Bystanders gather to watch the passage of the Empress through Tula de Allende, Hidalgo. (Francisco Villeda/Cuartoscuro)
A large crowd turned out in Mexico City on Friday to see Canadian Pacific 2816, a steam locomotive known as the “Empress” that has just completed a lengthy journey to the Mexican capital from Calgary, Canada.
Built by Montreal Locomotive Works for the Canadian Pacific Railway in 1930, the 4-6-4 Hudson-type steam locomotive and its carriages departed Calgary on April 24 on its “Final Spike Anniversary Steam Tour,” a journey that “serves as a reminder of our past and a celebration of our future,” according to Keith Creel, President and CEO of Canadian Pacific Kansas City (CPKC).
Canadian Pacific 2816, the steam locomotive known as “The Empress.” (Wikipedia)
“Our combination on April 14, 2023, brought together two railroads with long and proud histories that together created the first and only railroad network connecting North America,” Creel said in January when the schedule for the Final Spike tour was announced.
Before reaching Mexico City, the “Empress” made stops in Canadian and United States cities, and in Monterrey, Nuevo León.
At all the stops members of the public had the opportunity to see CP 2816 up close and learn about the locomotive and the history of Canadian Pacific and Kansas City Southern.
Ramón Andrade García dressed as Harry Potter for a photo shoot in front of the historic train. (Ramón Andrade García)
One person who went to see the almost 100-year old locomotive in the Nuevo León capital was Ramón Andrade García. He attracted attention because he dressed up as Harry Potter for a photo shoot in front of the steam-locomotive-led train, which resembles the Hogwarts Express.
A tragic accident
On its way to the capital, the “Empress” was involved in a tragic accident when a 29-year-old woman got too close to the tracks and was hit and killed by one of the locomotive’s pistons as she was taking a selfie. The accident occurred as the train passed through the municipality of Nopala de Villagrán, Hidalgo.
In Mexico City, the “Empress” stopped in the Miguel Hidalgo borough on Friday, where hundreds of people came out to admire the locomotive and its adjoined carriages.
At nearly 100 years old, the Empress keeps chugging along
The locomotive pulled passenger trains for 30 years through the 1930s, 40s and 50s before its retirement in 1960. It was subsequently put on display at Steamtown U.S.A, a steam locomotive museum that ran excursions between New Hampshire and Vermont.
Canadian Pacific reacquired the train engine in the late 1990s and put it back into service in 2001 as part of the company’s steam program.
Having reached its final destination in Mexico, the “Empress” will now return to Canada in what appears will be its final journey.
The last “event stop” of the Final Spike tour is July 6 in Winnipeg, the capital of the province of Manitoba. The locomotive will arrive in Calgary on July 10.
A model of Saguaro Energía, the natural gas liquefaction plant Mexico Pacific plans to build in Sonora. (Mexico Pacific)
Houston-based company Mexico Pacific Limited (MPL) has announced another investment of US $15 billion in liquefied natural gas (LNG) projects in northern Mexico in the next two to three years, the firm’s CEO Sarah Bairstow told the El Financiero newspaper.
The planned outlay will increase the LNG company’s investment in Mexico to $30 billion, which El Financiero said was the highest amount ever for a single investor in this country. The figure is equivalent to over 80% of Mexico’s total foreign direct investment in 2023.
Mexico Pacific has already begun investing $15 billion in a natural gas pipeline and liquefaction plant in the northern states of Sonora and Chihuahua. Those projects have been approved and construction is expected to start later this year.
In an interview with El Financiero, Bairstow said Mexico Pacific will spend the additional $15 billion on a range of unspecified liquefied natural gas (LNG) projects. However, she did say that the company wants to move into an expansion phase once it has built the gas pipeline and liquefaction plant.
She said that Mexico Pacific is “excited” about Mexico’s future under Claudia Sheinbaum’s leadership, given that the president-elect has a PhD in energy engineering.
Bairstow, who was appointed CEO of MPL in April, said that the company has been supported by federal and state authorities during the past six years as it prepares to build its projects in Sonora. She indicated that she expects that support to continue after Sheinbaum takes office on Oct. 1.
MPL’s new CEO, Sarah Bairstow, was appointed in April. (Mexico Pacific)
The natural gas export facility will be located on the Gulf of California coast in Puerto Libertad, a town in the municipality of Pitiquito, Sonora. MPL subsidiary Saguaro Energía will operate the facility.
