Wednesday, August 20, 2025

Sonora’s ‘ghost train’: Much-needed infrastructure, or an environmental disaster waiting to happen?

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Aerial shot of cranes and other construction equipment
Shrouded in secrecy, Sonora locals are denouncing a new rail line from the port of Guaymas to Nogales as an impending ecological disaster. (Ernesto Méndez/X)

As Mexico News Daily readers, you know all about the Maya Train. Maybe you’ve read about the Interoceanic Train. But when was the last time you heard about the Sonora “ghost train?”

The name doesn’t refer to a haunted locomotive: the “tren fantasma” earned its moniker when Sonora residents saw the tracks being built but couldn’t figure out why they were being built — or who was building them.

Engine of a Ferromex train on tracks
Ferromex is a private rail consortium that operates the largest railway in Mexico. (Ayuntamiento de Nogales)

Their only clue was a leaked map of the local rail network. It showed the existing tracks, which run from the port of Guaymas north through Hermosillo, Ímuris and the border town of Nogales before finally crossing into the United States. It also showed a new, yet-to-be-built section of track. Instead of following International Highway 15 north like the current route, the depicted tracks branched off east in Ímuris, taking a longer route north to Nogales.

Some local residents worried about the railroad dividing their community, building across their irrigation canals and damaging natural protected areas. Others were alarmed when state officials offered to buy their land for as little as 1.8 pesos (less than US 10 cents) per meter, far under market value.

Biologist Mirna Manteca of the Wildlands Network, an NGO which works to conserve and rewild natural areas in North America, tried to learn about the project after locals from the town of Ímuris approached her with their concerns.

Ímuris officials told her it was a state project. The state said it was federal. Manteca contacted one federal office after another, but none had information about a train being built in Ímuris.

Governor of Sonora Alfonso Durazo stated in November that no environmental impact studies had been finished on the railway’s construction. (Ayuntamiento de Nogales)

“There’s no real information. There’s no official project,” Manteca told The Associated Press in November 2023. “They’ve kind of been ping ponging responsibilities back and forth … It’s like fighting a ghost.”

Three days after the AP story came out, Sonora Governor Alfonso Durazo said at a press conference that the new construction was part of a project to change the route of the existing Guaymas-Nogales railroad. The state planned to modernize the port of Guaymas, with federal support, and expected an increase in rail traffic. That meant the tracks needed to be moved out of Nogales to a less populated area.

“The modernization of the Guaymas port wouldn’t make sense without the relocation of the railroad tracks” in Nogales, he said.

And just like for the Maya Train, the Army was in charge of building the new tracks.

Protest against the Ghost Train
A protest against the train in Hermosillo in November 2023. (Wildlands Network)

The Ghost Train keeps chugging along

Now, construction continues and the Ghost Train is more real every day. However, information about the project remains mostly classified.

What we do know is that the port of Guaymas, in southern Sonora, is getting some upgrades.

“With the modernization of the port of Guaymas… it will be possible to receive deep-draft tourism and commercial ships,” Sonora Governor Alfonso Durazo said at his third annual report on Sept. 13, adding that the port will serve both Chihuahua and the southwest United States.

Construction work on water in Guaymas, Sonora
The port of Guaymas is being modernized in an effort to take advantage of nearshoring opportunities. (Gobierno de México)

Moving the new cargo will depend on the Ferromex train that runs from Guaymas to Nogales, Sonora. The train crosses into the U.S. in the middle of downtown Nogales, Arizona, just meters from where cars and pedestrians cross the international border. Three to four trains move through the city every day, worsening the city’s snarled international border traffic and passing dangerously close to homes and public infrastructure. 

With train traffic expected to increase to 15-20 trains a day, there is widespread agreement on the need to move the tracks.

“It is necessary to get the tracks out of Nogales,” agrees Sergio Müller, strategy coordinator of the Sonora environmental collective Caminantes del Desierto. “However the issue is how it’s done and where it’s done.”

The project “doesn’t make sense,” Müller said. “The construction ends up in the same point where it currently ends on the U.S. border.”

On the U.S. side, Union Pacific Railroad has not expressed any intention to move their part of the tracks. So instead of going around the city, Mexico is going under it. Under the track relocation plan, the railroad will approach the city of Nogales from the east, then dive more than 30 meters under the city into a 2.5-kilometer tunnel to the border.

Tracks and setbacks

But the tunnel’s construction has faced problems, according to Jesús Ibarra Félix, an Hermosillo investigative reporter who covers corruption and accountability.

NGOs like Caminantes del Desierto and Wildlands Network have been sharp in their criticism of the railway project. (Ernesto Méndez/X)

“Neighbors tell us almost every day via phone calls or WhatsApp messages that they feel tremors below their houses. They even send photos with cracks on their walls,” Ibarra said, explaining that the company is using explosives to carve out the tunnel.

Outside of the city, much of the route has been cleared for construction. About a third of the actual track has been built and none of the route’s six new bridges were complete as of early September, Ibarra said.

Ibarra also said that tunnel workers told him they are a year behind schedule, having only advanced 500 meters since they began blasting.

“It is impossible for the construction company to finish the tunnel on time according to contract,” which ends Sept. 30, Ibarra said.

