By Randy Jackson—

For fifteen years, our annual migration south meant driving the length of Mexico—from Nuevo Laredo to Huatulco. But not anymore. Over time, the toll roads have steadily improved and extended, now reaching all the way to the Oaxacan coast. But as the roads improved, so too did the volume of semi-trucks. What began as an encouraging sign of economic growth, especially in the northern half of Mexico, has become a source of gridlock. The tollways are now truckways—clogged with freight traffic that slows travel and occasionally brings highways to a standstill.

And it’s not just the highways. Urban congestion is becoming unbearable. Try stopping in San Luis Potosí, and you may find yourself mired in a 24/7 rush hour. The operations of global manufacturers like General Motors and BMW largely drive that gridlock. Efficient transportation is vital to economic life, but Mexico’s current road-based system is straining under pressure. For the first time in decades, the country is signalling a shift—from asphalt to steel—investing in rail projects that aim not only to reduce road traffic, but to position rail as a driver of future growth.

MEXICO’S GOLDEN AGE OF RAILWAYS

Mexico’s golden age of rail came under the pre-revolutionary presidency of Porfirio Díaz. When Díaz took office, Mexico had just 670 km of rail; by the end of his term in 1910, that number had jumped to 24,700 km. The building boom was fueled by concessions to foreign investors, a practical but flawed approach that produced inconsistent track gauges and just three nationwide connections. The destruction and disorder of the Mexican Revolution halted progress. Later, foreign-owned railways were nationalized, which helped standardize track width and improve interconnectivity.

Though rail suffered for decades from poor maintenance, corruption, and union strife, it still marked a major step in Mexico’s industrialization. In its early days, rail was up to ten times faster than roads and slashed freight costs by as much as 80%. But under investment, administrative failures, and shifting government priorities gradually relegated rail to a secondary role. Roads took precedence, and the consequences—congestion, emissions, economic bottlenecks—are now coming home to roost.

A DETOUR INTO ASPHALT

In 1995, under President Ernesto Zedillo, Mexican railways were privatized. The national rail system was divided among three major companies that still operate today: Kansas City Southern de México (KCSM) in the northeast, and Ferromex and Ferrosur, both now owned by the conglomerate Grupo México.

Over time, these private operators shut down nearly all passenger services, citing a lack of profitability. For many years, only two tourist trains remained: El Chepe in the Copper Canyon and the José Cuervo Express on the Guadalajara–Tequila line.

That downward trajectory began to reverse under President Andrés Manuel López Obrador (AMLO), who made passenger rail a national priority. His administration launched high-profile projects like the Maya Train and the Interoceanic Corridor and passed reforms requiring private freight lines to support or offer passenger service.

His successor, Claudia Sheinbaum, has pledged to continue this shift—supporting existing projects while proposing new routes. Together, these efforts signal a strategic turn: new rail infrastructure designed to support regional economies, diversify tourism, and ease the country’s dependence on highways.

STEEL AMBITIONS
Mexico’s new rail projects are large-scale passenger projects and freight modernization, aiming to cut road dependency, stimulate tourism, and strengthen industrial corridors.

Tren Maya – This project’s cost has ballooned to $28B USD—a passenger train stretching 1,500 km across five southeastern states. The train is now partially operational, with more sections and stations scheduled to open in the future. It aims to spread tourism away from the Riviera Maya’s concentration, create jobs, and link new economic hubs. However, the project has also been a source of significant controversy due to its environmental and social impacts.

Mexico–Toluca Interurban Train – With costs swelling to nearly $10B USD, this 58-km commuter line connects Toluca with western Mexico City. Well-publicized delays have pushed full operation out to 2026, though partial service began in 2023. The train is designed to ease congestion and reduce emissions. Its escalating costs and long delays, however, have demonstrated the hurdles faced in new infrastructure construction in Mexico.

Mexico City–Pachuca & Querétaro Lines – Two proposed high-speed routes, with the Pachuca line estimated at $2.5B USD and the Querétaro line at $7B USD. Construction began in 2025. They are intended to extend rail northward, linking the capital with fast-growing industrial centers. Strategically, they would strengthen central Mexico’s manufacturing corridor, provide alternatives to crowded highways, and reduce emissions. Political will and financing are key uncertainties for moving these projects forward.

Interoceanic Corridor of the Isthmus of Tehuantepec (CIIT): This is a freight modernization project with a reported cost of over $7 billion USD. It upgrades a 300-km rail line between the ports of Salina Cruz on the Pacific coast and Coatzacoalcos on the Gulf of Mexico. While limited passenger and freight services began in late 2023, the project is still undergoing major expansions, with the full system expected to be completed in 2026. This project is strategically significant as it is meant to create a competitive alternative to the Panama Canal. It also aims to stimulate economic development in one of Mexico’s poorest regions. Besides port expansions, the project’s plans call for new industrial parks along the route to attract investment. As promising as the project is, questions remain about its ability to attract sustained international shipping and investment.
RELIEF IN RAIL? THE VIEW FROM THE DRIVER’S SEAT
After decades of pouring resources into asphalt, the shift back to steel marks a strategic bet on efficiency and economic development. For those of us who have spent long days driving south, boxed in by semis on endless tollways, the return of rail isn’t just policy; it feels like long-overdue relief. Still, with costs climbing and schedules slipping, the success of these projects will depend on sustained political will and the willingness to commit serious resources in the years ahead