Investment opportunities in Mexico (Part 2)

Mexico attracts the most foreign direct investment in Central and South America. The country has important natural resources that contribute to the development of manufacturing and industrial activities.

The Ministry of Economy reports that as of the first quarter of 2025, foreign direct investment (FDI) inflows into Mexico amounted to US$21.373 billion, up 5.4% compared to the first quarter of 2024 (US$20.313 billion), setting a new historical record for the period since data was recorded.

Sectors for Investment

Automotive Industry

Mexico is the seventh-largest producer of passenger cars in the world, producing 3.5 million vehicles per year. 88% of the cars produced in Mexico are exported. Established automakers in Mexico include Audi, BMW, Ford Motor Company, General Motors, Honda, Hyundai, Jac by Giant Motors, Kia, Mazda, Mercedes Benz, Nissan, Stellantis, Toyota, Volkswagen, and Tesla, which recently announced a new plant in the state of Nuevo Leon as part of its electric vehicle production.

Mexico is the fifth-largest producer of heavy-duty haulage vehicles in the world, home to 14 manufacturers and assemblers of buses, trucks, and tractors, as well as two engine makers. These manufacturers have 11 manufacturing plants that support more than 28,000 jobs across the country. Mexico is the world's leading exporter of tractors. The country is also a major exporter of heavy-duty haulage vehicles. Leading players include Cummins, Detroit Diesel Allison, Freightliner-Daimler, Kenworth Mexicana, Mack Trucks de México, International-Navistar, Dina, Scania, Volvo, VW, Man Truck & Bus, Mercedes-Benz, Hino Motors and Isuzu Motors.

Automobile manufacturers are mainly concentrated in the northern region of Baja California, Sonora, Chihuahua, Coahuila, Nuevo Leon and San Luis Potosi. Original equipment manufacturer (OEM) plants are also located in Guanajuato, Aguascalientes, Jalisco, Mexico City, Hidalgo, Morelos and Puebla. In terms of supply chains, auto parts manufacturers are located near these plants, primarily in Coahuila, Chihuahua, Nuevo Leon, Guanajuato, Queretaro, Puebla, Tamaulipas, San Luis Potosi and Estado de México, although they are also found in other parts of the country. Heavy vehicle manufacturing plants are mainly concentrated in northern Baja California, Coahuila, Nuevo Leon, San Luis Potosi, Jalisco, Guanajuato, Queretaro, Hidalgo and Estado de Mexico.

The most efficient way for foreign suppliers of auto parts and equipment to enter the Mexican market is through a local representative office or regional distribution. Assembly plants prefer suppliers that are close by to minimize inventory levels and facilitate just-in-time or just-in-sequence deliveries. Automotive parts classified as components for Tier 1 or 2 suppliers are the most exported products. However, opportunities exist for the production of engines, plastic metal hybrid components, steering castings, stampings, connectors, high-precision parts with secondary operations, machinery and equipment, materials, pre-assembled components, cold and hot forging, aluminum die-casting molds, molds, tools, cutting tools, process automation equipment, raw materials, finished parts and accessories.

As automotive technologies become increasingly complex, Mexico will seek solutions including big data, wireless technologies, electronic maps, data analytics, electrification and innovation. Exporters from other countries that also support their own design, research and development of product lines with quality, certification, price competitiveness, speed, as well as a strong sub-supply chain, project management, flexibility and adaptability are in a better position to serve customers in the automotive market and others in the advanced manufacturing sector. The main competition for original equipment parts comes from domestic manufacturers, as well as from China, Japan, South Korea, Germany, and Canada, among other countries.

Leading Subsectors and Opportunities

Mexico’s automotive industry has five main subsectors: original equipment (OE) parts, aftermarket parts, EV and hybrid parts, specialty equipment, and remanufactured products. Of these subsectors, U.S. Commercial Service Mexico sees major opportunities in OE parts, aftermarket parts, and EV parts.

Mexico’s EV market is booming as automakers have announced ambitious strategic goals to transition their offerings from gasoline to electric vehicles.

Construction

Most homes, commercial and public buildings, industrial facilities (industrial manufacturing plants, logistics and distribution centers) and multi-purpose buildings in Mexico are made of brick and concrete, which are the traditional building materials in the country. Demand for cement, steel bars, glass and air conditioning systems is growing and is not always met by local suppliers. This represents a market opportunity for foreign firms, especially in industrial areas. However, modern panel systems for multi-purpose buildings and facilities are gaining market share due to the trend for flexible spaces and zones in offices, distribution centers, and luxury apartments.

