This is a best prospect industry sector for this country.  Includes a market overview and trade data.
Last Published: 10/17/2019
The wide-ranging category of equipment and services for transportation infrastructure is a best prospect industry sector for Mexico. This section includes an overview of several key dimensions of this sector, together with selected trade data.


Overview

The following table provides the most recent statistics for transportation infrastructure equipment and services in Mexico. Please note that these figures combine data from the country’s air, rail, trucking, and marine transport networks and represent our best estimate of the combined market size of this blended “sector.”

Mexico Transportation Infrastructure Equipment and Services Market Overview
(Figures in USD Billions)

 
2016201720182019 (Estimated)
Total Local Production4.774.804.794.75
Total Exports4.034.054.034.00
Total Imports1.401.421.481.45
Imports from the U.S.0.880.890.91.90
Total Market Size*2.142.172.242.23
Exchange Rates18.6818.9119.22719.15
*Total market size = (total local production + imports) - exports
Note: Data includes trucks for semi-trailers.
Source: National Bank for International Trade (Bancomext) & Secretariat of Economy


The Mexican transportation sector continues to offer significant opportunities for U.S. exporters due to the sizeable growth in Mexican foreign trade and travel over the past 20 years and an increase in the transportation of merchandise arriving at Mexican ports for domestic consumption and for export to the United States, Canada, and other final destinations. This requires a transportation sector positioned to provide efficiency, cost savings, capacity, and cargo security.

The National Development Plan for 2019-2024 (Plan Nacional de Desarrollo, or PND) was announced by President López Obrador on May 1, 2019. Based on this plan, the administration intends to continue focusing on transportation infrastructure development, though with a major emphasis on the states of southern Mexico, particularly Tabasco (the president’s home state), Chiapas, and the Yucatán Peninsula states of Campeche, Quintana Roo, and Yucatán. The president announced 25 priority national development initiatives, of which roughly half involve transportation infrastructure development or other types of physical infrastructure construction. These include a re-envisioned airport system for the greater Mexico City metropolitan area and surrounding states, development of a multi-modal cargo corridor across the Isthmus of Tehuantepec, a passenger and cargo “Maya Train” on the Yucatan Peninsula. There is also a program for rural roads, and developments in various sectors including oil and gas production, refinery development, agricultural production, and mines.

With an initial planed investment of USD 586 billion in infrastructure, many of these projects will require major investment or financing from the private sector in order to be accomplished. The PND includes a heavy focus on the construction and modernization of roads, airports, maritime ports and railways. Although 2018 saw several infrastructure projects affected by low international oil prices and a presidential election year, current projected economic growth and the new administration’s ambitious plans for economic development will allow the public and private sectors to continue developing many important transportation infrastructure projects.

Exporters should also track developments related to the new USMCA. For future developments and information on eventual agreements in connection with the USMCA, visit the Office of United States Trade Representative website at www.ustr.gov.


Leading Sub-Sectors

We break down our overview of leading transportation infrastructure sub-sectors into airports, ports, rail, and roads.


Airports

As highlighted in the Aerospace portion of the Leading Prospects section, there are several airport expansion projects initiated by the Peña Nieto Administration and the private concessionaire airport groups.

Mexico City Airports
Mexico City does not have enough runways and terminal capacity to support aviation demand for this metropolitan region of more than 23 million residents. Most analysts agree that, with 61 landings and takeoffs per hour, the current Benito Juarez Mexico City International Airport (known as AICM for its acronym in Spanish) has reached maximum capacity and is unable to handle more planes and more passengers, despite demand for both.

