Carmakers from Nissan Motor Co. to Mazda Motor Corp. are churning out record numbers of vehicles in Mexico destined for consumers abroad. Yet some executives are worried that the factory hum will slow in coming years as exports get bogged down by congestion at the nation’s ports.
The government has targeted 70 billion pesos ($4.6 billion) for port infrastructure through 2018, including building four new terminals in Veracruz. Some automakers are skeptical that the goal will be met or will be enough to handle the more than 5 million vehicles Mexico expects to produce annually by 2020, a 56 percent increase from the country’s 2014 output.
In the past two-and-a-half years, car manufacturers including Toyota Motor Corp. and Daimler AG, have invested or promised $22.6 billion for auto and parts plants, according to the government. That success story, which made the sector the largest source of foreign cash in the country, may be imperiled if the government doesn’t speed up plans for infrastructure improvements.
“Up until now, Mexico has succeeded in attracting more investments,” said Carlos Serrano, chief economist for BBVA Bancomer, Mexico’s biggest bank by loans outstanding. “But there’s going to come a point, when if infrastructure doesn’t get better, it’s going to put Mexico’s continued advance at risk.”
Sentido Comun – Petroleos Mexicanos announced that the construction of 22 vessels progresses after its and the Navy’s engineers reviewed the progress of the program. Pemex plans to spend 3,400 million pesos ($223.4 million) to build the boats.
Sentido Comun -The Federal Electricity Commission (CFE), said it has reduced downtime per user of electricity in the Valle de Mexico by 87.5 percent in the last four years, from 440 minutes in 2010 to 55 minutes in 2014.
Deutsche Welle – Almost half a million people in Mexico’s Tabasco state are still without water, after an oil spill caused by trespassers contaminated local drinking water. Local authorities are scrambling to clean up waterways, reopen water processing plants and distribute bottled water.
Reuters – Mexico is trying to get Chinese state-run companies involved in the construction of a new $11 billion airport as it seeks to make up for a tainted rail tender that soured relations with Beijing, a source with knowledge of the government plan said.
Reuters – Asset manager BlackRock and U.S. private equity firm First Reserve have taken a joint stake worth around $900 million in the second phase of Mexico pipeline project Los Ramones. The pipeline will eventually run from the U.S.-Mexico border to central Mexico.
Reuters – Mexican bank Grupo Financiero Banorte expects to set up a $3 billion infrastructure fund in the next few months with a North American partner, CEO Jose Marcos Ramirez said. He declined to say who the North American partner would be.
Reuters – Pemex said on Friday that it had contained a fire at its Miguel Hidalgo refinery and that the facility was back to normal operations. No workers were injured, and the facility near the city of Tula sustained only minor damages, the company said.
CNNMéxico – Line 12 of the Mexico City Metro “failed,” according to an audit by the Superior Audit Office. The opinion is the start of a process to bring sanctions against officials responsible for the failures.
Bloomberg – Fermaca Enterprises plans to be the first Mexican company to build a pipeline in the United States to bring cheap natural gas from Texas to south of the border to satisfy the growing appetite for fuel.
Sentido Comun – Hutchinson Port Holdings (HPH) announced it will invest $50 million over the next five years in its subsidiary Gulf Naval Workshops or TNG, to convert the naval complex at the port of Veracruz into the most modern and best equipped in the Gulf of Mexico.
The Economic Times – Mexico plans to resume iron ore exports from the port of Lazaro Cardenas in western Mexico, where the Knights Templar drug cartel allegedly had been illegally shipping the ore to China.