News, Insights and Best Practices for Manufacturing in Mexico

Mexico moves to improve infrastructure

24 Jul 2013

Category: Logistics Management

More U.S. companies are expanding to Mexico, and the country has developed a plan to improve its highways, railways and ports. According to Reuters, Mexican President Enrique Pena Nieto announced a long-awaited plan to enhance the country's infrastructure, which will take place over the next five years. With the plan will come improvements to the already high-quality supply chain for companies that offshore manufacturing to the country, enhancing the logistical process for many businesses as they look to export goods from the country. 

Reuters reported the Transport and Communications Infrastructure Investment Plan will cost approximately $100 billion and will be completed by 2018. The project is estimated to boost manufacturing in Mexico as well as the country's economy, with Pena Nieto hoping the plan will result in 6 percent average economic growth for Mexico.

Railways to receive improvements
Railway Track & Structures reported there are 12 rail-specific projects in the plan, which would improve routes between Mexico City and manufacturing center Queretaro as well as between Merida and the Riviera Maya. The railway enhancements are part of the plan's overall logistical strategy to increase transportation and communication speeds while reducing travel costs and times, according to RT&S. 

With freight trains being important components of the supply chain, manufacturers may begin to see offshoring to Mexico become even more logistically viable. 

According to Reuters, Pena Nieto stated the plan is an upgrade the country has long needed to become North America's manufacturing hub and the top choice for U.S. companies. 

"One of the key components for transforming our country is developing infrastructure the length and breadth of the country," Pena Nieto said in a speech in Mexico City. 

Related posts