In 2018, AICM served 47.7 million of passengers, with an increase of 6.7 percent versus 2018. The airport managed 458,488 commercial and general aviation flights. Of these flights, 423,474 were commercial, equivalent to 1,160 operations per day. AICM reported that they reached a record number of operations per on December 14, 2018, with a total of 1,279 flight operations.
President Andrés Manuel López Obrador cancelled construction for a New International Airport for Mexico City (NAIM) in the enormous, undeveloped Texcoco basin just east of the current airport. He then instructed his team to pursue a three-fold strategy to develop an “Airport System for the Valley of Mexico” based on a paper produced by an engineer named José María Riobóo Martín. Mexico City airport projects are run by the Mexico City Airport Group (Grupo Aeroportuario de la Ciudad de Mexico or GACM), which operates as a concession with government participation.

NAIM Status. As of June 2019, NAIM is one-third complete and remains on hold, with a judicial order enjoining the government to continue to protect the building site pending decisions on the rest of the plan. In January 2019, Lopez Obrador Administration confirmed an agreement with NAIM’s bond holders (MexCat) to refund their bond exposure from the cancellation and penalties incurred. NAIM was designed to transport up to 68–72 million passengers per year at the end of its first phase (2020). This phase included a new terminal building, three parallel runways, a multi-modal transportation center, and green environmental planning to attain LEED Platinum green building certification. Due to multiyear exchange rate fluctuations, the project was known to have exceeded the original budget in USD terms, with estimates of USD 13 billion to USD 15 billion. The project had significant participation by U.S. companies including Parsons and AECOM, totaling well over three-quarters of a billion U.S. dollars in new business.

The incoming administration called the NAIM project a white elephant, rife with corruption. This was despite years of careful study of options and a public oversight committee reviewing all bidding with participation by international observers from the Organization for Economic Cooperation and Development (OECD).

A New Airport Plan. In October 2018, even before being sworn in, President López Obrador announced NAIM’s cancellation and three-fold strategy to expand airport capacity. The first element of the plan is for the Mexican Secretariat of Defense (Secretaría de Defensa Nacional or SEDENA) to build two commercial runways and a commercial passenger terminal at the Santa Lucia military airport located in the municipality of Zumpango, State of Mexico. The Santa Lucia airport is located around 45 kilometers north of AICM.

The second and third elements were not officially announced until a press conference in April 2019. Secretary of Communications and Transportation Javier Jiménez Espriú announced the following:
  • GACM will construct a third Terminal Building (T3) at AICM using the current land used for the presidential hangar. This will expand the number of gates at AICM, though it will not expand runway capacity for departures and arrivals capacity. T3 will be connected to the current Terminal 2 (T2). GACM will renovate AICM facilities to the extent possible and will repair the current runways. Among the AICM renovations are improved runway drainage systems and electricity network, rehabilitation of runway B, remodeled sewage services, upgraded takeoff and landing navigation systems, and engineering improvements to address subsidence under the T2 building.
  • The Santa Lucia airport will be converted to a commercial airport with military facilities and will take the name of “Felipe Angeles.” The first runway will be completed in three years (2021).
  • The Toluca International Airport will expand its services, though Jiménz Espriú did not elaborate. (Separately, the International Air Transport Association, IATA, is on record opposing expansion of Toluca service due to the economics of serving this smaller, high altitude airport.)
The French firm Navblue and Mexican air traffic agency SENEAM are preparing an interconnection study for proposing shared service for the three airports, seeking to warrant the best airspace usage. Aéroports de Paris (ADP) is preparing the Master Plan for the three-airport concept. SEDENA operates the Santa Lucia military airport and participated in the April 2019 press conference. General Brigade Ricardo Vallejo Suárez, Director of SEDENA’ Engineering Military School, explained their plans for the Santa Lucia Base to reach 190,000 takeoff and landing operations per year in conjunction with the other two airports. He stressed that Santa Lucia will be an austere, logic, rational, sustainable, and efficient airport:
  • SEDENA will design and build the new commercial section of the airport using pre-fabricated and modular construction materials, with a budget of USD 3.8 billion and set for June 2021 operations.
  • Santa Lucia airport will have PBN navigation systems, with a 50-year lifespan.
  • It will have three runways with an initial capacity to serve 20 million passengers, but with the possibility to expand to 80 million passengers.
  • Santa Lucia airport will have an intermodal transportation passenger station, which will include a light train, bus lines, and an underground metro system. There will be a dedicated 46-kilometer ground interconnection to AICM envisioned to require 35 minutes transit time to make flight connections. (Subsequent discussions have floated the idea of a high-speed train.)
  • The airport will have one fuel terminal, 30 gates (with the possibility to increase to 60 gates), a control tower, and a parking structure for 4,000 vehicles.
  • SEDENA will rely on technical support from other federal agencies including SCT, traffic control (SENEAM), the Mexican equivalent to the FAA (DGAC), Airports and Auxiliary Services (ASA), the Federal Treasury (SHCP), environment and natural resources (SEMARNAT), Public Function (SFP, for auditing and legality), and territorial status and urban development (SEDATU).
The López Obrador Administration has underscored the improved resource use for this plan. They assert that the AICM and Santa Lucia projects will total a combined USD 5 billion, and the NAIM’s cancelation cost totaled another USD 5 billion. In contrast, they argue, the NAIM would have had a total cost of USD $15.4 billion for only its first stage. They also point out that in three years the new airport system will have six runways: three in Santa Lucia, one in Toluca, and two in Mexico City (AICM) whereas only three runways were planned for NAIM. (These numbers do not necessarily reflect true comparisons as the cancellation costs for NAIM are higher than announced and the number of commercial runways counting NAIM and Toluca would have been four.)

