Mexico has announced a plan to transform its national infrastructure over the next six years,investing more than $316 billion in roads,railways,ports and telecommunications,water and energy projects to improve Mexico’s appeal for international investors. In fact,this massive investment is the largest of its kind for Mexico in more than 25 years and is expected to promote expansive growth,boosting the nation’s position to the world’s 5th largest economy.
“The planned investment in infrastructure from 2013 to 2018 could add up to around five percent of gross domestic product,” writes the Financial Times.
President Enrique Peña Nieto expects at least one third of the investment total to be invested in transportation and communications projects that will be funded by both public and private investors. This will reportedly include new highways,ports and railroads to connect all areas of the country,thereby improving travel and logistics for businesses operating in Mexico.
“Communications and Transport Minister Gerardo Ruiz Esparza said major works include construction or modernization of 5,410 kilometers of highways,the upgrading of six regional airports and a number of sea ports,as well as the construction of three intercity passenger railways,a new line for the Monterrey subway system,and a light passenger train system,” writes the Wall Street Journal.
In 2013 alone,the Mexican government reportedly plans to spend nearly $3 billion to modernize roads,according to the nation’s General Director of Highways,Hector Arvizu. The money will be used to ensure the economy,efficiency,safety and quality of airports,highways,ports,railroads and official buildings.
“Mexican trains now haul about 14 percent of the nearly $500 billion worth of goods that cross the Mexico-U.S. border each year,up from 10 percent in 2009,” writes Reuters. “With some saying bilateral trade could double in the next five years,having already jumped 62 percent between 2009 and 2012,it’s a trend that looks set to continue.”
Over the next five years,at least $100 billion has been allocated to improve these key parts of Mexico’s infrastructure,including funds that have been earmarked to build the nation’s first high-speed rail links. This move is expected to revive passenger rail in Mexico City and the Riviera Maya,connecting Cancun real estate with the colonial city of Merida,which is just a short ride inland on Mexico’s Yucatan Peninsula.
In addition,Mexico’s transport and communications authority has vowed to invest at least an additional $450 million in its Gulf ports,including new access roads,dredging and a new railway line that will make the port more accessible and efficient for various exporters. This year the government already completed a new entrance into Mahahual’s Costa Maya Cruise Port,which is a popular destination for international travelers in the state of Quintana Roo south of Cancun on Mexico’s Yucatan Peninsula.