Rail Export Boom to Transform Baja California’s Logistics

Q: How is Baja California Railroad (BJRR) transforming its operations in response to recent market changes? 

A: BJRR has been under our administration since 2012, but the company’s history spans over 35 years, and rail operations in this corridor have existed for more than a century. Our mission remains to provide efficient, binational connectivity to support the region’s industrial growth. BJRR is dedicated exclusively to freight transportation, focusing on long-distance cargo where rail offers a competitive advantage over trucking. We operate a unique 71.4km line in Baja California, starting in San Ysidro, California, under a US-based corporation with a Mexican subsidiary. This model enables cross-border operations through SDIV and BNSF.

Our main clients are in the manufacturing sector, which thrives on the US border with California, the world’s fourth-largest economy. This allows raw materials to be transformed locally into finished goods that are largely exported back to the United States. While manufacturing is our primary focus, we also serve other industries requiring rail transport.

Q: What opportunities have you identified in the Tijuana-Tecate short line, and what investments or infrastructure improvements are necessary to unlock its potential? 

A: Despite operating a relatively short line, the Tijuana–Tecate corridor plays a critical role in Baja California’s manufacturing sector by serving as both an origin for finished goods and a destination for raw materials from around the world. This unique position makes BJRR a key logistics link for over 1,200 manufacturing plants in Tijuana, a city experiencing rapid industrial growth with multiple new parks under development.

However, the region faces severe congestion and limited border crossing capacity. Trucks can spend two to three hours, sometimes longer, waiting to cross into the United States, generating significant emissions. Rail offers a faster, cleaner alternative: a 60-car train can cross in about 30 minutes using one locomotive, one engineer, and two crew members, replacing over 300 trucks. This reduces congestion, emissions, and staffing needs at border facilities on both sides, benefiting US CBP and Mexico’s customs authorities.

While rail cannot provide door-to-door service, it complements trucking by handling long-haul transport and leaving the last mile to road carriers. By improving rail mobility and border efficiency, BJRR aims to enhance regional competitiveness and strengthen its integration into North American trade corridors. 

Q: How will your new in-house customs facility in Tijuana enhance your ability to capture cross-border freight and compete with traditional trucking routes?

A: For the first time in nearly 75 years, BJRR will soon be able to export goods by rail from Tijuana, thanks to a new in-house customs facility equipped with X-ray and gamma-ray inspection systems. This US$10 million investment by ANAM addresses a critical infrastructure gap that had long prevented rail exports from the region. Operations are expected to begin within two months.

The facility will significantly ease Tijuana’s road congestion by diverting freight from trucks to rail, reducing emissions, and bypassing challenges such as lengthy border waits and the shortage of English-speaking truck drivers required by US authorities. Major manufacturers like Toyota, Hyundai, Samsung, and Heineken, which move high truck volumes daily, stand to benefit from faster, cleaner, and more reliable cross-border logistics.

While BJRR’s rail capacity is finite, the company plans to manage it strategically to serve the largest possible number of industries. The project is the result of years of coordinated efforts between ANAM and the Baja California state government, backed by technical studies and revenue justifications.

Q: Given that all railway infrastructure in Mexico is federally owned, what constraints or opportunities does this create for BJRR’s capacity expansion plans?

A: BJRR’s growth potential is directly tied to the expansion and condition of the rail lines it operates under federal concession. In Mexico, all railway infrastructure belongs to the federal government, and companies like BJRR operate through granted rights-of-way. This means any increase in capacity depends on the availability and quality of these rights-of-way, as well as the ability to develop additional tracks within those limits to serve more customers.

Q: How have tariffs influenced rail freight volumes and demand on the Tijuana-Tecate corridor, and what are your expectations regarding their future impact on rail-based logistics? 

A: Since the pandemic, BJRR experienced an initial drop in imports, largely due to disruptions in maritime-rail flows from the Port of Long Beach, but has since rebounded, growing about 25% post-pandemic with steady annual increases. US tariff proposals do impact trade, though many products BJRR moves remain exempt under free trade agreements. Still, some industries face higher costs, prompting shifts to alternative suppliers or transport modes.

Uncertainty around US trade policy, especially under Donald Trump’s administration, creates volatility for border markets. Yet Baja California’s geographic advantages — a seaport in Ensenada, an international airport, two border crossings, and rail infrastructure — position it to remain a manufacturing leader and logistics hub. The region’s industrial base includes global operations like Toyota’s Tacoma production and major electronics manufacturing facilities, giving BJRR confidence in continued growth despite tariff-related challenges. 

Q: What potential impact could the proposed expansion of the Port of El Sauzal have on Baja California’s rail and intermodal connectivity if it moves forward? 

A: A port’s full development is only possible when it is connected to rail. Ensenada currently lacks that link, which is why the planned connection between the Tijuana–Tecate short line and Port of El Sauzal is considered essential. The project, led by ANAM and the Navy, involves significant investment, with each kilometer of rail in the border region costing between US$700,000 and US$1 million.

BJRR is in close coordination with ASIPONA to align port expansion with future rail operations and is interested in participating in the construction and operation phases. While El Sauzal still has some capacity for growth, its geographic constraints make long-term expansion limited, prompting the state to also evaluate Punta Colonet as a complementary deepwater port.

These long-discussed projects are now gaining momentum under the current federal administration’s strong support for rail infrastructure. Even if full completion is not achieved within this presidential term, starting construction would mark a critical milestone for Baja California’s logistics capacity, enabling greater intermodal connectivity and attracting long-term investment.

Q: Which sectors are driving the highest utilization of BJRR’s services, and how are you adapting your operations to respond to these shifts in market demand? 

A: In 2025, BJRR’s strongest growth potential remains in the industrial sector, the main economic driver in Baja California. To meet rising demand, particularly from manufacturing, automotive, agriculture, and energy, we are expanding strategically located transfer stations and rail infrastructure to make logistics more efficient, secure, and adaptable.

These investments are designed to support the region’s heavy reliance on imports and exports, especially amid tariff uncertainties. While our rights-of-way provide ample room for growth, Tijuana’s urban expansion around a century-old rail line limits future expansion options, making strategic use of existing infrastructure critical.

Q: What are BJRR’s key performance expectations and operational milestones for the remainder of the year?

A: By year-end 2025, BJRR expects freight volumes to grow between 70% and 80%, driven primarily by the launch of rail exports. For 2026, projections point to a 150%–156% increase, as exports deliver significant gains in supply chain efficiency, mobility, environmental impact, and industrial park competitiveness.

To sustain this growth, BJRR is expanding locomotives, crews, rail lines, and transfer stations though existing rights-of-way. However, Tijuana’s urban encroachment will limit capacity over the next three to four years. Another immediate focus is positioning rail as the safest and most reliable mode for legal hydrocarbon imports, helping the federal government combat fuel theft. BJRR has spent the past four to five years preparing infrastructure and compliance processes, working daily with ANAM and the Attorney General’s Office, to ensure secure, lawful transport, benefiting both national security and end consumers.


Baja California Railroad (BJRR) is a railway company operating the Tijuana-Tecate short line in Baja California that mainly provides boxcar transportation services. Its northwestern connection is made through the San Diego and Imperial Valley Railroad (SDIV), which in turn interchanges with BNSF in downtown San Diego.