The Mexico City government plans to build a train line within the Bordo Poniente sanitary landfill to transfer waste to other states, Milenio reported.
The landfill will be closed in December under an agreement reached last year between the federal and Mexico City governments.
Authorities are currently assessing the transfer of waste from the capital to Edomex, Hidalgo and Querétaro states, according to federal district public works secretary Fernando Aboitiz.
The waste transfer system within the landfill will only be 2km, which means the local rail transport system will also need to be improved.
"If we build train lines we do not have to rely solely on shipping the waste to México state. Instead we can ship it thousands of kilometers away," Aboitiz was quoted as saying.
The government will decide on the location of a new landfill between October and December this year.
In the meantime, the government will tender the purchase of equipment to expand a composting plant and additional waste separation services for Bordo Poniente. The government has set aside 412mn pesos (US$34.8mn) for these tenders.
To reduce the amount of waste being sent to the landfill, the government recently cracked down on waste separation laws introduced in March.
Currently, 1,200t of organic waste is being collected on a daily basis but the government target is 3,000t.
One of the world's largest landfills, Bordo Poniente receives some 12,600t of garbage daily. The site's closure and replacement is expected to cost an estimated US$1.2bn, BNamericas reported previously.