There is also a high demand for plywood. Potential niche markets exist in the furniture manufacturing sector, the construction sector (which consumes large volumes of wood for concrete molding), and the interior finishing sector, especially in flooring, paneling, and moldings.

Mexico's housing sector is dominated and funded by large independent government and semi-government agencies.

There are no major barriers to importing materials for housing construction. Some regulated products will need to meet local testing standards (e.g. wires, switches, battery backups, etc.), so you will need to check the requirements for your specific product.

For foreign companies interested in entering the Mexican housing market, one of the best options is to partner with a Mexican home builder or construction firm that operates in the sector.

Building material suppliers that have successfully entered the Mexican market typically hire a representative to sell to large distributors and construction companies in the country. In addition, it is important for manufacturers to register as building material suppliers with INFONAVIT, FOVISSSTE, FONHAPO, Pemex, CFE and government housing institutes.

Green Building

Like other emerging economies, Mexico is rapidly moving toward greener and more environmentally friendly building. Mexico has joined the World Green Building Council (WGBC) and is studying best practices in Europe, Canada and the United States to reduce costs and reap the health benefits of green and sustainable buildings. The Mexican construction industry is also eager to demonstrate to other countries how to use simple, low-cost strategies acquired through its own long-standing building practices to achieve the benefits of green building.

Mexico has a tradition of architecture that favors environmentally friendly, low-volume building methods and designs. However, policy efforts to promote green buildings are relatively new and have tended to focus on the housing sector. Leading organizations documenting and implementing green practices and working to define criteria for green buildings and homes include CONAVI, INFONAVIT, the Mexican Chamber of the Construction Industry (Cámara Mexicana de la Industria de la Construcción or CMIC), the National Chamber of Consulting Firms (Cámara Nacional de Empresas de Consultoría or CNEC), the National College of Architects (Colegio Nacional de Arquitectos de la Ciudad de México), the Mexican Council for Sustainable Construction (Consejo Mexicano para la Edificación Sustentable), Sustainability for Mexico (Sustentabilidad para México or SUME), and the Association of Firms for the Conservation of Energy in Construction and Buildings. In addition, INFONAVIT has created a “green mortgage” program supported by mandatory contributions from employers and employees.

Opportunities

To the extent that private sector construction continues, there are opportunities for foreign suppliers to construct and operate residential and non-residential buildings. These include timber windows, doors, flooring, and frames made from sustainable timber; eco-friendly paints, coatings, and coatings; eco-friendly concrete pipes for drinking water and sanitation; energy-efficient light bulbs; eco-friendly pipes and fittings for electrical appliances; skylights; certified green electrical appliances and white goods; pervious concrete; and green roof systems and equipment. There is also demand for high-efficiency air-conditioning systems and equipment; high-efficiency HVAC equipment for commercial buildings and hospitals; eco-friendly water treatment systems and devices; eco-friendly indoor and outdoor furniture; natural insulation materials; eco-friendly blocks and bricks; insulation; acoustics; and fire-resistant thermal barrier materials. There are also significant business opportunities in engineering, design, architecture, electrical, plumbing, foundations, landscaping and other green services and technologies.

The demand for IT tools, communication platforms and software to simplify construction processes, design and materials management has increased over the past year and will continue to grow in the near future. Industry experts have noted the growing interest of the Mexican construction industry in building information modeling (BIM) tools, which are steadily becoming a major asset for the construction industry as it evolves and creates opportunities for owners, architects and contractors.

IT Equipment and Services

Mexico — a large and growing middle-income market, making information and communications technology (ICT) products and services the most promising sector of the industry.

There are 38 IT clusters across the country offering software development, call centers, high-tech manufacturing, and engineering services. The National Digital Strategy Office coordinates all federal public procurement of IT products and services and has published a guide to the use of IT in public administration, which prioritizes in-country data localization for public procurement processes.

According to a study published by media intelligence firm Meltwater, Mexico is one of the fastest-growing mobile app markets in the world. Experts predict that the overall revenue in the Mexican app market will reach an annual growth rate of over 8% by 2027, leading to a projected market value of $3.6 billion.

Cybersecurity

International cybersecurity companies are present in Mexico, and the market is competitive. Companies prefer local presence and support, and the market is brand-oriented and looking for cutting-edge solutions. Some mid-sized companies are still in the early stages of implementation.  

