Posts Tagged Logistics

We are number 50

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

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Recent and upcoming investment

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.

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