According to the Railway Transport Regulatory Agency (ARTF), in 2024 alone, the system handled 132.69 million tons, a 0.92% increase compared to 2023 and a historic record.
For almost three decades, the railroad has established itself as a key player in the country’s freight mobility. Now, faced with the nearshoring phenomenon, train companies are seeking to become an ally in relocation, with investments that could exceed $15 billion over the past 27 years.
For Francisco Fabila, president of the Mexican Railway Association (AMF), the industry’s greatest challenge is to take advantage of the current situation to migrate freight from roads to trailers and trains.
The sector representative stated that trains have doubled the amount of freight moved in the last three decades, going from a share of around 10 or 11% of transported goods to nearly 26%.
Trains Gain Ground in Mexico
According to the Railway Transport Regulatory Agency (ARTF), in 2024 alone, the system moved 132.69 million tons, an increase of 0.92% compared to 2023—a historic record for the sector—of which 72.37% corresponded to foreign trade.
“We have invested just over $15 billion over the period of the concessions held by the railroads in the rejuvenation and renovation of the railway infrastructure, and the complete replacement of the motive power (locomotive) fleets,” Fabila emphasized.
In 2024, the Gross Domestic Product (GDP) of rail transportation registered a 5.43% increase in real terms compared to the previous year. Meanwhile, freight services generated a total revenue of 89,327.6 million pesos, according to the ARTF.
Railroads: Key to Nearshoring
Francisco Fabila explained that they like to be considered “the railroad of North America,” not only because there is a route that connects the three countries, but also because in order to maintain this trade, they are required to maintain the same regulatory standards.
In this sense, he emphasized that an automotive sector, for example, cannot be conceived without railroads. In fact, before choosing a state to establish a plant, companies evaluate the existence of a rail network.
ARTF data shows that last year, 96.03 million tons of cargo destined for foreign trade were transported, representing 72.37% of the total transported on the Mexican Railway System.
In addition, 73.65 million tons (76.69%) were recorded as imports and 22.38 million tons as exports.
“Our goal is to increase our volume by capturing this cargo currently on the roads so we can migrate it to rail and continue to be the best ally for nearshoring,” he explained.
The opportunity of well-being hubs (Polos del Bienestar)
However, there is currently another key factor for the sector: the federal government’s drive to promote passenger rail and Well-being Hubs, where freight railroads play a fundamental role.
“I believe it’s a good idea to establish rail service for Wellness Hubs, because this guarantees, in terms of connectivity, a success in increasing their chances of success,” noted the AMF president.
Development hubs such as Topolobampo, Celaya, Morelia, and Tula, as well as the Interoceanic Corridor, were designed with rail service as a condition to guarantee their connectivity and success.
When asked if the sector can exceed the $15 billion investment in the next 27 years, Francisco Fabila has no doubt, given that companies are committed to improvement, rejuvenation, modernization, and technological commitment, whose plans are not short- or medium-term, but long-term.
Source: EL CEO