GACM will continue with the AICM concession. It is managing the new contracts for AICM, as well as the Toluca international airport arrangements. GACM has recently tended to use the option of direct assignments rather than open bidding. Potential suppliers have been invited by GACM to bid on AICM contracts. The Santa Lucia airport will be handled by SEDENA (General Vallejo) and its engineering team.

As of June 2019, coinciding with the injunction (known as an amparo) to protect NAIM, a coalition of NGOs have sued to place an amparo on Santa Lucia work. The injunction requires the government to provide a full environmental impact report and to conduct a judicial review in Santa Lucia. More than 140 other amparos have been lodged against the Santa Lucia project. The Federal Government has alleged these amparos are simply evidence of corruption in airport contracting and has assured all legal, social, and environment concerns will be addressed under
Mexican law.


Due to the extremely fluid nature of these projects, potential U.S. suppliers are strongly urged to contact the U.S. Commercial Service in Mexico City for updated information and assistance on bidding.
 
Other Airports
The growth in demand driving Mexican airport development is clear. The entire Mexican airport network transported some 96.4 million passengers in 2018, up from 90.4 million passengers in 2017. From 2013–2017, the number of passengers transported grew by 59.3 percent overall, an annual average of 9.8 percent. This growth rate is accelerating, with the most recent five years representing the highest growth rates over the past 25 years. This growth reflects both passenger demand and the growth in carriers serving Mexico.
Mexico’s airports are managed by four regional airport groups, plus a fifth group running small federal airports.

Grupo Aeroportuario del Cento Norte (OMA) manages 13 airports in northern and central Mexico, and it carried 21.5 million passengers in 2018. According to OMA’s development plan (2016-2020), construction improvement projects for 2019–2020 included the following:
  • Monterrey. Infrastructure modernization, cargo area new systems, and security improvements.
  • Acapulco. Improvement of pluvial drainage system after large modernization works completed in 2017. Relevant maintenance program in the passenger terminal building.
  • Culiacán. Rehabilitation of the commercial aviation platform and road surface.