The company already has a deal to sell 1 million tonnes of LNG per year over a 20-year-period to Chinese company Zhejiang Energy. It also has deals to sell LNG to three “oil majors,” Bairstow said.
MPL’s other major project is the Sierra Madre pipeline, an 800-kilometer-long pipeline that will transport gas extracted in the United States “from the U.S.- Mexico border in the municipality of Guadalupe, Chihuahua,” to Puerto Libertad, according to the company’s website.
“The pipeline will traverse through 16 municipalities across the states of Chihuahua and Sonora, terminating at Puerto Libertad, Pitiquito, Sonora,” MPL says.
Bairstow told El Financiero that Mexico is in a privileged geographical location due to its proximity to the Permian Basin, an oil and gas producing area in western Texas and southeastern New Mexico. Oil producers extract huge quantities of gas in the Permian Basin as part of the oil-drilling process.
The natural gas projects will use the by product of drilling in the Permian Basin to create liquefied natural gas (LNG). (U.S. Energy Information Administration)
With the construction of the Sierra Madre pipeline, Mexico will be able to access natural gas from that basin at the world’s lowest prices, Bairstow said. In coming years, she added, it could become the world’s fourth largest LNG exporter.
“We already have all the necessary permits and we’ll be building infrastructure in Mexico for the next five or 10 years,” she said.
Bairstow said that MPL’s projects will create 13,000 direct and 21,000 indirect jobs “during the different phases of construction.”
Mexico Pacific’s big-league buyers
The MPL CEO told El Financiero that there are three keys to the success of the company’s projects in Mexico.
The first one she cited was “customers.”
Bairstow said that MPL has already entered into 20 and 30-year contracts to sell LNG to different customers. Three of those companies are oil majors — ExxonMobil, Shell and ConocoPhillips.
“It’s the first project in the world that is anchored to three ‘super majors,'” Bairstow said.
She said that MPL has already made deals to sell all the LNG that will be produced by the first three LNG trains, or liquefaction units, at the Puerto Libertad facility.
“Mexico and Sonora have an advantage of proximity to the Asian market, which has led to a phenomenal amount of demand [for the gas liquefied] by our project,” Bairstow said.
The total capacity of the plant in its initial stage will be 15 million tonnes of LNG per year.
Bairstow said that the second key to the success of the Mexico Pacific projects was government support. The CEO reiterated that things have been going smoothly thus far.
Chihuahua Governor Maru Campos and Mexico Pacific representatives signed a strategic agreement last November, just one of MPL’s government collaborations. (Mexico Pacific)
“We have all the permits for the project and we also have a strategic partnership with the Federal Electricity Commission. We have a wonderful collaborative relationship and have appreciated its support,” she said.
With permits granted, construction is set to begin this summer
Bairstow said that the third key to the success of the projects were the contractors who will help execute them. She said that the companies that collaborate on the construction of the liquefaction plant and pipeline will ensure that they are “the most advanced” of their kind in North America.
Bairstow estimated that the projects would take between four and five years to complete. She also indicated that MPL would subsequently move into an expansion phase, presumably using the additional $15 billion in planned investment.
In a post to her LinkedIn account on Thursday the MPL chief said she was “proud” to outline to Mota “the conscious design and lasting benefits this world-class energy infrastructure will deliver for Mexico, the U.S.-Mexico bilateral relationship and our global stakeholders.”
Mexicana has eliminated eight of its 18 routes after incurring multi-million-dollar losses in 2024. (Mexicana de Aviación/Facebook)
Mexicana de Aviación, the state airline managed by the Defense Ministry, announced plans to expand its routes in the next three years to 11 international destinations in the United States, Canada and Latin America.
To support the new international flight routes, Mexicana would operate from bases in Tijuana, Baja California, and Tulum, Quintana Roo, in addition to its existing base in Felipe Ángeles International Airport (AIFA) in Mexico City.
From AIFA, Mexicana would serve Chicago, New York, Atlanta, Miami, Havana, Dallas, San Francisco, Houston, Costa Rica, Panamá and Bogotá.
From the Tulum International Airport, the carrier would operate flights to Punta Cana, Caracas and Lima. Finally, from Tijuana International Airport, Mexicana is planning new routes to Montreal, Ottawa, Vancouver and Portland.