The Mexican federal budget establishes a value-added tax (VAT) withheld from non-resident digital service providers in Mexico and includes an enforcement mechanism to ensure compliance. All non-resident digital service providers operating in Mexico are required to obtain a tax identification number, register with the Tax Administrative Service (Servicio de Administración Tributaria or SAT), and charge and collect VAT from customers.

Telecommunications Services and Equipment

Over the past decade, Mexico's telecommunications market has consistently outpaced the overall economy, driven largely by mobile phones, broadband, and broadcasting. By 2032, 5G is expected to account for around 43% of the market.

Opportunities for foreign companies in the following subsectors:

• Cybersecurity
• Mobile payments and mobile apps
• Remote work solutions
• Data center infrastructure
• Integration services
• Cloud computing
• Cloud security services
• Collaboration tools
• Internet of things
• Cloud analytics
• Business intelligence software

Mining and minerals

Mexico's mining sector represents a leading opportunity for foreign investors. This industry has grown significantly in Mexico in recent years and offers many opportunities for suppliers of machinery, tools, services and technology.

About half of Mexico's mining output is precious metals, with the remainder coming from non-ferrous, smeltery and non-metallic ores.

Metallurgy

Grupo Mexico, Met-Mex Peñoles and Fresnillo PLC are the three main producers of mineral products in Mexico, accounting for 82% of the market value. They are the largest producers of metallic ores in Mexico, supplying products to Mexico's national steel industry.

Mexico's annual imports of non-metallic mineral products include glass, clay, cement, lime and gypsum.

The cement market in Mexico is made up of six main companies, including Cemex (46% market share), Holcim-Apasco (19%), Grupo Cementos Chihuahua (2%), Cementos Fortaleza (15%), Cemento Moctezuma (12%) and Cruz Azul (5%). Most of Mexico’s imports of this material come directly from the overseas subsidiaries of these companies.

Opportunities

Mexico’s new mining law nationalized critical minerals and reserves and granted most new mineral exploration activities to the Mexican state. Exploration will continue to be a priority for the Government of Mexico (GOM) in the mining sector, and all new mining concessions must be awarded through public tender.

In April 2022, the Mexican government approved legislation to nationalize the country’s lithium reserves and create a state-owned lithium company called “Litio para Mexico,” or LitioMx. LitioMx management is a newcomer to the mining sector and is looking to partner with foreign companies to help develop Mexico's resources.

There are opportunities for 3D modeling and mining simulation software in new operations. Leading mining companies will adopt new technologies to achieve Industry 4.0 status. Automated predictive maintenance solutions, condition monitoring, and autonomous production are some examples of solutions needed in mines.

Mining operations in Mexico must meet increased environmental and labor requirements. As a result, there are opportunities to supply environmental monitoring products to the local mining industry.

Electrification of mining in Mexico will be one of the biggest technological shifts in the coming years. Progressive companies are moving away from diesel vehicles and investing in all-electric and hybrid electric vehicles to cut costs and pollution, and are embracing new technologies that are more attractive to younger consumers and the workforce.

Oil and Gas

Oil and gas are the most promising sectors, offering opportunities for foreign exporters/equipment manufacturers and service providers. Foreign companies should look to private sector companies in the market as well as Pemex (Mexico’s state oil company).

Significant oil reserves have been confirmed in Mexico by major oil and gas companies operating in the country, and efforts to upgrade existing logistics infrastructure will likely spur private sector investment and open up opportunities for foreign companies as contractors, subcontractors, or suppliers of equipment and/or technology.

In December 2013, Mexico amended its constitution to allow both domestic and foreign private investment in the energy sector for the first time since nationalization in 1938. The reforms allow international energy companies to operate in Mexico and include provisions for competitive production sharing contracts and licenses. The measure has increased demand for technology and technical expertise to develop upstream, deepwater, and shale oil and gas fields. The energy reform also allows for greater private investment in retail fuel distribution.

Pemex operates through two main divisions: Pemex Exploration and Production and Pemex Industrial Transformation. Pemex Industrial Transformation controls the country’s gas, refining, and petrochemical businesses and affiliates (drilling, logistics, fertilizers, ethylene, cogeneration, and services). Pemex International (PMI), Pemex’s international business development subsidiary, buys and sells fuels and basic petrochemical products, but not equipment.