Grupo Aeroportuario del Pacífico (GAP) manages 12 Pacific coast airports, which handled 44.9 million passengers in 2018, 10.4 percent over 2017. GAP is working on several improvement projects, and its development plan for the period 2019-2023 was announced in March 2019:
  • Tijuana. Continued expansion of national departures and boarding areas at main Terminal, ending in late mid-2019. The airport offers 30 domestic connections not covered by San Diego or Los Angeles airports. Tijuana airport is the third-largest international airport of the country.
  • Guadalajara. A second runway is planned but only if land availability is resolved. Five remote boarding areas are planned, as well as extension and remodeling in large areas, including the domestic terminal. The estimated budget in 2019 represents a value of USD 42.7 million. GAP foresees that Guadalajara can be the country’s aviation hub after NAIM’s cancellation.
  • Other GAP projects include Los Cabos airport international terminal building expansion (USD 32 million), and other small projects for Aguascalientes airport and La Paz airport.

Grupo Aeroportuarios del Sureste (ASUR) manages nine airports in the Gulf of Mexico and southern Mexico, as well as an international airport in San Juan, Puerto Rico, and six airports in northern Colombia. ASUR served 47 million passengers in 2018. For the period 2019-2023, ASUR will allocate new resources to all its airports, but the most relevant works will take place at the Cancún airport, with a program of investments of around USD 300 million; Mérida airport with an invested planned of USD 100 million; and Oaxaca airport with investments estimated at USD 39 million.

Aeropuertos y Servicios Auxiliares (ASA) is a government agency that runs 19 airports, co-operates five additional airports (Tuxtla Gutierrez International, Toluca International, Querétaro International, Ciudad del Carmen International, and Cuernavaca International), and supplies fuel to 63 airports. The ASA network handled approximately 2.8 million passengers and performed more than 132,000 flight operations in 2018. ASA’s top airports by passenger volume were Puebla, Ciudad del Carmen, Ciudad Obregon, Chetumal, Puerto Escondido, and Tepic. ASA had plans to announce concessions for five of its 19 airports. With the new airport system, the priority will be given to expand Toluca airport capabilities, taking advantage of its unused transportation capacity. At the same time, the supply of jet fuel is moving to a private distribution framework under private concessions as part of the country’s energy reform. Also, in March 2019 President Lopez Obrador pledged development of a new tourism airport in the state of San Luis Potosí to serve the Huasteca region, If the president follows through on this pledge, ASA may support feasibility studies for this airport at Tamun or at Ciudad Valles.


Ports

Mexico’s port system has 24 Integrated Port Authorities, known as APIs (Administración Portuario Integral), covering more than 40 cargo and passenger ports on the country’s Pacific, Atlantic, and Gulf Coasts. Of these, there are 16 international commercial cargo and passenger ports in the federal system. On the Gulf Coast, these ports are Altamira, Tampico, Tuxpan, Veracruz, Coatzacoalcos, Dos Bocas, and Progreso. On the Pacific Coast, they are Ensenada, Guaymas, Topolobampo, Mazatlan, Puerto Vallarta, Manzanillo, Lazaro Cardenas, Salina Cruz, and Puerto Madero. The Mexican port system has been continuing with a number of projects initiated under a USD 4 billion plan begun under the Peña Nieto Administration. The already announced PND did not go into detail on port projects or budgets, but contact CS Mexico for details on the new National Port Development Plan announced as this guide was going to print.

Mexico’s ports are already riding a wave of growth from the prior administration of Enrique Peña Nieto. In 2012, port cargo volumes were 260 million tons and by 2017 SCT’s Ports and Merchant Marine Administration reported 470 million tons moved through the country’s ports. Based on continuing work and announcements related to the PND, we summarize some of the key port projects below.

SIPCOs. The Mexican Federal Port Coordination Administration has announced creation of five Intermodal Port Coastal Systems, or SIPCOs, to promote regional economic development and mitigate migration pressures by establishing special economic development zones into the port areas managed by the APIs. The SIPCOs will promote investment in industrial parks, logistic platforms, energy plants, and inland ports. They will be granted the necessary land, resources, and authority to coordinate with municipal, state, and federal governments. The five regions will be: North (Ensenada, Guaymas, Topolobampo, Mazatlan and Puerto Vallarta); North East (Altamira and Tampico); Central (Manzanillo, Lazaro Cardenas, Tuxpan and Veracruz); South East (Coatzacoalcos, Dos Bocas, Salina Cruz and Puerto Madero); and Peninsular (Progreso).

