The French company Egis announced that it will invest one billion dollars in the next four years , with 80% of the total going to the United States, Mexico and Canada.
Laurent Germain, Global CEO of Egis Group, said that so far, the possible application of tariffs by the United States to Mexico does not represent any threat to this year’s investment plans.
“It is probably a tool that Trump is using to renegotiate trade agreements; now, is it a threat to how attractive Mexico is to us? No, is it going to create uncertainty? Yes, for a few months, during the negotiations, and the private sector does not like uncertainty, but we like to have visibility and certainty,” he said.
In a meeting with the media, he reiterated that the application of tariffs can also have a positive impact , first on price competitiveness and productivity levels, “they are not only negative aspects, but it is a wake-up call for companies to be more competitive in the market.”
He said that the best response to tariff measures is to focus on railway infrastructure, since it would intensify trade between the countriesand would also allow for guaranteeing cooperation specifically with Arizona and Texas.
He said that the ties between the two countries depend on infrastructure, since it allows for trade, and the railway connection between Mexico and Texas provides growth potential.
Meanwhile, Jesús Muñoz, CEO of Latam and director of Mexico Egis, reiterated that the country is strategic and a bet for the company , and also said that “we cannot let the period of growth and economic adjustment pass to make the country more competitive and we know the infrastructure projects that go in that direction.”
“There is a challenge in interregional infrastructure in which Egis will participate, mentioning the two large railway projects, but we are betting on them and we are already in talks with the authorities to understand the time they require and launch them, and support them in their development,” he said.
For this reason, Laurent Germain mentioned that they will be investing in acquisitions and concessions in the country.
“We are going to make several acquisitions in North America, specifically in Mexico, over the next four years. Mexico is important because of its demographics, it is growing faster than the world average and it generates a large number of engineers every year, and that is a great asset for our companies, as is the proximity to the United States,” he said.
He also commented on the railway projects that he hopes that “the government will make decisions quickly” so that the infrastructure is ready within the estimated time.
He also noted that part of the challenges will be mobilizing the workforce due to the “wave” of construction work, so the best talents in the market must be recruited to respond to demand and enough contractors to carry out the construction.
There is also a need to achieve a balance between the public and private sectors in contracts, through concessions. “It is urgent to announce the projects, how they will be financed and what is expected of the private sector,” he said.
Jesús Muñoz added that the learning curve and production capacity are part of the challenges, in addition to good project planning.
“We are already in contact with the different ministries, such as government authorities, which are already involved in railway issues and where we are in exchange discussions on how the projects should be carried out in a short time, since the administration wants to finish them or leave them advanced, therefore a very good planning is required that allows saving costs and guaranteeing the success of the project,” he said.
Egis provides consulting services in highways, subways, water systems, environmental systems, airports, aviation, as well as energy transmission and distribution.
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