To become a Pemex supplier, companies must first complete a registration process on the Pemex Procurement International (PPI) website. Companies wishing to become registered suppliers must provide copies of their incorporation documents, audited financial statements, and commercial and financial references.

The National Hydrocarbons Commission (Comisión Nacional de Hidrocarburos or CNH) is responsible for regulating, supervising and evaluating all hydrocarbon exploration and production activities in the country. CRE is responsible for issuing permits for the import, commercialization, transportation and storage of crude oil, gasoline, diesel fuel, lubricants and the construction of new gas stations. ASEA is responsible for approving environmental and land-use permits prior to exploration, drilling and production, including the construction of new gas stations and gas infrastructure. SENER is responsible for processing social impact assessments, which are mandatory for most major upstream activities, including the construction and operation of pipelines, storage facilities and refineries, as well as retail and distribution.

Mexico has approximately 17 trillion cubic feet (Tcf) of proven natural gas reserves. Natural gas is increasingly replacing oil as a feedstock for power generation. However, higher levels of natural gas consumption will likely depend on greater pipeline imports from other countries. Mexico has approximately 545 Tcf of technically recoverable shale gas resources, the sixth largest in the world. The true potential for accessing and developing shale gas in Mexico is constrained by the low availability of the necessary technology and the availability of low-cost natural gas from other countries. However, the country is encouraging domestic natural gas production by inviting private companies to bid on new pipelines and storage facilities for imported natural gas.

Leading Subsectors

The subsector will see opportunities in the next few years for foreign companies to sell technology and services to the oil majors that have submitted bids. The equipment required includes oil and gas derricks, oil and gas drilling equipment, Christmas fountain assemblies, drilling rigs, oil and gas drilling machinery and equipment, and engineering services.

Opportunities

Pemex's 2021-2025 investment plan includes 399 new exploration, production and production projects in shallow water and onshore in the states of Tamaulipas, Veracruz, Tabasco and Campeche, including the modernization of 25 platforms, the installation of pipelines for the Trans-Isthmus Corridor (300 km from the port of Coatzacoalcos, Veracruz, to the port of Salina Cruz, Oaxaca), and the completion of eight connections to existing shallow water platforms in the Gulf of Mexico.

Opening up the oil production market and gas will provide opportunities to sell technologies and services to private contractors and Pemex. These opportunities include the modernization of six existing Pemex refineries, the modernization of 77 Pemex storage facilities for crude oil, gasoline, diesel and lubricants, and the modernization of more than 5,000 Pemex gas stations. Current Pemex tenders require Mexican local content of 25%, reaching 35% by the end of 2025.

Equipment and services in high demand include high-pressure/high-volume pumps; hydraulic submersible pumps; filter bowls; auxiliary fuel tanks; seismic services; trenchers; plows; tunnel boring equipment; mud mixing systems; mud recycling systems; vacuum machines; pile driving rigs; working separators; silt removal equipment; and field collection lines.

Energy Sector: Electricity Infrastructure and Smart Grids

Mexico's National Grid (Sistema Eléctrico Nacional or SEN) is one of the largest in the Western Hemisphere. It consists of nine regions, as well as a binational grid in Baja California. Most of the nine regions are interconnected to form the National Interconnected System (Sistema Interconectado Nacional or SIN). The Baja California system operates in the Western United States Electricity Network, controlled by the Western Electricity Coordinating Council (WECC).

According to Mexico's National Electricity System Development Program (Programa de Desarrollo del Sistema Eléctrico Nacionalп), electricity consumption is projected to increase by an average of 2.5% per year between 2023 and 2037.

According to the International Energy Agency, Mexico's population is expected to exceed 150 million by 2050, significantly increasing energy demand. The industrial and commercial sectors account for 72% of electricity demand, representing the largest export opportunity given the need to reduce energy costs and improve energy efficiency.

On May 29, 2023, the Secretariat of Energy (Secretaría de Energía or SENER) published the 2023-2037 report, the National Grid Development Program (PRODESEN). This planning document is in line with Mexico's National Development Plan and addresses the production, transmission, distribution and commercialization needs of the National Grid. PRODESEN 2023-2037 highlights the Mexican government's commitment to ensuring universal access to electricity and promoting the country's social and economic development.

The National Grid serves more than 125 million residents across Mexico, as well as public-private industry throughout the country, making it one of the largest integrated electrical systems in the world. According to PRODESEN, the government's main objective is to meet the demand for electricity for all Mexican citizens at affordable prices and guarantee the supply of electricity to all productive sectors of the Mexican economy, with the aim of achieving equality and reducing the development gaps between the North and South in Mexico.

