Mexico‘s railway policy has led to an increase in freight transportation and an increase in infrastructure.
The collaboration between Mexico’s Ministry of Infrastructure, Communications, and Transportation (SCT) and the European Union (EU) marks a significant milestone in the development of Mexico’s railway system. Set to formalize through a letter of intent on September 13, 2024, the goal is to create long-term public policies aimed at enhancing the country’s railway infrastructure.
The focus of this partnership is to establish a more efficient and sustainable railway system. By improving the railway infrastructure, the collaboration intends to provide a more ecological alternative to the transportation of goods and passengers. This shift aims to not only reduce the environmental footprint of transport but also strengthen national connectivity, thereby improving overall transportation efficiency across the country. The long-term vision seeks to make railways a cornerstone of sustainable mobility within Mexico.
Railway policy of Mexico
This letter of intent is part of the Global Gateway Investment Agenda. Its main objective is to facilitate investments in sustainable projects in Mexico. These projects focus on key sectors, such as sustainable, inclusive, safe and intelligent transportation.
Most of Mexico’s freight is transported by truck or rail. Competition between these modes of transportation is based mainly on price, quality, and reliability of service.
GMexico Transportes believes that there are other factors that influence the competitiveness of land freight transportation. These include delivery time, cargo security, and cargo capacities at origin and destination.
In some sectors, especially in intermodal transportation, there is direct competition with trucking companies. This occurs despite the economic advantages of rail, such as double stowage.
Although trucking tends to be more expensive, under certain circumstances, the trucking industry can offer competitive rates and efficient service. In addition, trucking requires lower maintenance costs and capital investment, and provides more flexible routes and schedules.
Trend
According to preliminary figures from SICT, Mexico’s rail system transported 101.2 million tons of freight during the first three quarters of 2024. This represents a 2.3% increase compared to the same period in 2023. In addition, passenger rail transportation also showed significant growth. In 2024, it increased by 9.9%, from 33.9 million passengers during the first three quarters of 2023 to 37.3 million in the same period of 2024.
On December 15, 2024, President Claudia Sheinbaum inaugurated Sections 6 and 7 of the Tren Maya, completing the 1,554-kilometer circuit. This progress marks a milestone in the development of the country’s largest railway project.
On October 30, 2024, the decree that reforms the Political Constitution of the United Mexican States was published in the Official Gazette. This reform allows the government to resume passenger service on freight railroad tracks, an important step in the modernization of the national railroad system.
The Rail Transportation Regulatory Agency (ARTF) plays a key role in regulating the sector. Its functions include overseeing the operation of railroads, rights of way, competition between carriers, and the rates that may be charged. It is important to note that no new concessions were granted during 2022 and 2023.
In addition, the Government granted private sector companies the right to provide passenger rail transportation services and granted property rights in the Valle de México terminal. The state of Jalisco was also assigned the task of providing rail transportation for tourism purposes along part of the Pacific-North railroad route.