Who’s really building the train?

Who holds that contract? Ibarra’s long-running investigation of the track relocation project for newspaper El Universal focuses on that question. The investigation, which recently won second place in the National Investigative Journalism Competition, sponsored by the National Institute for Transparency, Access to Information and the Protection of Personal Data (INAI), found that the Army gave contracts worth nearly 650 million pesos (US $33.9 million) to companies whose lead stakeholders had participated in facturera,” or invoice fraud, and embezzlement of public funds during previous projects.

In response to the investigation, President López Obrador called for the investigation of the Hermosillo company 3PM, the primary beneficiary of the dubious contracts.

Train tracks under construction in the vicinity of the Cocóspera River. (Caminantes del Desierto)

Activism dies down

In Ímuris, most residents have now stopped speaking out publicly against the project, according to Sergio Müller, the environmental activist.

“There are still communities today in resistance in Ímuris, but they are continuing via the legal path, rather than civil resistance.”

The owners of Rancho Aribabi, a government-certified voluntary conservation area in the train’s path, “were heavily pressured by the Army to sell, and well, they ended up selling,” Müller said. After that, the former owners stopped making public statements on the issue.

Aerial shot of Cocóspera River
Rancho El Aribabi is home to a section of the Cocóspera River, an important riparian ecosystem threatened by the planned train. (Myles Traphagen/Wildlands Network)

In May, the new owners submitted a request to cancel Aribabi’s designation as a voluntary conservation area, paving the way for the project’s environmental approval in August.

It appears extremely unlikely the infrastructure project will be finished by the end of September, as originally planned. Instead, it will likely continue into the administration of President-elect Claudia Sheinbaum, who will take office on Oct. 1.

Rose Egelhoff is a freelance writer based in Mazatlán, Sinaloa. Follow her work at RoseEgelhoff.com

Mix some cinammon, spice and all things nice for a Horchata cocktail with a kick

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Two glasses of horchata dusted with cinammon and with cinammon sticks sticking out of them.
This cocktail is a sweet, horchata that’s grown up and gone rogue with the help of bourbon. (Weeknd Whisk)

We’re coming to the end of summer, but for a lot of Mexico, the heat is still on. For my money, horchata has to be the most refreshing drink ever conceived in this hemisphere. At the same time, the cinnamon, spice and everything nice in this drink is the perfect segue into the fall season. Thinking in this vein, I’d like to share a classic horchata recipe, along with a bourbon horchata cocktail. The cocktail works because it’s the best of both worlds: a sweet, innocent horchata that’s grown up and gone a little rogue with the help of bourbon— like if your abuela’s beloved horchata recipe had a rebellious cousin who swears, drinks and rides a Harley.

The creamy, cinnamon-spiced sweetness of horchata mellows out the bourbon’s kick, making this cocktail deceptively smooth. The bourbon’s caramel, oak and vanilla notes sync perfectly with the vanilla and cinnamon from the horchata, creating a drink that tastes cozy but carries a punch. It’s comfort with consequences.

Coffee pouring into a glass
Horchata is an age-old tradition, with the first recorded recipe dating to 1748. (Mixed & Measured)

This drink is what happens when horchata grows tired of being the wholesome after-school snack and decides it’s time to stay out past midnight. It’s balanced enough to fool you into sipping it like a milkshake, but before you know it, you’ll be feeling the bourbon burn, a reminder that some comfort comes at a price. Cheers to sweet deceit in a glass! A quick note if you’re on the wagon: instead of adding bourbon, dump a shot of espresso into your iced horchata and thank me later!

Classic Horchata Recipe

Ingredients

  • 1 cup long-grain white rice
  • 4 cups water
  • 1 cinnamon stick or 1 tsp ground cinnamon
  • 2 cups milk (regular, almond or oat milk)
  • ½ cup sugar (adjust to taste)
  • 1 tsp vanilla extract
  • ¼ tsp salt
  • Ice cubes
  • Ground cinnamon (optional garnish)

Instructions

  1. Soak the rice
    • Rinse the rice under cold water until the water runs clear.
    • In a large bowl, combine the rinsed rice, cinnamon stick and 4 cups of water. Let the mixture soak for at least 4 hours or overnight in the refrigerator to soften the rice and infuse the cinnamon flavor.
  2. Blend the mixture
    • After soaking, remove the cinnamon stick (if using). Pour the rice and water mixture into a blender.
    • Blend on high for 1-2 minutes until the rice is fully broken down and the mixture looks milky.
  3. Strain the liquid
    • Strain the blended mixture through a fine mesh sieve or cheesecloth into a large pitcher to remove the rice solids, pressing to extract as much liquid as possible.
  4. Add milk and flavorings
    • Stir in the milk, sugar, vanilla extract and salt. Mix well until the sugar is completely dissolved.
    • Taste and adjust sweetness if necessary.
  5. Chill and serve
    • Chill the horchata in the fridge for at least 1 hour.
    • Serve over ice and sprinkle ground cinnamon on top and try not to drink this deliciousness in one gulp.
Soaked rice: The secret ingredient to a perfect horchata. (The Chopping Block)