Mexicana on the rise
The announcement comes days after the carrier announced an order of 20 Embraer jets to expand its fleet. According to President Andrés Manuel López Obrador, Mexicana de Aviación acquired the Brazilian aircraft for a total of US $750 million.
“Mexicana is working very well and will consolidate itself with the acquisition of these 20 new aircraft,” he said during his morning press conference on Friday. “The operation has already been carried out. The contracts have already been signed.”
As Mexicana expands its destination offering, it has also purchased 20 new airplanes from Brazilian aircraft manufacturer Embraer. (Embraer)
The army-run airline expects to receive five E195 aircraft in the second quarter of 2025, seven E190 aircraft in 2026 and three E190 and five E195 aircraft heading to 2027.
Mexicana, once Mexico’s flagship airline, entered bankruptcy proceedings in 2010. After promising he would revive the airline to offer low-cost options to travelers, López Obrador announced in August 2023 that his government had bought the Mexicana brand for US $48 million.
Since starting operations in December of last year, Mexicana has served an average of 1,025 passengers daily over 163 days, totaling 140,762 passengers throughout 2,990 flights. This means the airline carries an average of 47 passengers per flight.
Mexicana currently flies to 18 national destinations with 3 Boeing 737 aircraft with a capacity for 180 passengers, and 2 Embraer 145 with a capacity of 50 passengers.
With an average base price of 860 pesos per ticket (US $46) versus the average 1,100 pesos (US $59) other airlines offer, Mexicana says it has saved its customers $33.7 million pesos. To date, its flight sales have generated 121.55 million pesos (US $6.6 million).
According to the airline, Tulum, Tijuana, Mérida, Ixtepec and Ciudad Victoria are among its most popular destinations.
Chinese telecoms supplier YOFC will produce optical fiber, cables and other telecommunications accessories at its new manufacturing plant. (Scott Rodgerson/Unsplash)
Chinese telecoms giant YOFC opened its first manufacturing plant in Mexico, investing 341 million pesos (US $19 million) to build the factory in the state of Jalisco.
YOFC’s plant in the city of Lagos de Moreno in northeastern Jalisco started operations this week and is expected to generate 203 jobs over the next two years.
YOFC, a global leader in the supply of fiber optics, optical cable and integrated solutions, already had a sales presence in Mexico via its sales offices. Now, the 19,515-square-meter production plant will manufacture optical fiber, cables and accessories for the Mexican telecommunications industry.
Production at the Lagos de Moreno plant will primarily be for the domestic market, but YOFC will also export to its other North America and Latin America markets.
Roberto Arechederra, Jalisco’s economic development secretary, said the first-of-its-kind plant will consolidate Jalisco as an epicenter of nearshoring, especially in the high-tech sector, according to newspaper Mexico Now.
Arechederra called YOFC a “highly relevant [company] in the high-tech industry” while claiming it demonstrates that “Jalisco is a force in foreign direct investment (FDI).”
The new YOFC plant, its first in Mexico, is in Lagos de Moreno, Jalisco. (YOFC Mexico)
During the first quarter of 2024, foreign businesses invested more than US $593 million in Jalisco. That figure places the western state at No. 9 on the list of Mexican states attracting the most FDI during Q1. FDI hit a new record high in Mexico in the first quarter, surpassing US $20.3 billion, an increase of nearly US $1.7 billion over the same period in 2023.
While still devoted to the twin pillars of attracting investment and developing a high-quality workforce, the Jalisco government is also facing a transition as Governor Enrique Alfaro’s term ends on Sept. 30.
Meat prices in Mexico are holding relatively steady against a panorama of soaring fruit and vegetable prices. (Victoria Valtierra/Cuartsocuro)
Significantly higher prices for fruit and vegetables exerted considerable pressure on inflation, while the increase in the cost of services also contributed to the annual rise.
The headline rate last month is the highest since a 4.88% reading in January, but came in below the forecasts of most analysts. The census forecast of analysts surveyed by Citibanamex was a headline rate of 4.82% in May.
INEGI data also showed that the closely watched annual core inflation rate, which excludes volatile food and energy prices, declined for a 16th consecutive month to reach 4.21%, down from 4.37% in April. The core rate was also lower than expected.
The publication of the inflation data for May comes three weeks before the next monetary policy meeting of the Bank of Mexico (Banxico). The central bank targets 3% inflation with a tolerance of 1 percentage point in either direction.
