CANCÚN, Q. ROO – Strengthening trade between Mexico, the United States, and Canada will require a rail system capable of offering much more than just installed capacity. The resilience of supply chains in North America will increasingly depend on the integration of infrastructure, technology, digitalization, and coordination among operators, authorities, and users, agreed representatives of major rail companies during the panel “Resilient and Sustainable Rail Transport: Integrating Infrastructure, Technology, and Sustainability in the USMCA,” held at the 2026 National Freight Transportation Forum of the National Association of Private Transportation (ANTP) .

The discussion made it clear that the growth of nearshoring (relocation of production lines) and the consolidation of the United States-Mexico-Canada Agreement (USMCA) are increasing pressure on regional logistics infrastructure, forcing the rail sector to evolve toward more agile, connected, and sustainable operating models. According to the panelists, North American competitiveness will no longer depend solely on having more tracks or locomotives, but rather on building logistics chains capable of responding quickly to an environment of greater demand, uncertainty, and environmental requirements.

Linda Hernández, Business and Industrial Development Manager at Canadian Pacific Kansas City (CPKC) , stated that rail integration between Canada, the United States, and Mexico represents an opportunity to simplify cross-border operations and offer more competitive alternatives for users. “Railways are about connection, trust, but above all, they are a promise of continuity,” she affirmed, explaining that the merger between Kansas City Southern and Canadian Pacific (which ultimately resulted in CPKC) made it possible to build the first rail network directly connecting the three North American countries.

The executive emphasized that true growth in rail capacity depends not only on expanding physical infrastructure. “True capacity lies in coordination. It lies in designing reliable services, investing in infrastructure, digitizing processes, and building alliances with authorities, customers, ports, terminals, and carriers,” she noted. Following this logic, she explained that a logistics chain “is not as strong as its largest link, but as its weakest.”

As an example of this strategy, Hernández presented the Mexico Midwest Express (MMX) and Southeast Mexico Express (SMX) services , developed after the integration of CPKC to directly connect Mexican industrial centers with the Midwest and Southeast United States in journeys of less than four days. He also highlighted the addition of refrigerated containers, the installation of new Senasica inspection points outside the border, and the opening of the second international rail bridge in Laredo, infrastructure that doubled the rail exchange capacity between the two countries. “When we connect the rail network, the region undoubtedly moves forward,” he summarized.

From the perspective of Grupo México Transportes (GMXT) , resilience also involves incorporating artificial intelligence into the core of rail operations. Daniel Doria, Commercial Director, explained that the company is developing “La Maquinista ,” an artificial intelligence system designed to optimize train formation, allocate capacity, and improve the network’s operational performance. The project, he said, does not seek to replace human expertise, but rather to enhance it through algorithms capable of learning, anticipating, and making operational decisions in real time.

The initial results, he asserted, already show significant reductions in dwell times, a higher average network speed, and more efficient use of the rail fleet. For Doria, artificial intelligence will be a productivity enabler, while modal integration will remain essential. “Road transport and rail definitely coexist, and coexist very well. It all depends on the customer’s needs,” he stated, emphasizing that both modes of transport must complement each other to offer tailored logistics solutions.

The executive added that GMXT, part of Grupo México , continues to strengthen its coverage through annual investments of between $450 and $500 million in infrastructure, yards, terminals, locomotives, and technology, as well as promoting alternatives such as CG Rail , the rail-sea service connecting Coatzacoalcos (Veracruz) with Mobile (Alabama), as a new option for trade between Mexico and the United States. “When infrastructure, technology, and logistics work as a single network, growth ceases to be a possibility and becomes a competitive advantage,” he concluded.

Francisco Fabila, CEO of Ferrocarril y Terminal del Valle de México (Ferrovalle) , stated that the transformation of the railway system will depend on the automation of critical operational processes . He explained that the company operates the most important intermodal rail hub in North America, located in the nation’s capital, and that the challenge lies in managing more than one hundred trains daily in a highly congested area using digital tools and artificial intelligence.

To achieve this, Ferrovalle incorporated rail arches with optical recognition , automated mechanical inspection systems, railcar classification algorithms, and control centers that allow for real-time monitoring of the entire operation. With these tools, processes that previously took several hours can now be carried out virtually instantly, while customers can track every movement of their trains, containers, and tractor-trailers from digital platforms. “Every movement, every train, every load, every container, and every truck is digitally visible in real time to the customer and in an automated way,” Fabila emphasized.

