Transport & Logistics
From The Report: Mexico 2019
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Both the current and previous administrations have shown a commitment to updating and expanding the capacity of the transport system. Nevertheless the country is facing increasing overcapacity at its ports, rural roads remain unpaved and developers are struggling to find suitable locations for new warehouses. Certain segments face specific challenges, notably in terms of security concerns for road freight. With rising domestic consumption and a growing manufacturing sector, demand for Mexico’s transport network appears set to rise further over the medium and long term. Therefore, addressing these challenges and charting a clear policy path, one that combines public investment with policies designed to increased private sector involvement in transport, will be necessary for the ongoing growth of the sector. This chapter contains interviews with Aby Lijtszain Chernizky, Executive President, Grupo Traxión; and José Zozaya, CEO, Kansas City Southern México.

Articles from this Chapter

Overview

Moving up: Increased road and port capacity to boost connectivity and international trade links
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Mexico’s transport and logistics system is of vital importance for its economic development, transporting inputs to the country’s manufacturing centres and consumer goods to its major cities, and carrying exports to the US and other trading partners. While investors have faced some uncertainty, notably in the aviation segment following the 2018 cancellation of the planned international airport in Mexico City (Nuevo Aeropuerto Internacional de la Ciudad de México, NAICM), other segments are set…

Interview

Efficient solutions: Aby Lijtszain Chernizky, Executive President, Grupo Traxión, on infrastructure development and the growth of e-commerce
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Interview:Aby Lijtszain Chernizky How important is the logistics sector to corporate strategy, and what developments in infrastructure can improve efficiency and productivity? ABY LIJTSZAIN: The logistics and transport industry is important to many companies in Mexico. Consumer goods companies, for example, have increased activity since improvements were made to delivery timing and network capacity. Manufacturing companies are using this as an opportunity to strengthen supply chains and reduce…

Analysis

The long haul: Public investment drives upgrade and extension of road network
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The upgrade of the nation’s road infrastructure is a major priority for Mexico’s current government, led by President Andrés Manuel López Obrador, better known by his acronym AMLO. The country has emerged as an international centre of trade, making the improvement of connectivity between ports and centres of manufacturing an imperative to maintaining ongoing growth. The interior of the country in particular, requires developed supply chains to provide goods for consumers and inputs for manufacturing,…

Interview

High efficiency: José Zozaya, CEO, Kansas City Southern México, on building an efficient railway network that drives economic growth
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Interview:José Zozaya How competitive and efficient are Mexico’s railroads compared to those in the US and Canada? JOSÉ ZOZAYA: According to an OECD study on the global railway industry, Mexico’s network is one of the most efficient in Latin America. It represents a key element for competitiveness and economic growth by connecting the most important logistics centres in the country with the US and Canada, and also serving trade flows from Asia. Mexican industry requires a high capacity…