The concession was to be for 25 years. Obviously, Grupo Morphy won the bid, but, as of late November, has not been awarded the concession because payment has not been made. Responsible sources indicate that the Mexican government was perturbed with RailTex's lower than expected bid, but elated at Grupo Morphy's higher than expected bid. However, RailTex's low bid created a series of problems for Grupo Morphy. To find the answer, Belgium's Transurb launched an investigation, sending personnel and consultants to Tijuana and San Diego to meet with MTDB officials, conduct line inspections and talk with other railroad experts.
Final reports are yet to be issued.
Grupo Morphy asked for, and received, more time, but Mexico's Secretariat of Communications and Transportation is growing impatient. Last month, the secretariat sent a letter to Grupo Morphy giving the company 60 days in which to make payment or lose its deposit and be declared in forfeit. Grupo Morphy countered with a need for additional time. Not only must it resolve for the benefit of its foreign partners that the line is viable, but in addition, the Asian, Russian, and Brazilian economic crises, plus the dramatic drop in crude oil prices, all leading to Mexico's most recent peso devaluation, have created a wait and see attitude among foreign investors. With the extension, Grupo Morphy now has until the end of January 1999 to make its payment.