Horchata bourbon cocktail Recipe

Ingredients

  • 4 oz horchata, store-bought or homemade
  • 2 oz bourbon
  • ½ oz simple syrup 
  • ½ tsp ground cinnamon 
  • 1 tsp vanilla extract
  • Ice cubes
  • Cinnamon stick (optional garnish)

Instructions

  1. Prepare the cocktail
    • In a cocktail shaker, combine the horchata, bourbon, simple syrup (if using), ground cinnamon and vanilla extract.
    • Fill the shaker with ice and shake vigorously for 15–30 seconds, until the ingredients are well mixed and chilled.
  2. Serve
    • Strain the cocktail into a glass filled with ice.
    • Sprinkle a pinch of cinnamon on top for garnish.
    • Optional: Add a cinnamon stick for a decorative and aromatic touch.
  3. Enjoy
    • Sip slowly and savor the balance of the warm, spiced flavors of the horchata and the smooth, smoky bite of the bourbon. Try this out and let me know in the comments what you think!

Stephen Randall has lived in Mexico since 2018 by way of Kentucky, and before that, Germany. He’s an enthusiastic amateur chef who takes inspiration from many different cuisines, with favorites including Mexican and Mediterranean.

Chinese company Intretech to invest US $60M in Nuevo León plant

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Intretech serves the automotive, medical, energy and consumer technology sectors.
Intretech serves the automotive, medical, energy and consumer technology sectors. (@Intretech/X)

Chinese technology company Intretech has broken ground on a smart manufacturing plant in Apodaca, Nuevo León, with a planned investment of US $60 million. 

The company serves the automotive, medical, energy and consumer products technology sectors. It manufactures rearview mirrors, headphones and devices for gaming and other Internet of Things (IoT) products.

Intretech's new plant in Nuevo León is expected to employ 1,500 people.
Intretech’s new plant in Nuevo León is expected to employ 1,500 people. (@ClusterIndustri/X)

The plant, Intretech’s first in Mexico, will feature 2,000 square meters of floor space and over 50,000 square meters of planned surface. It is expected to employ 1,500 people. 

Nuevo León’s Economy Minister Iván Rivas Rodríguez said that in October 2023, officials from the local government, including Nuevo León Governor Samuel García, went to China as part of a strategic tour to attract foreign direct investment (FDI) to the state. While there, they toured Intertech’s facilities in Shanghai. 

With plants in Hungary, Malaysia and China, Intretech’s move to Mexico is a strategic investment to strengthen its presence in the Americas. 

“This location provides a geographically convenient hub that enhances service delivery and logistical efficiencies across the continent,” the company said in a statement. “The Mexico facility represents Intretech’s dedication to meeting the demands of its clients by leveraging localized production capabilities and fostering closer ties within the American markets.” 

Worldwide, the Chinese firm employs 9,000 people, including 1,600 engineers.

Among Mexico’s 32 federal entities, Nuevo León is set to be the third biggest recipient of FDI announced by companies in the first six months of 2024, with an estimated US $4.12 billion, or 9% of the total announced investment in the country.  

Nuevo León’s ability to attract FDI is due in part to the efforts of Governor García, who has made attracting nearshoring companies a major priority. According to a recent study by the Mexican Institute for Competitiveness (IMCO) and the Friedrich Naumann Foundation for Freedom (FNF), Nuevo León is among the best-prepared states in Mexico to accommodate nearshoring, in addition to Aguascalientes and Coahuila. 

With reports from El Economista

Tulum mayor announces bypass project to ease tourist traffic

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A 26-kilometer bypass road is in the works to improve traffic flow in and around Tulum.
A 26-kilometer bypass road is in the works to improve traffic flow in and around Tulum. (Gobierno de Quintana Roo/Cuartoscuro)

Tulum, Quintana Roo, has unveiled plans to build a 26-kilometer bypass road to improve traffic flow to and from nearby attractions including the airport and the new Jaguar National Park, according to Mayor Diego Castañón Trejo. 

The mayor took to social media to announce a recent meeting with Quintana Roo Governor Mara Lezama and Dr. Guadalupe Phillips, CEO of construction company ICA (Ingenieros Civiles Asociados), where they discussed the construction of “a new bypass in Tulum that will transform the municipality’s mobility and quality of life,” Castañón wrote on X along with a picture of the meeting. 

The highway will have one traffic lane in each direction, each 3.5 meters wide, with 2.5-meter-wide shoulders 

Castañón initially announced the highway plans during his campaign for mayor of Tulum in May. Then, he outlined three infrastructure projects that seek to improve connectivity for Tulum’s residents.  

As Castañón explained, the projects prioritize pedestrians, cyclists, public transportation, emergency vehicles, municipal public services and private vehicles, in that order. 

The Tulum bypass project aims to relieve congestion around the airport, freeing up circulation towards Playa del Carmen, Cancún and other Quintana Roo tourism destinations. The investment also involves paving and lighting across Tulum to improve mobility, security and public services. 

According to the specifications of the public tender, the project will be financed with a mix of private and public funding. It is currently in the pre-investment stage and studies concerning its viability are underway. 

Since the inauguration of the new Felipe Carrillo Puerto International Airport in Tulum, tourism in the resort city has increased considerably. According to Quintana Roo Governor Lezama, Tulum has seen over half a million passengers since its opening on Dec. 1, 2023. 

With reports from La Jornada Maya

Golf carts will soon be a new way to get around in downtown Tulum

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White golf cart taxis driving on the cobblestone streets of downtown Mazatlan, Mexico
A precedent for this sort of public transport already exists in the resort city of Mazatlán, which uses a sort of souped-up golf cart called the pulmonía. (File photo)

Acknowledging that getting from Point A to Point B on public transportation in Tulum is often difficult, a Quintana Roo state government agency is aiming to solve the problem with golf carts.

The Mobility Institute of Quintana Roo (Imoveqroo) last month approved 400 golf carts as a new form of public transportation in the center of Tulum. Currently, the agency responsible for regulating and overseeing transportation services in the state is seeking tenders from interested operators.

Mexican male taxi drivers standing outside at a protest. Two of them are holding a sign in Spanish saying that taxi service is a public service
Quintana Roo taxi drivers in 2022 protesting against the state allowing Uber to operate there. Drivers lost the battle to keep the ride-sharing company out, but local tensions over the issue have made Uber service spotty in downtown Tulum. (Elizabeth Ruiz/Cuartoscuro)

According to a study published in the Official State Gazette on Aug. 15, Tulum’s explosive growth — both as a tourist destination and as a place to live — prompted Imoveqroo’s decision.

According to the online news outlet Novedades Quintana Roo, “there is no adequate service in the center of town, so tourists, especially, have to travel by taxi.” Legally, Uber is an option in the state, but tensions with local taxi unions have rendered service spotty and perhaps risky in Tulum.

Also, a system of combis and colectivos (minibuses and vans) operates within the Tulum municipality, but largely outside of the downtown.

The new plan calls for golf carts seating two to six people to ply Tulum’s streets in the near future. Some carts will be operated by a company driver, but others will be available for the public to rent and drive themselves. The plan didn’t address rental costs or fares.

A white 15-passenger van in Tulum with people exiting it.
An existing alternative in Tulum to taxis is the colectivo, a large passenger van service that can transport around 15 people. However, these operate largely outside of the downtown. Golf carts could fill the gap. (Cancun Airport Transportation)

Imoveqroo noted that adding golf carts to the mix is considered an “acceptable option for the movement of users from the urban area to the coastal and tourist area.” According to the agency, golf cart rentals will be allowed only in the center of the town.

Entrepreneurs with the legal, administrative, technical and financial capacity to run such an operation have been invited to submit applications until Sept. 19. Imoveqroo is expected to announce the results in coming months. 

In addition to being an “open, golf-type” vehicle that can carry 2–6 passengers — including the driver — the carts can’t be older than five years and must be what Imoveqroo calls “environmentally friendly,” be they gasoline-powered, electric or hybrid models.

In the early 2010s, Tulum was a relatively underdeveloped tourist destination compared to nearby Cancún or Playa del Carmen. However, by 2020, the region was receiving over 2 million tourists annually, up from hundreds of thousands in previous years.

The opening of the new Felipe Carrillo Puerto International Airport in late 2023 is bringing in even more visitors.

Simultaneously, there has been an explosion in real estate development. Luxury condos, boutique hotels, eco-friendly resorts and residential dwellings have been constructed at a rapid pace, sending Tulum’s population skyrocketing from around 18,000 people in 2010 to 46,000 in 2020, marking a one-decade increase of 150%.

In addition to the new airport, other recent large projects in Tulum include a new Maya Train station and Jaguar National Park.

With reports from Riviera Maya News, La Jornada Maya and Novedades Quintana Roo

Sheinbaum warns of ‘war’ in Sinaloa if cartel violence is met with ‘firepower’

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Over 2,000 federal security agents have been deployed to Sinaloa in recent weeks in response to the increase in cartel violence.
Over 2,000 federal security agents have been deployed to Sinaloa in recent weeks in response to the increase in cartel violence. (José Betanzos/Cuartoscuro)

Responding to the high levels of violence in Sinaloa with “firepower” would trigger a “war” in the northern state, President-elect Claudia Sheinbaum said on Tuesday.

Her remark came as the “Los Mayos” and “Los Chapitos” factions of the Sinaloa Cartel engage in a fierce battle in Culiacán and surrounding areas as the former group seeks to avenge the alleged kidnapping of cartel kingpin Ismael “El Mayo” Zambada García, who was arrested in the United States in late July.

Defending her position on the violence in Sinaloa, Sheinbaum referenced the militarized "war" on drug cartels initiated during the 2006-2012 presidency of Felipe Calderón.
Defending her position on the violence in Sinaloa, Sheinbaum referenced the militarized “war” on drug cartels initiated during the 2006-2012 presidency of Felipe Calderón. (Prensa Claudia Sheinbaum/Cuartoscuro)

El Mayo claims he was abducted by Joaquín Guzmán López, one of the sons of convicted drug trafficker Joaquín “El Chapo” Guzmán Loera, and forced onto a plane that delivered him into the hands of U.S. law enforcement authorities.

There have been dozens of cartel killings in Sinaloa since Zambada’s arrest, including more than 30 between Sept. 9 and 16.

At a press conference on Tuesday, Sheinbaum said that authorities are working to restore peace in Sinaloa, but asserted that fighting fire with fire is not the right strategy.

“Going in with firepower would cause a war, as occurred in the past and which didn’t get us anywhere,” she said.

Sheinbaum, who will take office on Oct. 1, was specifically referring to the 2006-12 presidency of Felipe Calderón, who launched a militarized “war” on drug cartels shortly after he was sworn in.

“Calderón said: ‘There is going to be collateral damage,'” the president-elect said.

“That’s why [the current government] is acting to protect citizens.”

There have been dozens of cartel killings in Sinaloa since Zambada's arrest, including more than 30 between Sept. 9 and 16.
There have been dozens of cartel killings in Sinaloa since Zambada’s arrest, including more than 30 between Sept. 9 and 16. (José Betanzos/Cuartoscuro)

During his administration, President Andrés Manuel López Obrador has directed security forces, including the army, to avoid violent confrontations with criminals where possible. He attracted widespread criticism in 2022 when he said that his government looks after criminals by avoiding armed confrontations.

“Before it was kill them in the heat of the moment and they finished off the wounded,” López Obrador said in May 2022, referring to killings by the armed forces during Calderón’s presidency.

By avoiding confrontations, he continued, “we look after the members of the armed forces … but we also look after the members of the gangs — they’re humans [too].”

Sheinbaum said she wants “peace and tranquility” in Sinaloa, and “obviously to combat crime,” but not by “creating more confrontation that causes more deaths.”

She said she wasn’t advocating “waiting for the [opposing] groups to stop fighting,” but rather is in favor of “protecting the population” of Sinaloa.

The Mexican Army’s top commander in Sinaloa said Monday that the re-establishment of order in the state “doesn’t depend on us” and will only come when the rival Sinaloa Cartel factions stop fighting each other.

Governor Rubén Rocha Moya assured the public that Sinaloa has the necessary military support to keep civilians safe.
Governor Rubén Rocha Moya assured the public that Sinaloa has the necessary military support to keep civilians safe. (José Betanzos/Cuartoscuro)

Sinaloa Governor Rubén Rocha Moya ordered 370 police and military agents to patrol school zones in Culiacán, Elota, Cosalá and San Ignacio, where they will remain throughout school hours.

Sheinbaum told reporters that her government’s security strategy will focus on attending to the root causes of violence, strengthening the National Guard and making use of intelligence and other investigative capacities to prevent and solve crimes.

“When we come into government, a series of new laws, reforms, will be presented that will allow us to have a national system of intelligence and investigation,” she said.

“But when there is confrontation, one has to be cautious, not cause greater violence and act responsibly,” Sheinbaum stressed.

The López Obrador administration has used a so-called “hugs, not bullets” security strategy in which addressing the root causes of crime via social and welfare programs is favored over confronting criminals with force.

Homicides reached record high-levels during the current six-year term of government, but numbers have declined slightly in recent years.

AMLO: Protecting citizens comes first 

At his morning press conference on Tuesday, President López Obrador was asked about Commander Francisco Jesús Leana Ojeda’s statement that the restoration of order in Sinaloa depends on “Los Mayos” and “Los Chapitos” rather than the army.

“I would just say that we’re attentive to what’s happening in Sinaloa and are basically seeking two things: First, to protect the population, the protection of citizens,” he said.

“The people of Sinaloa should have confidence that we’re there and we’ll continue to be there for the time that is necessary to protect them, to look after them,” López Obrador said.

“And the second thing, which is also part of that first task, is to avoid confrontation between the [opposing] groups, to stop them fighting and lives being lost. That’s what we’re doing basically,” he said.

With reports from Milenio, SPR Informa and AFP

National Guard is the next item on Morena coalition’s constitutional agenda

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National Guard members
The National Guard (GN) was created by López Obrador's administration in 2019 and now has approximately 130,000 members deployed across the country. (Gob MX)

After approving the federal government’s controversial judicial reform earlier this month, lawmakers with the ruling Morena party and its allies are now preparing to pass a constitutional bill that would place the National Guard (GN) under military control.

And they may achieve their objective before President Andrés Manuel López Obrador concludes his six-year term on Oct. 1, and thus deliver a second much-desired farewell gift to the 70-year-old leader.

Federal Deputy Ricardo Monreal in Congress
Ricardo Monreal, Morena’s leader in the Chamber of Deputies, said he expects the lower house to discuss the bill this week. (Cuartoscuro)

Ricardo Monreal, Morena’s leader in the Chamber of Deputies, said that a vote on the reform proposal that López Obrador sent to Congress in February could be held this week.

“We’re going to deliberate, and as the case may be, approve … the National Guard reform,” he said.

Morena and its allies, the Labor Party (PT) and the Ecological Green Party of Mexico (PVEM), have a supermajority in the Chamber of Deputies that allows them to approve constitutional reforms without the support of opposition parties.

Ignacio Mier, Morena’s deputy leader in the Senate, said that he expects that debate on the GN reform bill will commence in upper house committees next Monday, after its approval in the lower house of Congress.

Claudia Sheinbaum at a podium
President-elect Claudia Sheinbaum, who will take office on Oct. 1, has expressed support for placing the GN under military control. (Cuartoscuro)

Morena, the PT and the PVEM are one vote short of a supermajority in the Senate, but were able to find an additional vote to pass the judicial reform last week.

The most controversial aspect of the National Guard reform is the provision to place the security force under the control of the Defense Ministry (Sedena).

In late 2022, the Congress approved a bill backed by López Obrador that modified four secondary laws and thus paved the way for the GN to be placed under the control of the army.

However, the Supreme Court ruled in April 2023 that the transfer of control over the National Guard from the civilian Security Ministry to Sedena was unconstitutional, a decision that angered the president.

AMLO presents constitutional reform package
President López Obrador presented a package of constitutional reform proposals in February, including moving the National Guard (GN) to military control. (Lopezobrador.org.mx)

López Obrador, who argues that the National Guard needs to be under the control of the military to prevent corruption and guarantee the force’s professionalism, subsequently prepared a constitutional bill to once again give Sedena responsibility for the security force his administration created.

The GN was established in 2019 under a constitutionally-enshrined civilian command.

Opposition parties, government critics and some human rights organizations pointed to the transfer of control over the National Guard to the army in 2022 as another example of the militarization of Mexico that they say has occurred during the current government. Human Rights Watch has warned that the government’s militarized security policy risks facilitating abuses by security forces while failing to reduce violent crime.

López Obrador has relied heavily on the armed forces during his six-year term, using the different branches of the military for public security, infrastructure construction, and the management of ports, airports and customs offices, among other non-traditional tasks.

In total, his GN bill seeks to modify 12 articles of the constitution. Among its aims are to:

  • Attach the National Guard to the Defense Ministry.
  • Define the National Guard as a professional public security force that is part of the military but whose members have police training.
  • Authorize the Congress to ratify high-ranking National Guard appointments made by the president.
  • Authorize the president to use the National Guard for both domestic security and external defense purposes.
  • Give National Guard personnel the same rights and benefits as members of the armed forces.
  • Empower the National Guard to conduct investigations under the command and direction of the Federal Attorney General’s Office.

The National Guard currently has around 130,000 members deployed across all 32 federal entities of Mexico. GN personnel outnumber police officers in 21 states, the Reforma newspaper reported Tuesday.

National Guard member on at a crime scene in Morelos
National Guard members now outnumber police officers in 21 Mexican states. (Cuartoscuro)

The security force plays a key role in the fight against drug trafficking, including fentanyl, and has also been used by the government to curb the flow of migrants to the Mexico-United States border.

When the GN was inaugurated on June 30, 2019, then security minister Alfonso Durazo declared that the establishment of the National Guard would “mark the beginning of the end of the violence in our country.”

“With complete responsibility, we can say that … the darkest days of insecurity will stay in the past,” he said.

However, homicide numbers continued to increase in the first half of López Obrador’s six-year term before declining in more recent years, but remaining very high.

President-elect Claudia Sheinbaum fully supports placing the National Guard under the control of the army, as well as various other constitutional bills the president sent to Congress in early 2024.

With reports from Reforma and El Financiero

Viva Aerobus-Air Canada pact links 8 Canadian cities with 59 Mexico routes

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Viva Aerobus plane
The Mexican low-cost carrier's deal with Air Canada will give passengers a single baggage policy and competitive fares, the airlines say. (Oliver Holzbauer/Flickr)

Mexican low-cost carrier Viva Aerobus and Air Canada have entered into an agreement to boost connectivity between the two countries, linking eight Canadian cities with 59 destinations in Mexico via connections in the cities of Cancún, Mexico City, and Monterrey. 

Canadian passengers will enjoy a single baggage policy and competitive fares by having both airlines on a single ticket, regardless of the number of stops. Tickets will be available on Air Canada’s platforms. 

Skyline and waterfront of Vancouver, British Columbia
The alliance will contact Mexican destinations with many of Canada’s major cities, from Halifax to Vancouver, seen here. (Aditya Chinchure/Unsplash)

“We are excited about this new partnership with Air Canada,” Jordi Porcel, Director of Alliances at Viva Aerobus said in a statement. “This alliance will allow Air Canada’ passengers to seamlessly reach and enjoy a wide range of destinations in Mexico, including beaches, large cities, and other towns.” 

Travelers will be able to connect from Viva Aerobus flights originating in Mexico to Canadian cities like Montreal, Toronto, Vancouver, Edmonton, Halifax, Ottawa, Quebec and Winnipeg.

“We know that there is a large Mexican population of students and professionals in Canada who will also be able to take advantage of this opportunity to visit their families back home,” Porcel said. 

Viva Aerobus commenced operations in Mexico almost 18 years ago. Currently, they operate the youngest fleet in the country and the fifth youngest in North America. Air Canada is Canada’s largest airline with 195 destinations and more than 46 million passengers flown in 2023.

Flair Airlines launches flight to Guadalajara

Canadian low-cost carrier Flair Airlines has also increased its routes to Mexico with a new direct flight between Toronto and Guadalajara. 

The airline already operates a direct flight between Guadalajara and Vancouver.

“With this new route to Toronto, the second to Canada, Guadalajara airport is connected to 60 national and international destinations,” head of Guadalajara International Airport Martín Zazueta Chávez said. 

Jalisco Tourism Ministry (Secturjal) head Vanessa Pérez Lamas said that the state received almost half a million Canadian tourists in 2023.

“Jalisco recognizes the importance of Canada as an international market for our state,” Pérez said. “We are confident that the routes from two important Canadian cities, Vancouver and now Toronto, will further expand this market.

Flair CEO and Interim President Maciej Wilk said that Flair-operated flights from Vancouver to Guadalajara “have been a huge success,” and that they are “very excited to see the same enthusiasm and demand from Toronto.”

With reports from Milenio and El Economista.

US agrees to Mexico’s agricultural inspectors supervising avocado exports

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Harvested avocados in a pile
Mexico has imported 11 tonnes of avocados to the United States without a single pest or phytosanitary incident in the last decade. (Government of Mexico)

The Mexican government announced on Monday that the United States has consented to authorize Mexico’s Agriculture and Rural Development Ministry (Sader) to do inspections to certify avocado orchards whose harvests are designated for export to the U.S.

The agreement comes just three months after the U.S. government resumed inspections of avocados following a 10-day suspension.

Mexico's Agricultural Minister Victor Villalobos standing behind a podium speaking to the press, flanked by three other men, including US Ambassador to Mexico Ken Salazar, to Villalobos' right.
In June, Agricultural Minister Victor Villalobos, at the podium, held a press conference with US Ambassador to Mexico Ken Salazar, to Villalobos’ right, to announce the lifting of a 10-day suspension on Mexican avocado exports to the U.S. prompted by threats to USDA staff in Michocán. (Government of Mexico)

The suspension went into place after two U.S. Department of Agriculture inspectors had been threatened while making the rounds in Michoacán, one of only two states in Mexico authorized to export avocados into the U.S. The other is the neighboring state of Jalisco.

Mexican inspectors will now be in charge of supervising participating orchards and certifying the absence of invasive pests throughout harvesting and packing procedures.  

Officials with the Animal and Plant Health Inspection Service (APHIS), an agency of the U.S. Department of Agriculture (USDA), are tasked with working jointly with Senasica, the Mexican agency that protects agricultural, aquacultural and livestock resources from pests and diseases, to establish an annual orchard inspection program.

The decision recognizes that Mexico’s avocado exporters have complied with APHIS regulations since they were put in place in 1997, during which time no pest or phytosanitary problems have gone untreated.

For the past 27 years, producers, packers and exporters have efficiently addressed any and all issues related to pest invasions, adequately applied quarantines when available and cooperated fully with APHIS personnel, according to the news magazine Expansión.

APHIS personnel will continue to administer the orchard inspection process but will not be required to do so from Mexico. In addition, APHIS and Senasica will be jointly responsible for overseeing the packaging process for avocados exported to the United States.

Woman worker preparing avocados for shipment
Agricultural products, like avocados, are one of the primary exports from Mexico to the United States. (Cuartoscuro)

Upon announcing the agreement, Sader declared that the transfer of responsibilities to Senasica “reinforces cooperative efforts to promote a bilateral agenda that facilitates flexible and secure trade.”

It remains to be seen how U.S. avocado producers will react to this decision. In July, the California Avocado Commission demanded that the USDA continue directly supervising the harvesting and packing of Hass avocados destined for the US market from Mexico.

Ken Melban, a California Avocado Commission official, cautioned against jeopardizing the economic interests of U.S. farmers who rely on rigorous oversight, saying the threat of invasive pests is a critical concern.

“As reports of corruption and violence in Mexico continue, including regions authorized for avocado exports to the U.S., it is unimaginable that the U.S. government would consider abdicating inspection responsibilities to Mexico,” Melban said, according to Mexico Business News.

In the past 10 years, Mexico has exported approximately 11 million tonnes of avocados to the United States without a single pest-related violation.

Mexico is the world’s No. 1 producer of avocados, producing 2.5 million tonnes annually. In addition to supplying the domestic market, Mexico’s avocado farmers — primarily in the states of Michoacán, Jalisco, México state, Nayarit, Morelos and Puebla — export more than 1.1 million tonnes of the fruit annually worldwide. 

In addition to the United States, Mexican avocados are exported to Canada, Japan, Spain, El Salvador, Holland and China.

With reports from Expansión, Mexico Business News and El Universal

Banxico: Manufacturing sector cools in Q2 as nearshoring lags

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A dock worker supervises as shipping containers are moved in Lázaro Cárdenas
Trade uncertainty has put the nearshoring (Juan José Estrada Serafín/Cuartoscuro)

Production at Mexican factories declined more than 1% annually in the second quarter of 2024, a slowdown the Bank of Mexico (Banxico) partially attributed to weak manufacturing activity in the United States.

In its second quarter “regional economies” report, Banxico published data that showed that manufacturing activity in Mexico’s northern region — home to large numbers of maquiladoras, or export-oriented factories — declined 2.6% annually between April and June.

Manufacturing activity decreased in all four regions monitored by the central bank: north, north-central, central and south.
Manufacturing activity decreased in all four regions monitored by the central bank: north, central-north, central and south. (Banxico)

Manufacturing activity also decreased in the three other regions monitored by the central bank, but the contraction in the north was easily the biggest.

In Mexico’s central north, which includes Mexico’s industry-focused Bajío region, the year-over-year decline in Q2 was 1.2%, while the country’s central and southern regions recorded annual manufacturing activity contractions of 0.7% and 0.4%, respectively.

Compared to the first quarter of 2024, national manufacturing activity declined 0.2% between April and June, marking the fourth consecutive quarter-over-quarter contraction.

Banxico said that the manufacturing sector’s performance in the second quarter continued to be “weak.”

The slowdown in manufacturing activity came as Mexico seeks to bolster the sector by attracting foreign investment amid the nearshoring trend.

While numerous manufacturing companies have recently announced plans to establish plants here, the majority of foreign direct investment is currently coming from firms that already have a presence in Mexico.

Most manufacturing sub-sectors contracted in Q2   

The Bank of Mexico reported that 14 of 20 manufacturing sub-sectors recorded contractions in the second quarter of 2024 compared to the previous three-month period.

Banxico said that the declines were the product of “weakness in production destined both for the internal and external market.”

Lumitex manufacturing facility in Celaya
The decline in the production of goods for export could be related to the unfavorable performance of the manufacturing sector in the United States. (Together with Entrada Group)

The decline in the production of goods for export “could be related to the unfavorable performance” of the manufacturing sector in the United States given “the high integration of regional production chains,” the bank said.

Manufacturing output in the United States increased more than 3% annually in the second quarter, but Reuters reported that the sector “has at best been treading water as higher interest rates curb demand for goods and make capital investment challenging.”

The U.S. manufacturing sector declined 1.3% in the first quarter of the year.

Mexico’s strongest sector in Q2 was construction 

Banxico noted that Mexico’s economy grew 1.1% annually in the second quarter of the year.

Mexico’s central region, which includes Mexico City, led the way, recording annual economic growth of 1.9%.

The economy of the northern region expanded 1%, while the central-north recorded growth of 1.2%.

Cuauhtémoc
Mexico’s central region, which includes Mexico City, led the way, recording annual economic growth of 1.9%. (Wikimedia)

Mexico’s southern region, which includes the country’s poorest states, recorded annual economic growth of just 0.3% between April and June.

The national construction sector grew 7.3% annually in the period, a strong result, but a significant slowdown from 13.3% annual growth in the first quarter of the year.

Private and public construction projects have recently contributed to strong construction sector growth.

The northern region recorded the largest construction sector growth in the second quarter, at 11.9% in annual terms.

The only other national sector monitored by Banxico that recorded annual growth between April and June was tourism. That sector grew 3.2%, up from 2.7% in the first quarter of the year.

In addition to manufacturing, activity in the mining, retail and agricultural sectors all declined in Q2. The annual contractions were 3.6% for mining, 0.7% for retail and 2.7% for agriculture.

Which regions are benefiting most from nearshoring?

Banxico’s Monthly Survey of Regional Business Activity, or EMAER, found that 12.9% of companies in Mexico with more than 100 employees recorded increases in production, sales or investment over the past year as a result of the nearshoring, or relocation, trend.

The figure — derived from reported increases in company production, sales or investment between July 2023 and July 2024 — is 3.6 percentage points higher than a year earlier.

Companies that operate in Mexico’s northern region were most likely to benefit from nearshoring, Banxico found.

Around one in six companies in the north — 16.9% — reported increases in production, sales or investment as a result of nearshoring. The percentage figure increased five points in the space of a year.

A maquiladora factory in Tijuana
Companies that operate in Mexico’s northern region were most likely to benefit from nearshoring, Banxico found. (Cuartoscuro)

The percentage of companies that reported benefiting from nearshoring was 13.2% in the central north region of Mexico, 11.4% in central Mexico and 7.8% in the south. All those figures increased from a year earlier.

According to the Banxico report, the “perception” of Mexico’s business sector is that “the process of relocation is ongoing,” but the general opinion is that the full impact of the nearshoring trend will take some time to materialize.

Just over 41% of surveyed company representatives predicted that the greatest impact from nearshoring will be felt between 2026 and 2030. More than 31% believe that the nearshoring trend will make its biggest impact in 2025, while around 4% think that Mexico won’t reap the full rewards of the phenomenon until after 2030.

Exactly 23% of those surveyed believe that Mexico has already passed, or is currently at, its nearshoring peak.

Investment announcements for Mexico exceeded US $100 billion last year, and reached almost $50 billion in the first seven months of 2024, suggesting that Mexico has not yet reached its zenith as a nearshoring destination.

However, there is no guarantee that all announced projects will go ahead, and there are concerns that the new judicial reform, and other as-yet-unapproved constitutional bills, could have a significant negative impact on Mexico’s attractiveness as an investment destination.

JPMorgan Chase CEO Jamie Dimon said last November that Mexico “might be the number one opportunity” in the world for investors, while in December Thor Equities founder and chairman Joseph Sitt asserted that Mexico had become the “alternative” to China and represented a “golden” opportunity for investment.

But it remains to be seen whether Mexico will in fact capitalize on its nearshoring opportunity during the 2024-30 presidency of Claudia Sheinbaum, or whether factors such as government policy, insecurity, lack of energy and water, and insufficient infrastructure cause the country to fail to reach its much-touted potential.

More nearshoring-related reading

With reports from El Economista