Transportation Infrastructure

An Expert's View about Transportation and Storage in Mexico

Posted on: 30 Jun 2012

Although railroads have increased their participation in the transportation sector, they still have low participation in cargo movement in Mexico.

Transportation Infrastructure Equipment and Services A Top Export Prospect for Mexico June 2012 Overview 2010 Estimated 2011 Estimated 2012 Total Market Size 1,977 2164 2,272 Total Local Production 4,023 4,120 4,320 Total Exports 3,433 3604 3,812 Total Imports 1,120 1260 1,325 Imports from the U.S. 735 806 846 st Source: 2010 – July 31 , 2011 import statistics by harmonized system code, provided by Bancomext. Includes trucks for semi-trailers. The Mexican transportation sector is facing one of the most important challenges in its history. The huge increase in Mexican foreign trade, in addition to the increase in traffic of merchandise arriving at Mexican ports with final destinations to the U.S. and Canada, requires a quick response from the transportation sector to improve efficiency, cost savings and cargo security. Although railroads have increased their participation in the transportation sector, they still have low participation in cargo movement in Mexico. Figures presented by the Secretaria de , Comunicaciones y Transportes (Secretariat of Communications and Transportation) on July 31 2011, indicated that 584 million tons in goods were transported across Mexico with 61 percent of cargo moved by truck, 12 percent by railroad, and 27 percent through maritime ports. Currently, Mexico has 74 intermodal terminals operating, including 30 interior multimodal terminals, 18 railroad terminals, 18 port terminals, and eight private automotive terminals. The goal of President Calderon’s team is to increase the volume of cargo using railroad transportation by at least 18-20 percent in 2012, and to build nine new interior cargo terminals, two new port terminals, one new private automotive terminal, and 10 new multimodal corridors. Although most of these projects were severely affected by the economic crisis, now the gradual economic recovery is allowing the public and private sectors to continue with initial plans to develop important transportation infrastructure projects. The Federal Government just announced that from 2007 to 2010, there was an investment of $ 14.4 billion dollars in road construction and modernization projects, including $ 1.9 billion dollars invested by Top US ospects Transportat v 2 Export Pr in Mexico 2012: ion Infrastructure Equipment and Ser ices public-private joint ventures. In 2011, construction started on six roads with a total of 293 kilometers. In the port sector, several important projects started in 2011, including the expansion of the Port of Veracruz, that will take about 15-20 years to be completed, and will require investments of over USD $1.2 billion. This includes the construction of new port facilities in the Vergara Bay, just next to the current port location. Also in 2011, the Port of Lazaro Cardenas granted a concession for the construction of a new container terminal; the Port of Guaymas opened public bids for the construction of a new terminal and facilities to handle mineral bulks; the Port of Mazatlan began modernization of its multipurpose use terminal; and a new concessioner start the construction of a second container terminal in the Port of Manzanillo. Many projects that were on standby during 2009-2010 will be retaken by private investors, including improving facilities and building new private multimodal terminals and distribution centers. Some companies are trying to develop new logistics services for pharmaceutical and medical supply chains that need special conditions for transportation, warehousing and handling. This niche could represent important opportunities for U.S. companies that are already offering these services or offer products for this kind of specialized logistics service. 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 world economy. Even with the current economic crisis, 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 logistics sector in Mexico. All these projects and economic trends will gradually result in the recovery of the domestic production and the importation of equipment for the transportation sector. Back to top Best Prospects/Services Domestic production comprises low-tech equipment (such as front loaders, non-sophisticated traffic control systems, open and closed freight cars, and rail track fixtures) and strong production of trucks and trailers, including international corporations such as Chrysler, Freightliner, Mercedes Benz, International, and Kenworth, that are producing mainly for exports. However, all high-capacity cranes, railroad and lifting equipment are imported. Under NAFTA, most equipment for intermodal transportation manufactured in the U.S. can be imported duty free. Top US rospects : 3 Export P in Mexico 2012 Transportation Infrastructure Equipment and Services Products having the best prospects in this market include: frame, mobile and rotary cranes, self-propelled cranes on tires, front loaders with a capacity of over 7 tons, mobile platforms, traffic- control equipment, diesel electric locomotives, railway maintenance service vehicles, rail and tramway freight cars, automatic unloading wagons, covered and closed cars, assemblies for railway vehicles, containers, chassis, and trailers. Opportunities From January to October 2010, the U.S. supplied 61 percent of the sector’s total imports, a six percent increase over the 2009 market share of 55 percent of the import market. This share could be increased if American firms take full advantage of NAFTA conditions and become more aggressive in the sector. The U.S. Commercial Service can provide information on new projects and support introduction of products into this market. Resources • Secretary of Communications and Transportation: www.sct.gob.mx • National Association of Private Transportation: www.antp.org.mx • National Cargo Transportation Chamber of Commerce: www.canacar.com.mx • Expo Carga: www.expo-carga.com Back to top For More Information Please contact Adrián Orta, Commercial Specialist for transportation infrastructure equipment and services at the U.S. Commercial Service in Mexico at Adrian.Orta@trade.gov or (11-52-55) 5140-2619. You can also visit our website at http://www.export.gov/mexico. The U.S. Commercial Service — Your Global Business Partner With its network of offices across the United States and in more than 70 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://www.export.gov/eac. Disclaimer: The information provided in this report is intended to be of assistance to U.S. exporters. While we make every effort to ensure its accuracy, neither the United States government nor any of its employees make any representation as to the accuracy or completeness of information in this or any other United States government document. Readers are advised to independently verify any information prior to reliance thereon. The information provided in this report does not constitute legal advice. The Commercial Service reference to or inclusion of material by a non-U.S. Government entity in this document is for informational purposes only and does not constitute an endorsement by the Commercial Service of the entity, its materials, or its products or services International copyright, U.S. Department of Commerce, 2012. All rights reserved outside of the United States.
Posted: 30 June 2012

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