(Adds trader comment in paragraph 7, updates stock quotes)
MEXICO CITY, June 25 (Reuters) - Mexico's TMM is expected to announce soon a $50 million contract to transport Ford vehicles across the country via its TFM railroad unit, a source close to TMM told Reuters on Friday.
TMM, Mexico's largest shipping and railroad operator, is working on the final details of the multiyear contract with the Mexican arm of Ford Motor Co. , which operates about 130 car distributors in the country.
Ford and TMM declined to comment.
"There is an agreement with Ford but it is in the process of being implemented," the source said. "It's a national deal via TFM to distribute all Ford vehicles in Mexico ... but there are some details pending before the official announcement can be made."
The new deal could help lift TMM's financial results after it lost $45.4 million in the first quarter. About 70 percent of its revenue stems from Transportacion Ferroviaria Mexicana (TFM) operations.
TMM shares rose 7.6 percent to $2.70 on the New York Stock Exchange while local stock added 3 percent to 30 pesos.
"It's been a while since TMM last gave positive news. It is possible that a contract with Ford helps change perception about the stock, at least for today," a trader said.
Auto sales in Mexico have risen this year, the result of an economic recovery and attractive promotions by auto dealers. Sales through May were up 14.2 percent compared with the same period a year ago.
Ford's annual sales in Mexico have averaged 158,575 units over the past four years, behind General Motors Corp. , Japan's Nissan Motor Co. , and Germany's Volkswagen AG .
While Ford exports most of its Mexican production to the United States -- the country's top trade partner -- the company imports most of the units it sells in Mexico through the border, where TFM controls the main railroad too.