Doing Business In Mexico

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Infrastructure

Success Story

Steer Davies Gleave (SDG) an independent, international consultancy firm, has since become one of the most prestigious international firms working within the transport sector. SDG's workload in Mexico has been increasing steadily since 2000, building on the company's expanding portfolio of contacts, client referrals and its international brand.

Their office in Mexico City was established in March 2009, and is still in a growth phase. They are currently working with clients including state and municipal governments as well as private companies. They are involved in a broad range of projects, such as infrastructure concessions, transport operations and transit planning, urban mobility strategies, freight and logistics, traffic management and traffic impact studies.

"The support of UKTI has been important as part of the consolidation of SDG Mexico and their advice has been useful. Despite the severe crisis which has affected the world economy, our Mexico office has continued to grow and increase its activity with the private sector and government at all levels. We remain optimistic about the future of the company in Mexico and are focusing all our efforts to provide quality services to match local customer needs and to expand our service offering" says Liliana Pereira, Office Leader at SDG, Mexico.

 

Key Fact

President Calderón's National Infrastructure 
Plan allocates 5 per cent of Mexico's GDP 
making it the highest infrastructure 
investment in history.

President Calderón's first objective when his administration started was to make Mexico one of the 30 most competitive economies by 2012. Today, Mexico is the 11th largest economy according to the World Bank's (GDP) ranking, purchasing power parity (PPP).

This achievement can be seen as a result of the National Infrastructure Plan developed in 2007, in which they are planning to invest US$226 billion on infrastructure and an additional US$200-250 billion were allocated to be spent on housing. A significant number of projects have already been undertaken but there are still opportunities for British companies to get involved.

The plan aims to finance transport infrastructure projects; developing roads, railways, airports and ports as well as telecommunications, water supply and sanitation, irrigation and flood control infrastructure, electricity, oil and gas production and refinery, gas and petrochemicals.

In response to the economic slowdown, President Calderón announced emergency spending proposals, which actually include stepping up public spending, especially on infrastructure, including roads, ports, airports, railroads, wind power, hydroelectric plants, water treatment plants, dams, aqueducts, schools, houses and a new oil refinery. The expenditure on these works is for construction, maintenance, modernisation and expansion. In addition to the National Infrastructure Plan, urban development is seen as a priority sector for the Government. Currently there are plans for the development of approximately 20 new satellite cities that include the appropriate social infrastructure to create successful sustainable communities, with adequate infrastructure links to the main cities.


Business Opportunities

  • Consulting engineers.

  • Facilities managers (roads, ports, airports and railways).

  • PPP specialists.

  • Equipment and machinery suppliers.

  • Roads, ports, airports andailways security consultants.

  • Sustainable technologies.

Mexico currently has:

  • 74 airports (11 international and 63 national).

  • 116 ports (116 and 67 coastal high).

  • Approximately 27,000 km of railways.

  • 138 thousand kilometres of paved roads (126 thousand kilometres of two-lane roads and 13 thousand kilometres of four-lane highways or more).

Roads: An estimated US$26 billion is expected to be allocated towards building or improving roughly 18,000 kilometres of highways and rural roads. Furthermore the Treasury Ministry announced recent plans to renew four border crossing points in the state of Baja California including an extra 4,000 kilometres of connecting roads to the crossing points.

Ports: The National Infrastructure Plan aims to modernise Mexico's main ports and create 4 new ports with an estimated US$6 billion investment.

Some projects have been completed already like the expansion of the port or Veracruz and the construction of the Specialised Container Terminal in Lazaro Cardenas. The upcoming projects that are yet to be tendered are the multipurpose terminal in Mazatlan and another Specialised Container Terminal in Lazaro Cardenas.

Airports: Mexico hosts the largest jet fleet in Latin America. Tenders to start new airports are yet to be launched.

Nevertheless US$5 billion investments are planned to be allocated to upgrade and expand supplementary airports like Cuernavaca, Toluca, San Jose del Cabo, Merida and San Luis Potosi.

Railways: Mexico has the third highest volume of freight transport by railways amongst OECD countries.

Mexico's railway systems ought to be modernised and there are projects to improve network connectivity; railroad bypasses, bridges and other complementary works. Tenders on the construction of the suburban railway line 3 will be launched soon.

 

Contact and Further Information

Reports on the Mexican construction sector, ports, railways, airports and the water sector as well as more information about the specific business opportunities can be obtained by contacting the UKTI team in Mexico City: British Embassy Mexico City Tel: +52 55 1670 3207 Email: fernando.estandia@fco.gov.uk

 

Source - UKTI

 

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