Shipyards. In June 2019, the Federal Ports Coordinator announced a plan to redevelop 17 Mexican shipyards to improve the country’s ship construction and maintenance capacity. The project, estimated at USD 5 billion, would make improvements at 12 private shipyards, 4 Navy shipyards, and one shipyard operated by the state-owned oil company PEMEX.

Ports of Coatzacoalcos and Salina Cruz. These ports are destined for significant improvements as part of the Isthmus of Tehuantepec Interoceanic Multimodal Corridor. See below our section on this multi-model project.

Port of Veracruz. We expect the port to continue the final work on a USD 1.6 billion project to construct five new terminals and a new cargo processing and logistics zone. The first vessel should arrive at the new port area later in 2019. The port is also working on a USD 5 billion project through 2030 that will quadruple its installed capacity to reach more than 90 million tons in its last stage by 2030.

Port of Tuxpan. The Port of Tuxpan is increasing its installed capacity from 13 million tons to more than 24 million, with facilities to manage more than 700,000 TEUs, 100 thousand vehicles per year, and a new natural gas pipeline.

Port of Manzanillo. The Port of Manzanillo is the second-largest port in Mexico, with projects underway to achieve the goal of more than 44 million tons of installed capacity by the end of the expansion. Served by 23 steamship lines, Manzanillo can handle ships to New Panamax size, or 12,500 TEUs. The port has been developing a new industrial zone with additional rail capacity and an entirely new port area in a natural lagoon to quadruple the developed port zone.

Port of Lázaro Cárdenas. Lázaro Cárdenas is in the process of bringing online a newly-built container and multi-use terminal and is putting the finishing touches on two projects to be completed in 2019 to increase the installed capacity from 27 million tons to 47 million.

Port of Progreso. In Puerto Progreso, more than USD 51.6 million is being invested to complete 12 projects for port infrastructure and roadway improvements. These include deepening of the port, construction of a new natural gas terminal, construction of a highway overpass, development of a high technology industrial park, and the creation of a tourist marine route to improve infrastructure for tourist boats, small vessels, and pleasure craft.

Other Ports. As reported in our 2018 guide, the Port of Mazatlán has been carrying out construction works valued at more than USD 39 million to improve passenger cruise facilities. The Port of Matamoros is undergoing more than USD 22 million in improvements. Altamira Port is pursuing and expansion to increase its installed capacity from 15 million tons to 36 million. Other ports with improvement projects include the Port of Isla del Carmen, Puerto de Seybaplaya, and a large passenger terminal in Puerto Vallarta intended to receive 148 cruises and up to 900,000 passengers per year.


The Isthmus of Tehuantepec–Trans-Isthmus Interoceanic Multimodal Corridor

The Isthmus of Tehuantepec is the narrowest portion of Mexico and of North America overall, separating the Pacific Ocean from the waters of the Gulf of Mexico and the Atlantic Ocean. Spanish efforts to make this an interoceanic trade route date to the early 19th Century, and a rail line across the Isthmus operated profitably between 1907 and the opening of the Panama Canal in 1914.

The López Obrador Administration intends to make the Trans-Isthmus route competitive with the Canal, thereby boosting regional economic growth in the states of Oaxaca and Veracruz. 
The Trans-Isthmus project would create a modernized and upgraded Interoceanic Multimodal Corridor that would provide an alternative to the Canal for northbound and Post-Panamax shipping. As part of this project, the Mexican Government seeks to modernize the railroad of the Isthmus of Tehuantepec; expand cargo handling and storage capacity at the ports of Coatzacoalcos, Veracruz, and Salina Cruz, Oaxaca; expand the trans-isthmus highway from two to four lanes; improve the airports at Minatitlán and Ixtepec; establish a fiber optic telecommunications connection and cellular / data connectivity; and construct a gas pipeline for commercial and private use. Alongside the route between both oceans, special economic zones will be created to attract private sector investment. As part of this program, the 76 Oaxaca and Veracruz municipalities involved will lower their VAT (value-added tax) and income tax rates in addition to offering petroleum at reduced prices. Over the course of 2019, MXN 30 billion (USD 1.5 billion) will be invested in the project.


