mexico infrastructure

8/9/2019 Mexico Infrastructure

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Mexico:

Infrastructures:

Mexico has matured into a global manufacturing hub, offering world-class industrial real

estate and modern infrastructure throughout the country.

Highway Infrastructure: The highway network in Mexico is one of the most extensive in

Latin America. Indeed, all areas of the country are linked by it. As of !!", Mexico had

#$#,"% kilometres &$',() miles* of highways of which !%,$') kilometres &)!,"!$ miles*

were +aved. There were also %,##) kilometres &#,!#" miles* of ex+ressways.

Railway Infrastructure: The railway system within Mexico is extensive, consisting of

#',!)$ kilometres &!,$## miles* of rail lines as of !!(. The Mexican ational ailways

&errocarriles acionales Mexicanos/M* was a state-owned com+any that carried ('

+ercent of the rail traffic and o+erated on "' +ercent of the tracks.

Airline Infrastructure: As of !!!, Mexico was estimated to have ,('% air+orts of which

$## had +aved runways. Much like it has done with its railways, Mexico has recently gone

through the +rocess of +rivati0ing its main air+orts. There are #) air+orts in Mexico that carry

!" +ercent of the +assenger traffic.

Electricity: In !!(, "%.') billion kilowatts &bkw* of electricity were +roduced in Mexico

while the country consumed %1."% bkw of electricity in that same year. 2f the electricity

+roduced, "( +ercent was +roduced from fossil fuels while 1 +ercent was hydro-electrical

energy. In the !%'s, the government nationali0ed the country3s electricity-+roducing

com+anies.

Telecommunication: 4resently, the telecommunications industry in Mexico is dominated by

com+any/Telmex &Mexican Tele+hone or Telefonos de Mexico*. Telmex was +rivati0ed in!!' and by !!! had increased the number of tele+hone lines in Mexico by '1 +ercent.

5es+ite the increase in available lines, there has been little im+rovement in the services

rendered by Telmex.

Other infrastructure: adio, television, and Internet usage in Mexico are +revalent. Mexico

had $.1) million Internet users as of !!!. The government owns and runs a number of radio

networks. There are over $' +rivate radio networks s+anning over "'' radio stations in

Mexico. Televista &Mexican Telesystem or Telesistema Mexicano* is the dominant television



com+any in Mexico, with an estimated (' +ercent share of the television audience. There are

over #$% television stations in Mexico and most of them are owned or associated with

Televista.

Mexico’s Infrastructure Opportunities 2!"#2!$

Mexico: %uil&ing a 'orl&‐(lass Infrastructure

Mexico3s government ex+ects +ublic and +rivate investment in infrastructure to reach ".")

trillion +esos &6)!' billion* over the next five years in an effort to raise the country3s

economic growth ca+acity, officials said Monday. 4resident 7nri8ue 4e9a ieto has

announced the $'#‐$'( ational Infrastructure 4rogram &I4*, designed to address current

trans+ort bottlenecks.

Mexican )o*ernment %oosts Infrastructure In*estment +lan

The $'1-$'( national infrastructure +lan includes "1# +ro:ects in areas such as energy,

communications and trans+ort. The amount is a marked increase over the 6#1' billion

outlined by the government a year ago, with the addition of +ro:ects in housing and urban

develo+ment, health and tourism. The energy sector is likely to take u+ the lion3s share of the

investment, with #.! trillion +esos over the next five years as Mexico o+ens the state-run oil

and electricity sectors to +rivate investment and com+etition for the first time in decades.

Investment in communications and trans+ort, including highways, railways, +orts, and

broadband networks, is ex+ected to exceed .# trillion +esos.

,atural resources: ew Mexico is the third largest net su++lier of energy to the nation,

thanks largely to its +etroleum and natural gas +roduction. The industry has +layed a

significant role in the economic growth of the state for nearly a century. The first commercial

oil well was drilled here, in the our ;orners region outside armington, in !$$. enewable

energy generation as a +ercentage of total +roduction is increasing annually. Thanks to these

natural resources ew Mexico generates $." times the total energy consumed state wide and

+ays less than the nation for electricity< .1 cents +er =wh for residences> !.# cents for

commercial> and ).( cents for industrial.

Oil an& )as< ew Mexico ranked sixth nationally in oil +roduction and seventh in natural

gas +roduction in $'#. There are two +etroleum refineries here. There are a++roximately "''

com+anies in the state?s oil and gas industry em+loying ,'''. These include +etroleum and

gas +roduction, drilling, and service com+anies.



-olar< ew Mexico has tremendous +otential for solar energy +roduction. @traddling the

eastern and western transmission interconnects, ew Mexico is ideally located to ex+ort ;@4

+ower to out-of-state markets, driven by other states? enewable 7nergy 4ortfolio @tandards.

