How Railroad Security Teams Are Fighting the Rise in Cargo Theft

Inside Grupo México’s Railroad Security Operation Taking On Cargo Theft

Grupo México Transportes is expanding its Gulf of Mexico rail ferry operation while using a technology-focused security strategy to protect freight moving across its network.

The Mexican railroad has ordered two additional rail ferries, each capable of carrying 150 railcars. The vessels will support the CG Railway joint venture with Genesee & Wyoming, which operates rail ferry service between Mobile, Alabama, and Coatzacoalcos, Mexico.

Demand for the service has outgrown existing capacity, particularly as shipments of finished vehicles manufactured in Mexico continue to increase. The railroad has also gained freight share from highway carriers, barge operators and other rail services, according to Bill Stephens of Trains Magazine, who recently visited Grupo México Transportes’ headquarters in Guadalajara.

For trucking companies and drivers serving North American freight lanes, the expansion is another sign that rail is competing more directly for automotive, intermodal and other cross-border business. Grupo México operates the Ferromex and Ferrosur railroads and is part of the broader Grupo México conglomerate.

Rail ferries add another Gulf crossing option

The CG Railway service moves railcars directly aboard specialized vessels. At the port, rail equipment is pushed onto tracks on the ferry, secured in place and transported across the Gulf. The process allows freight to remain in railcars rather than being transferred between rail and barge equipment.

The service connects Mobile with Mexican ports and can provide an alternative to all-land routings for some U.S.-origin freight. It has also taken business from short-sea barge services that move finished vehicles through the Port of Veracruz.

Stephens said the strength of demand and the share gained from barge operators helped justify the order for two more ferries. Each new vessel will have capacity for 150 cars, adding substantial room to a service that is already operating under pressure from rising volumes.

The growth is concentrated in automotive and intermodal traffic, two areas where rail and trucking frequently compete for the same freight. Truck drivers may still handle the first- and last-mile portions of these moves, but additional rail capacity could affect the longer line-haul segment on selected cross-border and port-related lanes.

Security strategy changed in 2016

Grupo México’s approach to cargo theft changed significantly in 2016. Instead of relying primarily on armed guards riding trains, the railroad moved toward a combination of surveillance technology, real-time monitoring and coordinated support from Mexico’s National Guard.

The railroad’s security monitoring center tracks train movements, including speed and air-brake-line pressure. Drones are used to monitor track corridors ahead of high-value intermodal and automotive trains, while a National Guard liaison is embedded at the operation.

In a recent weekly snapshot, the railroad recorded 72 incidents among approximately 30,000 shipments. Most of the reported events involved open container seals rather than confirmed cargo theft, according to the information provided by Stephens.

The railroad also uses 30 mobile trailers positioned near locations identified as theft hotspots. The trailers house National Guard personnel close to problem areas, allowing them to respond more quickly to criminal activity along the right-of-way. Grupo México covers the personnel’s food and lodging costs under the arrangement.

Localized theft patterns create different challenges

The security operation reflects the nature of the threats Grupo México faces. Stephens described Mexican rail theft as largely localized, with gangs sometimes operating within about a 30-mile radius of affected areas. In some cases, groups are accused of causing or taking advantage of train derailments before looting freight from the site.

That pattern differs from the organized criminal networks associated with some cargo theft in the U.S. Southwest. The distinction matters for railroads, trucking companies and shippers because the response may require different combinations of technology, law enforcement coordination and local security resources.

Across the United States, the Association of American Railroads and major retailers are supporting federal legislation intended to improve coordination among federal, state and local agencies responding to cargo theft. The effort is part of a broader push to address organized retail and freight crime.

Grupo México broadens its transportation network

Grupo México Transportes is increasingly positioning its businesses as a multimodal network linking rail with highway and short-sea transportation. Its growth has come as it takes freight from several modes rather than relying solely on traditional rail competitors.

The company is also benefiting from changes in cross-border traffic patterns, including increased use of the Eagle Pass gateway following the Canadian Pacific-Kansas City Southern merger. At the same time, Grupo México continues to report growth in automotive and intermodal business on its own network.

Further capacity could come from infrastructure projects at the Port of Manzanillo, Mexico’s busiest port, which is beginning an expansion. The project could affect future freight flows handled by Ferromex, although the timing and scale of that impact were not specified.

For professional drivers, the developments point to a changing freight network in Mexico and across North America. More rail ferry capacity may create additional competition on long-haul lanes, while the railroad’s security program shows how carriers are combining technology and law enforcement partnerships to reduce cargo theft exposure. The shift does not eliminate the need for trucking, but it may change how freight is divided among rail, road and water as Grupo México continues to expand.