Rail

Mexico has a freight railway system owned by the national government and operated by various entities under concessions (charters) granted by the national government. The railway system provides freight and passenger service throughout the country (though most of the service is freight-oriented). The network connects major industrial centers with ports and with rail connections at the United States border.

Mexico is experiencing a rail freight revival after the privatization of the sector in the 2000s. Although railroads have played an increasingly larger role in the transportation sector, their participation in Mexican cargo movement remains relatively low. According to SCT and the Secretariat of Economy, of the more than 900 million tons of goods that were transported across Mexico, 85 percent was moved by trucks, 12 percent by railroads, and three percent by maritime and air shipments.

Based on the figures presented by the Railroad Transport Regulatory Agency, in 2018 915 million tons (87,958 million containers) were moved by train in Mexico (an increase of 14% compared to 2017). The movement of cargo transported per kilometer increased 1.85% with respect to 2017 (86,332 million containers), which represents an increase of 1,626 thousand million-tons kilometers transported. Regarding the railway load of foreign trade, in 2018, 128 million tons were transported, of which 91.5 million tons (71.5%) correspond to foreign trade traffic, while the remaining 36.5 million tons (28.5%) are for local traffic.

Currently, Mexico operates 74 intermodal terminals, including 30 inland multimodal terminals, 18 railroad terminals, 18 port terminals, and eight private automotive terminals. The Government’s stated goal is to increase the volume of cargo using railroad transportation by at least 10 percent by the end of 2018, and to build new inland cargo terminals, port terminals, and multimodal corridors. A broader goal likely to gain traction with the López Obrador Administration is to develop the railroad industry in Mexico for both cargo and passenger transportation.
Mexico’s rail cargo system is comprised of eight concessionaire companies: Kansas City Southern de Mexico, Ferromex, Ferrosur, Ferrovalle, Coahuila-Durango, Ferrocarril Chiapas Mayab, Ferrocarril del Istmo, and Ferrocarril Tijuana-Tecate.

As confirmed by the Secretariat of Economy in 2019, these companies have announced combined investment plans of USD 630 million (up from USD 485 million in 2018). These resources will improve rail-related infrastructure such as connecting roads, rehabilitation and maintenance of the railway network, purchase of new locomotives, as well as purchase and rental of rail equipment. The improvements focus on improving services for the automotive industry and refined oil and gas products. To expand cargo capacity, rail companies reinforced the tracks and adopted double stack rail. There are only five countries where double stack is used to improve cargo capacity: Mexico, USA, Canada, Panama and Australia.

Mexico’s rail cargo improvements coincide with the expansion of Mexico’s foreign trade. One big driver of trade growth is the automotive industry (currently trains move seven out of 10 cars produced in the country, while a decade ago it was only three out of 10). Expansion of the oil and gas sector is a major emerging driver. Rail is already the main means of transporting fuels, cereals, minerals, and metals. The top four product sectors by volume are industrial (47.6%), agricultural (25.1%), mineral (12.9%), and oil and its derivate (8.1%), the latter growing 19 percent over 2016. Total 2017 cargo volume was 126.9 million tons, four percent more than in 2016, and 62.8 percent of this amount (79.8 million tons) was import or export cargo. Imports took up the vast majority of the foreign trade cargo at 61.2 million tons, which mainly moved across the borders of Nuevo Laredo, Tamaulipas (19.6 million tons), and Piedras Negras, Coahuila (13.3 million tons), as well as the port of Veracruz (8.1 million tons). The export load reached 18.6 million tons, of which 77.3 percent transited land border crossings.

