Mexico Gets $600M Boost for Fuel Storage and Rail Expansion
A logistics company is investing $600 million over 10 years to fix Mexico's critical fuel storage shortage, the second-worst among developed nations. The project will double railway capacity and create jobs across seven states.
Mexico is about to get a massive upgrade to its fuel infrastructure, and it couldn't come at a better time.
Bulkmatic, a logistics company serving Mexico's railway terminals, just announced a $600 million investment to build fuel storage facilities and multimodal stations across the country over the next decade. The news comes as Mexico struggles with dangerously low fuel reserves, equivalent to just 3.5 days of supply compared to the international standard of 90 days.
The expansion will add 3,000 railway cars per month to Mexico's current capacity, effectively doubling what the country can handle. Commercial director Francisco Melo shared the plans at the Energy and Infrastructure Forum, where he outlined facilities planned for seven states including Nuevo León, Chihuahua, Sonora, and Jalisco.
This year alone, Bulkmatic is putting $100 million toward the first phases of a 100-hectare terminal capable of handling 500,000 fuel barrels. Three major facilities in PesquerÃa, Hermosillo, and Tula will add a combined 1.8 million barrels of storage capacity.
The timing matters because Mexico has struggled to attract private investment in energy infrastructure under previous policies. Only 12 private storage terminals currently operate, even as experts warned of "latent risk" from the shortage.
The Ripple Effect
Better fuel storage means more than just numbers on a spreadsheet. Reliable fuel supply powers factories, gets products to market, and keeps trucks moving goods across North America during a critical nearshoring boom.
The multimodal terminals will connect to both the new Interoceanic Train and Maya Train projects, weaving together Mexico's emerging rail network. Communities in Coatzacoalcos, Salina Cruz, and Progreso will gain direct links to national supply chains.
Melo noted that working with regulators has improved significantly compared to previous years. "I see a lot of openness, especially from the Ministry of Energy," he said, signaling a more business-friendly environment for infrastructure projects.
Beyond fuel, Bulkmatic plans to move plastic resin and food-grade materials through the southern terminals, diversifying what Mexican railways can carry. That flexibility will help manufacturers who need multiple types of materials delivered efficiently.
A stronger rail network means fewer trucks clogging highways, lower shipping costs for businesses, and reduced carbon emissions from freight transport.
Mexico is building the backbone it needs for its economic future, one terminal at a time.
Based on reporting by Mexico News Daily
This story was written by BrightWire based on verified news reports.
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