PRODESEN specifically includes provisions for the modernization of the electric system, including proposals for projects to expand the national transmission and distribution networks, the development of new power plants, and the rehabilitation, modernization and installation of new equipment for existing hydroelectric plants. Electricity sector planning takes into account international commitments regarding the environment, emission reduction and climate change mitigation. The energy matrix includes projections for increased clean and renewable energy generation between 2023 and 2037.

Opportunities

Mexico's electricity industry mainly offers opportunities for foreign products, services and technologies in the areas of energy efficiency, distributed generation, energy storage, small-scale renewable energy projects and distribution networks.

Comisión Federal de Eletto (CFE). The CFE is a state-owned utility company made up of ten subsidiaries, five affiliates and four business units. This structure presents operational, administrative and financial challenges, as there is a legal separation in all activities of the various companies. The subsidiaries control public electricity services through six companies responsible for generating electricity. Three other subsidiaries control the transmission, distribution and supply of electricity

The plan for the strengthening and expansion of the national electric system (2025-2030) provides for a total investment of approximately 624.6 billion Mexican pesos. On April 9, 2025, the Mexican government announced that 29,000 MW of capacity would be added through initiatives in the electricity sector, with CFE providing reliability and stable energy and private companies supporting the energy transition.

The 7 projects, which will be tendered between April and December 2025, are scheduled to be operational between 2028 and 2029:

• Francisco Pérez Ríos Combined Cycle Plant (CCC): US$827 million (tendered on April 2)
• Salamanca II CCC: US$537 million (tendered on April 23)
• Altamira CCC: US$424 million (tendered on May 14)
• Los Cabos Internal Combustion Plant (CCI): US$272 million (June 11 tender)
• Mazatlán CCC: US$529 million (July 2 tender)
• Puerto Peñasco Solar Power Plant Phase II (CFV): US$270 million (August 12 tender)
• Puerto Peñasco Solar Power Plant Phase IV (CFV): US$252 million (August 21 tender))
• Juchitán Wind Farm, Federal Electricity Commission of Oaxaca

77 new transmission projects to be tendered, including 9 in 2025 (in Jalisco, Coahuila, Sinaloa, Chihuahua, Tamaulipas, Nuevo Leon, Baja California and Guanajuato)

CFE planning is aligned with the National Electricity System Development Program (PRODESEN) 2024-2038, a public policy instrument of the Mexican government that defines a 15-year horizon of goals, strategies and priorities to meet energy demand. PRODESEN focuses on the restoration of CFE's generation, transmission, distribution and supply capacities.

Infrastructure

Mexico is considered an attractive destination for private investment in infrastructure. The Mexican government aims to transform the country into a world-class logistics platform by promoting infrastructure development and maintaining existing infrastructure, while encouraging balanced regional development and sustainable urban growth.

Today, Mexico offers competitive conditions for private sector participation in infrastructure projects, such as: a) full commitment to ongoing public investment; b) a clearly defined strategy supported by long-term planning; c) diversified long-term public and private financing in local and foreign currencies; and d) a solid institutional and legal framework.

Airports

The Mexican Airport System (SAM) consists of 80 airports - 66 international and 14 domestic - along with 1,530 airfields and 577 heliports. Of the 80 airports, 35 are concessioned to three airport groups (OMA, ASUR and GAP), which together with Mexico City International Airport (AICM) handle 80.2% of passenger traffic and 78.6% of cargo.

The largest number of passengers are handled in Mexico City, Cancun and Guadalajara, each of which has one of the three largest airports in the country. In addition, the airports in Mexico City, Guadalajara and Monterrey handle the largest share of cargo traffic.

Airport groups:

• Aeropuertos y Servicios Auxiliares (ASA): 2 domestic airports
• Grupo Aeroportuario Marina: 7 airports; 1 domestic and 6 international (AICM, GACM and SACM in the process of merging)
• Felipe Angeles International Airport (AIFA): 1 international airport
• Grupo Aeroportuario, Ferroviario de Servicios Auxiliares y Conexos, Olmeca-Maya-Mexica (GAFSACOMM): 12 airports; 2 domestic and 10 international
• Grupo Aeroportuario del Pacífico (GAP): 11 international airports.
• Grupo Aeroportuario Turístico Mexicano (GATM): 2 international airports.
• Grupo Aeroportuario Centro Norte (OMA): 13 international airports.
• Private: 3 airports; 2 domestic and 1 international
• Partnership: 3 international airports
• Grupo Aeroportuario del Sureste (ASUR): 9 international airports
• Others (including public, private and municipal): 11 airports; 4 domestic and 7 international

