   |          |              |  |          |               |  |  |              |           |   |              |  
|Total current assets                                      |  | $         | 28,998  |     |                |   |          |              |  | $        | 126,118       |  |  | $            | 42,851    |   |              | $ | (52,760    | ) |  | $ | 145,207   |  
|Non-current assets held for sale                          |  |           |         |     |                | $ | 333,073  |              |  |          |               |  |  |              | 2,142,229 |   |              |   | (333,073   | ) |  |   | 2,142,229 |  
|Concession rights and related assets  Net                |  |           |         |     |                |   |          |              |  |          |               |  |  |              | 5,417     |   |              |   |            |   |  |   | 5,417     |  
|Property, machinery and equipment  Net                   |  |           | 22,412  |     |                |   |          |              |  |          | 47,543        |  |  |              | 5,147     |   |              |   |            |   |  |   | 75,102    |  
|Other assets                                              |  |           | 685     |     |                |   |          |              |  |          | 1,363         |  |  |              | 15,366    |   |              |   | (204       | ) |  |   | 17,210    |  
|Equity investments                                        |  |           | 513,101 |     |                |   |          |              |  |          | 56,280        |  |  |              | 16,441    |   |              |   | (571,575   | ) |  |   | 14,247    |  
|Deferred income tax                                       |  |           | 27,881  |     |                |   | 16       |              |  |          | 47,649        |  |  |              | (8,345    | ) |              |   |           |   |  |   | 67,201    |  
|                                                          |  |           |         |     |                |   |          |              |  |          |               |  |  |              |           |   |              |  
|Total assets                                              |  | $         | 593,077 |     |                | $ | 333,089  |              |  | $        | 278,953       |  |  | $            | 2,219,106 |   |              | $ | (957,612   | ) |  | $ | 2,466,613 |  
|                                                          |  |           |         |     |                |   |          |              |  |          |               |  |  |              |           |   |              |  
|Total short-term liabilities                              |  | $         | 507,419 |     |                | $ | 44       |              |  | $        | 35,508        |  |  | $            | 1,156,285 |   |              | $ | (52,760    | ) |  | $ | 1,646,496 |  
|Total long-term liabilities                               |  |           | 32,470  |     |                |   |          |              |  |          | 56,236        |  |  |              | 19        |   |              |   |            |   |  |   | 88,725    |  
|                                                          |  |           |         |     |                |   |          |              |  |          |               |  |  |              |           |   |              |  
|Total liabilities                                         |  |           | 539,889 |     |                |   | 44       |              |  |          | 91,744        |  |  |              | 1,156,304 |   |              |   | (52,760    | ) |  |   | 1,735,221 |  
|                                                          |  |           |         |     |                |   |          |              |  |          |               |  |  |              |           |   |              |  
|Minority interest                                         |  |           |         |     |                |   |          |              |  |          |               |  |  |              | 678,204   |   |              |   |            |   |  |   | 678,204   |  
|                                                          |  |           |         |     |                |   |          |              |  |          |               |  |  |              |           |   |              |  
|Capital stock                                             |  |           | 121,158 |     |                |   | 415,952  |              |  |          | 11            |  |  |              | 346,115   |   |              |   | (762,078   | ) |  |   | 121,158   |  
|Accumulated (deficit) retained earnings                   |  |           | (67,970 | )   |                |   | (82,907  | )            |  |          | 187,198       |  |  |              | 38,483    |   |              |   | (142,774   | ) |  |   | (67,970   | )
|                                                          |  |           |         |     |                |   |          |              |  |          |               |  |  |              |           |   |              |  
|Total stockholders equity                                 |  |           | 53,188  |     |                |   | 333,045  |              |  |          | 187,209       |  |  |              | 384,598   |   |              |   | (904,852   | ) |  |   | 53,188    |  
|                                                          |  |           |         |     |                |   |          |              |  |          |               |  |  |              |           |   |              |  
|Total liabilities and stockholders equity                |  | $         | 593,077 |     |                | $ | 333,089  |              |  | $        | 278,953       |  |  | $            | 2,219,106 |   |              | $ | (957,612   | ) |  | $ | 2,466,613 |  
|                                                          |  |           |         |     |                |   |          |              |  |          |               |  |  |              |           |   |              |  
|Reconciliation of differences between IFRS and U.S. GAAP: |  |           |         |     |                |   |          |              |  |          |               |  |  |              |           |   |              |   |            |   |  |   |           |  
|Total stockholders equity under IFRS                     |  | $         | 53,188  |     |                | $ | 333,045  |              |  | $        | 187,209       |  |  | $            | 384,598   |   |              | $ | (904,852   | ) |  | $ | 53,188    |  
|                                                          |  |           |         |     |                |   |          |              |  |          |               |  |  |              |           |   |              |  
|U.S. GAAP adjustments:                                    |  |           |         |     |                |   |          |              |  |          |               |  |  |              |           |   |              |   |            |   |  |   |           |  
|Deferred taxes                                            |  |           | 1,659   |     |                |   |          |              |  |          | 96            |  |  |              | (99       | ) |              |   |            |   |  |   | 1,656     |  
|Equity investment                                         |  |           | 62,099  |     |                |   | 71,550   |              |  |          | 60,941        |  |  |              |           |   |              |   | (194,590   | ) |  |   |           |  
|Sale and lease back transactions                          |  |           | (4,558  | )   |                |   |          |              |  |          |               |  |  |              |           |   |              |   |            |   |  |   | (4,558    | )
|Loss on valuation of put option                           |  |           |         |     |                |   |          |              |  |          |               |  |  |              | (6,779    | ) |              |   |            |   |  |   | (6,779    | )
|US GAAP adjustments on discontinued operations            |  |           |         |     |                |   |          |              |  |          |               |  |  |              | 71,814    |   |              |   |            |   |  |   | 71,814    |  
|Effect of U.S. GAAP adjustments on minority interest      |  |           |         |     |                |   |          |              |  |          |               |  |  |              | 44        |   |              |   |            |   |  |   | 44        |  
|Others                                                    |  |           | 238     |     |                |   |          |              |  |          |               |  |  |              | (2,977    | ) |              |   |            |   |  |   | (2,739    | )
|                                                          |  |           |         |     |                |   |          |              |  |          |               |  |  |              |           |   |              |  
|Total U.S. GAAP adjustments                               |  |           | 59,438  |     |                |   | 71,550   |              |  |          | 61,037        |  |  |              | 62,003    |   |              |   | (194,590   | ) |  |   | 59,438    |  
|                                                          |  |           |         |     |                |   |          |              |  |          |               |  |  |              |           |   |              |  
|Total stockholders equity under U.S. GAAP                |  | $         | 112,626 |     |                | $ | 404,595  |              |  | $        | 248,246       |  |  | $            | 446,601   |   |              | $ | (1,099,442 | ) |  | $ | 112,626   |  
|                                                          |  |           |         |     |                |   |          |              |  |          |               |  |  |              |           |   |              |  

F-53



---



##### Table of Contents



GRUPO TMM, S. A.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


GRUPO TMM, S. A. AND SUBSIDIARIES


CONDENSED CONSOLIDATING INCOME STATEMENT


For the year ended December 31, 2003


(amounts in thousands of U.S. Dollars)


|                                                          |  |           |         |     |                |   |          |              |  |          |               |   |  |              |         |   |              |   |         |   |  |   |         |  
|--------------------------------------------------------- |  | --------- | ------- | --- | -------------- | - | -------- | ------------ |  | -------- | ------------- | - |  | ------------ | ------- | - | ------------ | - | ------- | - |  | - | ------- | -
|                                                          |  |           |         | TMM |                |   | Combined |              |  | Combined |               |   |  |              |        
|                                                          |  | Grupo TMM |         |     | Holdings,      |   |          | Guarantor    |  |          | Non-guarantor |   |  |              |         |  
|                                                          |  | S. A.     |         |     | S. A. de C. V. |   |          | Subsidiaries |  |          | Subsidiaries  |   |  | Eliminations |         |   | Consolidated |  
|                                                          |  |           |         |     |                |   |          |              |  |          |               |   |  |              |         |   |              |  
|Transportation revenues                                   |  | $         | 27,642  |     |                |   |          |              |  | $        | 143,177       |   |  | $            | 85,965  |   |              | $ | (29,887 | ) |  | $ | 226,897 |  
|Costs and expenses                                        |  |           | 37,358  |     |                | $ | 37       |              |  |          | 153,134       |   |  |              | 71,928  |   |              |   | (30,463 | ) |  |   | 231,994 |  
|                                                          |  |           |         |     |                |   |          |              |  |          |               |   |  |              |         |   |              |  
|(Loss) income on transportation                           |  |           | (9,716  | )   |                |   | (37      | )            |  |          | (9,957        | ) |  |              | 14,037  |   |              |   | 576     |   |  |   | (5,097  | )
|Other (expenses) income  Net                             |  |           | (8,564  | )   |                |   |          |              |  |          | (7,076        | ) |  |              | (86,102 | ) |              |   | 43,044  |   |  |   | (58,698 | )
|                                                          |  |           |         |     |                |   |          |              |  |          |               |   |  |              |         |   |              |  
|Operating (loss) income                                   |  |           | (18,280 | )   |                |   | (37      | )            |  |          | (17,033       | ) |  |              | (72,065 | ) |              |   | 43,620  |   |  |   | (63,795 | )
|Net financing cost                                        |  |           | (55,772 | )   |                |   | (1       | )            |  |          | (8,440        | ) |  |              | 7,578   |   |              |   |         |   |  |   | (56,635 | )
|(Provisions) benefit for taxes                            |  |           | (13,628 | )   |                |   | 237      |              |  |          | 12,168        |   |  |              | (4,898  | ) |              |   |         |   |  |   | (6,121  | )
|Minority interest                                         |  |           |         |     |                |   |          |              |  |          |               |   |  |              | (2,042  | ) |              |   |         |   |  |   | (2,042  | )
|Equity interest                                           |  |           | (40,913 | )   |                |   |          |              |  |          | (45,721       | ) |  |              |         |   |              |   | 86,634  |   |  |   |         |  
|Net income (loss) from discontinued operations            |  |           | 41,931  |     |                |   | (17,734  | )            |  |          |               |   |  |              | 41,931  |   |              |   | (24,197 | ) |  |   | 41,931  |  
|                                                          |  |           |         |     |                |   |          |              |  |          |               |   |  |              |         |   |              |  
|Net (loss) income for the year under IFRS                 |  | $         | (86,662 | )   |                | $ | (17,535  | )            |  | $        | (59,026       | ) |  | $            | (29,496 | ) |              | $ | 106,057 |   |  | $ | (86,662 | )
|                                                          |  |           |         |     |                |   |          |              |  |          |               |   |  |              |         |   |              |  
|Reconciliation of differences between IFRS and U.S. GAAP: |  |           |         |     |                |   |          |              |  |          |               |   |  |              |         |   |              |   |         |   |  |   |         |  
|Net (loss) income for the year under IFRS                 |  | $         | (86,662 | )   |                | $ | (17,535  | )            |  | $        | (59,026       | ) |  | $            | (29,496 | ) |              | $ | 106,057 |   |  | $ | (86,662 | )
|                                                          |  |           |         |     |                |   |          |              |  |          |               |   |  |              |         |   |              |  
|U.S. GAAP adjustments:                                    |  |           |         |     |                |   |          |              |  |          |               |   |  |              |         |   |              |   |         |   |  |   |         |  
|Deferred taxes                                            |  |           | 3,276   |     |                |   |          |              |  |          | (25,848       | ) |  |              | 144     |   |              |   |         |   |  |   | (22,428 | )
|Investment in subsidiaries                                |  |           | 75,773  |     |                |   |          |              |  |          | 12,692        |   |  |              |         |   |              |   | (88,465 | ) |  |   |         |  
|Sale and lease-back transactions                          |  |           | 3,212   |     |                |   |          |              |  |          |               |   |  |              | 8       |   |              |   |         |   |  |   | 3,220   |  
|Loss on valuation of put option                           |  |           |         |     |                |   |          |              |  |          |               |   |  |              | (6,779  | ) |              |   |         |   |  |   | (6,779  | )
|U.S. GAAP adjustments on discontinued operations          |  |           | (41,978 | )   |                |   | 37,583   |              |  |          |               |   |  |              | 64,956  |   |              |   | 4,395   |   |  |   | 64,956  |  
|Effect of U.S. GAAP adjustments on minority interest      |  |           |         |     |                |   |          |              |  |          |               |   |  |              | 225     |   |              |   |         |   |  |   | 225     |  
|Others                                                    |  |           | (691    | )   |                |   |          |              |  |          | 645           |   |  |              | 444     |   |              |   |         |   |  |   | 398     |  
|                                                          |  |           |         |     |                |   |          |              |  |          |               |   |  |              |         |   |              |  
|Total U.S. GAAP adjustments                               |  |           | 39,592  |     |                |   | 37,583   |              |  |          | (12,511       | ) |  |              | 58,998  |   |              |   | (84,070 | ) |  |   | 39,592  |  
|                                                          |  |           |         |     |                |   |          |              |  |          |               |   |  |              |         |   |              |  
|Net (loss) income for the year under U.S. GAAP            |  | $         | (47,070 | )   |                | $ | 20,048   |              |  | $        | (71,537       | ) |  | $            | 29,502  |   |              | $ | 21,987  |   |  | $ | (47,070 | )
|                                                          |  |           |         |     |                |   |          |              |  |          |               |   |  |              |         |   |              |  

