Intermodality: A Key Solution to Mexico’s Cargo Challenges

Mexico’s freight and logistics sector is under growing pressure to modernize, as it grapples with infrastructure strain, rising costs, and the environmental impact of road-heavy cargo transportation. Intermodal transport, which uses multiple modes like rail, road, and maritime under a single cargo unit, could be a viable strategy to rebalance the system.

While still representing a small portion of total freight movement in the country, intermodal transport is drawing increased attention from both private operators and public planners thanks to its potential to reduce costs, improve security, and lower carbon emissions.

“There is a clear opportunity for intermodal growth, as many goods currently moved by truck could shift to rail,” says Paul Hirsch, AVP Mexico Business Unit, BNSF Railway, to MBN.

A Heavily Skewed System

Mexico’s freight transport remains dominated by trucks. According to CANACAR, road transport handled 57% of domestic cargo in 2023, while rail accounted for just 13.25%. This imbalance creates inefficiencies in long-haul shipments and raises concerns about long-term sustainability, argues a research paper from the Mexican Institute of Transportation (IMT).

“We have had a heavily unbalanced system for decades. This not only raises logistics costs but limits Mexico’s competitiveness in the long term,” says Francisco Fabila, Director, Ferrovalle, and President, Mexican Railway Association (AMF), to MBN.

Intermodality as a Counterbalance

Intermodal transport allows cargo to move across multiple modes, typically rail and truck, within the same sealed container. This minimizes handling, reduces risk of theft, and improves tracking. Most importantly, it makes use of the rail network for long-haul segments, relieving highways of heavy freight traffic.

According to Regulatory Agency for Rail Transport’s (ARTF), in March 2025 alone, rail concessions in Mexico transported 81,598 containers, representing over 0.82 million t. Two operators, Ferromex (FXE) and Kansas City Southern de México (KCSM), accounted for nearly 97% of intermodal container movement.

Intermodality can be a bridge between rail and businesses that have traditionally relied solely on trucks. “Many companies do not know how to access rail, but intermodal terminals offer them a starting point,” Fabila tells MBN.

Ferrovalle itself handled 550,000 TEUs in 2024 and now operates what it says is the largest inland intermodal terminal in Latin America. One of its busiest corridors, Mexico City to Mexicali, has shifted from truck-dominated to rail-integrated, with consistent double-digit growth over seven years.

Operational and Environmental Benefits

Data from the Ministry of Energy (SENER) shows that truck driving accounted for over 90% of fuel consumption in the transportation sector in 2023, while rail used just 1.02%. In terms of energy consumption, the transportation sector accounted for 48.80% of the total petajoules nationwide, while rail transport represented only 0.5%.

The appeal of intermodal transport lies in its ability to combine the flexibility of trucks with the efficiency of trains. “Intermodal transport can reduce logistics costs by up to 70%, depending on planning and route. It also lowers the need for in-house trucking fleets and offers more scalable options,” says Fabila.

Diego Anchustegui, Commercial Director, Transportes EASO, highlights four major benefits of using intermodal transport for cargo owners: it is more cost-effective depending on the route and distance; it is up to 75% more environmentally friendly compared to conventional trucking; offers greater capacity, especially crucial given the shortage of 56,000 truck drivers, which is projected to nearly double to 106,000 by 2028; and provides significantly higher security, with theft rates as low as 0.5% on certain routes.

Railway investments are also private, meaning less public spending on highways and roads. Intermodal transport also reduces highway congestion by removing trucks from the roads, which decreases accidents and fatalities, says Anchustegui. Increasing intermodal usage can also dramatically lower logistics costs, which in turn helps reduce inflation, he adds. 

Other benefits include:

• Lower emissions: Trains consume significantly less fuel per ton-kilometer than trucks.

• Increased capacity: Trains can carry up to 220 containers per trip.

• Relief on roadways: A single train can replace 240 trucks, according to Joss Romero, CEO and Founder, Multimodal Solutions Cargo.

Structural Challenges Remain

Despite its potential, intermodal adoption in Mexico remains limited, holding just 5% of the logistics market, according to AMTI.

“One of the biggest barriers is lack of knowledge. Clients often expect intermodal to behave exactly like truck transport, same speed, same customs process, but it requires a different approach and collaboration between all parties,” says Adriana Muñoz, General Director Mexico, Matson Logistics.

Customs clearance, in particular, poses a hurdle. Unlike road freight, which clears customs at the border, intermodal shipments typically require inland customs clearance, a process unfamiliar to many shippers. Another issue is the nature of intermodal terminals. They are regional hubs, not end-to-end delivery centers, typically servicing areas within a 200km-300km radius. This requires additional planning and infrastructure on the client side, says Fabila.

Cross-Border Developments and New Services

Cross-border freight represents a major growth opportunity for intermodal transport. According to the Association of American Railroads (AAR), the total volume moved by rail between Mexico and the United States from January to July was 718,717 cars, with 321,516 being intermodal. This represents a 0.4% increase compared to the previous year and accounts for 44.7% of the total railcars.

Several new initiatives have been launched to accelerate this trend. For example, US-based logistics company Schneider has halved transit times between Mexico and Chicago by switching to the CPKC rail network, while maintaining a 99.98% cross-border security rate. Meanwhile, J.B. Hunt, BNSF, and GMXT launched Quantum de México in May 2025, a new service offering expedited intermodal shipping with real-time tracking, 24/7 oversight, and a reported 95% on-time rate.

Public Investment and Nearshoring Context

Public initiatives are also expanding intermodal capacity. The Interoceanic Corridor of the Isthmus of Tehuantepec (CIIT) is expected to link the Pacific and Atlantic via rail and ports. Meanwhile, the Mayan Train freight division is building terminals in Palenque, Progreso, Poxila, and Cancun to support regional cargo movement.

These investments align with the country’s broader nearshoring strategy, as manufacturers increasingly relocate operations closer to North American markets. According to reports from AMTI and the AAR, cross-border transport moves 27% of intermodal (IML) cargo in Mexico, domestic transport accounts for 6%, and maritime transport represents 67%.

Outlook: Expansion Depends on Coordination

Most experts agree that further intermodal growth in Mexico hinges on greater integration between transport providers, government agencies, and the private sector. “Success depends on collaboration between rail, road, customs, terminals, and the customer. Without alignment, delays and added costs can undo the benefits,” says Romero.

At the same time, educating companies about intermodal processes and investing in scalable infrastructure, both physical and digital, will be critical to unlocking the system’s full potential.

“We are seeing more interest, but also a need for patience and process adjustment. With the right support, intermodal can transform how cargo moves across Mexico,” says Muñoz.

Follow our MBS 2025 tag and do not miss our coverage leading to Mexico Business Summit 2025 on October 28–29, 2025. On Tuesday, July 29, 2025, we will delve into how supply chain optimization can help companies counter geopolitical uncertainty. 

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