Rail logistics has established itself as an essential pillar in international trade thanks to its ability to move large quantities of goods over long distances more efficiently than trucks. This makes it an ideal option for products such as minerals, fuels, construction and industrial materials. It is also one of the means of transportation with the lowest environmental impact. Rail transport emits between 70% and 80% less carbon dioxide per ton transported than trucks, according to data from the International Energy Agency (IEA). In Mexico, rail freight transportation has gained prominence.

Railway expansion in Mexico: a strategic commitment

President Claudia Sheinbaum has made it clear in her Federal Expenditure Budget Bill that she will bet, during her first year at the helm of the country, on infrastructure. While trains in Mexico occupy a fundamental place in this, the project seems to be more ambitious in seeking an intermodal connection in the country's logistics apparatus.

“The objective is to take advantage of Mexico's strategic position under the North American trade agreement and strengthen international relations to attract investment to the country. To meet this priority, it is proposed to integrate infrastructure with an intermodal approach,” the president said.

Along these lines, actions have begun to take shape. In the Federation's Draft Expenditure Budget, rail projects contemplate an investment of 149 billion pesos, equivalent to 78.8% of the total allocated to key infrastructure works for 2025.

From January to October 2024, the Mexican Railway System (SFM) transported 111.86 million tons, which represents an increase of 1.5% compared to the same period in 2023. Furthermore, according to the document Pulso del Sistema Ferroviario Mexicano Operativo a octubre 2024 by the Agencia Reguladora del Transporte Ferroviario (ARTF), of the total cargo, 31.6 million tons corresponded to domestic traffic and 80.2 million tons to international traffic. Of the latter, 61.3 million tons were imported and 18.8 million tons were exported.

“Compared to the January-October 2023 period, domestic traffic grew by 1.4%; international traffic, by 1.5%; meanwhile, imports rose by 2.7%, and exports decreased by 2.2%,” the ARTF specified.

The ARTF also reported that, from January to October 2024, of the 111.86 million tons, 53.80 million were industrial products. At the close of the first 10 months of last year, total cargo was transported through 1.29 million loaded cars, only 0.09% more than in 2023.

Key investments for rail infrastructure

The boom in rail freight also has significant implications for logistics real estate, highlighting the development of intermodal hubs, proximity to rail terminals and sustainability in the design of logistics centers. For example, with an investment of 2.5 billion pesos in a first stage, the Puerta Logística del Bajío project has been launched, which will consolidate Guanajuato as the country's railroad epicenter.

This intermodal dry port will reduce logistics costs and improve local and regional infrastructure. It will be built on an area of 200 hectares, on a site near the Honda plant, where it will be the crossing of the railroad beltway. The first stage will be developed on a 51-hectare site, promoting the economic development of the region and the country, facilitating international trade and providing a competitive advantage by taking advantage of land infrastructure, such as federal highways 45 and 57, industrial corridors and the confluence of railroads with Ferromex and Canadian Pacific Kansas City Southern de México.

It is worth mentioning that Canadian Pacific Kansas City (CPKC) is planning investments of 240 million dollars this year in Mexico, resources that will be used for the development of projects in Nuevo León, San Luis Potosí and Guanajuato, in addition to railroad spurs. Ferromex will issue two bond issues with terms of three and a half and seven years, for up to 5.5 billion pesos, to refinance liabilities and operating capital investments.

On the other hand, Grupo México Transportes (GMXT) confirmed an investment plan of up to 410.3 million dollars for 2025, which includes a 15% increase in locomotives, as well as the incorporation of 1,600 rail cars, improvements in yards and a road safety plan.