While inflation remains above Banxico’s target, Citibanamex’s June Expectations Survey predicted a 25-basis-point cut to the central bank’s official interest rate after the June 27 monetary policy meeting. That survey was conducted when analysts expected Mexico’s headline inflation to be higher in May than the rate reported by INEGI on Friday.
Gabriela Siller, director of economic analysis at the Mexican bank Banco Base, said on Friday that the Bank of Mexico “will now have to deal with the [post-election] depreciation of the peso, which threatens to put upward pressure on inflation.”
The peso has depreciated approximately 5% in the last week. (Crisanta Espinosa Aguilar/Cuartoscuro)
High fruit and vegetable prices persist
INEGI data shows that fruit and vegetables were 18.55% more expensive in May than the same month last year. The annual inflation rate declined slightly from 18.57% last month.
Widespread drought in Mexico has had an impact on fruit and vegetable prices.
Compared to April, serrano peppers were 22.5% more expensive in May, while the price of poblano chilis rose 22%. Prices for tomatoes and oranges increased more than 11% on a month-over-month basis, while avocados were 9.1% more expensive.
Separate data showed that cilantro prices quadrupled between early May and early June.
In better news for the nation’s taqueros, INEGI data shows that prices for onions and limes — other common garnishes for tacos — declined by 25% and 7%, respectively, in May compared to the previous month.
Other inflation data in detail
Prices for agricultural products — fruit and vegetables and meat — increased 8.44% in May on a year-over-year basis. The increase was tempered by an annual inflation rate of just 0.71% for meat.
Services were 5.22% more expensive than a year earlier. Within that category, housing costs increased 3.81%, school fees rose 6.34% and “other services” were 6.14% more expensive.
Processed food, beverages and tobacco were 4.49% more expensive than in May 2023.
The cost of non-food goods rose 2.05% on an annual basis.
Energy prices, including those for gasoline and electricity, increased 4.2% annually, but declined 3% compared to April as lower “hot season” electricity rates took effect in 11 cities including Mexicali, Culiacán, Hermosillo, Chihuahua and La Paz.
Pending approval by authorities, Iberia could codeshare with Volaris as early as July 2024.
Mexican low-cost airline Volaris and Spanish airline Iberia signed a codeshare agreement to expand air connectivity between Spain and Mexico. This agreement marks the first time that Volaris partners with a European airline.
The partnership will expand the Spanish airline’s reach to 25 national destinations within the Volaris network. These destinations are: Acapulco, Cancún, Chetumal, Chihuahua, Ciudad Juárez, Cozumel, Culiacán, Guadalajara, Hermosillo, Huatulco, Ixtapa-Zihuatanejo, La Paz, Los Mochis, Mazatlán, Mérida, Mexicali, Monterrey, Oaxaca, Puerto Vallarta, Puerto Escondido, San José del Cabo, Tapachula, Tijuana, Tuxtla Gutiérrez and Villahermosa.
Volaris, Mexico’s biggest airline, transported 33.4 million passengers in 2023 – 7.9% more than in 2022. (Lifes Sundays/Shutterstock)
“By signing this codeshare agreement with Iberia, we are providing passengers with a greater variety of options to explore Mexico,” Executive President of Volaris Holger Blankenstein said in a statement.
Iberia operates three daily flights to Mexico City, offering over 772,000 seats annually. The route is served exclusively by the fleet’s largest aircraft, the A350. With a capacity for 348 passengers, this plane is the most eco-efficient in Iberia’s fleet.
Through the agreement, an Iberia code will apply on flights operated by Volaris between the aforementioned 25 destinations and Mexico City, where passengers will connect with an Iberia flight to Europe. This seeks to streamline the booking process ensuring operational efficiency, simplifying processes and reducing complications for both parties.
“With this collaboration agreement, we are reaffirming our commitment to Mexico, one of our main markets,” said María Jesús López Solás, commercial director of Iberia. “Thanks to [the agreement], we’ll offer better connectivity to all customers who travel to Mexico with Iberia, while helping passengers from Mexico travel to Europe in a more comfortable and efficient way.”
The codeshare agreement will also allow for greater integration of schedules and more fluid connections, ensuring minimal wait times and smooth transitions between flights.
The codeshare flights between the two airlines could start operating as early as July, pending approval by authorities in Mexico and Spain.
