Its been a rollercoaster week as Mexico continues to get back on its feet and figure out the possible outcomes for the country’s infrastructure industry and how the renegotiation between Canada, Mexico and the US will play out. Its clear that no matter the outcome, Mexico’s transport infrastructure definitely needs a power-up to keep up with a what looks like will be a growth in demand. Mexican companies are turning their heads and looking at Mexico with dollar signs in their eyes and incoming political leaders will have a lot on their agendas to keep attracting more. Don’t forget to check out this week’s interview of the week with José Zozaya, President of Kansas City Southern Mexico (KSCM) as he discusses the importance of a healthy NAFTA renegotiation for the transport infrastructure sector.
After many months of arduous negotiation, a preliminary commercial agreement between US and Mexico (missing a Canada in there) was reached but there are still some loose ends to tie up.
- CMIC says that this agreement will bring good news to the industrial sector in Mexico, nevertheless the Mexican government reiterated that Mexico WILL NOT be paying for the Great Wall of America.
To boost intermodal transport infrastructure for both cargo and passengers, IDB says that Mexico must invest more than 5 percent of its GDP.
BUMPY ROAD AHEAD
Take a stroll down memory lane with the history of the Mexico-Queretaro Train. Will it be a priority project in the next presidential term?
Social infrastructure PPPs have boosted the development of Mexico’s health sector in the past years. But last week Jorge Alcocer, future head of the Ministry of Health, announced that hospitals built under the Public Private Partnership (PPP) model will have to be reviewed and, if feasible, modified or canceled to avoid debts for the federal government.
Mexico City government has also placed a magnifying glass over Fibra Uno’s Torre Mitikah.
Water is Mexico’s blue gold and these eight cities are sinking due to their excessive extraction of fresh water sources.
OPPORTUNITIES ON THE HORIZON
For those interested in the booming constructing for the O&G sector, there is a new player on the block. Glencore’s Mexican subsidiary is investing over US$50million to start operations in its storage terminal in Dos Bocas with a capacity of over 600,000 barrels.
DHL Express has announced an increase of 70 percent in its investment for 2018 with an emphasis on infrastructure development.
Mexico City’s Torre Reforma has been nominated as one of the finalists of the International Skyrise Award and has become an urban icon, permanently transforming the city’s skyline.
Zapopan’s real estate prices have been growing quickly in the last years and last week the municipal government has finally capped the property tax at 5 percent for 2019. Lemus also announced a MX$500 million investment in public infrastructure in the next three years.