F-54



---



##### Table of Contents



GRUPO TMM, S. A.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


GRUPO TMM, S. A. AND SUBSIDIARIES


CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS


For the year ended December 31, 2003


(amounts in thousands of U.S. Dollars)


|                                                                                                      |  |           |          |     |                |   |          |              |  |          |               |   |  |              |         |   |              |   |         |   |  |   |          |  
|----------------------------------------------------------------------------------------------------- |  | --------- | -------- | --- | -------------- | - | -------- | ------------ |  | -------- | ------------- | - |  | ------------ | ------- | - | ------------ | - | ------- | - |  | - | -------- | -
|                                                                                                      |  |           |          | TMM |                |   | Combined |              |  | Combined |               |   |  |              |        
|                                                                                                      |  | Grupo TMM |          |     | Holdings,      |   |          | Guarantor    |  |          | Non-guarantor |   |  |              |         |  
|                                                                                                      |  | S. A.     |          |     | S. A. de C. V. |   |          | Subsidiaries |  |          | Subsidiaries  |   |  | Eliminations |         |   | Consolidated |  
|                                                                                                      |  |           |          |     |                |   |          |              |  |          |               |   |  |              |         |   |              |  
|Cash flows from operating activities:                                                                 |  |           |          |     |                |   |          |              |  |          |               |   |  |              |         |   |              |   |         |   |  |   |          |  
|Net (loss) income for the year                                                                        |  | $         | (128,593 | )   |                | $ | 199      |              |  | $        | (59,026       | ) |  | $            | (71,427 | ) |              | $ | 130,254 |   |  | $ | (128,593 | )
|Adjustments to reconcile net (loss) income to net cash provided
    by (used in) operating activities |  |           | 59,452   |     |                |   | (237     | )            |  |          | 67,956        |   |  |              | 13,806  |   |              |   | (86,634 | ) |  |   | 54,343   |  
|Net change in working capital                                                                         |  |           | 140,869  |     |                |   | 38       |              |  |          | (106,649      | ) |  |              | 25,030  |   |              |   | (23,730 | ) |  |   | 35,558   |  
|                                                                                                      |  |           |          |     |                |   |          |              |  |          |               |   |  |              |         |   |              |  
|Net cash provided by (used in) operating activities                                                   |  |           | 71,728   |     |                |   |          |              |  |          | (97,719       | ) |  |              | (32,591 | ) |              |   | 19,890  |   |  |   | (38,692  | )
|                                                                                                      |  |           |          |     |                |   |          |              |  |          |               |   |  |              |         |   |              |  
|Cash flows from investing activities:                                                                 |  |           |          |     |                |   |          |              |  |          |               |   |  |              |         |   |              |   |         |   |  |   |          |  
|Sale of property, machinery and equipment                                                             |  |           | 30       |     |                |   |          |              |  |          | 128,849       |   |  |              | 7,382   |   |              |   |         |   |  |   | 136,261  |  
|Acquisition of property, machinery and equipment                                                      |  |           | (2,802   | )   |                |   |          |              |  |          | (1,797        | ) |  |              | (4,837  | ) |              |   |         |   |  |   | (9,436   | )
|                                                                                                      |  |           |          |     |                |   |          |              |  |          |               |   |  |              |         |   |              |  
|Net cash (used in) provided by investing activities                                                   |  |           | (2,772   | )   |                |   |          |              |  |          | 127,052       |   |  |              | 2,545   |   |              |   |         |   |  |   | 126,825  |  
|                                                                                                      |  |           |          |     |                |   |          |              |  |          |               |   |  |              |         |   |              |  
|Cash flows from financing activities:                                                                 |  |           |          |     |                |   |          |              |  |          |               |   |  |              |         |   |              |   |         |   |  |   |          |  
|Payments from convertible notes                                                                       |  |           | (13,295  | )   |                |   |          |              |  |          |               |   |  |              |         |   |              |   |         |   |  |   | (13,295  | )
|Short-term bank payments  Net                                                                        |  |           | (798     | )   |                |   |          |              |  |          | (989          | ) |  |              |         |   |              |   |         |   |  |   | (1,787   | )
|(Payments) proceeds from commercial paper  Net                                                       |  |           | (45,950  | )   |                |   |          |              |  |          |               |   |  |              | 30,000  |   |              |   |         |   |  |   | (15,950  | )
|Cash paid from sale of accounts receivable  Net                                                      |  |           | (2,605   | )   |                |   |          |              |  |          | (7,815        | ) |  |              |         |   |              |   |         |   |  |   | (10,420  | )
|Dividends paid to minority stockholders                                                               |  |           |          |     |                |   |          |              |  |          |               |   |  |              | (8,000  | ) |              |   |         |   |  |   | (8,000   | )
|Payments under capital lease obligations                                                              |  |           |          |     |                |   |          |              |  |          | (83           | ) |  |              | (750    | ) |              |   |         |   |  |   | (833     | )
|                                                                                                      |  |           |          |     |                |   |          |              |  |          |               |   |  |              |         |   |              |  
|Net cash (used in) provided by financing activities                                                   |  |           | (62,648  | )   |                |   |          |              |  |          | (8,887        | ) |  |              | 21,250  |   |              |   |         |   |  |   | (50,285  | )
|                                                                                                      |  |           |          |     |                |   |          |              |  |          |               |   |  |              |         |   |              |  
|Net increase (decrease) in cash and cash equivalents                                                  |  |           | 6,308    |     |                |   |          |              |  |          | 20,446        |   |  |              | (8,796  | ) |              |   | 19,890  |   |  |   | 37,848   |  
|Cash and cash equivalents at beginning of the year                                                    |  |           | 3,963    |     |                |   |          |              |  |          | 16,586        |   |  |              | 26,657  |   |              |   | (19,890 | ) |  |   | 27,316   |  
|                                                                                                      |  |           |          |     |                |   |          |              |  |          |               |   |  |              |         |   |              |  
|Cash and cash equivalents at end of the year                                                          |  | $         | 10,271   |     |                | $ |         |              |  | $        | 37,032        |   |  | $            | 17,861  |   |              | $ |        |   |  | $ | 65,164   |  
|                                                                                                      |  |           |          |     |                |   |          |              |  |          |               |   |  |              |         |   |              |  

F-55



---



##### Table of Contents



GRUPO TMM, S. A.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


GRUPO TMM, S. A. AND SUBSIDIARIES


CONDENSED CONSOLIDATING INCOME STATEMENT


For the year ended December 31, 2002


(amounts in thousands of U.S. Dollars)


|                                                          |  |           |         |     |                |   |          |              |  |      |              |   |  |              |         |   |              |   |          |   |  |   |         |  
|--------------------------------------------------------- |  | --------- | ------- | --- | -------------- | - | -------- | ------------ |  | ---- | ------------ | - |  | ------------ | ------- | - | ------------ | - | -------- | - |  | - | ------- | -
|                                                          |  |           |         |     |                |   |          | Combined     |  |      |              |   | 
|                                                          |  |           |         | TMM |                |   | Combined |              |  | Non- |              |   |  |              |        
|                                                          |  | Grupo TMM |         |     | Holdings,      |   |          | Guarantor    |  |      | guarantor    |   |  |              |         |  
|                                                          |  | S. A.     |         |     | S. A. de C. V. |   |          | Subsidiaries |  |      | Subsidiaries |   |  | Eliminations |         |   | Consolidated |  
|                                                          |  |           |         |     |                |   |          |              |  |      |              |   |  |              |         |   |              |  
|Transportation revenues                                   |  | $         | 40,949  |     |                | $ |          |              |  | $    | 127,226      |   |  | $            | 99,863  |   |              | $ | (31,489  | ) |  | $ | 236,549 |  
|Costs and expenses                                        |  |           | 56,875  |     |                |   | 12       |              |  |      | 131,541      |   |  |              | 83,720  |   |              |   | (32,182  | ) |  |   | 239,966 |  
|                                                          |  |           |         |     |                |   |          |              |  |      |              |   |  |              |         |   |              |  
|Income on transportation                                  |  |           | (15,926 | )   |                |   | (12      | )            |  |      | (4,315       | ) |  |              | 16,143  |   |              |   | 693      |   |  |   | (3,417  | )
|Other (expenses) income  Net                             |  |           | (9,979  | )   |                |   | 5,048    |              |  |      | (93,659      | ) |  |              | (14,952 | ) |              |   | 110,072  |   |  |   | (3,470  | )
|                                                          |  |           |         |     |                |   |          |              |  |      |              |   |  |              |         |   |              |  
|Operating (loss) income                                   |  |           | (25,905 | )   |                |   | 5,036    |              |  |      | (97,974      | ) |  |              | 1,191   |   |              |   | 110,765  |   |  |   | (6,887  | )
|Net financing cost                                        |  |           | (51,331 | )   |                |   |          |              |  |      | (10,275      | ) |  |              | (580    | ) |              |   |          |   |  |   | (62,186 | )
|(Provisions) benefit for taxes                            |  |           | (5,337  | )   |                |   | (221     | )            |  |      | 29,742       |   |  |              | (3,252  | ) |              |   |          |   |  |   | 20,932  |  
|Minority interest                                         |  |           |         |     |                |   |          |              |  |      |              |   |  |              | 552     |   |              |   |          |   |  |   | 552     |  
|Equity interest                                           |  |           | 34,984  |     |                |   |          |              |  |      | 1,378        |   |  |              |         |   |              |   | (36,362  | ) |  |   |         |  
|Net income (loss) from discontinued operations            |  |           | 4,980   |     |                |   | (17,617  | )            |  |      |              |   |  |              | 4,980   |   |              |   | 12,637   |   |  |   | 4,980   |  
|                                                          |  |           |         |     |                |   |          |              |  |      |              |   |  |              |         |   |              |  
|Net (loss) income for the year under IFRS                 |  | $         | (42,609 | )   |                | $ | (12,802  | )            |  | $    | (77,129      | ) |  | $            | 2,891   |   |              | $ | 87,040   |   |  | $ | (42,609 | )
|                                                          |  |           |         |     |                |   |          |              |  |      |              |   |  |              |         |   |              |  
|Reconciliation of differences between IFRS and U.S. GAAP: |  |           |         |     |                |   |          |              |  |      |              |   |  |              |         |   |              |   |          |   |  |   |         |  
|Net (loss) income for the year under IFRS                 |  | $         | (42,609 | )   |                | $ | (12,802  | )            |  | $    | (77,129      | ) |  | $            | 2,891   |   |              | $ | 87,040   |   |  | $ | (42,609 | )
|                                                          |  |           |         |     |                |   |          |              |  |      |              |   |  |              |         |   |              |  
|U.S. GAAP adjustments:                                    |  |           |         |     |                |   |          |              |  |      |              |   |  |              |         |   |              |   |          |   |  |   |         |  
|Deferred taxes                                            |  |           | (26,310 | )   |                |   |          |              |  |      | 1,676        |   |  |              | (1,426  | ) |              |   |          |   |  |   | (26,060 | )
|Investment in subsidiaries                                |  |           | 113,657 |     |                |   |          |              |  |      | 30,370       |   |  |              |         |   |              |   | (144,027 | ) |  |   |         |  
|Sale and lease-back transactions  Net                    |  |           | 3,213   |     |                |   |          |              |  |      | 6,635        |   |  |              | 10      |   |              |   |          |   |  |   | 9,858   |  
|US GAAP adjustments on discontinued operations            |  |           | (39,393 | )   |                |   | 42,513   |              |  |      |              |   |  |              | 63,427  |   |              |   | (3,120   | ) |  |   | 63,427  |  
|Effect of U.S. GAAP adjustments on minority interest      |  |           |         |     |                |   |          |              |  |      |              |   |  |              | 117     |   |              |   |          |   |  |   | 117     |  
|Others                                                    |  |           | 2,090   |     |                |   |          |              |  |      | 2,425        |   |  |              | 1,400   |   |              |   |          |   |  |   | 5,915   |  
|                                                          |  |           |         |     |                |   |          |              |  |      |              |   |  |              |         |   |              |  
|Total U.S. GAAP adjustments                               |  |           | 53,257  |     |                |   | 42,513   |              |  |      | 41,106       |   |  |              | 63,528  |   |              |   | (147,147 | ) |  |   | 53,257  |  
|                                                          |  |           |         |     |                |   |          |              |  |      |              |   |  |              |         |   |              |  
|Net income (loss) for the year under U.S. GAAP            |  | $         | 10,648  |     |                | $ | 29,711   |              |  | $    | (36,023      | ) |  | $            | 66,419  |   |              | $ | (60,107  | ) |  | $ | 10,648  |  
|                                                          |  |           |         |     |                |   |          |              |  |      |              |   |  |              |         |   |              |  

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##### Table of Contents



GRUPO TMM, S. A.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


GRUPO TMM, S. A. AND SUBSIDIARIES


CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS


For the year ended December 31, 2002


(amount in thousands of U.S. Dollars)


|                                                                                                      |  |           |         |     |                |   |          |              |  |          |               |   |  |             |         |   |              |   |         |   |  |   |         |  
|----------------------------------------------------------------------------------------------------- |  | --------- | ------- | --- | -------------- | - | -------- | ------------ |  | -------- | ------------- | - |  | ----------- | ------- | - | ------------ | - | ------- | - |  | - | ------- | -
|                                                                                                      |  |           |         | TMM |                |   | Combined |              |  | Combined |               |   |  |             |        
|                                                                                                      |  | Grupo TMM |         |     | Holdings       |   |          | Guarantor    |  |          | Non-guarantor |   |  |             |         |  
|                                                                                                      |  | S. A.     |         |     | S. A. de C. V. |   |          | Subsidiaries |  |          | Subsidiaries  |   |  | Elimination |         |   | Consolidated |  
|                                                                                                      |  |           |         |     |                |   |          |              |  |          |               |   |  |             |         |   |              |  
|Cash flows from operating activities:                                                                 |  |           |         |     |                |   |          |              |  |          |               |   |  |             |         |   |              |   |         |   |  |   |         |  
|(Loss) income from continuing operations for the year                                                 |  | $         | (47,589 | )   |                | $ | 4,815    |              |  | $        | (77,129       | ) |  | $           | (2,089  | ) |              | $ | 74,403  |   |  | $ | (47,589 | )
|Adjustments to reconcile net (loss) income to net cash (used in)
    provided by operating activities |  |           | (23,836 | )   |                |   | 221      |              |  |          | 68,997        |   |  |             | 44,650  |   |              |   | (74,403 | ) |  |   | 15,629  |  
|Net change in working capital                                                                         |  |           | 66,140  |     |                |   | (5,041   | )            |  |          | (27,657       | ) |  |             | (21,071 | ) |              |   |         |   |  |   | 12,371  |  
|                                                                                                      |  |           |         |     |                |   |          |              |  |          |               |   |  |             |         |   |              |  
|Net cash (used in) provided by operating activities                                                   |  |           | (5,285  | )   |                |   | (5       | )            |  |          | (35,789       | ) |  |             | 21,490  |   |              |   |         |   |  |   | (19,589 | )
|                                                                                                      |  |           |         |     |                |   |          |              |  |          |               |   |  |             |         |   |              |  
|Cash flows from investing activities:                                                                 |  |           |         |     |                |   |          |              |  |          |               |   |  |             |         |   |              |   |         |   |  |   |         |  
|Sale of fixed assets                                                                                  |  |           | 866     |     |                |   |          |              |  |          | 2,626         |   |  |             | 15,004  |   |              |   |         |   |  |   | 18,496  |  
|Acquisition of fixed assets and subsidiaries                                                          |  |           | (4,772  | )   |                |   |          |              |  |          | (9,504        | ) |  |             | (1,792  | ) |              |   |         |   |  |   | (16,068 | )
|                                                                                                      |  |           |         |     |                |   |          |              |  |          |               |   |  |             |         |   |              |  
|Net cash (used in) provided by investing activities                                                   |  |           | (3,906  | )   |                |   |          |              |  |          | (6,878        | ) |  |             | 13,212  |   |              |   |         |   |  |   | 2,428   |  
|                                                                                                      |  |           |         |     |                |   |          |              |  |          |               |   |  |             |         |   |              |  
|Cash flows from financing activities:                                                                 |  |           |         |     |                |   |          |              |  |          |               |   |  |             |         |   |              |   |         |   |  |   |         |  
|Short-term bank payments  Net                                                                        |  |           | (5,000  | )   |                |   |          |              |  |          |               |   |  |             | (52,725 | ) |              |   |         |   |  |   | (57,725 | )
|(Payments) proceeds from commercial Paper, net                                                        |  |           | (18,794 | )   |                |   |          |              |  |          |               |   |  |             | 38,684  |   |              |   | (19,890 | ) |  |   |         |  
|(Payments) proceeds under capital lease obligations                                                   |  |           |         |     |                |   |          |              |  |          | (1,063        | ) |  |             | 989     |   |              |   |         |   |  |   | (74     | )
|Proceeds from convertible notes                                                                       |  |           | 13,295  |     |                |   |          |              |  |          |               |   |  |             |         |   |              |   |         |   |  |   | 13,295  |  
|Cash received (paid) from sale of accounts
    receivable  Net                                       |  |           | 15,430  |     |                |   |          |              |  |          | 49,272        |   |  |             | (2,983  | ) |              |   |         |   |  |   | 61,719  |  
|Dividends paid to minority stockholders                                                               |  |           |         |     |                |   |          |              |  |          |               |   |  |             | (1,578  | ) |              |   |         |   |  |   | (1,578  | )
|                                                                                                      |  |           |         |     |                |   |          |              |  |          |               |   |  |             |         |   |              |  
|Net cash provide by (used in) financing activities                                                    |  |           | 4,931   |     |                |   |          |              |  |          | 48,209        |   |  |             | (17,613 | ) |              |   | (19,890 | ) |  |   | 15,637  |  
|                                                                                                      |  |           |         |     |                |   |          |              |  |          |               |   |  |             |         |   |              |  
|Net (decrease) increase in cash and cash equivalents                                                  |  |           | (4,260  | )   |                |   | (5       | )            |  |          | 5,542         |   |  |             | 17,089  |   |              |   | (19,890 | ) |  |   | (1,524  | )
|Cash and cash equivalents at beginning of the year                                                    |  |           | 8,223   |     |                |   | 5        |              |  |          | 11,044        |   |  |             | 9,568   |   |              |   |         |   |  |   | 28,840  |  
|                                                                                                      |  |           |         |     |                |   |          |              |  |          |               |   |  |             |         |   |              |  
|Cash and cash equivalents at end of the year                                                          |  | $         | 3,963   |     |                | $ |          |              |  | $        | 16,586        |   |  | $           | 26,657  |   |              | $ | (19,890 | ) |  | $ | 27,316  |  
|                                                                                                      |  |           |         |     |                |   |          |              |  |          |               |   |  |             |         |   |              |  

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##### Table of Contents



TMM HOLDINGS, S. A. DE C. V.