In parallel, he explained that digitalization has also improved the efficiency of the Pantaco intermodal terminal (also known by that name), where truck access times have been reduced from several minutes to just seconds thanks to OCR systems and artificial intelligence, strengthening connectivity between rail and trucking. He also emphasized that technology has become an essential component for reinforcing security and maintaining operational continuity at the main rail hub in the Valley of Mexico.

For her part, Daniela Zarza, Business Director – Premium at Union Pacific , focused her remarks on the need to continue strengthening North American rail integration through investments, strategic mergers, and talent development. She explained that the company is undergoing a regulatory process to finalize its integration with Norfolk Southern , which would allow for the construction of a transcontinental rail network—from coast to coast in the United States—and eliminate interchange points that currently limit the smoothness of operations. In her view, greater competition among operators will ultimately benefit customers directly through improved services and shorter transit times.

The executive also highlighted that Union Pacific, which operates cross-border services through six border crossings between Mexico and the United States , makes ongoing investments in infrastructure maintenance, technology, and cybersecurity, while also promoting diversity and inclusion strategies to increase female participation in the railroad’s operational areas by 2030. Simultaneously, the company is advancing the development of locomotives with hybrid technologies and initiatives to reduce the carbon footprint of rail transport. “Rail is the safest mode of transportation in Mexico and the United States,” she stated, noting that a Union Pacific train can travel a distance equivalent to 49 times around the world before derailing.

Although each company presented different strategies, the message converged on a single point: the future of rail transport in North America will depend on its ability to integrate infrastructure, artificial intelligence, automation, sustainability, and collaboration among all actors in the logistics chain. In an environment where regional trade continues to accelerate, rail operators agreed that resilience is no longer just about recovering from disruptions, but about anticipating them and turning them into a competitive advantage under the USMCA.

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BNSF Railway  is strengthening its commitment to Mexico in an environment where North American logistics are becoming increasingly integrated. Through the expansion of intermodal services , the development of temperature-controlled supply chain solutions, and a strategic assessment of the opportunities offered by the Mexican market, the U.S. railroad is outlining a strategy that combines operational growth, innovation, and efficiency to offer more reliable and lower-cost transportation options to customers operating in cross-border corridors. 

The company maintains its focus on a seamless cross-border supply chain for goods moving between Mexico, the United States, and Canada. “There has been steady growth in the movement of goods between Mexico and the United States, and we view this trend positively. From our perspective, anything that supports the consistency and expansion of these flows is beneficial ,” says Paul Hirsch, Assistant Vice President of BNSF’s Mexico Business Unit, in an interview. For customers, this consistency translates directly into more predictable transit times, better inventory control, and greater service reliability. 

In this context, the railway is driving solutions and innovations designed to minimize costs , simplify processes, and offer greater flexibility to shippers moving cargo along cross-border corridors, while also providing an excellent solution for reducing carbon footprints. One of the most significant opportunities identified by the company is the development of the intermodal corridor to Alliance, Texas, which connects Mexico with key U.S. markets as a more efficient, scalable, and cost-effective alternative to the traditional crossing through Laredo. 

“At BNSF, we see that customers can benefit from using Alliance, Texas, as an alternative to Laredo, with faster transit times, lower costs, and a simplified supply chain. This approach streamlines cross-border movements and reduces exposure to border complexity and congestion. For example, import shipments from Mexico typically use two trucks: one to Laredo and another from Laredo to the final destination, which increases costs and complexity. By leveraging intermodal service from Mexico, customers can avoid this situation, access ample rail capacity available throughout the corridor, reduce overall logistics costs, and improve shipment consistency,” explains Hirsch.

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The pressure to accelerate logistics chains between Mexico and the southeastern United States is leading railroads to compete in territory historically dominated by trucking. In this context, Canadian Pacific Kansas City (CPKC) and CSX Corporation (CSX) announced on Wednesday improvements to their premium Southeast Mexico Express (SMX) service, an intermodal initiative that seeks to gain competitiveness in transit times and expand rail reach to key markets in the region.

