Investment in infrastructure to address the advantages of nearshoring in Mexico should be 6% of GDP. For this, private sector participation is necessary, and a large percentage should be allocated to project planning, according to specialists from the French company Egis.
Diana Rivero, responsible for Commercial Development of Transportation at the company in Mexico, described allowing private capital entry as a “must,” as no government has the necessary resources to invest in projects.
“It is necessary to work hand in hand with society and private companies; there is room, it has been done in the past, and this is the opportunity,” she said in a meeting with the media.
She mentioned that according to McKenzie and Associates, around 400 billion dollars in investment are required for infrastructure associated with relocation in various sectors. Therefore, it is necessary to open up to mixed investment, the private sector, and Public-Private Partnerships (PPPs).
It is worth mentioning that the federal government admitted on Monday that there are serious deficiencies in Mexico’s logistics system to face nearshoring (relocation of production lines). To address them, more than 400 billion dollars in infrastructure investment by 2032 are needed to capture opportunities in this global migration of companies.
Javier Lancheros, Deputy Director of Transportation at Egis in Latin America, commented that around 6% of the Gross Domestic Product (GDP) is required in infrastructure investment, but in the region, the average is below 3 percent.
“This investment cannot be covered with direct state participation alone but with the participation of Public-Private Partnerships,” he said.
Likewise, he said that in the face of nearshoring, multimodality will help reduce costs and times from production sites to destinations.
“We have seen many railway projects resurface in Mexico, Colombia, Peru, or Central America to connect the Atlantic Ocean with the Pacific, logistic corridors that seek efficient transportation systems through intermodality in the movement of goods,” he explained.
Meanwhile, Máximo Muñoz, Director of Energy and Sustainable Cities in Mexico, opined that a large percentage of infrastructure investment should be directed at project planning. Additionally, new technologies must be used to understand costs and construction processes.
“Planning has a super positive impact when construction work begins. How much should be invested in planning? As much as possible, since during this phase, the greatest savings for the construction phase will be achieved,” he said.
He expressed that the country is facing a great opportunity due to relocation by ensuring that new projects are managed in a sustainable and socially responsible manner.
“In the next semester, we will have more clarity on how the development of nearshoring will unfold. However, it is a great opportunity for Mexico; there is a great international appetite that the country has never seen before. There is a scenario to be defined that will open up to mixed investments, PPPs, and PPs. It is a scenario to define, but one that the political and private sectors must take advantage of,” he explained.
Additionally, he said, there are interesting plans for energy development in the coming years.
He considered that an important decade is coming for the development of industrial parks in the country. Currently, 98% of the existing ones are occupied, while demand has exceeded that number.
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