A standard freight measure is the metric ton-kilometer (tkm), which measures not only volume but distance the cargo moves. In 2018, Mexican rail lines moved 87.95.2 billion tkms, two percent higher than 2017. On a tkm basis, transport of oil and derivatives grew the most sharply, with an increase of 13.9 percent, which not only shows growth of rail service for the sector but also evolution of the railcar fleet. In 2018, tank cars were the fastest growing railcar type (+13.8%). Mexican rail is also getting more fuel-efficient. In 2018, rail cargo registered 122 ton-kilometers per liter, the highest fuel efficiency level in the last eight years.

Passenger rail, though limited, transported 57.75 million passengers in 2018, 1.1 percent more than in 2017. Regular Interurban and Special Tourism service grew 61 percent since 2016, going from 188,252 to 303,098 passengers. Launch of the Tourist Train Puebla-Cholula in April 2017 contributed to this growth.

The administration’s plan focuses on six railway projects, of which three are dedicated to freight rail.
  • The most significant would cover railway construction and modernization on the Isthmus of Tehuantepec, with a length of 215 kilometers and intended to connect the Pacific and Gulf coasts.
  • A second signature project of the new administration is a tourist train service known as the “Maya Train.” It would connect Palenque in Chiapas with a route circling the Yucatán Peninsula and connecting Escárcega and Campeche City in Campeche with the Yucatan cities of Mérida and Valladolid, and onward to the Quintana Roo cities of Cancún, Playa del Carmen, Tulum, and Chetumal, before connecting back across the Peninsula through the region’s largest Mayan archeological site, called Calakmúl.
  • Another new line will connect the ports of Tampico and Veracruz, a distance of 475 kilometers.
  • A fourth significant project is the proposal for a Mexico City–Querétaro mixed-use train, which revisits what was previously planned to be a high-speed rail project for this route. Passenger rail service is planned for this 250km Mexico City–Querétaro run, together with a 50km Mexico City–Teotihuacán line.
  • A major effort is underway to finish the 57.7km standard-gauge interurban line from Toluca to Mexico City, with the final stage developed by the end of 2019. The line will carry 230,000 passengers a day with a 39-minute trip between Zinacantepec and an interchange with Mexico City Metro Line 1 at the Observatorio Metro station.
  • The railway industry also seeks to improve security at rail crossings by building 25 overpasses in the country totaling an extraordinary 600 kilometers. The full project would require USD 2.4 billion for construction, to be negotiated with the Federal Government. In addition, private funding and development is envisioned for construction of a new line from Guadalajara to Monterrey through Zacatecas, enhancing rail connections between these two major industrial cities, the Mexican Pacific coast, Mexico City, and the United States.


Roads

According to SCT, a total investment of USD 2.227 billion will be made during 2019 in different projects that include major maintenance of 10 concessioned highways, finishing 22 freeways under construction, the upgrade and modernization of another 86 freeways, and other minor maintenance programs that will improve connectivity between central Mexico and the rest of the country. The main freeways for these improvements are Arriaga-Tapachula (Chiapas), Coatzacoalcos-Villahermosa (Veracruz and Tabasco), San Luis Potosi-Matehuala (San Luis Potosi), Tampico-Ciudad Victoria (Tamaulipas).

Fifteen more public-private projects in different parts of the country will take place or continue their construction with an investment of USD 780 million. These PPPs include Tuxpan-Tampico (Veracruz and Tamaulipas), Cardel-Poza Rica (Veracruz), Atizapán-Atlacomulco (State of Mexico). These and others will be finished in 2019 or the first quarter of 2020.


Opportunities

The U.S. Commercial Service Mexico is happy to assist you in exploring opportunities in transportation infrastructure in Mexico. Below are a few highlights.