The companies reported that, since May 4, the service has been operating with a new schedule and route scheme that, according to the companies, allows them to offer transit times “competitive with trucks” between markets in the southeastern United States – such as Atlanta, Charlotte and Central Florida – and destinations in Texas and Mexico, including Dallas and Monterrey.

This is a significant change. The new SMX configuration reduces transit times on all previously available routes. Among the most notable adjustments is an improvement of approximately one day between Atlanta and Dallas, as well as a reduction of nearly 2.5 days between Atlanta and central Mexico , a corridor where time and operational consistency are critical factors for industries such as automotive, intermodal, and vehicle freight.

The improvements, the companies explained, stem from investments in rail infrastructure on the former Meridian & Bigbee Railroad (MNBR) corridor, including track work, bridges and signaling systems, as well as additional investments along the corridor that runs through Georgia, Alabama, Mississippi, Louisiana and Texas.

“These service enhancements, which provide approximately a 20 to 45 percent improvement in SMX transit times, reflect our ongoing commitment to providing more advanced and flexible transportation solutions to our customers who are looking for innovative ways to reach new markets,” said Keith Creel, president and CEO of CPKC.

The executive stated that the alliance with CSX allows them to build a rail alternative that is difficult to replicate in the regional market. “Together with CSX, the SMX offers a level of speed, flexibility, and reliability that reaches additional growth markets in the southeastern United States. This is a premium rail solution that cannot be replicated because we have the best route connecting carriers to Texas and Mexico, which will allow more trucks to switch to rail,” he added.

For his part, Steve Angel, president and CEO of CSX, noted that the improvements are part of a strategy to strengthen the rail corridor between the two regions. “The enhanced SMX service demonstrates the long-term investments CSX has made to strengthen this corridor and provide more consistent and reliable service to our customers,” he said.

Under the new operating model, the dedicated SMX service will offer two-day transit between Atlanta and Dallas; three days between Monterrey and Atlanta; and four days from central Mexico to Atlanta . In addition, the airlines have added new origin and destination points, expanding coverage to Charlotte, Jacksonville, and Central Florida.

The rail investment also reflects the operational restructuring resulting from the acquisitions of segments of the former Meridian & Bigbee Railroad by both CPKC and CSX. This reconfiguration allowed for the establishment of a direct Class I-to-Class I rail interchange near Myrtlewood, Alabama, enabling an east-west corridor with greater freight capacity between the southeastern United States, Texas, and Mexico.

The service, originally launched in December 2024, has begun attracting logistics operators interested in rail corridors with performance closer to that of road transport. One of them is Schneider National , a firm specializing in multimodal and intermodal transport.

“Schneider has seen firsthand the value of ongoing collaboration with our rail partners to bring innovative new intermodal products to market,” said Mark Rourke, president and CEO of Schneider. “The enhanced Southeast Mexico Express offers more reliable, truck-like service, making it an attractive option for shippers looking to transport goods between Texas, Mexico, and the southeastern United States.”

Although the railway companies’ discourse focuses on efficiency and sustainability, the underlying issue also points to increasingly aggressive competition to capture cargo traditionally transported by road. According to the companies, each SMX service train could replace up to 300 tractor-trailer trucks , a narrative that combines environmental pressure, operational efficiency, and available capacity in corridors where trucking faces growing challenges of congestion and cost.

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The National Antimonopoly Commission (CNA) determined, as a preliminary ruling, that there are no conditions of effective competition in the rail freight transport service in the country , with Grupo México Transportes (GMXT) and Canadian Pacific Kansas City (CPKC) de México having the largest share in the sector.

The regulatory authority specified that of the 1,772 markets relevant to the industry, such as food, consumer goods, industrial goods and oil and its derivatives, among others, 1,768 lack competitive conditions .

“There are no conditions of effective competition in various relevant markets of the rail freight transport service in national territory, due to the existence of three barriers to competition and free market access that generate restrictions on the efficient functioning of said markets,” it stated in a document published in the Official Gazette of the Federation (DOF) .

Furthermore, he indicated that the Mexican Railway System (SFM) operates under a vertical integration model, in which a single company simultaneously controls the railway infrastructure , as well as its related services.

In turn, it operates under a regional separation scheme, which divides control of infrastructure and the provision of transport services across different areas of the country. “In this context, access rights are fundamental to promoting competitive conditions and operational continuity,” he emphasized.

