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Transportation, reeled off an impressive list of statistics about Mexico’s internet coverage: the number of internet users has already risen from 41 million to 54 million since telecom reforms started in 2014; internet coverage has grown from 21 per 100 inhabitants to 61; and by the time the 4G wireless network is complet- ed, 99.2 percent of the population will have access to the internet.
Moving things around
Another goal of the NIP is to construct
a modern transportation structure that, like the Red Compartida, aims to boost productivity and competitiveness across Mexico. To that end, more than 150 road infrastructure projects are planned, along with US$279 million in funds slated for airport improvements. An- other US$5.2 billion will go toward the expansion of Mexican ports, including the construction of four new terminals at Veracruz (the nation’s largest port)
and Latin America’s first semi-automat- ed terminal at Lázaro Cárdenas. Finally, Mexico hopes to expand its network of interurban train service and complete the highly anticipated trans-peninsular train linking the states of Yucatán and Quintana Roo.
But the project that will likely be the most noticeable by travelers and visitors will be what is being called the “crown jewel” of President Enrique Peña Nieto’s infrastructure improvements: a brand- new airport in México City. So far in 2017, the federal government has award- ed hundreds of construction contracts worth almost US$11 billion to build the airport, which will reportedly open in 2020. When the project is complete, the airport will be able to handle more than 120 million passengers each year. High-powered changes
The majority of the NIP funds will
be allocated toward Mexico’s energy
The NIP’s goal is for 36.9 percent of the funding to come from private sourc- es. Only 38 percent of the cost of tourism projects will be financed public- ly; in contrast, only 1.5 percent of health sector improvements will be pri- vately funded.
sector. About a quarter-trillion dollars are earmarked for projects overseen by Pemex, the nation’s state-owned energy company. These include drilling new de- velopment wells, extending gas pipelines,
Taking a Moment
BERNARDO AYALA
issues will improve not only rail traffic but the community at large, lowering congestion and creating a safer environment for drivers. Other issues plaguing Mexican infrastructure: security and corruption. “Recently, we’ve seen a significant deterioration in the security of the supply chain.”
Ayala is confident, however, that these problems will be addressed through ongoing improvements. “We’ve had nice, healthy growth, and the only way to continue that is through a commitment to capital, safety, and improving technology.”
“Everyone thinks about the railroad in Mexico, and they envision the steam coming out,” laughs Bernardo Ayala, the Vice President
of Union Pacific de México. In fact, he says, “It’s quite the opposite.” Since the implementation of NAFTA, more than US$5 billion in private investment has poured into Mexican railways. Better locomo- tives, increased speed, and high-capacity rail have revolutionized rail infrastructure
TRAINS, TRUCKS, AND TRUST
A sophisticated intermodal system already exists in North America, allowing train-to-truck traffic to move smoothly. The integrated, transparent arrangement sends containers from one end of the conti- nent to another. “A container is directly transported on a single train that does not stop until arriving at its destination,” Ayala says of intermodal traffic. Railways work seamlessly with U.S. and Mexican customs, as well as trucking partners.
But Ayala says that rail traffic will not flourish until Mexico im- proves its highways and trucking industry. The roads are deteriorat- ing, and “the truck industry in Mexico is not as regulated as it should be in terms of compliance.” He suggests that solving these
Vice President
Union Pacific de México
The rail system supplies just-in-time auto parts to the thriving Mexican automobile manufacturing industry.
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