CONSOLIDATED FINANCIAL STATEMENTS


DECEMBER 31, 2002, 2003 AND 2004


INDEX


|                                                           |  |      |      | 
|---------------------------------------------------------- |  | ---- | ---- | 
|Contents                                                   |  | Page |     
|                                                           |  |      |     
|Report of Independent Auditors                             |  |      | F-59 | 
|Consolidated Balance Sheets                                |  |      | F-60 | 
|Consolidated Statements of Income                          |  |      | F-61 | 
|Consolidated Statements of Changes in Stockholders Equity |  |      | F-62 | 
|Consolidated Statements of Cash Flows                      |  |      | F-63 | 
|Notes to the Consolidated Financial Statements             |  |      | F-64 | 

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##### Table of Contents



REPORT OF INDEPENDENT AUDITORS






















| |                       
| | ----------------------
| | PricewaterhouseCoopers





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TMM HOLDINGS, S. A. DE C. V.


CONSOLIDATED BALANCE SHEETS


(amounts in thousands of US dollars)


|                                                                           |                                                                               |                                            |              |           |           |           |         |           |           |           | 
|-------------------------------------------------------------------------- | ----------------------------------------------------------------------------- | ------------------------------------------ | ------------ | --------- | --------- | --------- | ------- | --------- | --------- | --------- | 
|                                                                           |                                                                               | December 31,                               |             
|                                                                           |                                                                               |                                            |             
|                                                                           |                                                                               | 2003                                       |              |           | 2004      |          
|                                                                           |                                                                               |                                            |              |           |           |          
|ASSETS                                                                    
|Current assets:                                                            |                                                                               |                                            |              |           |           |           |         |          
|                                                                           | Cash and cash equivalents                                                     |                                            | $            | 2         |           |           | $       | 3         |          
|                                                                           | Amounts due from related parties (Note 4)                                     |                                            |              | 329       |           |           |         | 435       |          
|                                                                           | Taxes recoverable (Note 5)                                                    |                                            |              | 304       |           |           |         | 9,239     |          
|                                                                           | Non-current assets held for sale (Note 2)                                     |                                            |              | 2,128,182 |           |           |         | 2,058,451 |          
|                                                                           |                                                                               |                                            |              |           |           |          
|                                                                           |                                                                               | Total current assets                       |              |           | 2,128,817 |           |         |           | 2,068,128 |          
|Deferred income taxes (Note 8)                                             |                                                                               |                                            | 23           |           |           |           |         |          
|                                                                           |                                                                               |                                            |              |           |           |          
|                                                                           |                                                                               |                                            | Total assets |           | $         | 2,128,840 |         |           | $         | 2,068,128 | 
|                                                                           |                                                                               |                                            |              |           |           |          
|                                                                          
|LIABILITIES AND STOCKHOLDERS EQUITY                                      
|Short-term liabilities:                                                    |                                                                               |                                            |              |           |           |           |         |          
|                                                                           | Amounts due for related parties (Note 4)                                      |                                            | $            | 44        |           |           | $       | 69,087    |          
|                                                                           | Accounts payable and accrued expenses (Note 6)                                |                                            |              | 392       |           |           |         | 411       |          
|                                                                           | Liabilities directly related to non-current assets held for sale
    (Note 2) |                                            |              | 1,141,232 |           |           |         | 1,054,549 |          
|                                                                           |                                                                               |                                            |              |           |           |          
|                                                                           |                                                                               | Total short-term liabilities               |              |           | 1,141,668 |           |         |           | 1,124,047 |          
|Minority interest                                                          |                                                                               |                                            | 654,127      |           |           |           | 666,369 |          
|                                                                           |                                                                               |                                            |              |           |           |          
|Stockholders equity (Note 7):                                             |                                                                               |                                            |              |           |           |           |         |          
|Common stock, 4,202,409 shares authorized and issued
    without par value |                                                                               |                                            | 415,952      |           |           |           | 415,952 |          
|Effect on purchase of subsidiary shares                                    |                                                                               |                                            | (52,570      | )         |           |           | (52,570 | )        
|Deficit                                                                    |                                                                               |                                            | (30,337      | )         |           |           | (85,670 | )        
|                                                                           |                                                                               |                                            |              |           |           |          
|                                                                           |                                                                               | Total stockholders equity                 |              |           | 333,045   |           |         |           | 277,712   |          
|                                                                           |                                                                               |                                            |              |           |           |          
|                                                                           |                                                                               | Total liabilities and stockholders equity |              | $         | 2,128,840 |           |         | $         | 2,068,128 |          
|                                                                           |                                                                               |                                            |              |           |           |          



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TMM HOLDINGS, S. A. DE C. V.


CONSOLIDATED STATEMENTS OF INCOME


(amounts in thousands of US dollars, except per share
amounts)


|                                                                       |  |                         |         |   |      |   |         |      |  |   |         |  
|---------------------------------------------------------------------- |  | ----------------------- | ------- | - | ---- | - | ------- | ---- |  | - | ------- | -
|                                                                       |  | Year Ended December 31, |        
|                                                                       |  |                         |        
|                                                                       |  | 2002                    |         |   | 2003 |   |         | 2004 | 
|                                                                       |  |                         |         |   |      |   |         |      | 
|Service revenues                                                       |  |                         |         |   |      |   |         |      |  | $ | 22      |  
|Costs and expenses                                                     |  | $                       | 30      |   |      | $ | 45      |      |  |   | 56      |  
|                                                                       |  |                         |         |   |      |   |         |      | 
|Loss on services                                                       |  |                         | (30     | ) |      |   | (45     | )    |  |   | (34     | )
|Net financing cost                                                     |  |                         | 32      |   |      |   | 37      |      |  |   |         |  
|                                                                       |  |                         |         |   |      |   |         |      | 
|Income (loss) before income tax and discontinued operations            |  |                         | 2       |   |      |   | (8      | )    |  |   | (34     | )
|(Provision) benefit for income taxes (Note 8)                          |  |                         | (282    | ) |      |   | 136     |      |  |   | (23     | )
|                                                                       |  |                         |         |   |      |   |         |      | 
|Net (loss) income for continuing operations for the year               |  |                         | (280    | ) |      |   | 128     |      |  |   | (57     | )
|Net loss for discontinued operations (Note 2)                          |  |                         | (12,522 | ) |      |   | (17,663 | )    |  |   | (55,276 | )
|                                                                       |  |                         |         |   |      |   |         |      | 
|Net loss for the year                                                  |  | $                       | (12,802 | ) |      | $ | (17,535 | )    |  | $ | (55,333 | )
|                                                                       |  |                         |         |   |      |   |         |      | 
|Net (loss) income for continuing operations for the year per
    share |  | $                       | (0.067  | ) |      | $ | 0.030   |      |  | $ | (0.014  | )
|Net loss for discontinued operations for the year per share            |  | $                       | (2.980  | ) |      | $ | (4.203  | )    |  | $ | (13.154 | )
|Net loss for the year per share                                        |  | $                       | (3.047  | ) |      | $ | (4.173  | )    |  | $ | (13.168 | )
|Weighted average shares outstanding (thousands)                        |  |                         | 4,202   |   |      |   | 4,202   |      |  |   | 4,202   |  



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TMM HOLDINGS, S. A. DE C. V.


CONSOLIDATED STATEMENTS OF CHANGES


IN STOCKHOLDERS EQUITY FOR THE Years Ended


DECEMBER 31, 2002, 2003 AND 2004


(amounts in thousands of US dollars)


|                                                      |  |        |         |             |            |   |         |         |  |   |         |   |  |   |         |  
|----------------------------------------------------- |  | ------ | ------- | ----------- | ---------- | - | ------- | ------- |  | - | ------- | - |  | - | ------- | -
|                                                      |  |        |         | Effect on   |            |   |         |         | 
|                                                      |  |        |         | Purchase of |            |   |         |         | 
|                                                      |  | Common |         |             | Subsidiary |   |         |         |  |  
|                                                      |  | Stock  |         |             | Shares     |   |         | Deficit |  |   | Total   |  
|                                                      |  |        |         |             |            |   |         |         |  |   |         |  
|Balance at January 1, 2002                            |  | $      | 382,855 |             |            | $ | (16,231 | )       |  | $ | 44,210  |   |  | $ | 410,834 |  
|Effect of incorporation and sale of subsidiary shares |  |        | 44,210  |             |            |   | 16,231  |         |  |   | (44,210 | ) |  |   | 16,231  |  
|Effect of purchase of subsidiary shares               |  |        |         |             |            |   | (52,570 | )       |  |   |         |   |  |   | (52,570 | )
|Net loss for the year                                 |  |        |         |             |            |   |         |         |  |   | (12,802 | ) |  |   | (12,802 | )
|                                                      |  |        |         |             |            |   |         |         |  |   |         |  
|Balance at December 31, 2002                          |  |        | 427,065 |             |            |   | (52,570 | )       |  |   | (12,802 | ) |  |   | 361,693 |  
|Capital stock reduction on January 1, 2003            |  |        | (11,113 | )           |            |   |         |         |  |   |         |   |  |   | (11,113 | )
|Net loss for the year                                 |  |        |         |             |            |   |         |         |  |   | (17,535 | ) |  |   | (17,535 | )
|                                                      |  |        |         |             |            |   |         |         |  |   |         |  
|Balance at December 31, 2003                          |  |        | 415,952 |             |            |   | (52,570 | )       |  |   | (30,337 | ) |  |   | 333,045 |  
|Net loss for the year                                 |  |        |         |             |            |   |         |         |  |   | (55,333 | ) |  |   | (55,333 | )
|                                                      |  |        |         |             |            |   |         |         |  |   |         |  
|Balance at December 31, 2004                          |  | $      | 415,952 |             |            | $ | (52,570 | )       |  | $ | (85,670 | ) |  | $ | 277,712 |  
|                                                      |  |        |         |             |            |   |         |         |  |   |         |  



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##### Table of Contents



TMM HOLDINGS, S. A. DE C. V.


CONSOLIDATED STATEMENTS OF CASH FLOWS


(amounts in thousands of US dollars)


|                                                                                             |                                          |                                                   |      |     |      |   |     |      |      |   |     |    |    | 
|-------------------------------------------------------------------------------------------- | ---------------------------------------- | ------------------------------------------------- | ---- | --- | ---- | - | --- | ---- | ---- | - | --- | -- | -- | 
|                                                                                             |                                          | Year Ended December 31,                           |     
|                                                                                             |                                          |                                                   |     
|                                                                                             |                                          | 2002                                              |      |     | 2003 |   |     | 2004 |     
|                                                                                             |                                          |                                                   |      |     |      |   |     |      |     
|Cash flows from operating activities:                                                        |                                          |                                                   |      |     |      |   |     |      |      |   |     |   
|Net (loss) income for continuing operations for the year                                     |                                          | $                                                 | (280 | )   |      | $ | 128 |      |      | $ | (57 | ) 
|                                                                                             |                                          |                                                   |      |     |      |   |     |      |     
|Adjustments to reconcile net (loss) income to net cash provided
    by operating activities: |                                          |                                                   |      |     |      |   |     |      |      |   |     |   
|                                                                                             | Provision for income tax                 |                                                   |      | 343 |      |   |     | (35  | )    |   |     | 30 |   
|                                                                                             | Changes in other assets and liabilities: |                                                   |      |     |      |   |     |      |      |   |     |    |   
|                                                                                             |                                          | Other accounts and amounts due to related parties |      |     | 604  |   |     |      | (91  | ) |     |    | 28 | 
|                                                                                             |                                          |                                                   |      |     |      |   |     |      |     
|                                                                                             |                                          | Total adjustments                                 |      |     | 947  |   |     |      | (126 | ) |     |    | 58 | 
|                                                                                             |                                          |                                                   |      |     |      |   |     |      |     
|Net cash provided by operating activities                                                    |                                          |                                                   | 667  |     |      |   | 2   |      |      |   | 1   |   
|                                                                                             |                                          |                                                   |      |     |      |   |     |      |     
|Cash flows from financing activities:                                                        |                                          |                                                   |      |     |      |   |     |      |      |   |     |   
|Dividends paid                                                                               |                                          |                                                   | (672 | )   |      |   |     |      |      |   |     |   
|                                                                                             |                                          |                                                   |      |     |      |   |     |      |     
|Net cash used in financing activities                                                        |                                          |                                                   | (672 | )   |      |   |     |      |      |   |     |   
|                                                                                             |                                          |                                                   |      |     |      |   |     |      |     
|(Decrease) increase in cash and cash equivalents                                             |                                          |                                                   | (5   | )   |      |   | 2   |      |      |   | 1   |   
|Cash and cash equivalents at beginning of the year                                           |                                          |                                                   | 5    |     |      |   |     |      |      |   | 2   |   
|                                                                                             |                                          |                                                   |      |     |      |   |     |      |     
|Cash and cash equivalents at end of the year                                                 |                                          | $                                                 |     |     |      | $ | 2   |      |      | $ | 3   |   
|                                                                                             |                                          |                                                   |      |     |      |   |     |      |     
|Supplemental cash-flow information:                                                          |                                          |                                                   |      |     |      |   |     |      |      |   |     |   
|Cash paid during the year for income tax                                                     |                                          | $                                                 |     |     |      | $ | 317 |      |      | $ |    |   
|                                                                                             |                                          |                                                   |      |     |      |   |     |      |     



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##### Table of Contents



TMM HOLDINGS, S. A. DE C. V.