'in&< ew Mexico has a total of ")' megawatts &M* of wind +ower ca+acity installed at

eight utility-scale wind +ower +lants<

*$'1 ew Mexico ind 7nergy ;enter $* $' M @an Buan Mesa ind 4ro:ect, oosevelt

;ounty #*'$ M ed Mesa ind 7nergy ;enter, ;ibola ;ounty 1*'' M Cigh

Lonesome Mesa, Torrance ;ounty )*!' M Aragonne ind acility, Duadalu+e ;ounty

%*(' M ;a+rock ind anch, Euay ;ounty "*)'M Macho @+rings 4ower (*$ M

Llano 7stacado, ;urry ;ounty.

Mineral Resources< More than 6$.( billion worth of minerals were extracted from ew

Mexico mines in $'$, re+resenting an increase of 6 billion from $''. . Mineral extraction

em+loys more than %,('' and +rovided 61#.$ million in revenue to the state in $'$

(oal< ;oal has been mined in ew Mexico since the ()'s, and the state was ranked $th in

coal +roduction in $'$. All of the current coal +roduction here is taking +lace in the @an

Buan Fasin. In $'$ $$.1 million short tons of coal were +roduced here. The industry

em+loys more than ,)''.

+otash< ew Mexico is the leading state for +otash +roduction. The industry em+loyed

nearly ,)'' in $'$. All of the +otash mines are located in south-eastern ew Mexico near

;arlsbad. The fertili0er industry accounted for about () +ercent of G.@. +otash sales, and the

chemical industry the remainder.

(opper< ew Mexico is the third largest +roducer of co++er in the country. In $'$ $$%.%

million +ounds were +roduced here with a value of :ust over 61'' million. ;o++er mining

em+loyed ,(1 +ersons with a total +ayroll exceeding 6'' million in $'$.

In&ustry -cenario:

Mexico?s economy can be characterised by the high degree of contrast that exists between its

industries. 2n the one hand, Mexico has a wealth of modern and highly advanced industries

that contributes a significant +ortion to its D54> yet at the same time, a number of industries

in Mexico are fairly outdated and labour intensive. A vast number of Mexican industries are

catered towards serving the G@ market. @ince the advent of ATA, trade between Mexico



and the G@ have more than tri+led. @tarting in the late-!('s-early !!'s, Mexican industries

have been increasingly heading towards +rivatisation with the banking and

telecommunications industries among the early +ioneers. Mexico?s oil +roduction though still

remains in the hands of the state-owned 4emex.

Ma:or Mexican industries include food and beverages, tobacco, chemicals, iron and steel,

+etroleum, mining, textiles, clothing, motor vehicles, consumer durables, tourism.

Agriculture was res+onsible for 1.$ +ercent of Mexico?s D54 in $''. The role of agriculture

in Mexico?s economy has been gradually diminishing as the nation slowly transitions to a

higher level of develo+ment. 2ver the last 1' years, Agriculture?s contribution to Mexico?s

D54 has fallen by more than $' +ercentage +oints.

2ne of the most im+ortant industries in Mexico is the automotive industry. Many ma:or car

manufacturers have set u+ their o+erations in Mexico, including Deneral Motors, ord,

;hrysler, FM, Toyota, Conda, Holkswagen and Mercedes Fen0.

The electronics industry has also seen ra+id ex+ansion in Mexico in the last decade. Mexico

is currently the $nd largest su++lier of electronics to the G@ after ;hina.

The oil industry though, still remains as the largest industry in Mexico. In $'', Mexico was

the "th largest +roducer of oil in the world +roducing #.'' million barrels a day as well

as being the $nd largest ex+orter of oil to G.@. Mexico also +roduces %'.#) billion cubic

metres of natural gas every year, making it the $th largest +roducer in the world.

Tourism in Mexico is su++orted by #.$)1 million :obs in the country, which makes u+ ".#

+ercent of total labour force, and ex+ects to contribute # +ercent of the D54 in $'.

Mexico?s banking system is also financially strong with well-ca+italised and +rofitable +rofit

banks. The +resence of com+anies such as ;itigrou+, FFHA and C@F; has also been seen asone of the +rimary reasons why Mexico was able to recover from its currency crisis in !!1.

The Mexican @tock 7xchange is also highly ca+italised and develo+ed. It is the second largest

stock exchange in Latin America, behind Fra0il, with an estimated market value of over

G@6"'' billion.

%i.liography:www.nationsencyclo+edia.comJeconomiesJAmericasJMexico,online.ws:.comJa

rticles,www.ex+ort.govJM7KI;2,www.gonm.bi0Jaturalesource/www.economywatch.co

mJworldeconomyJmexico

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