Under this scenario, the antitrust authority  identified three barriers to competition and free market access that create restrictions on the efficient functioning of these markets.

The first is a restrictive application in the granting of right of way , the second is that there is tariff setting by the concessionaires that makes the interline option more expensive or degrades it when competing against an alternative.

The latter, he specified, is that one company dominates routes that are physically isolated on the Mexican Pacific coast . Grupo México controls both the Pacific-North trunk line (through Ferromex) and the Ojinaga-Topolobampo and Nacozari short line.

“Ferromex is ordered to transfer, through assignment, the rights and obligations of the Pacific-North concession to an economic agent that does not belong to its group of interest, for the Nogales-Guaymas section. The transfer must include the railway equipment and necessary auxiliary services,” he stated.

To this end, the railway company will have six months after the CNA resolution  to present a divestment plan for said asset and a timetable for the process.

Similarly, the CNA proposed corrective measures, such as modifying Article 36 of the Regulatory Law of the Railway Service (LRSF) to transfer to the Agency of Trains and Integrated Public Transport (ATTRAPI) the power to evaluate and approve all restrictions on rights of way. 

GMXT and CPKC of Mexico must submit to ATTRAPI, within the next 90 calendar days, all current right-of-way agreements and interconnection mechanisms for evaluation or modification.

The CNA’s investigation period spanned from January 10, 2024 to October 29, 2025 .

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The analysis of passenger and cargo transportation during the six-year term of President Andrés Manuel López Obrador revealed results that contrast with some of the initial promises of his administration. The figures presented in the Sixth Government Report show a decrease in six of the seven main categories , including passenger and cargo rail transportation, as well as the growth of federal motor transport.

In this sense, the evolution of cargo transported by air and land during the López Obrador administration reflects challenges and recoveries . In the report, the volume of cargo by these modes of transport experienced constant growth until 2018, but from 2019 it began to register declines , notably in 2020, with an annual decrease of -3.7%, largely affected by the COVID-19 pandemic.

Although a recovery was observed in the following years, with annual growth of 3.2% in 2021 and 3.3% in 2022, the increase moderated to 2.3% in 2023. This trend indicates that, although there was a post-covid recovery, freight transport still faces challenges to achieve sustained growth .

This behavior highlights the vulnerability of the cargo transportation sector to global crises and the importance of implementing more resilient policies that strengthen the country’s capacity to face future adversities, something that, according to the data, was left unfinished during the six-year term that is about to end.

The report shows detailed data on air transport cargo, the behaviour of which is irregular compared to the previous six-year period.

Between 2013 and 2018 , relatively stable growth was observed, with positive annual variations ranging from 1.1% to 12.8%, reaching important peaks such as 12.8% in 2018. This positive trend was interrupted in 2019 , when a drop of -5.5% was recorded , followed by an even steeper drop of -11.5% in 2020, coinciding with the impact of the pandemic.

Despite a 28.2% rebound in 2021 , this recovery was not sustained , as in 2022 the figure fell again to -1.2%. For 2024, the graph shows a modest growth of 8.5%, which, although positive, is still below the levels reached in the previous six-year period.

In addition, freight in land rail transport shows a volatile performance, with several points of concern when compared to the previous six-year period. Between 2012 and 2018 , although there were ups and downs, the general trend was one of moderate growth, reaching peaks such as 4.5% in 2014 and 4% in 2017. However, from 2019, the situation changed dramatically.

The year 2019 marked the beginning of a series of significant declines , starting with a decline of -2.2%, which worsened to -3.8% in 2020, coinciding with the impact of the pandemic and disruptions in the global supply chain.

Although 2021 saw a recovery with growth of 7.9% , this rebound was not sustained as in 2022 the figure fell back to -1.1 percent. For 2024, a modest growth of 4 percent is projected.

Finally, the federal auto transport load during AMLO’s six-year term shows significant fluctuations. After a significant drop in 2020, there was a recovery in 2021, but growth stabilized at 2.3% in 2023 and 2024, without reaching the consistency of previous years. However, this reflects the need for more stable policies to ensure sustained growth in the sector.

One of the most visible sectors during this six-year period is passenger air transport , since the average annual growth of 10.85% during 2019-2024 exceeds the 9.4% recorded in the previous six-year period. This growth is largely due to the post-pandemic recovery.