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS


YEARS ENDED DECEMBER 31, 2002, 2003 AND 2004


(amounts in thousands of US dollars, except number of
shares)


NOTE 1  THE COMPANY:










|                                                                            |  |               |                   |               |      |  |        |      |  |  |        |  
|--------------------------------------------------------------------------- |  | ------------- | ----------------- | ------------- | ---- |  | ------ | ---- |  |  | ------ | -
|                                                                            |  |               |                   | Percentage of |     
|                                                                            |  |               |                   | Ownership at  |     
|                                                                            |  |               |                   | December 31,  |     
|                                                                            |  |               |                   |               |     
|Company                                                                     |  | Subsidiary of |                   |               | 2003 |  |        | 2004 | 
|                                                                            |  |               |                   |               |      |  |        |      | 
|Grupo Transportación Ferroviaria Mexicana, S. A. de C. V.
    (Grupo TFM) |  |               | TMM Multimodal    |               |      |  | 51.00  | %    |  |  | 51.00  | %
|TFM, S. A. de C. V. (TFM)                                                 |  |               | Grupo TFM         |               |      |  | 80.00  | %    |  |  | 80.00  | %
|Mexrail, Inc. (Mexrail)                                                   |  |               | TFM               |               |      |  | 100.00 | %    |  |  |        |  
|Arrendadora TFM, S. A. de C. V. (Arrendadora TFM)                         |  |               | TFM and Grupo TFM |               |      |  | 100.00 | %    |  |  | 100.00 | %
|The Tex-Mex Railway (the Tex-Mex)                                         |  |               | Mexrail           |               |      |  | 100.00 | %    |  |  |        |  







| |                      
| | ---------------------
| | Sale of Mexrail, Inc.





F-64



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##### Table of Contents



TMM HOLDINGS, S. A. DE C. V.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)












NOTE 2  NON-CURRENT ASSETS HELD FOR SALE AND
DISCONTINUED OPERATIONS:




| |                                      
| | -------------------------------------
| | The sale of the Railroad
    Business







F-65



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##### Table of Contents



TMM HOLDINGS, S. A. DE C. V.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                                                                         |  |              |           |  |      |   |           | 
|---------------------------------------------------------------------------------------- |  | ------------ | --------- |  | ---- | - | --------- | 
|                                                                                         |  | December 31, |          
|                                                                                         |  |              |          
|                                                                                         |  | 2003         |           |  | 2004 |  
|                                                                                         |  |              |           |  |      |  
|Non-current assets classified as held for sale:                                          |  |              |           |  |      |   |           | 
|Accounts receivable                                                                      |  | $            | 105,194   |  |      | $ | 120,259   | 
|Other current assets                                                                     |  |              | 120,550   |  |      |   | 134,165   | 
|Concession rights, net                                                                   |  |              | 1,174,217 |  |      |   | 1,130,917 | 
|Property, machinery and equipment, net                                                   |  |              | 632,430   |  |      |   | 558,669   | 
|Deferred income taxes                                                                    |  |              | 78,845    |  |      |   | 100,870   | 
|Other non-current assets                                                                 |  |              | 16,946    |  |      |   | 13,571    | 
|                                                                                         |  |              |           |  |      |  
|                                                                                         |  | $            | 2,128,182 |  |      | $ | 2,058,451 | 
|                                                                                         |  |              |           |  |      |  
|Liabilities directly associated with non-current assets
    classified as held for sale: |  |              |           |  |      |   |           | 
|Accounts payable                                                                         |  | $            | 167,609   |  |      | $ | 142,223   | 
|Debt                                                                                     |  |              | 939,899   |  |      |   | 887,122   | 
|Other current liabilities                                                                |  |              | 33,724    |  |      |   | 25,204    | 
|                                                                                         |  |              |           |  |      |  
|                                                                                         |  | $            | 1,141,232 |  |      | $ | 1,054,549 | 
|                                                                                         |  |              |           |  |      |  



|                                                        |  |                         |          |   |      |   |          |      |  |   |          |  
|------------------------------------------------------- |  | ----------------------- | -------- | - | ---- | - | -------- | ---- |  | - | -------- | -
|                                                        |  | Year Ended December 31, |         
|                                                        |  |                         |         
|Results of Operations:                                  |  | 2002                    |          |   | 2003 |   |          | 2004 | 
|                                                        |  |                         |          |   |      |   |          |      | 
|Transportation revenues                                 |  | $                       | 712,140  |   |      | $ | 698,528  |      |  | $ | 699,225  |  
|Costs and expenses                                      |  |                         | 558,822  |   |      |   | 566,522  |      |  |   | 573,355  |  
|                                                        |  |                         |          |   |      |   |          |      | 
|Income on transportation                                |  |                         | 153,318  |   |      |   | 132,006  |      |  |   | 125,870  |  
|Other expenses  Net                                    |  |                         | (27,638  | ) |      |   | (35,095  | )    |  |   | (66,331  | )
|                                                        |  |                         |          |   |      |   |          |      | 
|Operating income                                        |  |                         | 125,680  |   |      |   | 96,911   |      |  |   | 59,539   |  
|Net financing cost                                      |  |                         | (114,159 | ) |      |   | (118,048 | )    |  |   | (117,763 | )
|                                                        |  |                         |          |   |      |   |          |      | 
|Income (loss) before income taxes and minority interest |  |                         | 11,521   |   |      |   | (21,137  | )    |  |   | (58,224  | )
|(Provision) benefit for income taxes                    |  |                         | (29,214  | ) |      |   | (32,890  | )    |  |   | 15,194   |  
|                                                        |  |                         |          |   |      |   |          |      | 
|Loss before minority interest                           |  |                         | (17,693  | ) |      |   | (54,027  | )    |  |   | (43,030  | )
|Minority interest                                       |  |                         | 5,171    |   |      |   | 36,364   |      |  |   | (12,246  | )
|                                                        |  |                         |          |   |      |   |          |      | 
|Net loss for the year                                   |  | $                       | (12,522  | ) |      | $ | (17,663  | )    |  | $ | (55,276  | )
|                                                        |  |                         |          |   |      |   |          |      | 

F-66



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##### Table of Contents



TMM HOLDINGS, S. A. DE C. V.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                                     |  |                         |          |   |      |   |         |      |  |   |         |  
|---------------------------------------------------- |  | ----------------------- | -------- | - | ---- | - | ------- | ---- |  | - | ------- | -
|                                                     |  | Year Ended December 31, |         
|                                                     |  |                         |         
|Cash Flows                                           |  | 2002                    |          |   | 2003 |   |         | 2004 | 
|                                                     |  |                         |          |   |      |   |         |      | 
|Cash flows from operating activities:                |  |                         |          |   |      |   |         |      |  |   |         |  
|Net loss for the year                                |  | $                       | (12,522  | ) |      | $ | (17,663 | )    |  | $ | (55,276 | )
|                                                     |  |                         |          |   |      |   |         |      | 
|Net cash provided by operating activities            |  |                         | 112,746  |   |      |   | 99,664  |      |  |   | 85,692  |  
|                                                     |  |                         |          |   |      |   |         |      | 
|Net cash used in investing activities                |  |                         | (295,288 | ) |      |   | (70,731 | )    |  |   | (13,576 | )
|                                                     |  |                         |          |   |      |   |         |      | 
|Net cash provided by (used in) financing activities  |  |                         | 159,681  |   |      |   | (55,585 | )    |  |   | (61,468 | )
|                                                     |  |                         |          |   |      |   |         |      | 
|Net (decrease) increase in cash and cash equivalents |  |                         | (22,861  | ) |      |   | (26,652 | )    |  |   | 10,648  |  
|Cash and cash equivalents at beginning of the year   |  |                         | 53,110   |   |      |   | 30,249  |      |  |   | 3,597   |  
|                                                     |  |                         |          |   |      |   |         |      | 
|Cash and cash equivalents at end of the year         |  | $                       | 30,249   |   |      | $ | 3,597   |      |  | $ | 14,245  |  
|                                                     |  |                         |          |   |      |   |         |      | 

NOTE 3  SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES:










|   |              
|-- | -------------
|a. | Consolidation



Subsidiaries










|   |            
|-- | -----------
|b. | Translation



F-67



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##### Table of Contents



TMM HOLDINGS, S. A. DE C. V.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|   |                          
|-- | -------------------------
|c. | Cash and cash equivalents





|   |                    
|-- | -------------------
|d. | Accounts receivable





|   |         
|-- | --------
|e. | Goodwill





|   |                    
|-- | -------------------
|f. | Deferred income tax









|   |           
|-- | ----------
|g. | Borrowings





|   |                                
|-- | -------------------------------
|h. | Impairment of long-lived assets



F-68



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##### Table of Contents



TMM HOLDINGS, S. A. DE C. V.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |       
|-- | ------
|i. | Leases







|   |                  
|-- | -----------------
|j. | Minority interest





|   |                                 
|-- | --------------------------------
|k. | Non-current assets held for sale









|   |                 
|-- | ----------------
|l. | Use of estimates





|   |              
|-- | -------------
|m. | Share capital







|   |                              
|-- | -----------------------------
|n. | New accounting pronouncements





| |                                                                          
| | -------------------------------------------------------------------------
| | IAS 1 Presentation of Financial Statements                               
| | IAS 2 Inventories                                                        
| | IAS 8 Accounting Policies, Changes in Accounting Estimates and
    Errors

F-69



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##### Table of Contents



TMM HOLDINGS, S. A. DE C. V.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                                                          
| | ---------------------------------------------------------
| | IAS 10 Events after the Balance Sheet date               
| | IAS 16 Property, Plant and Equipment                     
| | IAS 17 Leases                                            
| | IAS 21 The Effects of Changes in Foreign Exchange Rates  
| | IAS 24 Related Party Disclosures                         
| | IAS 27 Consolidated and Separate Financial Statements    
| | IAS 28 Investments in Associates                         
| | IAS 31 Interests in Joint Ventures                       
| | IAS 32 Financial Instruments: Disclosure and Presentation
| | IAS 33 Earnings per Share                                
| | IAS 39 Financial Instruments: Recognition and Measurement
| | IAS 40 Investment Property                               







NOTE 4  BALANCES AND TRANSACTIONS WITH
RELATED PARTIES:


|                     |  |              |     |  |      |   |     | 
|-------------------- |  | ------------ | --- |  | ---- | - | --- | 
|                     |  | December 31, |    
|                     |  |              |    
|Accounts receivable: |  | 2003         |     |  | 2004 |  
|                     |  |              |     |  |      |  
|Grupo TMM            |  | $            | 329 |  |      | $ | 435 | 
|                     |  |              |     |  |      |  

|                  |  |              |    |  |      |   |        | 
|----------------- |  | ------------ | -- |  | ---- | - | ------ | 
|                  |  | December 31, |   
|                  |  |              |   
|Accounts payable: |  | 2003         |    |  | 2004 |  
|                  |  |              |    |  |      |  
|Grupo
    TMM(a)  |  | $            | 44 |  |      | $ | 69,087 | 
|                  |  |              |    |  |      |  






|    |                                                                                                                                                                                                                                                                                                          
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | TMM Multimodal and Grupo TMM entered into a management services
    agreement pursuant to which Grupo TMM provided certain
    consulting and management services to the Company as well as
    incurred certain third-party fees and expenses in connection
    with the Acquisition Agreement with KCS.

NOTE 5  TAXES RECOVERABLE:




|                      |  |              |     |  |      |   |       | 
|--------------------- |  | ------------ | --- |  | ---- | - | ----- | 
|                      |  | December 31, |    
|                      |  |              |    
|Accounts payable:     |  | 2003         |     |  | 2004 |  
|                      |  |              |     |  |      |  
|Value added Tax  Net |  | $            | 3   |  |      | $ | 9,000 | 
|Income tax            |  |              | 46  |  |      |   |       | 
|Other                 |  |              | 255 |  |      |   | 239   | 
|                      |  |              |     |  |      |  
|                      |  | $            | 304 |  |      | $ | 9,239 | 
|                      |  |              |     |  |      |  

F-70



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##### Table of Contents



TMM HOLDINGS, S. A. DE C. V.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


NOTE 6  ACCOUNTS PAYABLE AND ACCRUED
EXPENSES:


|                  |  |              |     |  |      |   |     | 
|----------------- |  | ------------ | --- |  | ---- | - | --- | 
|                  |  | December 31, |    
|                  |  |              |    
|Accounts payable: |  | 2003         |     |  | 2004 |  
|                  |  |              |     |  |      |  
|General expenses  |  | $            | 257 |  |      | $ | 271 | 
|Taxes payable     |  |              | 122 |  |      |   | 123 | 
|Other             |  |              | 13  |  |      |   | 17  | 
|                  |  |              |     |  |      |  
|                  |  | $            | 392 |  |      | $ | 411 | 
|                  |  |              |     |  |      |  

NOTE 7  STOCKHOLDERS EQUITY:










|                                 |  |           |    |  |                     |  |   |     |  |  |           |  |  |       |  |  |  |  |           | 
|-------------------------------- |  | --------- | -- |  | ------------------- |  | - | --- |  |  | --------- |  |  | ----- |  |  |  |  | --------- | 
|                                 |  | Fixed     |    |  |                     |  |  
|                                 |  | Class I |    |  | Variable Class II |  |   |    
|                                 |  |           |    |  |                     |  |   |    
|Stockholders                     |  | A       |    |  | B                 |  |   | A |  |  | B       |  |  | Total | 
|                                 |  |           |    |  |                     |  |   |     |  |  |           |  |  |       | 
|Grupo TMM                        |  |           | 49 |  |                     |  |   |     |  |  | 4,202,359 |  |  |       |  |  |  |  | 4,202,408 | 
|Inmobiliaria TMM, S. A. de C. V. |  |           |    |  |                     |  | 1 |     |  |  |           |  |  |       |  |  |  |  | 1         | 
|                                 |  |           |    |  |                     |  |   |     |  |  |           |  |  |       | 
|                                 |  |           | 49 |  |                     |  | 1 |     |  |  | 4,202,359 |  |  |       |  |  |  |  | 4,202,409 | 
|                                 |  |           |    |  |                     |  |   |     |  |  |           |  |  |       | 







