Ing. Mario Gonzalez, Chief Financial Officer, TFM, S.A. de C.V., Av. Perifirico Sur No. 4829, 4 piso, Col. Parques del Pedregal, C.P. 14010, Del. Tlalpan, Mixico, D.F., MEXICO, phone: 011-52-5-447-5811, fax: 011-52-5-447-5755

B -- MEXICO -- TFM INTERMODAL TERMINAL NETWORK PROJECT POC Evangela Kunene, USTDA, 1621 N. Kent Street, Suite 300, Arlington, VA 22209-2131, Tel: (703) 875-4357, Fax: (703) 875-4009 TFM, S.A. de C.V. ("Grantee") invites submission of qualifications and proposal data (collectively referred to as the "Proposal") from interested U.S. firms which are qualified on the basis of experience and capability to develop a feasibility study for a network of intermodal terminals to serve TFM operations. TFM, S.A. de C.V. is a joint venture company owned by Transportacisn Marmtima Mexicana (TMM), its affiliate Grupo Servia, and Kansas City Southern Industries (the parent company of Kansas City Southern Railway Company). In December 1996, TFM was awarded a 50-year concession for the Northeast Rail Line, which provides the company with the exclusive right to provide freight transportation services for 30 years of the 50-year concession, transfers FNM related equipment and assets, and gives TFM a 25% stake in the Mexico City rail terminal. The Northeast Rail Line network consists of more than 2,600 miles of main track and is the most actively traveled railroad corridor in Mexico. The network extends from Mexico City, Toluca, and Aguascalientes to the U.S. border crossings at Matamoros -- Brownsville and Nuevo Laredo -- Laredo, TX and has access to the ports of Veracruz and Tampico on the Gulf of Mexico and Lazaro Cardenas on the Pacific coast. At the Texas border, the Northeast Rail Line connects to major US rail corridors, both directly and through the TFM's affiliate the Texas-Mexican Railway Company and Kansas City Southern. TFM plans to develop an intermodal system consisting of a network of terminals that are strategically located near target markets and that are closely integrated to one another through interconnecting linehaul links. TFM's terminal network plan is founded on the concept of integrated, multi-user regional and local hubs that are connected to one another by scheduled, dedicated, or express train operations. The terminals would be full service facilities with customs bonded capabilities and integrated rail-truck delivery services within the terminal area of influence and beyond. The plan calls for the development of strategically located regional hubs along the TFM's "spinal-cord" route in the central corridor of its network. The proposed terminals would be well positioned to grow TFM's steamship and domestic volumes, as well as NAFTA trade. The proposed sites include: Monterrey, San Luis Potosi, Queretaro, Sanchez, and Toluca. The terms of reference for the feasibility study consist of the following broad categories of tasks: 1. Data Collection, 2. Market Analysis, 3. Terminal Design and Operations, 4. Environmental Review, 5. Capital Cost Estimate, 6. Financial Evaluation and Projections, 7. External Social and Economic Benefits, 8. Implementation Schedule, 9. Recommendations and Final Report. The U.S. firm selected will be paid in U.S. dollars from a $240,000 grant to the Grantee from the U.S. Trade and Development Agency (TDA) and $86,000 to be provided by the Grantee. In addition, the Contractor is expected to cover the balance (estimated to be $86,000) of the costs requiredto complete the full Terms of Reference. A detailed Request for Proposals (RFP), which includes requirements for the Proposal, the Terms of Reference, and a background definitional mission are available from TDA, at 1621 N. Kent Street, Suite 300, Arlington, VA 22209-2131. Requests for the RFP should be faxed to the IRC, TDA at 703-875-4009. In the fax, please include your firm's name, contact person, address, and telephone number. Some firms have found that RFP materials sent by U.S. mail do not reach them in time for preparation of an adequate response. Firms that want TDA to use an overnight delivery service should include the name of the delivery service and your firm's account number in the request for the RFP. Firms that want to send a courier to TDA to retrieve the RFP should allow one hour after faxing the request to TDA before scheduling a pick-up. Please note that no telephone requests for the RFP will be honored. Please check your internal fax verification receipt. Because of the large number of RFP requests, TDA cannot respond to requests for fax verification. Requests for RFPs received before 4:00 PM will be mailed the same day. Requests received after 4:00 PM will be mailed the following day. Please check with your courier and/or mail room before calling TDA. Only U.S. firms and individuals may bid on this TDA financed activity. Interested firms, their subcontractors and employees of all participants must qualify under TDA's nationality requirements as of the due date for submission of qualifications and proposals and, if selected to carry out the TDA-financed activity, must continue to meet such requirements throughout the duration of the TDA-financed activity. All goods and services to be provided by the selected firm shall have their nationality, source and origin in the U.S. or host country. The U.S. firm may use subcontractors from the host country for up to 20 percent of the TDA grant amount. Details of TDA's nationality requirements and mandatory contract clauses are also included in the RFP. Interested U.S. firms should submit their Proposal in English and Spanish directly to the Grantee by 6:00pm, March 1, 1999 at the above address. Evaluation criteria for the Proposal are included in the RFP. Price will not be a factor in contractor selection, and therefore, cost proposals should NOT be submitted. The Grantee reserves the right to reject any and/or all Proposals. The Grantee also reserves the right to contract with the selected firm for subsequent work related to the project. The Grantee is not bound to pay for any costs associated with the preparation and submission of Proposals. Posted 01/20/99 (I-SN289687). (0020)

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