SAN PEDRO GARZA GARCÍA, NL.- The transportation of goods in Mexico is an essential pillar of the economy, but it faces a series of complex and constantly evolving challenges, from structural problems, such as the lack of adequate infrastructure and the shortage of operators , to emerging factors, such as road safety and environmental sustainability. Logistics in the country requires comprehensive solutions that involve both private industry and authorities.

According to industry experts, the combination of transport theft, regulatory changes and political and economic uncertainty is affecting the sector’s ability to maintain efficient costs and ensure safety in its operations.

Jorge Charvel, Vice President of Operations at Uber Freight, referred to the trade balance to point out that road transport largely predominates the movement of cargo in the country , with 56% of goods moved by this means, while 26% is transported by sea and only 10% by rail.

At the Uber Freight Powering Intelligent Logistics Summit , specialists commented that one of the main obstacles to the transportation of goods in Mexico is the insecurity on the roads, an issue that affects not only transportation companies, but also operators and the total cost of logistics operations.

“Insecurity in the State of Mexico, Mexico City and the Bajío corridor has worsened, significantly affecting the movement of goods,” said Victor Salazar, Commercial Director of Trayecto .

He added that cargo thefts, mainly at night, have become an endemic problem in these areas, causing disruptions that are difficult to quantify and increasing operating costs.

He explained that this situation not only increases the cost of insurance premiums , but also represents a direct threat to the safety of drivers, who increasingly face greater risks in their work.

In response, many companies have had to invest in advanced technology to monitor their units in real time, using GPS systems, on-board cameras and early warning sensors to prevent incidents.

They have also strengthened their customer service departments to efficiently manage the prevention and follow-up of these incidents, working closely with insurers and authorities.

For her part, Cecilia Garza, Vice President of Brokerage at Uber Freight, emphasized that, although not all variables that affect transportation can be controlled, the key is prevention and strategic planning .

“Strengthening security protocols and constantly assessing the risks associated with the routes is essential to mitigate these incidents,” he said.

Garza mentioned that a crucial part of the strategy is to work together with clients to develop preventive plans , adjusting loading and unloading schedules and optimizing transport routes to avoid the highest risk areas at critical times.

He pointed out that this preventive approach also involves collaborating with authorities and security forces to obtain up-to-date information on the areas of greatest risk and to make informed decisions that minimize exposure to dangers.

At the same time, Cecilia Garza highlighted the need to create alliances with technology providers that can offer innovative solutions, such as more sophisticated tracking systems and predictive analysis to anticipate potential threats.

Another crucial aspect of freight transport in Mexico is the environmental impact generated by the extensive use of road transport.

Humberto Vargas, vice president of Union Pacific , addressed the importance of the railroad as a greener and more efficient alternative in terms of fuel consumption.

“Railways consume only a third of the fuel that road transport uses to move a ton of cargo,” he said.

In a context where sustainability has become a priority issue for many industries, rail transport represents a viable solution to reduce carbon emissions and move towards a greener economy.

Humberto Vargas also explained that Union Pacific has begun testing 100% electric and natural gas locomotives , with the aim of further reducing polluting emissions. However, he acknowledged that the challenge lies in the infrastructure needed to make this technology scalable and accessible to the sector.

“Although the initial costs are high, we believe that rail will play a key role in meeting environmental goals for 2050,” he said.

Vargas also said that the railway could alleviate some of the burden currently borne by the country’s roads, which would also contribute to reducing the deterioration of the roads and reducing traffic accidents.

But for this transition to rail to be effective, the director explained that it is necessary to improve and expand rail infrastructure throughout the country, an effort that requires collaboration between the public and private sectors.

Regarding road transport, Víctor Salazar highlighted the age of the trucking fleet in Mexico as another of the major challenges.

“The average age of tractors in the country is 20.3 years, which means that most vehicles operate with highly polluting engines,” he explained. He added that this factor not only generates environmental problems, but also affects productivity and safety on the roads, since older vehicles are more prone to mechanical failures.

Faced with this reality, some companies such as Trayecto have begun to invest in renewing their fleet with more modern and efficient units.

“At Trayecto we have acquired units with EPA 10 technology and compressed natural gas engines, which has allowed us to significantly reduce emissions of polluting gases,” said Víctor Salazar.

These investments not only help meet environmental regulations, but also improve operational efficiency and reduce long-term costs, as newer vehicles tend to require less maintenance and consume less fuel.

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In an increasingly interconnected world, logistics plays a crucial role as a backbone of the economy, so smart solutions to optimize transport and cargo management are increasingly necessary.

With its strategic location and growing economy, Mexico has established itself as a key player in cross-border trade , and according to market projections, Mexico’s cargo and logistics sector is expected to grow from $128 billion in 2023 to more than $171 billion by 2029, underscoring the urgent need to adopt more efficient, technological and integrated logistics solutions that respond to current and future challenges.

In this context, Uber Freight will hold the Powering Intelligent Logistics Summit 2024 on October 22 in Monterrey, Nuevo León, an event that will be a meeting space for industry leaders, technology companies and logistics specialists , who will meet to discuss the changing landscape of cross-border logistics.

One of the key topics to be addressed during the summit is the impact of nearshoring on supply chains across North America, a trend that has gained ground, particularly in Mexico, generating a reconfiguration of supply chains, which must now be more agile, flexible and technologically advanced.

Additionally, with increased trade between Mexico, the United States, and Canada under the United States-Mexico-Canada Agreement (USMCA), cross-border logistics faces additional complexities as companies must navigate an ever-changing regulatory environment , as well as address security, capacity, and sustainability challenges.

The Powering Intelligent Logistics Summit 2024 will provide a platform for attendees to discuss emerging trends in global logistics, with keynote presentations and panel discussions, the event will address critical topics such as foreign trade, transportation, technology and innovation, and economy.

Additionally, Lior Ron , CEO of Uber Freight, will share the company’s vision for the future of cross-border logistics, while Eduardo Reyes Díaz Leal , an international trade specialist, will provide in-depth insight into the economic trends that are shaping the logistics landscape for the coming years.

Other presentations and panel discussions will address topics on foreign trade, transport security and logistics technology, with practical information on regulatory complexities, capacity optimization and centralized data management .

Uber Freight will also be one of the event’s main attractions, where it will present some of its most innovative solutions, such as its integrated transportation management system (TMS) , as well as advanced warehousing and customs clearance services, designed to improve visibility and efficiency of freight operations.

Click here for more information and registration.

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