F-71



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##### Table of Contents



TMM HOLDINGS, S. A. DE C. V.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Note 8  Income Tax, Asset Tax and Tax Loss
Carryforwards:




| |           
| | ----------
| | Income tax





|                            |  |                         |      |   |      |   |     |      |  |   |     |  
|--------------------------- |  | ----------------------- | ---- | - | ---- | - | --- | ---- |  | - | --- | -
|                            |  | Year Ended December 31, |     
|                            |  |                         |     
|                            |  | 2002                    |      |   | 2003 |   |     | 2004 | 
|                            |  |                         |      |   |      |   |     |      | 
|Current income tax          |  |                         |      |   |      | $ | (71 | )    |  | $ | (1  | )
|Deferred income tax expense |  | $                       | (282 | ) |      |   | 207 |      |  |   | (22 | )
|                            |  |                         |      |   |      |   |     |      | 
|Net income tax expense      |  | $                       | (282 | ) |      | $ | 136 |      |  | $ | (23 | )
|                            |  |                         |      |   |      |   |     |      | 



|                                                       |  |                         |      |   |      |   |     |      |  |   |     |  
|------------------------------------------------------ |  | ----------------------- | ---- | - | ---- | - | --- | ---- |  | - | --- | -
|                                                       |  | Year Ended December 31, |     
|                                                       |  |                         |     
|                                                       |  | 2002                    |      |   | 2003 |   |     | 2004 | 
|                                                       |  |                         |      |   |      |   |     |      | 
|Income before income tax                               |  | $                       | 2    |   |      | $ | (8  | )    |  | $ | (34 | )
|                                                       |  |                         |      |   |      |   |     |      | 
|Income tax at 35% in 2002, 34% in 2003 and 33% in 2004 |  | $                       | (1   | ) |      | $ | 3   |      |  | $ | 11  |  
|(Decrease) increase resulting from:                    |  |                         |      |   |      |   |     |      |  |   |     |  
|Effects of inflationary, indexation and other          |  |                         | (281 | ) |      |   | 133 |      |  |   | (34 | )
|                                                       |  |                         |      |   |      |   |     |      | 
|Net deferred income tax (provision) benefit            |  | $                       | (282 | ) |      | $ | 136 |      |  | $ | (23 | )
|                                                       |  |                         |      |   |      |   |     |      | 





| |          
| | ---------
| | Asset tax



F-72



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##### Table of Contents



TMM HOLDINGS, S. A. DE C. V.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                       
| | ----------------------
| | Tax loss carryforwards



|              |      |                   |                   |   |        |            |  |  |      | 
|------------- | ---- | ----------------- | ----------------- | - | ------ | ---------- |  |  | ---- | 
|              |      | Inflation-indexed |                   |   |       
|Year in which |      |                   | amounts as of     |   |        | Year of    | 
|loss arose    |      |                   | December 31, 2004 |   |        | expiration | 
|              |      |                   |                   |   |        |            | 
|              | 1997 |                   |                   | $ | 373    |            |  |  | 2007 | 
|              | 1998 |                   |                   |   | 6      |            |  |  | 2008 | 
|              | 1999 |                   |                   |   | 8      |            |  |  | 2009 | 
|              | 2001 |                   |                   |   | 995    |            |  |  | 2011 | 
|              | 2002 |                   |                   |   | 3,381  |            |  |  | 2012 | 
|              | 2003 |                   |                   |   | 39     |            |  |  | 2013 | 
|              | 2004 |                   |                   |   | 61,663 |            |  |  | 2014 | 
|              |      |                   |                   |   |        |            | 
|              |      |                   |                   | $ | 66,465 |            |  |  |      | 
|              |      |                   |                   |   |        |            | 

Note 9  Contingencies:




|   |                                                           
|-- | ----------------------------------------------------------
|1) | TFM Value Added Tax Lawsuit and Mexican Government
    Put











|   |                                   
|-- | ----------------------------------
|2) | Disputes between Grupo TMM and KCS



F-73



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##### Table of Contents



TMM HOLDINGS, S. A. DE C. V.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)
















|   |                  
|-- | -----------------
|3) | The GM Put Option





| |   |                                                   
| | - | --------------------------------------------------
| |  | From June 30, 2000 to June 30, 2003: 15% per annum

F-74



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##### Table of Contents



TMM HOLDINGS, S. A. DE C. V.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |   |                                                  
| | - | -------------------------------------------------
| |  | From July 1, 2003 to June 30, 2005: 16% per annum
|
| |  | From July 1, 2005 to June 30, 2007: 17% per annum
|
| |  | From July 1, 2007 to June 30, 2010: 19% per annum
|
| |  | From July 1, 2010 onwards: 20% per annum         



NOTE 10  EVENTS AFTER BALANCE SHEET DATE:




| |                                                                    
| | -------------------------------------------------------------------
| | Amended Acquisition Agreement (AAA) with
    Kansas City Southern











| |              
| | -------------
| | GM Put Option





| |                       
| | ----------------------
| | Merger of TMM Holdings



NOTE 11  RECONCILIATION OF DIFFERENCES
BETWEEN IFRS AND U.S. GAAP:




F-75



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##### Table of Contents



TMM HOLDINGS, S. A. DE C. V.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|   |                            
|-- | ---------------------------
|a. | Reconciliation of net loss:

|                                                     |  |         |      |                         |      |   |         |      |  |   |         |   |  |   |         |  
|---------------------------------------------------- |  | ------- | ---- | ----------------------- | ---- | - | ------- | ---- |  | - | ------- | - |  | - | ------- | -
|                                                     |  |         |      | Year Ended December 31, |     
|                                                     |  |         |      |                         |     
|                                                     |  | Note d. |      |                         | 2002 |   |         | 2003 |  |   | 2004    |  
|                                                     |  |         |      |                         |      |   |         |      |  |   |         |  
|Consolidated net loss under IFRS                     |  |         |      |                         |      | $ | (12,802 | )    |  | $ | (17,535 | ) |  | $ | (55,333 | )
|Deferred taxes                                       |  |         | i.   |                         |      |   | 121,738 |      |  |   | 84,379  |   |  |   | (19,904 | )
|Deferred employees statutory profit sharing         |  |         | i.   |                         |      |   | 25,792  |      |  |   | 11,528  |   |  |   | 6,556   |  
|Deferred charges                                     |  |         | ii.  |                         |      |   | 702     |      |  |   | 34      |   |  |   | (323    | )
|Depreciation of step-up in Mexrail                   |  |         | iii. |                         |      |   | (459    | )    |  |   | (612    | ) |  |   | (357    | )
|Dilution in sale of Mexrail                          |  |         | iii. |                         |      |   | (8,111  | )    |  |   |         |   |  |   | (17,224 | )
|Valuation of put option                              |  |         | iv.  |                         |      |   |         |      |  |   | (6,779  | ) |  |   | 6,779   |  
|Effect of U.S. GAAP adjustments on minority interest |  |         | v.   |                         |      |   | (97,149 | )    |  |   | (57,746 | ) |  |   | 20,259  |  
|                                                     |  |         |      |                         |      |   |         |      |  |   |         |  
|Consolidated net income (loss) under U.S. GAAP       |  |         |      |                         |      | $ | 29,711  |      |  | $ | 13,269  |   |  | $ | (59,547 | )
|                                                     |  |         |      |                         |      |   |         |      |  |   |         |  



|   |                                        
|-- | ---------------------------------------
|b. | Reconciliation of stockholders equity:

|                                                     |  |         |      |              |      |   |          |      |  |   |         |  
|---------------------------------------------------- |  | ------- | ---- | ------------ | ---- | - | -------- | ---- |  | - | ------- | -
|                                                     |  |         |      | December 31, |     
|                                                     |  |         |      |              |     
|                                                     |  | Note d. |      |              | 2003 |   |          | 2004 | 
|                                                     |  |         |      |              |      |   |          |      | 
|Stockholders equity under IFRS                      |  |         |      |              |      | $ | 333,045  |      |  | $ | 277,712 |  
|Deferred income tax                                  |  |         | i.   |              |      |   | 117,785  |      |  |   | 97,434  |  
|Deferred employees statutory profit sharing         |  |         | i.   |              |      |   | 50,221   |      |  |   | 56,777  |  
|Deferred charges                                     |  |         | ii.  |              |      |   | (197     | )    |  |   | (520    | )
|Depreciation of step-up in Mexrail                   |  |         | iii. |              |      |   | (1,071   | )    |  |   |         |  
|Dilution in sale of Mexrail                          |  |         | iii. |              |      |   | 6,036    |      |  |   |         |  
|Valuation of Put Option                              |  |         | iv.  |              |      |   | (6,779   | )    |  |   |         |  
|Effect of U.S. GAAP adjustments on minority interest |  |         | v.   |              |      |   | (101,224 | )    |  |   | (93,134 | )
|                                                     |  |         |      |              |      |   |          |      | 
|Stockholders equity under U.S. GAAP                 |  |         |      |              |      | $ | 397,816  |      |  | $ | 338,269 |  
|                                                     |  |         |      |              |      |   |          |      | 



|   |                                                                 
|-- | ----------------------------------------------------------------
|c. | Analysis of changes in stockholders equity under
    U.S. GAAP:

|                                 |  |              |         |   |      |   |         |  
|-------------------------------- |  | ------------ | ------- | - | ---- | - | ------- | -
|                                 |  | December 31, |        
|                                 |  |              |        
|                                 |  | 2003         |         |   | 2004 |  
|                                 |  |              |         |   |      |  
|Balance at beginning of the year |  | $            | 395,660 |   |      | $ | 397,816 |  
|Capital stock reduction          |  |              | (11,113 | ) |      |   |         |  
|Net income for the year          |  |              | 13,269  |   |      |   | (59,547 | )
|                                 |  |              |         |   |      |  
|Balance at end of the year       |  | $            | 397,816 |   |      | $ | 338,269 |  
|                                 |  |              |         |   |      |  

F-76



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##### Table of Contents



TMM HOLDINGS, S. A. DE C. V.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                                        
|-- | -------------------------------------------------------
|d. | Significant differences between IFRS and
    U.S. GAAP:



|   |                                                                
|-- | ---------------------------------------------------------------
|i. | Deferred income tax and employees statutory profit
    sharing









|                                  |  |                 |          |   |                 |   |         |      |  |   |         |   |  |   |         |  
|--------------------------------- |  | --------------- | -------- | - | --------------- | - | ------- | ---- |  | - | ------- | - |  | - | ------- | -
|                                  |  | Deferred Income |          |   | Deferred Profit |  
|                                  |  | Tax Assets      |          |   | Sharing Assets  |  
|                                  |  |                 |          |   |                 |  
|                                  |  | 2003            |          |   | 2004            |   |         | 2003 |  |   | 2004    |  
|                                  |  |                 |          |   |                 |   |         |      |  |   |         |  
|Amounts recorded under IFRS       |  | $               | 78,868   |   |                 | $ | 100,870 |      |  | $ |        |   |  | $ |        |  
|Amount determined under U.S. GAAP |  |                 | 196,653  |   |                 |   | 198,304 |      |  |   | 50,221  |   |  |   | 56,777  |  
|                                  |  |                 |          |   |                 |   |         |      |  |   |         |  
|Net difference                    |  | $               | (117,785 | ) |                 | $ | (97,434 | )    |  | $ | (50,221 | ) |  | $ | (56,777 | )
|                                  |  |                 |          |   |                 |   |         |      |  |   |         |  





|    |                 
|--- | ----------------
|ii. | Deferred charges







|     |                                       
|---- | --------------------------------------
|iii. | Dilution in the sale of Mexrail to TFM



F-77



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##### Table of Contents



TMM HOLDINGS, S. A. DE C. V.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|    |                         
|--- | ------------------------
|iv. | Valuation of Put Options





|   |                                                      
|-- | -----------------------------------------------------
|v. | Effects of U.S. GAAP adjustments on minority interest





|    |                                                                                 
|--- | --------------------------------------------------------------------------------
|vi. | Effect of recently issued accounting standards as they relate
    to the Company







F-78



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##### Table of Contents



TMM HOLDINGS, S. A. DE C. V.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)












F-79



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##### Table of Contents



TMM HOLDINGS, S. A. DE C. V.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|   |                                                                
|-- | ---------------------------------------------------------------
|e. | Condensed consolidated balance sheets and income
    statements



Condensed Consolidated Balance Sheets


|                                                                       |                                            |              |           |           |      |   |           |           | 
|---------------------------------------------------------------------- | ------------------------------------------ | ------------ | --------- | --------- | ---- | - | --------- | --------- | 
|                                                                       |                                            | December 31, |          
|                                                                       |                                            |              |          
|                                                                       |                                            | 2003         |           |           | 2004 |  
|                                                                       |                                            |              |           |           |      |  
|Cash and cash equivalents                                              |                                            | $            | 2         |           |      | $ | 3         |          
|Amounts due from related parties                                       |                                            |              | 329       |           |      |   | 435       |          
|Taxes recoverable                                                      |                                            |              | 304       |           |      |   | 9,239     |          
|Non-current assets held for sale                                       |                                            |              | 2,336,815 |           |      |   | 2,212,142 |          
|Deferred income tax                                                    |                                            |              | 23        |           |      |   |           |          
|                                                                       |                                            |              |           |           |      |  
|                                                                       | Total assets                               |              | $         | 2,337,473 |      |   | $         | 2,221,819 | 
|                                                                       |                                            |              |           |           |      |  
|Amounts due for related parties                                        |                                            | $            | 44        |           |      | $ | 69,087    |          
|Accounts payable and accrued expenses                                  |                                            |              | 392       |           |      |   | 411       |          
|Liabilities directly related with non-current assets held for
    sale |                                            |              | 1,169,349 |           |      |   | 1,054,549 |          
|                                                                       |                                            |              |           |           |      |  
|                                                                       | Total liabilities                          |              |           | 1,169,785 |      |   |           | 1,124,047 | 
|                                                                       |                                            |              |           |           |      |  
|Minority interest                                                      |                                            |              | 769,872   |           |      |   | 759,503   |          
|                                                                       |                                            |              |           |           |      |  
|Capital stock                                                          |                                            |              | 415,952   |           |      |   | 415,952   |          
|Effect on purchase of subsidiary shares                                |                                            |              | (52,570   | )         |      |   | (52,570   | )        
|Retained earnings                                                      |                                            |              | 34,434    |           |      |   | (25,113   | )        
|                                                                       |                                            |              |           |           |      |  
|                                                                       | Total stockholders equity                 |              |           | 397,816   |      |   |           | 338,269   | 
|                                                                       |                                            |              |           |           |      |  
|                                                                       | Total liabilities and stockholders equity |              | $         | 2,337,473 |      |   | $         | 2,221,819 | 
|                                                                       |                                            |              |           |           |      |  

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TMM HOLDINGS, S. A. DE C. V.


NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Condensed Consolidated Statement of Income


|                                                                         |  |                         |        |   |      |   |        |      |  |   |         |  
|------------------------------------------------------------------------ |  | ----------------------- | ------ | - | ---- | - | ------ | ---- |  | - | ------- | -
|                                                                         |  | Years Ended December 31 |       
|                                                                         |  |                         |       
|                                                                         |  | 2002                    |        |   | 2003 |   |        | 2004 | 
|                                                                         |  |                         |        |   |      |   |        |      | 
|Services revenues                                                        |  |                         |        |   |      |   |        |      |  | $ | 22      |  
|Cost and expenses                                                        |  | $                       | 30     |   |      | $ | 45     |      |  |   | 56      |  
|                                                                         |  |                         |        |   |      |   |        |      | 
|Loss on services                                                         |  |                         | (30    | ) |      |   | (45    | )    |  |   | (34     | )
|Net financing cost                                                       |  |                         | 32     |   |      |   | 37     |      |  |   |         |  
|                                                                         |  |                         |        |   |      |   |        |      | 
|Income (loss) before income taxes and discontinued operations            |  |                         | 2      |   |      |   | (8     | )    |  |   | (34     | )
|(Provision) benefit for income tax                                       |  |                         | (282   | ) |      |   | 136    |      |  |   | (23     | )
|                                                                         |  |                         |        |   |      |   |        |      | 
|Net (loss) income for continuing operations for the year                 |  |                         | (280   | ) |      |   | 128    |      |  |   | (57     | )
|Net income (loss) for discontinued operations                            |  |                         | 29,991 |   |      |   | 13,141 |      |  |   | (59,490 | )
|                                                                         |  |                         |        |   |      |   |        |      | 
|Net income (loss) for the year                                           |  | $                       | 29,711 |   |      | $ | 13,269 |      |  | $ | (59,547 | )
|                                                                         |  |                         |        |   |      |   |        |      | 
|Net (loss) income for continuing operations for the year per
    share   |  | $                       | (0.066 | ) |      | $ | 0.030  |      |  | $ | (0.014  | )
|                                                                         |  |                         |        |   |      |   |        |      | 
|Net income (loss) for discontinued operations for the year per
    share |  | $                       | 7.137  |   |      | $ | 3.127  |      |  | $ | (14.157 | )
|                                                                         |  |                         |        |   |      |   |        |      | 
|Net income (loss) for the year per share                                 |  | $                       | 7.071  |   |      | $ | 3.157  |      |  | $ | (14.171 | )
|                                                                         |  |                         |        |   |      |   |        |      | 
|Weighted average shares outstanding (thousands)                          |  |                         | 4,202  |   |      |   | 4,202  |      |  |   | 4,202   |  
|                                                                         |  |                         |        |   |      |   |        |      | 

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TMM MULTIMODAL, S. A. DE C. V.


