Mexico\u2019s automotive industry has\u00a0grown about 30% in five years, producing nearly 4 million vehicles in 2024, with\u00a0another 2.7% rise expected in 2025. That growth, together with higher imports and stronger domestic sales, is exposing capacity limits across road and port networks and driving OEMs to re-evaluate how they move freight.<\/p>\n
With the sector under pressure to move vehicles and parts faster and further, Mtra. Vianey De la Mora Garc\u00eda, CEO of the Mexican Railroad Association (AMF), tells\u00a0Automotive Logistics<\/span>\u00a0ahead of the 2025\u00a0Automotive Logistics & Supply Chain Mexico\u00a0conference that rail is not only seen \u201cas a transporter of goods, but as a strategic partner in industrial competitiveness.\u201d<\/p>\n \u201cRail connects suppliers, assembly plants and export terminals with efficiency and scale that no other mode can match,\u201d De la Mora says, adding that its role as \u201cthe backbone of cross-border logistics\u201d will only grow as production in Mexico expands.<\/p>\n Mexico is in what De la Mora calls a \u201chistoric phase of investment\u201d in rail, as the country aims to modernise key corridors linking major ports and the US border. Projects underway include upgrades to lines from the Baj\u00edo region \u2013 \u201cthe heart of Mexico\u2019s automotive production,\u201d De la Mora describes \u2013 to major Pacific and Gulf ports (Veracruz, Manzanillo and L\u00e1zaro C\u00e1rdenas), as well as the expansion of cross-border rail routes through Nuevo Laredo and Coahuila.<\/p>\n \u201cThese investments are increasing both capacity and operational reliability, reducing congestion and transit times for automotive parts and finished vehicles, and strengthening Mexico\u2019s role as a competitive and connected logistics hub in North America,\u201d De la Mora explains.<\/p>\n<\/blockquote>\n For example, port expansion at Veracruz \u2013 connected to rail by both FerroSur and Canadian Pacific Kansas City (CPKC) \u2013\u00a0has raised static storage capacity to approximately 53,000 vehicles, a roughly 56% increase since 2019. Yet port throughout are only as strong as its inland transport links. In practice, that means continued investment in rail infrastructure is critical for Mexico\u2019s ports to fully leverage this growth.<\/p>\n De la Mora stresses that investment in rail infrastructure must be matched by spending on assets and technology. Mexican rail operators are adding a new fleet of autoracks and intermodal equipment, and introducing digital fleet-management systems to improve utilisation. They are also collaborating closely with OEMs, manufacturers and leasing companies to forecast demand and align railcar capacity with production cycles. \u201cThe industry is fully aware that railcar availability and modernisation are critical to sustaining the automotive sector\u2019s growth,\u201d De la Mora says.<\/p>\n The goal is to avoid the bottlenecks seen in 2023, when shortages forced some automakers to move vehicles by trucks. Honda\u2019s head of export sales and CBU logistics in Mexico described that period as \u201ca total mess,\u201d at the\u00a0Automotive Logistics<\/span>\u00a02024 Mexico conference, after losing thousands of rail spots and turning to flatbeds for shipments. De la Mora says such disruptions should become a thing of the past as new wagons and autoracks enter service.<\/p>\n A defining strength of North American automotive logistics is integration across borders, and Mexican rail is reinforcing this. \u201cThe North American rail system is one of the most integrated in the world, and Mexico is further strengthening that integration,\u201d De la Mora says. The AMF is working closely with government authorities to optimise cross-border interoperability as well as harmonise safety regulations and custom standards with rail networks in the US and Canada. Key initiatives include upgrading border crossing infrastructure, expanding data-sharing between rail operators, and enhancing intermodal terminals to streamline transfers between rail, road and ports.<\/p>\n Critically, the AMF is coordinating with its US counterpart, the Association of American Railroads (AAR), on regulatory alignment, digital integration and joint infrastructure projects, \u201cwith the goal of improving trilateral logistics performance across North America,\u201d De la Mora explains.