Transport
From The Report: Mexico 2015
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A significant component of the Mexican economy, the transport sector accounted for 6.4% of the country’s GDP and 5.3% of national employment in 2014, according to the Mexican Chamber for the Construction Industry. The country’s significant expansion of manufacturing in recent years is both benefitting the transport sector and placing it under increased pressure. Against this background, the current administration introduced a wide-ranging national infrastructure programme for 2014-18, allocating $39.2bn for the improvement of transportation links. Though declining oil prices since mid-2014 have negatively impacted the country’s budgetary position, leading the government to cut expenditure, no major cuts to large-scale transport infrastructure have taken place, aside from a small number of railway projects. Nonetheless, the current fiscal context may well lead to delays in project execution and will require the government to use the country’s evolving public-private partnership model to seek out increased private sector participation.

This chapter features an interview with Norman Foster, Chairman and Founder, Foster + Partners.

Articles from this Chapter

Overview

Full steam ahead: Investment in major transport infrastructure upgrades continues despite tighter budget
OBG
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The expansion of manufacturing is both benefitting the Mexican transport sector and placing it under increased pressure. Growth in sub-sectors such as automotive and aerospace industries is positively impacting transportation services through roads, railways, airports and the country’s network of both Pacific and Atlantic seaports, while at the same time, extra passengers and cargo are placing increased pressure on transport networks. Against this background, the current administration introduced…

Analysis

Private time: Public-private partnerships will play a key role in making up for gaps in infrastructure funding
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Since its inception in 2012, Mexico’s public-private partnership (PPP) law has opened the door to private capital assuming a larger role in the development of the country’s infrastructure. Use of this option is becoming increasingly critical, with the federal government experiencing a reduction in its budgetary capacity to invest in large-scale public works projects. This has led to a call from Mexican authorities to increase the number of PPP agreements to achieve the goals set by the National…

Interview

Preparing for take-off: OBG talks to Norman Foster, Chairman and Founder, Foster + Partners
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Interview:Norman Foster How significant is a new airport as a marker of a country’s economic growth? NORMAN FOSTER: There is a clear link between aviation capacity and economic growth. Yet for every successful airport project others have been less successful, whether because of poor planning, timing or failure to respond to change – such as Montréal-Mirabel, now used only for cargo just 29 years after it opened, or Berlin’s Brandenburg airport, which has been plagued with technical…

Analysis

Going global: Mexico’s new international airport will quadruple capacity
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A MXN169bn ($11.4bn) project to build an international airport in Mexico City is ready for take off, with the government expecting ground to be broken before the end of 2015. The airport is the most significant in a series of large-scale projects designed to tackle shortcomings in the country’s transport and logistics system, signalling the government’s commitment to continuing with major infrastructure developments, despite recent project cancellations. Bold Vision A lot of thought has gone…