CONSOLIDATED FINANCIAL STATEMENTS


DECEMBER 31, 2002, 2003 AND 2004


INDEX


|                                                           |  |      |      | 
|---------------------------------------------------------- |  | ---- | ---- | 
|Contents                                                   |  | Page |     
|                                                           |  |      |     
|Report of Independent Auditors                             |  |      | F-83 | 
|Consolidated Balance Sheets                                |  |      | F-84 | 
|Consolidated Statements of Income                          |  |      | F-85 | 
|Consolidated Statements of Changes in Stockholders Equity |  |      | F-86 | 
|Consolidated Statements of Cash Flows                      |  |      | F-87 | 
|Notes to the Consolidated Financial Statements             |  |      | F-88 | 

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REPORT OF INDEPENDENT AUDITORS






















| |                       
| | ----------------------
| | PricewaterhouseCoopers





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TMM MULTIMODAL, S. A. DE C. V.


CONSOLIDATED BALANCE SHEETS


(amounts in thousands of US dollars)


|                                                                          |                                                                                 |                              |                                           |           |           |           |         |           |           |           | 
|------------------------------------------------------------------------- | ------------------------------------------------------------------------------- | ---------------------------- | ----------------------------------------- | --------- | --------- | --------- | ------- | --------- | --------- | --------- | 
|                                                                          |                                                                                 | December 31,                 |                                          
|                                                                          |                                                                                 |                              |                                          
|                                                                          |                                                                                 | 2003                         |                                           |           | 2004      |          
|                                                                          |                                                                                 |                              |                                           |           |           |          
|ASSETS                                                                   
|Current assets:                                                           |                                                                                 |                              |                                           |           |           |           |         |          
|                                                                          | Cash and cash equivalents                                                       |                              | $                                         | 2         |           |           | $       | 3         |          
|                                                                          | Amounts due from related parties (Note 4)                                       |                              |                                           | 329       |           |           |         | 435       |          
|                                                                          | Taxes recoverable (Note 5)                                                      |                              |                                           | 304       |           |           |         | 9,227     |          
|                                                                          | Non-current assets held for sale (Note 2)                                       |                              |                                           | 2,128,182 |           |           |         | 2,058,451 |          
|                                                                          |                                                                                 |                              |                                           |           |           |          
|                                                                          |                                                                                 | Total current assets         |                                           |           | 2,128,817 |           |         |           | 2,068,116 |          
|Deferred income taxes (Note 8)                                            |                                                                                 |                              | 7                                         |           |           |           |         |          
|                                                                          |                                                                                 |                              |                                           |           |           |          
|                                                                          |                                                                                 |                              | Total assets                              |           | $         | 2,128,824 |         |           | $         | 2,068,116 | 
|                                                                          |                                                                                 |                              |                                           |           |           |          
|                                                                         
|LIABILITIES AND STOCKHOLDERS EQUITY                                     
|Short-term liabilities:                                                   |                                                                                 |                              |                                           |           |           |           |         |          
|                                                                          | Amounts due for related parties (Note 4)                                        |                              |                                           |           |           |           | $       | 69,000    |          
|                                                                          | Accounts payable and accrued expenses (Note 6)                                  |                              | $                                         | 392       |           |           |         | 399       |          
|                                                                          | Liabilities directly related with non-current assets held for
    sale (Note 2) |                              |                                           | 1,141,232 |           |           |         | 1,054,549 |          
|                                                                          |                                                                                 |                              |                                           |           |           |          
|                                                                          |                                                                                 | Total short-term liabilities |                                           |           | 1,141,624 |           |         |           | 1,123,948 |          
|Minority interest                                                         |                                                                                 |                              | 642,546                                   |           |           |           | 656,710 |          
|                                                                          |                                                                                 |                              |                                           |           |           |          
|Stockholders equity (Note 7):                                            |                                                                                 |                              |                                           |           |           |           |         |          
|Common stock 2,753,785 shares authorized and issued without
    par value |                                                                                 |                              | 345,639                                   |           |           |           | 345,639 |          
|Premium on share subscription                                             |                                                                                 |                              | 8,387                                     |           |           |           | 8,387   |          
|Deficit                                                                   |                                                                                 |                              | (9,372                                    | )         |           |           | (66,568 | )        
|                                                                          |                                                                                 |                              |                                           |           |           |          
|                                                                          |                                                                                 |                              | Total stockholders equity                 |           |           | 344,654   |         |           |           | 287,458   | 
|                                                                          |                                                                                 |                              |                                           |           |           |          
|                                                                          |                                                                                 |                              | Total liabilities and stockholders equity |           | $         | 2,128,824 |         |           | $         | 2,068,116 | 
|                                                                          |                                                                                 |                              |                                           |           |           |          



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TMM MULTIMODAL, S. A. DE C. V.


CONSOLIDATED STATEMENTS OF INCOME


(amounts in thousands of US dollars, except per share
amounts)


|                                                                       |  |                         |         |   |      |   |         |      |  |   |         |  
|---------------------------------------------------------------------- |  | ----------------------- | ------- | - | ---- | - | ------- | ---- |  | - | ------- | -
|                                                                       |  | Year Ended December 31, |        
|                                                                       |  |                         |        
|                                                                       |  | 2002                    |         |   | 2003 |   |         | 2004 | 
|                                                                       |  |                         |         |   |      |   |         |      | 
|Service revenues                                                       |  |                         |         |   |      |   |         |      |  | $ | 22      |  
|Costs and expenses                                                     |  | $                       | 18      |   |      | $ | 8       |      |  |   | 13      |  
|                                                                       |  |                         |         |   |      |   |         |      | 
|(Loss) income on services                                              |  |                         | (18     | ) |      |   | (8      | )    |  |   | 9       |  
|Net financing cost                                                     |  |                         | 32      |   |      |   | 38      |      |  |   |         |  
|                                                                       |  |                         |         |   |      |   |         |      | 
|Income before income taxes and discontinued operations                 |  |                         | 14      |   |      |   | 30      |      |  |   | 9       |  
|Provision for income tax (Note 8)                                      |  |                         | (61     | ) |      |   | (101    | )    |  |   | (7      | )
|                                                                       |  |                         |         |   |      |   |         |      | 
|Net (loss) income for continuing operations for the year               |  |                         | (47     | ) |      |   | (71     | )    |  |   | 2       |  
|Net loss for discontinued operations (Note 2)                          |  |                         | (15,691 | ) |      |   | (17,893 | )    |  |   | (57,198 | )
|                                                                       |  |                         |         |   |      |   |         |      | 
|Net loss for the year                                                  |  | $                       | (15,738 | ) |      | $ | (17,964 | )    |  | $ | (57,196 | )
|                                                                       |  |                         |         |   |      |   |         |      | 
|Net (loss) income for continuing operations for the year per
    share |  | $                       | (0.017  | ) |      | $ | (0.026  | )    |  | $ | 0.001   |  
|                                                                       |  |                         |         |   |      |   |         |      | 
|Net loss for discontinuing operations for the year per share           |  | $                       | (5.698  | ) |      | $ | (6.497  | )    |  | $ | (20.769 | )
|                                                                       |  |                         |         |   |      |   |         |      | 
|Net loss for the year per share                                        |  | $                       | (5.715  | ) |      | $ | (6.523  | )    |  | $ | (20.768 | )
|                                                                       |  |                         |         |   |      |   |         |      | 
|Weighted average shares outstanding (thousands)                        |  |                         | 2,754   |   |      |   | 2,754   |      |  |   | 2,754   |  
|                                                                       |  |                         |         |   |      |   |         |      | 



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TMM MULTIMODAL, S. A. DE C. V.


CONSOLIDATED STATEMENTS OF CHANGES IN


STOCKHOLDERS EQUITY FOR THE YEARS ENDED


DECEMBER 31, 2002, 2003 AND 2004


(amounts in thousands of US dollars)


|                                       |  |        |         |         |              |           |             |            |  |   |          |   |  |       |         |   |  |   |         |  
|-------------------------------------- |  | ------ | ------- | ------- | ------------ | --------- | ----------- | ---------- |  | - | -------- | - |  | ----- | ------- | - |  | - | ------- | -
|                                       |  |        |         |         |              | Effect on |             |            |  |   |         
|                                       |  |        |         | Premium |              |           | Purchase of |            |  |   |          |  
|                                       |  | Common |         |         | on Share     |           |             | Subsidiary |  |   | Retained |   |  |      
|                                       |  | Stock  |         |         | Subscription |           |             | Shares     |  |   | Earnings |   |  | Total |        
|                                       |  |        |         |         |              |           |             |            |  |   |          |   |  |       |        
|Balance at January 1, 2002             |  | $      | 345,639 |         |              | $         | 8,387       |            |  | $ | (16,795  | ) |  | $     | 55,830  |   |  | $ | 393,061 |  
|Dividends declared on January 18, 2002 |  |        |         |         |              |           |             |            |  |   |          |   |  |       | (20,000 | ) |  |   | (20,000 | )
|Effect of sale of subsidiary shares    |  |        |         |         |              |           |             |            |  |   | 16,795   |   |  |       |         |   |  |   | 16,795  |  
|Net loss for the year                  |  |        |         |         |              |           |             |            |  |   |          |   |  |       | (15,738 | ) |  |   | (15,738 | )
|                                       |  |        |         |         |              |           |             |            |  |   |          |   |  |       |        
|Balance at December 31, 2002           |  |        | 345,639 |         |              |           | 8,387       |            |  |   |          |   |  |       | 20,092  |   |  |   | 374,118 |  
|Dividends declared on January 1, 2003  |  |        |         |         |              |           |             |            |  |   |          |   |  |       | (11,500 | ) |  |   | (11,500 | )
|Net loss for the year                  |  |        |         |         |              |           |             |            |  |   |          |   |  |       | (17,964 | ) |  |   | (17,964 | )
|                                       |  |        |         |         |              |           |             |            |  |   |          |   |  |       |        
|Balance at December 31, 2003           |  |        | 345,639 |         |              |           | 8,387       |            |  |   |          |   |  |       | (9,372  | ) |  |   | 344,654 |  
|                                       |  |        |         |         |              |           |             |            |  |   |          |   |  |       |        
|Net loss for the year                  |  |        |         |         |              |           |             |            |  |   |          |   |  |       | (57,196 | ) |  |   | (57,196 | )
|                                       |  |        |         |         |              |           |             |            |  |   |          |   |  |       |        
|Balance at December 31, 2004           |  | $      | 345,639 |         |              | $         | 8,387       |            |  | $ |         |   |  | $     | (66,568 | ) |  | $ | 287,458 |  
|                                       |  |        |         |         |              |           |             |            |  |   |          |   |  |       |        



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TMM MULTIMODAL, S. A. DE C. V.


CONSOLIDATED STATEMENTS OF CASH FLOWS


(amounts in thousands of US dollars)


|                                                                                             |                                          |                                                   |      |    |      |   |     |      |     |   |   |   |    |  
|-------------------------------------------------------------------------------------------- | ---------------------------------------- | ------------------------------------------------- | ---- | -- | ---- | - | --- | ---- | --- | - | - | - | -- | -
|                                                                                             |                                          | Year Ended December 31,                           |     
|                                                                                             |                                          |                                                   |     
|                                                                                             |                                          | 2002                                              |      |    | 2003 |   |     | 2004 |    
|                                                                                             |                                          |                                                   |      |    |      |   |     |      |    
|Cash flows from operating activities:                                                        |                                          |                                                   |      |    |      |   |     |      |     |   |   |  
|Net (loss) income for continuing operations for the year                                     |                                          | $                                                 | (47  | )  |      | $ | (71 | )    |     | $ | 2 |  
|                                                                                             |                                          |                                                   |      |    |      |   |     |      |    
|Adjustments to reconcile net (loss) income to net cash provided
    by operating activities: |                                          |                                                   |      |    |      |   |     |      |     |   |   |  
|                                                                                             | Provision for income tax                 |                                                   |      | 61 |      |   |     | 101  |     |   |   | 7 |   
|                                                                                             | Changes in other assets and liabilities: |                                                   |      |    |      |   |     |      |     |   |   |   |   
|                                                                                             |                                          | Other accounts and amounts due to related parties |      |    | 657  |   |     |      | (29 | ) |   |   | (8 | )
|                                                                                             |                                          |                                                   |      |    |      |   |     |      |    
|                                                                                             |                                          | Total adjustments                                 |      |    | 718  |   |     |      | 72  |   |   |   | (1 | )
|                                                                                             |                                          |                                                   |      |    |      |   |     |      |    
|Net cash provided by operating activities                                                    |                                          |                                                   | 671  |    |      |   | 1   |      |     |   | 1 |  
|                                                                                             |                                          |                                                   |      |    |      |   |     |      |    
|Cash flows from financing activities:                                                        |                                          |                                                   |      |    |      |   |     |      |     |   |   |  
|Dividends paid                                                                               |                                          |                                                   | (672 | )  |      |   |     |      |     |   |   |  
|                                                                                             |                                          |                                                   |      |    |      |   |     |      |    
|Net cash used in financing activities                                                        |                                          |                                                   | (672 | )  |      |   |     |      |     |   |   |  
|                                                                                             |                                          |                                                   |      |    |      |   |     |      |    
|(Decrease) increase in cash and cash equivalents                                             |                                          |                                                   | (1   | )  |      |   | 1   |      |     |   | 1 |  
|Cash and cash equivalents at beginning of the year                                           |                                          |                                                   | 2    |    |      |   | 1   |      |     |   | 2 |  
|                                                                                             |                                          |                                                   |      |    |      |   |     |      |    
|Cash and cash equivalents at end of the year                                                 |                                          | $                                                 | 1    |    |      | $ | 2   |      |     | $ | 3 |  
|                                                                                             |                                          |                                                   |      |    |      |   |     |      |    
|Supplemental cash-flow information:                                                          |                                          |                                                   |      |    |      |   |     |      |     |   |   |  
|Cash paid during the year for income tax                                                     |                                          | $                                                 |     |    |      | $ | 317 |      |     | $ |  |  
|                                                                                             |                                          |                                                   |      |    |      |   |     |      |    



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TMM MULTIMODAL, S. A. DE C. V.