BYD's initial float on the Mexican Stock Exchange will be 1.1 billion shares.
(Mohammad Fathollahi/Unsplash)
Just three months after announcing its plans to build a factory in Mexico, Chinese electric vehicle manufacturer BYD has petitioned to enroll in the Mexican Stock Exchange or bolsa mexicana de valores (BMV).
BYD filed an application to list on the BMV’s Global Market, officially known as the International Quotation System (SIC), a platform that allows Mexican investors to buy shares on other stock exchanges globally. Under the Global Market model, shares of companies from all over the world, as well as exchange-traded funds (ETFs), are sold on the BMV.
In February, Chinese automaker BYD announced its plan to open an electric vehicle manufacturing plant in Mexico. (BYD)
An ETF offers investors in the BMV exposure to around 70 North American companies and trusts considered “direct beneficiaries” of the growing business trend of nearshoring. The first such fund offered by the BMV was launched in March.
Mexico City-based Casa de Bolsa Finamex will represent BYD for operations in the BMV’s Global Market. The move to access the BMV is a significant step for the Chinese car company as it seeks to expand its presence in Latin America.
In its application to the BMV, BYD indicated that its shares would be traded on the BMV’s Global Market beginning Monday, June 10. It also stated that its initial float for the N series is 1.1 billion shares.
The start price for BYD shares will be 230.6 Hong Kong dollars (about US $30 today), the price at which BYD shares were trading on the Hong Kong Stock exchange at the close of June 3.
The Chinese EV manufacturer, based in the city of Shenzhen, made its initial public offering (IPO) on the Hong Kong Stock Exchange in July 2002.
Sheinbaum received the most votes of any presidential candidate in Mexican history. (Graciela López/Cuartoscuro)
Claudia Sheinbaum received more votes in last Sunday’s presidential election than any previous candidate for Mexico’s top job, surpassing President Andrés Manuel López Obrador’s 2018 tally by more than 5 million votes.
Final election results show that Sheinbaum, candidate for an alliance made up of the ruling Morena party, the Labor Party (PT) and the Ecological Green party of Mexico (PVEM), received 35.92 million votes, or 59.75% of all ballots cast.
Claudia Sheinbaum, who won more than double the numbers of votes won by her main rival Xóchitl Gálvez, represents a continuation of President López Obrador’s movement. (Cuartoscuro)
Her tally was more than double that of opposition bloc candidate Xóchitl Gálvez, and she won 5.8 million more votes than López Obrador, who in 2018 became the most-voted-for winner in a presidential election in Mexico.
Support for Sheinbaum in percentage terms was the highest since Miguel de la Madrid won the 1982 presidential election with just under 71% of the vote. De la Madrid represented the Institutional Revolutionary Party, or PRI, which was Mexico’s hegemonic political force at the time.
López Obrador’s won 53.2% of the vote in 2018, while former presidents Enrique Peña Nieto (2012-18) and Felipe Calderón (2006-12) both prevailed with less than 40% of the vote.
Gálvez, who represented the National Action Party (PAN), the PRI and the Democratic Revolution Party in last Sunday’s election, received just over 16.5 million votes or 27.45% of the total.
Xóchitl Gálvez, seen here with the leaders of the PRI (left) and the PAN (right), conceded on Sunday night. (Cuartoscuro)
Her tally exceeded that of the 2018 presidential election runner-up, Ricardo Anaya of the PAN, by almost 3 million votes.
Jorge Álvarez Máynez, the Citizens Movement (MC) party candidate in the 2024 presidential election, received 6.2 million votes or 10.3% of all ballots cast.
National Electoral Institute data shows that a total of 60.11 million votes were cast in the presidential election. Just over 1.4 million votes were invalid, while more than 83,000 people cast ballots for unregistered candidates. Turnout among eligible voters was just over 61%.
Sheinbaum thanks voters for their support
In a video message on Thursday, President-elect Sheinbaum noted that her vote tally was 35.8 million with 99.8% of the vote counted.
— Dra. Claudia Sheinbaum (@Claudiashein) June 6, 2024
Claudia Sheinbaum shared a message of thanks on her social media accounts on Thursday.
Before that, she thanked the Mexican people for their support last Sunday.
“This message is to say to you, thank you, thank you, my heartfelt thanks,” Sheinbaum said. “… The truth is I’m moved.”
