The Texas Mexican Railway is a railroad that operates as a subsidiary of the Kansas City Southern Railway in Texas. It is referred to as the Tex-Mex, or TexMex Railway. On January 1, 2005, Kansas City Southern took control of the Texas Mexican Railway and the U. S. portion of the Texas-Mexican Railway International Bridge in Laredo, Texas. The railroad is a vital link in KCS's rail network, connecting The KCS and TFM, S. A. de C. V. While Tex-Mex remains a separate legal entity, KCS and Tex-Mex are operated as one railroad. Chartered in March 1875, the Corpus Christi, San Diego and Rio Grande Gauge Railroad built a 3 ft narrow-gauge line from Corpus Christi, Texas to Rancho Banquete, Texas between 1875 and 1877, on to San Diego, Texas by 1879; this 52-mile line's main purpose was to take domestic sheep from Texas ranches to the shores of the Gulf of Mexico, received some funding from Richard King and Mifflin Kenedy. In 1881, the line was sold to a syndicate that included William J. Palmer and it was given a new charter as the Texas Mexican Railway.

Under this document, the line was built an additional 110 miles to Texas. While the charter allowed for other lines which would have made a 1,400-mile network, including one line from San Diego to the Sabine River with branch lines to Tyler, San Antonio and Sabine Pass, these expansions were never constructed; the small Galveston and Colorado Railroad was purchased in 1881 for a connection to Galveston, but a line was never built between the two railroads. In 1883 a bridge was built across the Rio Grande to Nuevo Laredo, making the Tex Mex the first Mexican-American rail connection; this granted rail access for all of Northern Mexico to the Port of Corpus Christi, devastating international commerce in Brownsville in the lower Rio Grande Valley, its deep water port, Los Brazos de Santiago. This rail connection devastated the commercial navigation of the Rio Grande, between Rio Grande City, Camargo and Los Brazos de Santiago, located adjacent to the mouth of the Rio Grande, it was not until 1889.

In 1910 an international rail bridge was completed in Brownsville and Matamoros, owned and operated by the Brownsville and Matamoros Bridge Company, a joint venture of the Union Pacific and the Mexican government. The Mexican government controlled the Tex Mex from 1900 to 1982, when privatization made it part of Grupo TFM; the railway became 4 ft 8 1⁄2 in standard gauge on July 17, 1902. In 1906 it bought the Texas Mexican Northern Railway, in 1930, the San Diego and Gulf Railway. Ordered on April 22, 1938, seven Whitcomb Locomotive Works diesel locomotives were delivered between August and November of 1939. While some steam locomotives were kept until 1946 or 1947, they were never used, the Tex-Mex is considered to be the first railway in the world to dieselise, they began operating a 19-mile government railroad from Corpus Christi to a naval air station in 1940. In 1995, the expanding KCS bought 49 percent of Tex Mex, in 1997, the Surface Transportation Board granted trackage rights to the Tex Mex to connect to the KCS at Beaumont, Texas.

Responding to increased international trade between the US and Mexico, the railroad built a large railroad yard and intermodal freight transport facility at Laredo in 1998. In 2002, both companies sold their shares to Grupo Transportación Ferroviaria Mexicana. In August 2004, KCS again purchased a controlling interest in Tex Mex, although they were held by a trust company until the Surface Transportation Board approved the move for January 2005. In June 2009 Tex Mex began operating on new trackage between Victoria and Rosenberg, known as the Macaroni Line; the line was built in 1882 and was called the Macaroni Line because the main food for the workers constructing the line was macaroni. In 1885 it was acquired by Southern Pacific, which operated the 91-mile line until 1985. In 2006 KCS and Tex Mex announced they would rebuild the Macaroni Line to end the need for trackage rights on a circuitous Union Pacific route. Construction began on January 2009 and the line opened for the first trains in over 20 years by June 2009.

The line now operates daily trains and has CTC signaling

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