In the case of passenger rail transport , growth was low, with an annual average of only 1.57% compared to 4.8% in the previous six-year period. This shows that large railway projects, such as the Mayan Train and the Trans-Isthmus Train , were and are marked by delays and questionable execution for different sectors of the industry.

The growth in the number of passengers served in land transport by federal motor transport during AMLO’s six-year term shows that after a significant drop of -3.5% in 2020, impacted by the pandemic, the sector experienced a recovery with an increase of 4.4% in 2021 . However, starting in 2022, growth began to slow down, stabilizing at 2.1% by 2024 . These data reflect the recovery of the sector after the crisis, but also the difficulty of maintaining constant growth in a challenging environment.

López Obrador’s six-year term has been marked by an ambitious commitment to large infrastructure projects, such as the Maya Train and the AIFA . However, these projects are plagued by criticism from their planning phases to their execution, and so far, they have not met expectations in terms of significantly improving transportation in Mexico.

(Main photo source: AMLO Instagram)

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In the supply chain, the first mile is an essential component to guarantee the fluidity and integrity of the entire logistics operation , according to Maersk , a company that in recent years has opted to become a logistics integrator, by expanding its services. beyond maritime transport.

In an analysis document sent to the press, the company indicated that efficiency in this first tranche has a significant impact on costs and delivery times , in addition to strategically influencing end customer satisfaction and market competitiveness.

“For this reason, Maersk dedicates significant resources to optimize and strengthen its operations in this key step, implementing advanced fleet tracking and management technologies, as well as establishing strategic alliances with reliable and capable logistics partners,” said Matthieu Pfleger, Head of First Mile for Maersk México, cited in the document.

There he explains that the consolidation of the automotive industry has presented significant challenges for the logistics sector. The increase in transportation prices and rates, along with competition for land transportation services, has led many shippers to prefer land transportation over sea transportation, resulting in an increase of up to 40% in transportation costs. . These could be up to 100 percent.

Some of the causes include:

Nearshoring and the “super” peso: The relocation of companies and the strength of the Mexican currency until recently made shipments in the region more expensive. The sustained strength for months of the Mexican peso – whose trend was modified until a few weeks ago – against the dollar in the exchange rate caused Maersk to make decisions that improve profitability.

Armed conflicts: Attacks on commercial ships in the Red Sea have affected the availability of containers and vessels, raising shipping costs from China to Europe.

The security crisis: Several areas of Mexico face this situation and this has affected the transport union, who have been very clear in their demands, even carrying out blockades to make their situation even more visible, which has additionally generated interruptions on the routes. logistics making the operation difficult.

Challenges as an engine of change: the railway boom

Pfleger assured that “despite these challenges, the logistics landscape in Mexico offers exciting opportunities for innovation and growth. Optimizing rail infrastructure, implementing advanced fleet tracking and management technologies , and collaborating between key players in the supply chain can help overcome these obstacles and make the most of the potential of rail transportation, which has come growing since recent years.”

In fact, according to data from the Railway Transport Regulatory Agency (ARTF) , during the first quarter of this year an increase was observed in cargo transportation by railways in Mexico , moving 34.67 million tons, evidencing an increase of 3.9 % in relation to the same period of the previous year. In the specific case of Maersk Mexico, 160 thousand containers are transported annually by rail.

Maersk indicated that there is no doubt that the railway has gained prominence due to its efficiency , load capacity and sustainability compared to road transport. For example, land side volumes moved by rail have seen steady growth, increasing by approximately 5% to 10% year over year.

This is due in part to the railway’s efficiency and carrying capacity, as well as improvements to the country’s railway infrastructure. Furthermore, rail offers a more sustainable alternative compared to road transport, making it attractive from both an economic and environmental point of view.

“In pursuit of achieving our sustainability goals, at Maersk we focus on implementing efficiency measures and promoting the transition towards transportation modalities with reduced emissions, such as the use of rail. The company’s objective is very clear: to develop completely sustainable land transportation solutions by 2040,” said Pfleger.

This is how logistics in Mexico faces highly relevant current challenges, but these in turn entail opportunities for growth and innovation. By understanding the importance of the first mile and harnessing the potential of rail transportation, companies can improve efficiency and competitiveness in a globalized market.

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