Mexico Business Blog

Considerations on trade, business, politics and life in Mexico

Posts Tagged Logistics

Recent and upcoming investment

Jul 13

Posted by Tom in Economy, Investment, Manufacturing | No Comments

Reports on some recent and upcoming investment collected from the local business media:

  • Water treatment:  Mexican sugar producer Grupo Azucarero México (GAM) revealed it will begin construction next month on a new waste water treatment plant.  GAM has invested US$35 million over the past four years in automation process technology, as well as a system for generating electricity through steam produced by burning cane bagasse.
  • Logistics: Guanajuato’s Guanajuato Interior Port multimodal logistics center will enter a new phase of expansion in the coming months.  Approximately US$55 million in new investment will be carried out to expand existing infrastructure at the site, which includes Customs facilities, a free zone, ground and air cargo handling services, industrial yards and related operations.
  • Automotive: German engine components maker Getrag Transmissions Manufacturing inaugurated a new production plant in the central city of Guanajuato.  The US$500 million facility will manufacture transmissions for the Ford Fiesta line being built at Ford’s Cuautitlan Izcalli plant outside Mexico City.
  • Manufacturing: French digital media manufacturer Technicolor will begin making 3D Blu-ray discs for Warner Brothers at its Guadalajara plant this year.  The company is investing US$11.4 million in the plant to boost production capacity.
  • Green building: Mexican developer Homex announced plans to develop four new housing complexes in north western Mexico based on the concept of Integrated Sustainable Urban Developments.  The first of these complexes will require investment of US$27 million and all will incorporate green building technologies.     Read the rest of this entry »

Tags: , , , , ,

Recent and upcoming investment

Apr 7

Posted by Tom in Economy, Investment, Manufacturing | 1 Comment

Reports on some recent and upcoming investment collected from the local business media:

  • Steel:  Mexico’s steel manufacturing industry chamber of commerce Canacero projected investments of US$10 billion over the next five years to significantly boost production in the sector.  Canacero estimates production will increase 13.5% this year over 2009, when output dropped significantly.
  • Airports: The Mexican Ministry of Transport (SCT) announced plans for three new airports to be constructed in 2010, with investment of US$36 million.  The local airport developments are planned for La Pesca in the northeast and the tourist sites Creel in the north and Palenque in the south.
  • Transport: Inter-city bus operator Grupo IAMSA reported it plans to add 300 new luxury buses to its fleet this year.  The US$100 million investment is slated to go primarily to Volvo for the new buses.
  • Aerospace: French aerospace manufacturer Grupo Safran inaugurated two new plants in an aerospace park in the central state of Queretaro, site one of Mexico’s leading aerospace clusters.  The approximately US$150 million investment set up plants for Safran’s affiliates Messier-Dowty and Snecma to produce jet engine parts and undercarriages.
  • Solar power: BP Solar, the solar technology subsidiary of Great Britain-based energy giant BP, announced plans to subcontract the assembly of solar modules with Jabil Circuit in Chihuahua, northern Mexico.  Plans call for producing modules with a combined capacity of 45 MW, with the possibility for expansion as demand dictates. Read the rest of this entry »

Tags: , , , , , , , ,

We are number 50

Feb 18

Posted by Tom in Trade | No Comments

Movin' on up

Movin' on up

Mexico rang in at number 50 out of 155 countries included in the World Bank’s Logistics Performance Index (LPI) for 2009, released last month.  OK so we’ve got some work to do, but the 2009 ranking does represent progress since coming in at number 56 on the 2007 Index.  Unfortunately, we’re not even number one in Latin America, which went to Brazil at 41, and we were also edged out by Argentina and Chile, ranked 48 and 49, respectively.  The Index awards each country points for the quality of their logistics industries in categories such as Customs, infrastructure, competence, tracking and timeliness.  Among the various categories considered, Mexico scored lowest on “Customs,” which is summarized as evaluating the “Efficiency of the clearance process (i.e. speed, simplicity and predictability of formalities) by border control agencies, including Customs.”  This comes as no surprise to those of us who have struggled with jarring arbitrariness and explanations of shipment detentions that are eyebrow-arching at best.  For what it’s worth, Mexico scored best on “Timeliness,” which either means we are embracing the service standards set by the wealthy economies, or we really have to work on those other categories.  In any case, at least we are climbing rather than dropping on the LPI.

To review the LPI in detail, go here:  World Bank LPI

Tags: , ,

Recent and upcoming investment

Dec 24

Posted by Tom in Economy, Investment | No Comments

Reports on some recent and upcoming investment collected from the local business media:

  • Logistics:  Hong Kong-based Hutchison Port Holdings (HPH) announced major investments planned for Mexico in 2010 despite the down economy.  Projects anticipated by the global port leader, which invested over USD32 million in the Mexican port of Lazaro Cardenas in 2009, include further expansion of infrastructure at Lazaro Cardenas, an inland port and container terminal in the central state of Hidalgo, new warehouse space at the port of Manzanillo and a commercial development at the Ensenada cruise ship terminal.
  • Biofuels: Mexico’s own Integramex plans to invest approximately USD100 million to construct two plants to produce biodiesel and generate electricity from material extracted from landfills.  The plants, intended to provide fuel and electricity to the highly industrialized Toluca area outside of Mexico City, seeks to capitalize on opportunities to obtain carbon credits.
  • Telecommunications: Telmex, Mexico’s largest fixed telephony service provider, announced several hundred million dollars in projected investments for 2010.  The plans include the creation of 20 new customer service centers throughout the country.
  • Biofuels: Mexico-based BioFields, backed by Grupo Gondi, the country’s second largest producer of recycled cardboard, announced that in 2010 they will launch a long-term project to produce ethanol from algae.  The massive production facility, to be constructed in the north western state of Sonora, will require investment of approximately USD850 million and make use of technology developed in the United States.
  • Software: Jalisco’s software industry continues to register robust growth.  The Chapala Media Park, targeted to open by the end of December 2009, will concentrate companies specialized in multimedia and animation.  A second facility, the Ciudad Guzmán Software Park, is planned to open in 2010 and focus on information technology and agribusiness.
  • Tourism: Despite posting losses in 2009, two hotel groups announced they will move ahead with investments for 2010.  AMResorts will open new hotels in the beach resorts of Huatulco and Nuevo Vallarta with combined investment of over USD400 million, and Hilton Hotels intends to initiate presence in the cities of Guadalajara, Puerto Vallarta and Acapulco via franchising or administration contracts.

Tags: , , ,