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS


YEARS ENDED DECEMBER 31, 2002, 2003 AND 2004


(amounts in thousands of US dollars, except number of
shares)


NOTE 1  The Company:








|                                                                            |  |               |                   |               |      |  |         |      |  |  |         | 
|--------------------------------------------------------------------------- |  | ------------- | ----------------- | ------------- | ---- |  | ------- | ---- |  |  | ------- | 
|                                                                            |  |               |                   | Percentage of |     
|                                                                            |  |               |                   | Ownership at  |     
|                                                                            |  |               |                   | December 31,  |     
|                                                                            |  |               |                   |               |     
|Company                                                                     |  | Subsidiary of |                   |               | 2003 |  |         | 2004 | 
|                                                                            |  |               |                   |               |      |  |         |      | 
|Grupo Transportación Ferroviaria Mexicana, S. A. de C. V.
    (Grupo TFM) |  |               | TMM Multimodal    |               |      |  | 51.00%  |      |  |  | 51.00%  | 
|TFM, S. A. de C. V. (TFM)                                                 |  |               | Grupo TFM         |               |      |  | 80.00%  |      |  |  | 80.00%  | 
|Mexrail, Inc. (Mexrail)                                                   |  |               | TFM               |               |      |  | 100.00% |      |  |  |         | 
|Arrendadora TFM, S. A. de C. V. (Arrendadora TFM)                         |  |               | TFM and Grupo TFM |               |      |  | 100.00% |      |  |  | 100.00% | 
|The Tex-Mex Railway (the Tex-Mex)                                         |  |               | Mexrail           |               |      |  | 100.00% |      |  |  |         | 







| |                      
| | ---------------------
| | Sale of Mexrail, Inc.





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##### Table of Contents



TMM MULTIMODAL, S. A. DE C. V.


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)












| |                                                                          
| | -------------------------------------------------------------------------
| | NOTE 2  NON-CURRENT ASSETS HELD FOR SALE AND
    DISCONTINUED OPERATIONS



| |                                  
| | ---------------------------------
| | The sale of the Railroad Business





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TMM MULTIMODAL, S. A. DE C. V.


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|                                                |  |              |           |  |      |   |           | 
|----------------------------------------------- |  | ------------ | --------- |  | ---- | - | --------- | 
|                                                |  | December 31, |          
|                                                |  |              |          
|                                                |  | 2003         |           |  | 2004 |  
|                                                |  |              |           |  |      |  
|Non-current assets classified as held for sale: |  |              |           |  |      |   |           | 
|Accounts receivable                             |  | $            | 105,194   |  |      | $ | 106,014   | 
|Other current assets                            |  |              | 120,550   |  |      |   | 148,410   | 
|Concession rights, net                          |  |              | 1,174,217 |  |      |   | 1,130,917 | 
|Property, machinery and equipment, net          |  |              | 632,430   |  |      |   | 558,669   | 
|Deferred income taxes                           |  |              | 78,845    |  |      |   | 100,870   | 
|Other non-current assets                        |  |              | 16,946    |  |      |   | 13,571    | 
|                                                |  |              |           |  |      |  
|                                                |  | $            | 2,128,182 |  |      | $ | 2,058,451 | 
|                                                |  |              |           |  |      |  

|                                                                                         |  |              |           |  |      |   |           | 
|---------------------------------------------------------------------------------------- |  | ------------ | --------- |  | ---- | - | --------- | 
|                                                                                         |  | December 31, |          
|                                                                                         |  |              |          
|                                                                                         |  | 2003         |           |  | 2004 |  
|                                                                                         |  |              |           |  |      |  
|Liabilities directly associated with non-current assets
    classified as held for sale: |  |              |           |  |      |   |           | 
|Accounts payable                                                                         |  | $            | 167,609   |  |      | $ | 142,223   | 
|Debt                                                                                     |  |              | 939,899   |  |      |   | 887,122   | 
|Other current liabilities                                                                |  |              | 33,724    |  |      |   | 25,204    | 
|                                                                                         |  |              |           |  |      |  
|                                                                                         |  | $            | 1,141,232 |  |      | $ | 1,054,549 | 
|                                                                                         |  |              |           |  |      |  



|                                                        |  |                         |          |   |      |   |          |      |  |   |          |  
|------------------------------------------------------- |  | ----------------------- | -------- | - | ---- | - | -------- | ---- |  | - | -------- | -
|                                                        |  | Year Ended December 31, |         
|                                                        |  |                         |         
|                                                        |  | 2002                    |          |   | 2003 |   |          | 2004 | 
|                                                        |  |                         |          |   |      |   |          |      | 
|Results of operations:                                  |  |                         |          |   |      |   |          |      |  |   |          |  
|Transportation revenues                                 |  | $                       | 712,140  |   |      | $ | 698,528  |      |  | $ | 699,225  |  
|Costs and expenses                                      |  |                         | 558,822  |   |      |   | 566,522  |      |  |   | 573,355  |  
|                                                        |  |                         |          |   |      |   |          |      | 
|Income on transportation                                |  |                         | 153,318  |   |      |   | 132,006  |      |  |   | 125,870  |  
|Other expenses  Net                                    |  |                         | (30,278  | ) |      |   | (35,095  | )    |  |   | (66,290  | )
|                                                        |  |                         |          |   |      |   |          |      | 
|Operating income                                        |  |                         | 123,040  |   |      |   | 96,911   |      |  |   | 59,580   |  
|Net financing cost                                      |  |                         | (114,159 | ) |      |   | (118,048 | )    |  |   | (117,804 | )
|                                                        |  |                         |          |   |      |   |          |      | 
|Income (loss) before income taxes and minority interest |  |                         | 8,881    |   |      |   | (21,137  | )    |  |   | (58,224  | )
|(Provision) benefit for income taxes                    |  |                         | (29,214  | ) |      |   | (32,890  | )    |  |   | 15,194   |  
|                                                        |  |                         |          |   |      |   |          |      | 
|Loss before minority interest                           |  |                         | (20,333  | ) |      |   | (54,027  | )    |  |   | (43,030  | )
|Minority interest                                       |  |                         | 4,642    |   |      |   | 36,134   |      |  |   | (14,168  | )
|                                                        |  |                         |          |   |      |   |          |      | 
|Net loss for the year                                   |  | $                       | (15,691  | ) |      | $ | (17,893  | )    |  | $ | (57,198  | )
|                                                        |  |                         |          |   |      |   |          |      | 

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TMM MULTIMODAL, S. A. DE C. V.


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


|                                                     |  |                         |          |   |      |   |         |      |  |   |         |  
|---------------------------------------------------- |  | ----------------------- | -------- | - | ---- | - | ------- | ---- |  | - | ------- | -
|                                                     |  | Year Ended December 31, |         
|                                                     |  |                         |         
|                                                     |  | 2002                    |          |   | 2003 |   |         | 2004 | 
|                                                     |  |                         |          |   |      |   |         |      | 
|Cash-flows:                                          |  |                         |          |   |      |   |         |      |  |   |         |  
|Cash flows from operating activities:                |  |                         |          |   |      |   |         |      |  |   |         |  
|Net loss for the year                                |  | $                       | (15,691  | ) |      | $ | (17,893 | )    |  | $ | (57,198 | )
|                                                     |  |                         |          |   |      |   |         |      | 
|Net cash provided by operating activities            |  |                         | 112,746  |   |      |   | 99,664  |      |  |   | 85,692  |  
|                                                     |  |                         |          |   |      |   |         |      | 
|Net cash used in investing activities                |  |                         | (295,288 | ) |      |   | (70,731 | )    |  |   | (13,576 | )
|                                                     |  |                         |          |   |      |   |         |      | 
|Net cash provided by (used in) financing activities  |  |                         | 159,681  |   |      |   | (55,585 | )    |  |   | (61,468 | )
|                                                     |  |                         |          |   |      |   |         |      | 
|Net (decrease) increase in cash and cash equivalents |  |                         | (22,861  | ) |      |   | (26,652 | )    |  |   | 10,648  |  
|Cash and cash equivalents at beginning of the year   |  |                         | 53,110   |   |      |   | 30,249  |      |  |   | 3,597   |  
|                                                     |  |                         |          |   |      |   |         |      | 
|Cash and cash equivalents at the end of the year     |  | $                       | 30,249   |   |      | $ | 3,597   |      |  | $ | 14,245  |  
|                                                     |  |                         |          |   |      |   |         |      | 



| |                                                         
| | --------------------------------------------------------
| | NOTE 3  SUMMARY OF SIGNIFICANT ACCOUNTING
    POLICIES:









| |                 
| | ----------------
| | a. Consolidation





| |             
| | ------------
| | Subsidiaries









|   |            
|-- | -----------
|b. | Translation



F-91



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TMM MULTIMODAL, S. A. DE C. V.


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)








|   |                          
|-- | -------------------------
|c. | Cash and cash equivalents





|   |                    
|-- | -------------------
|d. | Accounts receivable





|   |         
|-- | --------
|e. | Goodwill





|   |                    
|-- | -------------------
|f. | Deferred income tax









|   |           
|-- | ----------
|g. | Borrowings





|   |                                
|-- | -------------------------------
|h. | Impairment of long-lived assets



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TMM MULTIMODAL, S. A. DE C. V.


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)






|   |       
|-- | ------
|i. | Leases







|   |                  
|-- | -----------------
|j. | Minority interest





|   |                                 
|-- | --------------------------------
|k. | Non-current assets held for sale









|   |                 
|-- | ----------------
|l. | Use of estimates





|   |              
|-- | -------------
|m. | Share capital





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TMM MULTIMODAL, S. A. DE C. V.


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




|   |                              
|-- | -----------------------------
|n. | New accounting pronouncements





| |                                                                          
| | -------------------------------------------------------------------------
| | IAS 1 Presentation of Financial Statements                               
| | IAS 2 Inventories                                                        
| | IAS 8 Accounting Policies, Changes in Accounting Estimates and
    Errors
| | IAS 10 Events after the Balance Sheet date                               
| | IAS 16 Property, Plant and Equipment                                     
| | IAS 17 Leases                                                            
| | IAS 21 The Effects of Changes in Foreign Exchange Rates                  
| | IAS 24 Related Party Disclosures                                         
| | IAS 27 Consolidated and Separate Financial Statements                    
| | IAS 28 Investments in Associates                                         
| | IAS 31 Interests in Joint Ventures                                       
| | IAS 32 Financial Instruments: Disclosure and Presentation                
| | IAS 33 Earnings per Share                                                
| | IAS 39 Financial Instruments: Recognition and Measurement                
| | IAS 40 Investment Property                                               







NOTE 4  BALANCES AND TRANSACTIONS WITH
RELATED PARTIES:


|                                            |  |              |     |  |      |   |        | 
|------------------------------------------- |  | ------------ | --- |  | ---- | - | ------ | 
|                                            |  | December 31, |    
|                                            |  |              |    
|                                            |  | 2003         |     |  | 2004 |  
|                                            |  |              |     |  |      |  
|Accounts receivable:                        |  |              |     |  |      |   |        | 
|Grupo TMM                                   |  | $            | 329 |  |      | $ | 409    | 
|Operadora de Apoyo Logístico, S. A. de C. V |  |              |     |  |      |   | 26     | 
|                                            |  |              |     |  |      |  
|                                            |  | $            | 329 |  |      | $ | 435    | 
|                                            |  |              |     |  |      |  
|Accounts payable:                           |  |              |     |  |      |   |        | 
|Grupo
    TMM(a)                            |  |              |     |  |      | $ | 69,000 | 
|                                            |  |              |     |  |      |  



|    |                                                                                                                                                                                                                                                                                                          
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | TMM Multimodal and Grupo TMM entered into a management services
    agreement pursuant to which Grupo TMM provided certain
    consulting and management services to the Company as well as
    incurred certain third party fees and expenses in connection
    with the Acquisition Agreement with KCS.

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TMM MULTIMODAL, S. A. DE C. V.


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


NOTE 5  TAXES RECOVERABLE:


|                      |  |              |     |  |      |   |       | 
|--------------------- |  | ------------ | --- |  | ---- | - | ----- | 
|                      |  | December 31, |    
|                      |  |              |    
|                      |  | 2003         |     |  | 2004 |  
|                      |  |              |     |  |      |  
|Value added tax  Net |  | $            | 3   |  |      | $ | 9,000 | 
|Income tax            |  |              | 46  |  |      |   |       | 
|Others                |  |              | 255 |  |      |   | 227   | 
|                      |  |              |     |  |      |  
|                      |  | $            | 304 |  |      | $ | 9,227 | 
|                      |  |              |     |  |      |  

NOTE 6  ACCOUNTS PAYABLE AND ACCRUED
EXPENSES:


|                 |  |              |     |  |      |   |     | 
|---------------- |  | ------------ | --- |  | ---- | - | --- | 
|                 |  | December 31, |    
|                 |  |              |    
|                 |  | 2003         |     |  | 2004 |  
|                 |  |              |     |  |      |  
|General expenses |  | $            | 257 |  |      | $ | 259 | 
|Taxes payable    |  |              | 122 |  |      |   | 123 | 
|Other            |  |              | 13  |  |      |   | 17  | 
|                 |  |              |     |  |      |  
|                 |  | $            | 392 |  |      | $ | 399 | 
|                 |  |              |     |  |      |  

NOTE 7  STOCKHOLDERS EQUITY:




|                                |  |       |    |  |          |  |           |            |  |  |     | 
|------------------------------- |  | ----- | -- |  | -------- |  | --------- | ---------- |  |  | --- | 
|Stockholders                    |  | Fixed |    |  | Variable |  |           | % of Total | 
|                                |  |       |    |  |          |  |           |            | 
|TMM Holdings, S. A. de C. V     |  |       | 49 |  |          |  | 2,661,208 |            |  |  | 97  | 
|EMD Holding Corporation         |  |       |    |  |          |  | 92,527    |            |  |  | 3   | 
|Inmobiliaria TMM, S. A. de C. V |  |       | 1  |  |          |  |           |            |  |  |     | 
|                                |  |       |    |  |          |  |           |            | 
|                                |  |       | 50 |  |          |  | 2,753,735 |            |  |  | 100 | 
|                                |  |       |    |  |          |  |           |            | 







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TMM MULTIMODAL, S. A. DE C. V.


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




NOTE 8  INCOME TAX, ASSET TAX AND TAX LOSS
CARRYFORWARDS:




| |           
| | ----------
| | Income tax







|                         |  |                         |     |   |      |   |      |      |  |   |    |  
|------------------------ |  | ----------------------- | --- | - | ---- | - | ---- | ---- |  | - | -- | -
|                         |  | Year Ended December 31, |    
|                         |  |                         |    
|                         |  | 2002                    |     |   | 2003 |   |      | 2004 | 
|                         |  |                         |     |   |      |   |      |      | 
|Current income tax       |  |                         |     |   |      | $ | (22  | )    |  |   |    |  
|Deferred income tax      |  | $                       | (61 | ) |      |   | (79  | )    |  | $ | (7 | )
|                         |  |                         |     |   |      |   |      |      | 
|Net income tax provision |  | $                       | (61 | ) |      | $ | (101 | )    |  | $ | (7 | )
|                         |  |                         |     |   |      |   |      |      | 



|                                                       |  |                         |     |   |      |   |      |      |  |   |    |  
|------------------------------------------------------ |  | ----------------------- | --- | - | ---- | - | ---- | ---- |  | - | -- | -
|                                                       |  | Year Ended December 31, |    
|                                                       |  |                         |    
|                                                       |  | 2002                    |     |   | 2003 |   |      | 2004 | 
|                                                       |  |                         |     |   |      |   |      |      | 
|Income before income tax                               |  | $                       | 14  |   |      | $ | 30   |      |  | $ | 9  |  
|                                                       |  |                         |     |   |      |   |      |      | 
|Income tax at 35% in 2002, 34% in 2003 and 33% in 2004 |  | $                       | (5  | ) |      | $ | (10  | )    |  | $ | (3 | )
|Decrease resulting from:                               |  |                         |     |   |      |   |      |      |  |   |    |  
|Effects of inflation, indexation and other             |  |                         | (56 | ) |      |   | (91  | )    |  |   | (4 | )
|                                                       |  |                         |     |   |      |   |      |      | 
|Net deferred income tax expense                        |  | $                       | (61 | ) |      | $ | (101 | )    |  | $ | (7 | )
|                                                       |  |                         |     |   |      |   |      |      | 





| |          
| | ---------
| | Asset tax



F-96



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TMM MULTIMODAL, S. A. DE C. V.


