The automotive industry in Mexico flourished under the NAFTA agreement, bringing growth to the industrial infrastructure sector. Now that everything is up in the air, Mexico Infrastructure & Sustainability Review interviewed Mauricio Garza, CEO of Interpuerto Monterrey to get his take on the outlook and what can be done next to bolster the country’s maquiladora industry.
A developed supplier base, skilled labor, as well as road, railroad and airport connectivity are among the advantages that make Nuevo Leon an attractive region for possible automotive investors. Add in price-competitive utilities, logistics advantages and trade-oriented amenities and you have a bulletproof investment-attraction strategy, according to Mauricio Garza, CEO of Interpuerto Monterrey.
“Adding extra advantages such as a customs office, a Free-Trade Zone (FTZ) and competitive utilities have been key in marketing spaces at Interpuerto Monterrey,” says Garza. All automotive companies demand amenities like fiber optic, water, electricity and sometimes natural gas, but Interpuerto Monterrey has gone one step further to offer amenities the market wants to boost efficiency and cut costs. “We have industrial plots ready for automotive companies so they need only focus on producing when they arrive,” says Garza.
Located in the heart of one of Mexico’s key automotive regions, Interpuerto Monterrey is a 1,400ha industrial park in Nuevo Leon. It caters to businesses that supply both the US market and automotive companies located in Central Mexico. Although Interpuerto Monterrey works with tenants from various industries, automotive dominates the park’s operations with 65 percent of its business related to this market.
The park has worked extensively to improve its offering for automotive companies and a customs office will open at Interpuerto’s facilities in August 2018. “The idea is that all of our clients’ imports and exports will be processed through this office,” says Garza. The project will reduce companies’ costs and processing times since products will no longer stop at the Mexican border for processing. “Pre-validation processes will also be carried out within the park so Mexican authorities do not stop goods for revision prior to crossing the border,” says Garza. “In the future, Interpuerto Monterrey seeks to have a bi-national customs system that operates between Mexican and US authorities. “US customs agents will be able to release goods prior to leaving the park and they will not suffer delays at border crossings,” says Garza.
Interpuerto Monterrey is also pushing for more trade-oriented strategies, including the creation of an FTZ and digitalization through the implementation of the Customs Technological Integration Project established by the federal government to support clients in its customs processes.
In terms of utilities, Interpuerto already has an operating electrical substation and is contemplating a cogeneration project to supply its clients with cheaper, cleaner and more reliable energy, as well as steam if necessary. “A natural gas pipeline is planned to cross Interpuerto Monterrey, which will provide this resource at a price that is 20 percent cheaper than the average market price,” says Garza.
This is an exclusive preview of the 2019 edition of Mexico Infrastructure & Sustainability Review. If you want to get all the information, plus other relevant insights regarding this industry, pre-order your copy of Mexico Infrastructure & Sustainability Review 2019 or access the digital copy of the 2018 edition.