According to Article 38 of the Airports Law, concessionaires, transferees and airport operators must develop a General Development Plan based on national policies and programs for the development of the airport system, as well as its relationship with other modes of transport, in accordance with the issued Rules and Technical-Administrative Regulations. Once approved by the Federal Civil Aviation Agency (AFAC) with the prior opinion of the Ministry of National Defense or the Ministry of the Navy, as the case may be, and the Ministry of Infrastructure, Communications and Transport (SICT), this plan will become an integral part of the concession title. The General Development Plan must be reviewed every five years.

Ports

In Mexico, the General Coordination of Ports and Merchant Shipping (CGPMM) of the Ministry of the Navy (SEMAR), through the General Directorate of Development and Management of Ports, carries out, coordinates and promotes planning, programming and evaluation activities to promote the integrated development of the 12 federal administrations of the national port system (ASIPONAS) belonging to the Ministry of the Navy and the 4 ASIPONAS of the multimodal platform of the interoceanic corridor of the Isthmus of Tehuantepec (CIIT).

The ASIPONAS, created as priority public companies, are responsible for planning, programming, development, use, operation and exploitation of the port granted under concession, being self-sufficient, productive and competitive. They can also grant partial concessions to private companies for the construction, operation and maintenance of terminals, marinas and port facilities.

The partial concessions have increased competitiveness in the sector by opening the market to private companies specialized in the handling of goods.

Mexico has 118 port terminals (18 federal and 6 public), distributed as follows:

• 103 ports
• 15 terminals, of which 6 are specialized container terminals (SCT) and 9 are multipurpose terminals

On December 5, 2024, the Mexican Government, through the Ministry of the Navy, announced a federal investment of 32,875.24 million pesos (MXN) for the modernization and expansion of six strategic ports: Ensenada; Manzanillo and Nuevo Manzanillo; Lazaro Cardenas; Acapulco; Veracruz and Progreso.

The modernization of these ports aims to increase their capacity to receive cruise ships and handle container cargo. In addition, for Puerto Progreso, the goal is to make it the most important port on the Yucatan Peninsula.

In 2024, more than 272 million tons of cargo were transported through the National Port System, of which more than 80% were ASIPONAS, as well as 9.37 million containers (TEU).

The increase in the size of ships is a growing trend, especially noticeable in ports along the Pacific coast that receive routes from Asia. In this context, the ability to receive large-size ships has become strategically important.

Seaports are fundamental to world trade, as they provide access to any continent and country. According to the document “El Desarrollo Portuario Requerido para México” CGPMM, 82% of the world's goods are transported by sea.

Mexico has connections to 63 countries through 316 ports, with 145 regular shipping lines arriving: 124 ocean and 21 coastal shipping lines. In value terms, 38% of imports and 20% of exports were transported by sea. In addition, maritime transport accounted for 30% of the total volume of goods transported.

Land Connection

According to the Rail Regulatory Agency, rail connections in ports are key to the development of intermodal corridors in the country. Currently, 69% of the ports managed by the federal ASIPONAS have rail connections. However, there are challenges in improving the integration of these corridors, especially through last-mile connection projects, shortening and rehabilitation of rail lines.

Currently, 10% of cargo in federal ports is handled by rail. On the other hand, more than 90% of cargo handled in ports is transported by road, which poses a major challenge in transport management, especially in ports that can handle more than 3,000 trailers per day.

Railway

The Mexican Rail System (SMF) covers 27,732 km, divided into 22,036.6 km of main lines and branches, 2,759 km of secondary lines and 2,936.8 km of private tracks connected to the main lines. Of this total, 18,024 km have been concessioned to the private sector for operation.

In terms of international connections, SMF connects to the US rail network and the southern border with Guatemala and Belize, aiming to facilitate integration with global markets and strengthen Mexico's competitiveness as a key logistics hub in the region.

According to the Rail Transport Regulatory Agency (ARTF), rail connectivity in ports is key to the development of intermodal corridors in the country. Currently, 69% of ports managed by the National Port System Authorities (ASIPONAS) have rail connections. However, challenges remain to improve the integration of these corridors, especially through last-mile connectivity, shortening and rehabilitation projects.