<\/p>\n OEMs and carriers are already feeling the benefits of improved cross-border rail links. Schneider National, for example, has\u00a0expanded in Mexico and is partnering with CPKC\u00a0to handle rising US-Mexico intermodal demand tied to localisation. At\u00a0Automotive Logistics<\/span>\u2019 September flagship event in Detroit, speakers noted rail is playing a significantly larger role in cross-border shipments,\u00a0with Nissan\u2019s director of finished vehicle logistics indicating that earlier rail supply issues into Mexico had been resolved, even as interoperability within Mexico continues to need work.<\/p>\n On the rail side,\u00a0CPKC\u2019s Wylie (Dallas) vehicle compound\u00a0\u2013 part of a $275m Chicago-Laredo corridor upgrade \u2013 supports a closed-loop Canada-US-Mexico service aimed at shifting more finished vehicles from road to rail. And with the\u00a0new CPKC-CSX corridor\u00a0linking Mexico, Texas and southeast US, stakeholders expect faster transits and added capacity to key OEM hubs.<\/p>\n These developments reinforce De la Mora\u2019s point that intermodal strategies and data-driven collaboration are now essential. Rail\u2019s integration of \u201cdigitalisation, predictive analytics and multimodal connectivity [will] strengthen resilience across the entire automotive ecosystem,\u201d De la Mora says.<\/p>\n Security of high-value automotive freight remains a top concern, one that rail, paradoxically, can help mitigate when managed effectively. De la Mora says the industry has rolled out integrated security programmes along key corridors \u201cthat combine technology, coordination with authorities and operational discipline.\u201d This includes real-time GPS tracking, surveillance systems and data analytics to detect and prevent theft or vandalism, backed by coordination with local authorities and the Rail Transport Regulatory Agency (ARTF) through the AMF to protect trains and yards. The AMF also promotes predictive monitoring and information-sharing between carriers and customers to turn vulnerability into visibility.<\/p>\n The focus on security also reflects lessons from the past.\u00a0A 2017\u00a0Automotive Logistics<\/span>\u00a0report\u00a0warned that Mexico\u2019s growing rail volumes had left shipments \u201cat disadvantage\u201d because of equipment shortages and risks of \u201ctheft, vandalism and drug smuggling.\u201d With components and finished vehicles among some of the country\u2019s highest-value cargo, such threats once undermined just-in-time supply chains. Today, executives expressed that\u00a0conditions have improved, with OEMs such as Honda and Nissan in North America once again moving their exports by rail.<\/p>\n Driving greener, smarter logistics<\/strong><\/p>\n Sustainability is another advantage of rail. \u201cRail is, by nature, the most efficient and sustainable mode of land transportation,\u201d De la Mora says, noting that trains emit far less CO\u2082 and pollutants per ton-kilometre than road freight, and as such \u201cpositions the rail sector as a key contributor to Mexico\u2019s and North America\u2019s sustainability goals.\u201d<\/p>\n \u201cTo maximise its environmental and operational potential, we are encouraging more products and more users to shift to rail, leveraging its capacity for long-haul freight while relying on road transport for first and last-mile delivery,\u201d she adds.<\/p>\n Through AMF, the sector is also promoting intermodal transport as a strategic complement to rail operations \u2013 a policy-driven effort to align logistics efficiency with Mexico\u2019s sustainability goals.<\/p>\n OEMs are also showing interest in these efforts.\u00a0VW Group Logistics\u2019 former head of transport networks noted during a Red Sofa interview\u00a0that the company is using rail and digital twins to boost sustainable operations in US and Mexico.<\/p>\n De la Mora\u2019s vision of a modern, connected rail network is taking shape. \u201cThis intermodal approach strengthens supply chain efficiency, reduces emissions and aligns the logistics sector with broader climate and sustainability goals set by both government and industry.\u201d<\/p>\n However, challenges remain. As rail capacity expands and freight volumes continue to climb, collaboration will be key. OEMs must work closely with suppliers to plan shipments and invest in rail-ready packaging and terminals, while policymakers must keep supporting corridor and security upgrades. De la Mora believes that, if aligned, these efforts will allow Mexico\u2019s railways to anchor a more resilient and efficient cross-border automotive network \u2013 one sustained by close cooperation among industry, government and logistics partners, and positioned as a strategic pillar of North American competitiveness.<\/p>\n\n
Seamless cross-border integration<\/span><\/strong><\/h3>\n
Security, reliability and resilience<\/span><\/strong><\/h3>\n
A modern rail future<\/strong><\/span><\/h3>\n