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




| |                       
| | ----------------------
| | Tax loss carryforwards



|              |  |                   |        |  |            |  |      | 
|------------- |  | ----------------- | ------ |  | ---------- |  | ---- | 
|              |  | Inflation-indexed |        |  |           
|Year in Which |  | Amounts as of     |        |  | Year of    | 
|Loss Arose    |  | December 31, 2004 |        |  | Expiration | 
|              |  |                   |        |  |            | 
|1997          |  | $                 | 373    |  |            |  | 2007 | 
|1998          |  |                   | 6      |  |            |  | 2008 | 
|1999          |  |                   | 8      |  |            |  | 2009 | 
|2001          |  |                   | 995    |  |            |  | 2011 | 
|2002          |  |                   | 3,378  |  |            |  | 2012 | 
|2004          |  |                   | 61,634 |  |            |  | 2014 | 
|              |  |                   |        |  |            | 
|              |  | $                 | 66,394 |  |            |  |      | 
|              |  |                   |        |  |            | 

NOTE 9  CONTINGENCIES:




|   |                                                         
|-- | --------------------------------------------------------
|1) | TFM Value Added Tax Lawsuit & Mexican Government
    Put











|   |                                   
|-- | ----------------------------------
|2) | Disputes between Grupo TMM and KCS



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TMM MULTIMODAL, S. A. DE C. V.


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)
















|   |                  
|-- | -----------------
|3) | The GM Put Option





| |   |                                                   
| | - | --------------------------------------------------
| |  | From June 30, 2000 to June 30, 2003: 15% per annum
|
| |  | From July 1, 2003 to June 30, 2005: 16% per annum 
|
| |  | From July 1, 2005 to June 30, 2007: 17% per annum 

F-98



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TMM MULTIMODAL, S. A. DE C. V.


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




| |   |                                                  
| | - | -------------------------------------------------
| |  | From July 1, 2007 to June 30, 2010: 19% per annum
|
| |  | From July 1, 2010 onwards: 20% per annum         



NOTE 10  EVENTS AFTER BALANCE SHEET DATE:




| |                                                                    
| | -------------------------------------------------------------------
| | Amended Acquisition Agreement (AAA) with
    Kansas City Southern











| |              
| | -------------
| | GM Put Option



NOTE 11  RECONCILIATION OF DIFFERENCES
BETWEEN IFRS AND U.S. GAAP:




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TMM MULTIMODAL, S. A. DE C. V.


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




| |                               
| | ------------------------------
| | a. Reconciliation of net loss:

|                                                     |  |         |      |                         |      |   |         |      |  |   |         |   |  |   |         |  
|---------------------------------------------------- |  | ------- | ---- | ----------------------- | ---- | - | ------- | ---- |  | - | ------- | - |  | - | ------- | -
|                                                     |  |         |      | Year Ended December 31, |     
|                                                     |  |         |      |                         |     
|                                                     |  | Note d. |      |                         | 2002 |   |         | 2003 |  |   | 2004    |  
|                                                     |  |         |      |                         |      |   |         |      |  |   |         |  
|Consolidated net loss under IFRS                     |  |         |      |                         |      | $ | (15,738 | )    |  | $ | (17,964 | ) |  | $ | (57,196 | )
|Deferred taxes                                       |  |         | i.   |                         |      |   | 121,738 |      |  |   | 84,379  |   |  |   | (19,904 | )
|Deferred employees statutory profit sharing         |  |         | i.   |                         |      |   | 25,792  |      |  |   | 11,528  |   |  |   | 6,556   |  
|Deferred charges                                     |  |         | ii.  |                         |      |   | 702     |      |  |   | 34      |   |  |   | (323    | )
|Depreciation of step-up in Mexrail                   |  |         | iii. |                         |      |   | (459    | )    |  |   | (612    | ) |  |   | (357    | )
|Dilution in sale of Mexrail                          |  |         | iii. |                         |      |   | (8,111  | )    |  |   |         |   |  |   | (17,224 | )
|Valuation of put option                              |  |         | iv.  |                         |      |   |         |      |  |   | (6,779  | ) |  |   | 6,779   |  
|Effect of U.S. GAAP adjustments on minority interest |  |         | v.   |                         |      |   | (95,180 | )    |  |   | (56,212 | ) |  |   | 19,650  |  
|                                                     |  |         |      |                         |      |   |         |      |  |   |         |  
|Consolidated net income (loss) under U.S. GAAP       |  |         |      |                         |      | $ | 28,744  |      |  | $ | 14,374  |   |  | $ | (62,019 | )
|                                                     |  |         |      |                         |      |   |         |      |  |   |         |  



| |                                               
| | ----------------------------------------------
| | b. Reconciliation of stockholders
    equity:

|                                                     |  |         |      |              |      |   |         |      |  |   |         |  
|---------------------------------------------------- |  | ------- | ---- | ------------ | ---- | - | ------- | ---- |  | - | ------- | -
|                                                     |  |         |      | December 31, |     
|                                                     |  |         |      |              |     
|                                                     |  | Note d. |      |              | 2003 |   |         | 2004 | 
|                                                     |  |         |      |              |      |   |         |      | 
|Stockholders equity under IFRS                      |  |         |      |              |      | $ | 344,654 |      |  | $ | 287,458 |  
|Deferred income tax                                  |  |         | i.   |              |      |   | 117,785 |      |  |   | 97,434  |  
|Deferred employees statutory profit sharing         |  |         | i.   |              |      |   | 50,221  |      |  |   | 56,777  |  
|Deferred charges                                     |  |         | ii.  |              |      |   | (197    | )    |  |   | (520    | )
|Depreciation of step-up in Mexrail                   |  |         | iii. |              |      |   | (1,071  | )    |  |   |         |  
|Dilution in sale of Mexrail                          |  |         | iii. |              |      |   | 6,036   |      |  |   |         |  
|Valuation of Put Option                              |  |         | iv.  |              |      |   | (6,779  | )    |  |   |         |  
|Effect of U.S. GAAP adjustments on minority interest |  |         | v.   |              |      |   | (98,510 | )    |  |   | (91,029 | )
|                                                     |  |         |      |              |      |   |         |      | 
|Stockholders equity under U.S. GAAP                 |  |         |      |              |      | $ | 412,139 |      |  | $ | 350,120 |  
|                                                     |  |         |      |              |      |   |         |      | 



| |                                                                        
| | -----------------------------------------------------------------------
| | c.     Analysis of changes in
    stockholders equity under U.S. GAAP:

|                                 |  |              |         |   |      |   |         |  
|-------------------------------- |  | ------------ | ------- | - | ---- | - | ------- | -
|                                 |  | December 31, |        
|                                 |  |              |        
|                                 |  | 2003         |         |   | 2004 |  
|                                 |  |              |         |   |      |  
|Balance at beginning of the year |  | $            | 409,265 |   |      | $ | 412,139 |  
|Dividends declared               |  |              | (11,500 | ) |      |   |         |  
|Net income                       |  |              | 14,374  |   |      |   | (62,019 | )
|                                 |  |              |         |   |      |  
|Balance at end of the year       |  | $            | 412,139 |   |      | $ | 350,120 |  
|                                 |  |              |         |   |      |  



| |                                                               
| | --------------------------------------------------------------
| | d.     Significant differences
    between IFRS and U.S. GAAP:



| |                                                                       
| | ----------------------------------------------------------------------
| | i.     Deferred income tax and
    employees statutory profit sharing



F-100



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TMM MULTIMODAL, S. A. DE C. V.


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)








|                                  |  |                            |          |   |                                |   |         |      |  |   |         |   |  |   |         |  
|--------------------------------- |  | -------------------------- | -------- | - | ------------------------------ | - | ------- | ---- |  | - | ------- | - |  | - | ------- | -
|                                  |  | Deferred Income Tax Assets |          |   | Deferred Profit Sharing Assets |  
|                                  |  |                            |          |   |                                |  
|                                  |  | 2003                       |          |   | 2004                           |   |         | 2003 |  |   | 2004    |  
|                                  |  |                            |          |   |                                |   |         |      |  |   |         |  
|Amounts recorded under IFRS       |  | $                          | 78,845   |   |                                | $ | 100,870 |      |  | $ |        |   |  | $ |        |  
|Amount determined under U.S. GAAP |  |                            | 196,630  |   |                                |   | 198,304 |      |  |   | 50,221  |   |  |   | 56,777  |  
|                                  |  |                            |          |   |                                |   |         |      |  |   |         |  
|Net difference                    |  | $                          | (117,785 | ) |                                | $ | (97,434 | )    |  | $ | (50,221 | ) |  | $ | (56,777 | )
|                                  |  |                            |          |   |                                |   |         |      |  |   |         |  





| |                         
| | ------------------------
| | ii.     Deferred charges







| |                                                    
| | ---------------------------------------------------
| | iii.     Dilution in the sale of
    Mexrail to TFM





F-101



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TMM MULTIMODAL, S. A. DE C. V.


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




| |                                 
| | --------------------------------
| | iv.     Valuation of Put Options





| |                                                                 
| | ----------------------------------------------------------------
| | v.     Effects of U.S. GAAP
    adjustments on minority interest





| |                                                                                         
| | ----------------------------------------------------------------------------------------
| | vi.     Effect of recently issued
    accounting standards as they relate to the Company







F-102



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TMM MULTIMODAL, S. A. DE C. V.


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)










F-103



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TMM MULTIMODAL, S. A. DE C. V.


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)




| |                                                                       
| | ----------------------------------------------------------------------
| | e.     Condensed consolidated
    balance sheets and income statements



Condensed consolidated balance sheets


|                                                                       |                                            |              |           |           |      |   |           |           | 
|---------------------------------------------------------------------- | ------------------------------------------ | ------------ | --------- | --------- | ---- | - | --------- | --------- | 
|                                                                       |                                            | December 31, |          
|                                                                       |                                            |              |          
|                                                                       |                                            | 2003         |           |           | 2004 |  
|                                                                       |                                            |              |           |           |      |  
|Cash and cash equivalents                                              |                                            | $            | 2         |           |      | $ | 3         |          
|Amounts due from related parties                                       |                                            |              | 329       |           |      |   | 435       |          
|Taxes recoverable                                                      |                                            |              | 304       |           |      |   | 9,227     |          
|Non-current assets held for sale                                       |                                            |              | 2,336,815 |           |      |   | 2,212,142 |          
|Deferred income tax                                                    |                                            |              | 7         |           |      |   |          |          
|                                                                       |                                            |              |           |           |      |  
|                                                                       | Total assets                               |              | $         | 2,337,457 |      |   | $         | 2,221,807 | 
|                                                                       |                                            |              |           |           |      |  
|Amounts due for related parties                                        |                                            |              |           |           |      | $ | 69,000    |          
|Accounts payable and accrued expenses                                  |                                            | $            | 392       |           |      |   | 399       |          
|Liabilities directly related with non-current assets held for
    sale |                                            |              | 1,169,349 |           |      |   | 1,054,549 |          
|                                                                       |                                            |              |           |           |      |  
|                                                                       | Total liabilities                          |              | $         | 1,169,741 |      |   | $         | 1,123,948 | 
|                                                                       |                                            |              |           |           |      |  
|Minority interest                                                      |                                            |              | 755,577   |           |      |   | 747,739   |          
|                                                                       |                                            |              |           |           |      |  
|Capital stock                                                          |                                            |              | 345,639   |           |      |   | 345,639   |          
|Premium on share subscription                                          |                                            |              | 8,387     |           |      |   | 8,387     |          
|Retained earnings (deficit)                                            |                                            |              | 58,113    |           |      |   | (3,906    | )        
|                                                                       |                                            |              |           |           |      |  
|                                                                       | Total stockholders equity                 |              |           | 412,139   |      |   |           | 350,120   | 
|                                                                       |                                            |              |           |           |      |  
|                                                                       | Total liabilities and stockholders equity |              | $         | 2,337,457 |      |   | $         | 2,221,807 | 
|                                                                       |                                            |              |           |           |      |  

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TMM MULTIMODAL, S. A. DE C. V.


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
(Continued)


Condensed consolidated


Statements of Income


|                                                                         |  |                          |        |   |      |   |        |      |  |   |         |  
|------------------------------------------------------------------------ |  | ------------------------ | ------ | - | ---- | - | ------ | ---- |  | - | ------- | -
|                                                                         |  | Years Ended December 31, |       
|                                                                         |  |                          |       
|                                                                         |  | 2002                     |        |   | 2003 |   |        | 2004 | 
|                                                                         |  |                          |        |   |      |   |        |      | 
|Services revenues                                                        |  |                          |        |   |      |   |        |      |  | $ | 22      |  
|Costs and expenses                                                       |  | $                        | 18     |   |      | $ | 8      |      |  |   | 13      |  
|                                                                         |  |                          |        |   |      |   |        |      | 
|(Loss) income on services                                                |  |                          | (18    | ) |      |   | (8     | )    |  |   | 9       |  
|Net financing cost                                                       |  |                          | 32     |   |      |   | 38     |      |  |   |         |  
|                                                                         |  |                          |        |   |      |   |        |      | 
|Income before income taxes and discontinued operations                   |  |                          | 14     |   |      |   | 30     |      |  |   | 9       |  
|Provision for income tax                                                 |  |                          | (61    | ) |      |   | (101   | )    |  |   | (7      | )
|                                                                         |  |                          |        |   |      |   |        |      | 
|Net (loss) income for continuing operations for the year                 |  |                          | (47    | ) |      |   | (71    | )    |  |   | 2       |  
|Net income (loss) for discontinued operations                            |  |                          | 28,791 |   |      |   | 14,445 |      |  |   | (62,021 | )
|                                                                         |  |                          |        |   |      |   |        |      | 
|Net income (loss) for the year                                           |  | $                        | 28,744 |   |      | $ | 14,374 |      |  | $ | (62,019 | )
|                                                                         |  |                          |        |   |      |   |        |      | 
|Net (loss) income for continuing operations for the year per
    share   |  | $                        | (0.011 | ) |      | $ | (0.017 | )    |  | $ |        |  
|                                                                         |  |                          |        |   |      |   |        |      | 
|Net income (loss) for discontinued operations for the year per
    share |  | $                        | 6.851  |   |      | $ | 3.437  |      |  | $ | 14.759  |  
|                                                                         |  |                          |        |   |      |   |        |      | 
|Net income (loss) for the year per share                                 |  | $                        | 6.840  |   |      | $ | 3.420  |      |  | $ | 14.759  |  
|                                                                         |  |                          |        |   |      |   |        |      | 
|Weighted average shares outstanding (thousands)                          |  |                          | 4,202  |   |      |   | 4,202  |      |  |   | 4,202   |  
|                                                                         |  |                          |        |   |      |   |        |      | 

F-105



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##### Table of Contents






SIGNATURES






| |                
| | ---------------
| | GRUPO TMM, S.A.



| |     |                            
| | --- | ---------------------------
| | By: | /s/ Juan Fernandez Galeazzi

| |                        
| | -----------------------
| |                        
| | Juan Fernandez Galeazzi
| | Chief Financial Officer