Sheinbaum, who will be sworn in as Mexico’s first female president on Oct. 1, said she was “convinced” that the presidential election result equated to “recognition from the people of Mexico that we’re on the right track.”
She also said that citizens had demonstrated “trust” that her government will “continue moving forward with the fourth transformation,” as the political project initiated by López Obrador is known.
“Our conviction has always been and will continue to be openness to dialogue, strengthening of freedoms, democracy and of course closeness to the people of Mexico. We’re going to continue building shared prosperity. I’m not going to fail you. We’re going for the second story of the fourth transformation,” Sheinbaum said.
For her part, Gálvez announced in a video message on Wednesday that she had decided to return to the Senate to finish the six-year term she began in 2018. She stepped down as a senator in late 2023 to contest the presidential election.
Gálvez and PAN leader Marko Cortés said earlier this week that the opposition would file challenges against what they believe was an unfair presidential election, in which López Obrador intervened and “the entire state apparatus” was used to favor Sheinbaum.
While Jeffreys was clear that there are a lot of challenges in Mexico, he also sees a bright economic future for the country. (Shutterstock)
Mexico is “a country on the rise,” according to Oxford Business Group CEO Andrew Jeffreys, who believes it is well-positioned to take advantage of the nearshoring opportunity.
In an interview with the El Economista newspaper, the head of the global publishing, research and consultancy firm even said that “the combination of favorable factors” in Mexico right now may surpass the advantageous conditions that prevailed in other countries at certain times in the past.
Andrew Jeffreys, CEO of Oxford Business Group. (Oxford Business Group)
However, Jeffreys also acknowledged that Mexico has its fair share of problems, and warned that not everything will be easy as the country seeks to capitalize on the nearshoring opportunity.
In conversation with El Economista journalist Luis Miguel Gónzalez, the CEO noted that Mexico has become a large manufacturer across a range of sectors and a major exporter.
Still, Mexicans are very hard on themselves, failing to fully appreciate what has been achieved over the past 30 years, Jeffreys said, referring to the time that has passed since the North American Free Trade Agreement, or NAFTA, took effect.
The automotive industry is one of the top export sectors and draws significant foreign direct investment to Mexico. (Shutterstock)
“Being demanding and self-critical is healthy,” the CEO said, but Mexicans “shouldn’t lose sight” of the progress that has been made. In his view, the future is very bright as well.
Mexico “in more than one way, is a country on the rise,” Jeffreys said.
“Nearshoring is spoken about, but this isn’t a coincidence. [Mexico] has a privileged geographic position, has been developing capabilities in industries such as automotive and electronics for several years [and] has a lot of advantages in demographics, including a large number of qualified people,” he said.
Jeffreys, who has worked as a consultant in numerous developing countries during his 30-year career with Oxford Business Group, said that some of the problems Mexico faces, such as a lack of high-quality infrastructure, are “very common in developing countries.”
Industrial growth has up until now mostly occurred in the northern and central regions of Mexico and has accelerated tremendously in the past 30 years. (Logistikpark.com.mx)
But while Mexico shares some of its problems with other developing countries, it has advantages that other nations don’t have, he said.
“There are other countries with large populations, but they’re not as well-educated as Mexico’s population. No other country is so close to the world’s largest market,” Jeffreys said.
“… I’ve spent a lot of time in Saudi Arabia, Indonesia and Eastern Europe. What I see in Mexico is, perhaps, a greater combination of favorable factors than in other places or at other times. Arab countries had the oil boom, Eastern Europe had the the fall of the [Berlin] Wall and its entry to the European Union. Now [the economic opportunity for Mexico] can be more powerful,” he said.
Mexico’s opportunity, Jeffreys noted, comes at a time when the world is in the “post-COVID” period, the relationship between the United States and China is being redefined and the U.S. is making changes to its commodity chains in “very important” sectors.
“I’m not saying that everything is going to be easy [for Mexico], but a lot of countries have achieved it,” he said, referring to rapid economic development, including the improvement of infrastructure.
“In the ’80s Spain and Greece had very poor infrastructure. Now [their infrastructure] is first class. Mexico has a lot to do with highways, ports, customs, but it has the capacity,” Jeffreys said.
