Pipa Owners CDMX: Accidents & Monopoly Accusations
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- * What: Transportadora Silza SA de CV, a Mexican LP gas transport company, is under scrutiny following a major explosion in Mexico City on August 31, 2023.
- The devastating explosion on the Puente de la Concordia in mexico City on Wednesday, August 31, 2023, has brought renewed attention to Transportadora Silza SA de CV, the...
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Transportadora Silza: The History of a Gas Empire Linked to Deadly Explosions in Mexico
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The devastating explosion on the Puente de la Concordia in mexico City on Wednesday, August 31, 2023, has brought renewed attention to Transportadora Silza SA de CV, the company operating the truck involved. While the immediate cause is under investigation, the incident is far from isolated. Silza’s history, and that of its parent company, Grupo Tomza, is riddled with accidents, accusations of anti-competitive behavior, and substantial fines. This article delves into the origins of this gas empire, its business practices, and the safety concerns that have plagued its operations.
The Origins of Tomza: From Ciudad Juárez to a National Presence
Grupo Tomza’s story begins in 1963 in Ciudad Juárez, Chihuahua, founded by Miguel Zaragoza Vizcarra. Initially focused on the marketing, import, distribution, and storage of Liquefied Petroleum (LP) gas, the company quickly grew to become a notable player in the border region. The business was later passed down to his sons, Miguel and Tomás zaragoza Fuentes, who expanded the company’s reach across Mexico.
The name “Silza” itself is a personal connection,an acronym derived from the name of Tomás Zaragoza Fuentes’ wife,Silvia Ito Varela de Zaragoza. This detail, while seemingly minor, highlights the family-run nature of the business and the close ties between its leadership and its operations.
A Split and the Rise of Silza
Transportadora Silza SA de CV emerged as a result of a division within the Zaragoza Fuentes Group, specifically stemming from the Tijuana Gas Company. This split, according to reports, may have been driven by internal disputes between the brothers, or a strategic move to circumvent monopoly accusations. Regardless of the reason, Silza became a key component of the group’s transportation network.
During the late 20th century, Zeta Gas, a company controlled by the Zaragoza Fuentes family, reportedly controlled approximately half of the LP gas storage and transportation permits along the border, effectively establishing a monopoly. This dominance allowed them to exert significant control over pricing and distribution in the region.
Accusations of Monopoly and Anti-competitive Practices
The National Competition Commission (Cofece) has repeatedly investigated Grupo Tomza and its subsidiaries for anti-competitive practices. In 2004, Cofece investigated a group of companies led by Tomás Zaragoza and other distributors in the Metropolitan Zone of the Valley of Mexico (ZMVM) for “establishing common commercial policies” designed to fix LP gas prices. The complaint centered around Zeta Gas, which at the time comprised 23 companies.
More recently,in 2022,Cofece sanctioned Grupo Tomza and other companies for engaging in monopolistic practices over a ten-year period. The companies were found to have manipulated prices and divided the market for the distribution and marketing of LP gas. The total fines levied amounted to 2,414 million pesos (approximately $135 million USD as of September 2023).
A History of Accidents and safety Concerns
Beyond the accusations of market manipulation, grupo Tomza and its subsidiaries have a documented history of accidents involving LP gas. these incidents span across multiple states, including: