COATZACOALCOS, MEXICO—For over a century, Mexican planners have strived to connect the Pacific Ocean to the Caribbean Sea via railways crossing the Isthmus of Tehuantepec in the country’s south. The idea, first undertaken by President Porfirio Díaz in 1907, is finally coming together with renewed proportions and reach.
Since its start in 2019, the project, known by its Spanish acronym CIIT, has received massive public investment—around $4 billion—from the administrations of President Claudia Sheinbaum and her predecessor, Andrés Manuel López Obrador. It has also attracted $1 billion in projected private funding.
Alongside the railways, the government plans to create “development poles,” industrial parks designed to attract private investment in specific sectors including semiconductors, pharmaceuticals, automotives and clean energy, among others. Companies including Mota-Engil México, Grupo Carso and ProIstmo have already been granted licenses to develop them.
Because the CIIT connects two major ports and its backbone, Line Z, will move maritime cargo between them, the project is administered by the Mexican navy, which provides security for railway operations and industrial park construction. Policymakers have promised abundant energy and water resources for investors, but Indigenous communities and environmental advocates are concerned over displacement and water use.
In April, the corridor made its first major delivery. Its 308-kilometer Line Z transported 900 U.S.-bound Hyundai vehicles from Salina Cruz in Oaxaca to Coatzacoalcos, Veracruz. The operation took about a week and bested the Panama Canal on time and cost.
Process: Cargo is loaded onto a ship at a Pacific port (like Salina Cruz), transported by train across the isthmus, and then loaded onto another ship at an Atlantic port (like Coatzacoalcos/Kawasako).
Purpose: The main goal is to offer a more efficient option than the Panama Canal, particularly during periods of congestion, and to become a major logistics and manufacturing hub.
Advantages: The project promises shorter transit times compared to a full sea journey and can be a cheaper option for certain types of cargo. It also aims to stimulate economic development in southern Mexico.
Challenges: Transferring cargo between ships and trains adds complexity and time compared to a direct canal route. Some experts are also skeptical about its ability to fully replace the Panama Canal due to capacity and infrastructure considerations.