Investment in infrastructure like highways (pictured is a highway in Oaxaca that is part of the Isthmus of Tehuantepec project) is something Mexico needs to focus on, according to Jeffreys. (Lopezobrador.org.mx)
Sharing his optimism about Mexico’s economic potential are other high-profile business people such as JPMorgan Chase CEO Jamie Dimmon and Thor Equities founder and Chairman Joseph Sitt. For her part, President-elect Claudia Sheinbaum said last year that the nearshoring phenomenon will help drive significant economic growth in Mexico during the six-year period of the next federal government.
Asked what will bring major economic benefits for Mexico in the years ahead beyond nearshoring, Jeffreys was definitive.
“The Interoceanic Corridor [of the Isthmus of Tehuantepec], without a doubt,” said the Oxford Business Group CEO.
The corridor includes (or will include) a modernized railroad between the Pacific and Gulf coasts, a chain of industrial parks, improved highway infrastructure and expanded ports in Salina Cruz, Oaxaca, and Coatzacoalcos, Veracruz. Companies that set up there will benefit from a range of tax incentives.
Touted as a rival to the Panama Canal, the trade corridor “makes sense” for Mexico and even more sense “from a global point of view,” Jeffreys said.
Global trade will at least double by 2050 and the world’s main trade routes are currently “saturated,” on the verge of being “in crisis,” he said.
The Isthmus of Tehuantepec trade corridor is one of the projects that Jeffreys sees as instrumental to Mexico’s economic growth in the coming decade. (Lopezobrador.org.mx)
“I’m thinking about the Shanghai-New York route. There are problems in the Suez Canal and the Panama Canal. The distance between California and New York is almost 5,000 kilometers. The world needs to resolve transit from the Pacific to the Atlantic. It’s the most important trade route in the world. Thus, the Interoceanic Corridor is a very important solution for Mexico, but even more so for the world,” Jeffreys said.
He described the corridor as a “long term project” and declared he had no doubt that it will take off in the next five to 10 years. It has “too many things going for it” to fail, Jeffreys said.
“It’s not just a logistics corridor” — across which goods can be transported by train before being reloaded onto another ship for onward sea transportation — “but is also intended to be a production hub,” he noted.
“There are some very successful cases in Asia, on the Strait of Malacca, for example,” Jeffreys said.
Jeffreys told El Economista that industries that are already well-established in Mexico, such as the automotive sector, as well as emerging ones, such as semiconductors, could open production facilities in the corridor.
“The corridor can take development to an area that hasn’t had development and reduce transport costs from west to east [and vice versa],” he said.
Heavy to torrential rains are expected this weekend in Yucatán, Campeche, Quintana Roo, Tabasco, Chiapas, Oaxaca and south-central Veracruz. (Galo Cañas/Cuartoscuro)
As Mexicans say, the rain god Tlaloc has heard our plea: according to the latest forecasts, June is expected to bring abundant rain across Mexico.
Rainfall is expected due to tropical systems entering from the southeast and spreading across the center of Mexico. The first week of June was the last week in which the warm anticyclone — responsible for a lack of rain — dominated the country.
Mexico’s National Meteorological Service (SMN) forecast temperatures ranging between 40 and 45 degrees Celsius in 18 states for Friday. However, temperatures are expected to decrease as the rainy season approaches, with cooler weather coming as early as the third week of June.
The Friday forecast also predicts torrential or intense rain in Chiapas and Tabasco, Campeche, Oaxaca, Yucatán and Quintana Roo; heavy rains in some northern states including Nuevo León and Chihuahua; and isolated rains in the central region, including Querétaro, Guanajuato and Mexico City.
The scorching temperatures Mexico has been experiencing due to heat waves have exacerbated drought conditions in nearly 76% of its territory, according to the latest drought monitor data. The northeast and center of the country are currently reporting exceptional drought, with parts of Oaxaca, Veracruz and Tabasco experiencing extreme drought.
Extraordinary rainfall forecast for June
Weather forecasts show rainfall will gradually intensify as June progresses, with torrential rain expected from mid-June through the last days of the month.
Rainfall will be abundant in Veracruz, Oaxaca, Puebla, Tlaxcala, Morelos, Guerrero, Hidalgo, México state, Mexico City, Michoacán, Nuevo León and Tamaulipas. Mexico’s northwest, west, north and Bajío region will see isolated rains.
The monthly outlook shows above-average rainfall (50-100 mm) in Mexico’s southeastern, southern and east-central states, contrasting with a significant rain deficit in much of the northern, western and Bajío states.