Logistics

Opportunities abound for specialized logistics service providers or cold chain service providers (i.e., those that transport, warehouse, and handle time and temperature-sensitive products). As firms that require these products proliferate throughout Mexico, they require a dependable and efficient supply chain. U.S. logistics firms that currently offer specialized supply chain services are well-positioned to take advantage of this niche market.

Additionally, most transportation entities are looking for the best technologies to improve their services, increase customer satisfaction, assure cargo security, and promote an efficient transportation system that supports Mexico’s competitiveness in a global economy. Even with a weak peso and low government revenues, these trends have resulted in an important demand for all kinds of equipment and services that can help increase the efficiency of the transportation and logistical sector in Mexico.


Ports

Products and services with the best prospects in the Mexican ports sub-sector include container cranes, heavy materials handling equipment, environmentally-friendly waste management systems, security systems, IT services, design and construction services, dredging, and many other products and services involved in port operations. There will also be significant opportunities for port terminal operators. Concessions to operate terminals in several ports will become available in the near future. Concessions to operate terminals at the Port of Veracruz are expected to become available in 2019 and 2020.


Rail

Domestic production in this sub-sector consists of low-tech equipment (e.g., open and closed freight cars and rail track fixtures). It is important to note that all high-capacity cranes, railroad, and lifting equipment are imported. Under NAFTA, most equipment for intermodal transportation manufactured in the United States can be imported duty-free.
Products with the best prospects in the Mexican rail sub-sector include frame, mobile, and rotary-cranes; self-propelled cranes on tires; front loaders with a capacity of over seven tons; mobile platforms; diesel electric locomotives; railway maintenance service vehicles; rail and tramway freight cars; automatic unloading wagons; covered and closed cars; and assemblies for railway vehicles, containers, chassis, and trailers.


Roads

Domestic production in this sub-sector consists of low-tech equipment (i.e., front loaders and unsophisticated traffic control systems) and the manufacture of trucks and trailers. International brands manufactured in Mexico include Chrysler, Freightliner, Mercedes Benz, International, and Kenworth. These are primarily produced for export. Conversely, all high-capacity crane equipment is imported. Under NAFTA, most equipment for intermodal transportation manufactured in the United States can be imported duty-free.
Products with the best prospects in the Mexican roads sub-sector include mobile and rotary-cranes, self-propelled cranes on tires, front loaders with a capacity of over seven tons, mobile platforms, and traffic control equipment.


Airports

Please see the Aerospace portion of the Leading Prospects section.


Web Resources

Secretariat of Communications and Transportation (SCT)www.gob.mx/sct
Secretariat of Economy (SE)www.gob.mx/se
Association of Mexican Railways (AMF)http://amf.org.mx/
Inter-American Port Commission, Organization of American States (OAS)www.oas.org/cip/
National Association of Private Transportation (ANTP)www.antp.org.mx
National Cargo Transportation Chamber of Commerce (CANACAR)http://canacar.com.mx


Events

For aerospace and aviation-related events, please see our Aerospace section. There are no major tradeshows covering road, rail, or seaport infrastructure in Mexico, though there are at times various government and industry association conferences on various specific aspects throughout the year. The U.S. Commercial Service in Mexico also organizes delegations covering various aspects of the sector, including site visits to Mexican ports. Please contact the individuals below for more information on tapping these opportunities.


Contacts

For more information on the transportation infrastructure equipment and services sector in Mexico, please contact:

Adrián Orta
Commercial Specialist, Railroads and Roads
U.S. Commercial Service—Mexico City
Tel.: +52 (55) 5080-2000 ext. 5220
Adrian.Orta@trade.gov

Alicia Herrera
Commercial Specialist, Ports
U.S. Commercial Service—Mexico City
Tel.: +52 (55) 5080-2000 ext. 5215
Alicia.Herrera@trade.gov

Silvia I. Cárdenas
Commercial Specialist, Airports and Aerospace
U.S. Commercial Service—Mexico City
Tel: +52 (55) 5080-2000 ext. 5209
Silvia.Cardenas@trade.gov

 

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