Mexico's Multimodal Capabilities for North American Integration

As Mexico deepens its role within the North American logistics ecosystem, its capacity to modernize and integrate multimodal infrastructure has never been more pivotal. With the trade-corridor momentum triggered by near-shoring and shifting global supply chains, the country stands at a critical juncture: either evolve its transport and logistics framework, or risk being relegated to a peripheral role.

Mexico already features prominently in continental trade flows, yet achieving “real” integration into the North American logistics system requires more than volume-handling. It demands interoperability, digital connectivity, and alignment with US/Canadian systems.

“Mexico, the United States, and Canada share highly integrated infrastructure, yet border processes remain a key bottleneck to increasing trade. Efficiency can improve not only through new projects but by optimizing existing capacity with standardized procedures such as joint inspections and international crews. Expanding these models and advancing OEA programs could make Mexico’s border as seamless as Canada’s, where destination-based, non-intrusive inspections enable smooth, high-volume rail crossings,” says Francisco Fabila, Director General, Ferrovalle.

Mexico is investing billions in its transport system, rail, roads and ports, with the explicit aim of boosting trade and economic growth. However, as a proportion of total public spending, physical investment will represent just 9.5% in 2026, up only 0.4% from 2025’s share, reads a report from México Evalua. For context, in 2014 investment accounted for 18% of budgetary outlays, nearly double the current share.

Strengthening Mexico’s Multimodal Capacity 

The USMCA provides the framework for a highly integrated continental freight system, and cross-border rail momentum continues to grow. Between January and October, Mexican railroads moved over 1 million carloads and intermodal units, which represents a 4.4% decline compared with the same period in 2024. 

To truly integrate with North America, Mexico needs to harmonize freight, customs, and cross-border regulations with the United States and Canada, including technical standards such as signaling systems, container tracking, and security protocols, reports JUSDA. 

At the same time, the country needs to expand strategic multimodal corridors that connect industrial hubs with North American markets through efficient combinations of rail, ports, and highways to reduce transit time and costs. Achieving this also requires stronger institutional coordination among federal and state authorities and private logistics operators, ensuring system-wide efficiencies instead of isolated infrastructure improvements.

“Mexico, as part of North America, the world’s most dynamic economic region, maintains the largest trade relationship in history with the United States, nearing US$800 billion annually. Despite challenges, investment and trade keep growing, driven by strong industrial activity. Key opportunities lie in improving infrastructure, regulation, and logistics to enhance interconnectivity and streamline cross-border processes, shifting inspections to origin and destination points to fully leverage regional integration,” states Rodrigo Morales, Vice President of Project Delivery Latin America, AECOM.

Modernizing the Network

For logistic operators, rail remains the backbone of high-volume freight movement, particularly for North American integration. In April, Mexico announced a US$7.72 billion investment to modify its rail network, which includes 774km of new tracks in 2025, 70km of freight rail for the Mayan Train, and 170km of freight rail along the Interoceanic Corridor of the Isthmus of Tehuantepec (CIIT). 

“Every year, companies invest to expand capacity and improve processes, often driven by new technologies. While many claim Mexico lacks infrastructure, the reality is that nearly every logistics company is focused on increasing capacity, developing new business opportunities, and reducing costs through technology and operational efficiency,” shares Sergio Castañeda, CEO, BTX Global Logistics.

For operators, scaling rail capacity and diversifying routes is critical, says JUSDA. This requires adding kilometers of track, while enabling heavier axle weights and opening new corridors that support Pacific-Atlantic flows and Mexico-US border connectivity. Furthermore, the industry needs seamless intermodal terminal integration so rail links efficiently with ports and industrial parks, since poor first- and last-mile design quickly turns rail into a bottleneck. 

“Investment in infrastructure will continue to strengthen Mexico’s already deep integration with North America, a process that began nearly 30 years ago with the privatization of the rail system. The inauguration of CPKC’s second international rail bridge in Laredo-Nuevo Laredo this year is another clear example of the growing connectivity and evolution of cross-border rail transport,” says Alejandro Doria, President and CEO, Bulkmatic de México

Modern signaling systems, real-time traffic management, and strong maintenance regimes are also necessary to provide the predictable throughput that logistics users demand, along with regulatory clarity on concession access, standardized tariffs, and open-access terminals to reduce fragmentation across the freight system. Operators must also adapt to strategic shifts brought by initiatives such as the CIIT, which introduces an east–west flow that complements the traditional north-south trade axis, reshaping how cargo moves across North America.

“Rail transport now connects Mexico City to destinations like Toronto within days thanks to growing collaboration among operators across North America, a complex but successful integration that continues to expand,” says Fabila.

Financial and Governance Schemes

The nodes in a supply chain (ports, terminal hubs, and industrial parks) increasingly differentiate logistics competitiveness. Mexico has committed federal investment of MX$55.2 billion for six strategic ports — Ensenada, Manzanillo, Nuevo Manzanillo, Lazaro Cardenas, Acapulco, and  Progreso — to modernize capacity and container handling. 

“For investors, legal certainty is essential when developing infrastructure, as these projects often span 20 years or more. Clear and stable regulations, and avoiding overregulation, are crucial. When these conditions exist, financing is not an obstacle; there is strong interest from private banks and infrastructure investment funds. The government’s role should be to set transparent, straightforward rules that provide confidence for developing key logistics infrastructure, port, multimodal, intermodal, rail, and road terminals alike,” states Doria.

Mexico’s industrial parks, with 477 operating across 28 states and more than 100 under development, together generate about 98% of national manufacturing GDP, reports AMPIP. These parks attract 98% of foreign direct investment in manufacturing, and produce 99% of the country’s manufacturing exports. 

“Attracting investment is no longer about cheap land or tax breaks but about regulatory efficiency. Companies seek quick, simple permit processes to start operations faster. In Mexico’s three-tiered system, states and municipalities that streamline environmental, construction, and operational approvals gain a clear competitive edge in attracting investors,” adds Morales.

The parks function as critical logistics platforms by offering ready-to-operate infrastructure for OEMs and suppliers, ensuring compliance with security and ESG standards, accelerating facility setup and operational continuity, and concentrating logistics services with customs-ready operations. Wherever industrial parks are established, manufacturing strength follows, and that growth, in turn, drives further expansion of park capacity. They are not only engines of economic development, but structural nodes that shape and enable Mexico’s multimodal logistics architecture.