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The first webinar on Mexico's Top Infrastructure Sectors is around the corner! It will be held on Thursday, November 8, at 2 p.m., Eastern Standard Time.
How to Successfully Navigate the Public Procurement Process in Mexico
In early December 2012, President-elect Peña Nieto will unveil the New Infrastructure Program (NIP), a master plan detailing projects to build new and improve roads, rails, airports and ports in order to increase the coverage, quality, and competitiveness of Mexico's infrastructure.
So far, in terms of volume and value, highways have been the most successful aspect of recent infrastructure development. Ports, airports, public transportation, water, and rural access are some of the areas where the current government has focused its development efforts while interest in the rail sector, largely neglected in recent years, is expected to increase in the coming years. Mexico's goal for 2030 is to be ranked at the top 20 percent of the World Economic Forum's Infrastructure Competitiveness Index.
The current program identifies over 300 infrastructure projects, divided into four main areas:
• highways, roads and bridges;
• railroads, ports, airports, urban and inner urban transport;
• water, irrigation, drainage and sanitation; and
• projects designed to preserve the environment and biodiversity.
Mexico's top infrastructure sectors are:
- Architecture, Construction and Engineering - Toll Roads, Port Infrastructure, Railways and Public Transportation
- Aviation - Airports, Ground Support and Logistics
- Energy - Electrical Power Generation and Transmission; Oil & Gas Production; Refinery, Gas & Petrochemicals; Geothermal and Biomass
- Environmental Technology - Water Supply and Sanitation; Water Resource Management and Pollution/Disposal Technologies
- Telecommunications - Broadband internet, connection centers
Architecture, Construction and Engineering - Roads, Port Infrastructure, Railways and Public Transportation
Mexico's NIP during President Felipe Calderón administration increased the public and private investment in transportation infrastructure, and over 18,000 km of toll-ways, free-ways and rural roads were modernized, built and improved to bring the percentage of roads considered to be in line with international standards from 72% to 90%. There are several projects that need to be developed in order to fill gaps for the transportation of merchandises, products, goods and passengers across the country. States like Jalisco, Oaxaca, Veracruz, Michoacán, Querétaro, Puebla, Tlaxcala and Estado de México are the ones that will receive the most investment.
During the last decade, Mexican ports have gone through a modernizing process that has allowed them to significantly increase cargo movement. Although most of these projects were severely affected by the economic crisis, the gradual economic recovery is allowing the continued development of some important transportation infrastructure projects. The Federal Government has promoted port project development, as part of an effort to improve logistics efficiency and respond to demand generated by increased international trade. Some important port projects that will be developed in the next years include the expansion of the Port of Veracruz and new port facilities in the ports of Lázaro Cárdenas, Manzanillo, Altamira, Dos Bocas and Tampico.
The expansion of the railway system by almost 1,500 km; the development of suburban railway projects, in particular near Mexico City; and the expansions of Pacific and Gulf Coast ports attracted the most private and public investment in this sector. According to the Mexican Association of Railroads, it is considered that the new administration led by president-elect Enrique Peña Nieto will invest in railway infrastructure to boost the use of the cargo system and promote the re-development of the passenger railway network to help relieve traffic congestion in major cities. New rail lines are planned throughout Mexico as well as in the suburban train system in Mexico City and the Metropolitan Area (three new projects). Also planned is a passenger train from Guadalajara, Jalisco to Aguascalientes, Aguascalientes, and others to be determined. Also several multi-modal corridors will be added and the current border crossings between Mexico and the U.S. are to be upgraded.
Public transportation has improved over the years and the capital now features one of the busiest metro systems in the world. Extension of a new metro line is underway while road constructions continue to improve access to hospitals and schools in rural areas. Much of the new paving, lighting, water and sanitation have reached many former marginalized areas in the past six years.
For tender opportunities please visit the website:
Aviation - Airports, Ground Support and Logistics
The Mexican aviation sector was negatively affected in the last two years by Mexicana de Aviación's suspension of activities. This situation was, however, leveraged by low-cost carriers and Mexico's largest airline, Aeroméxico. They captured passengers' demand and opened new routes to close the gap left by Mexicana. In 2012, the sector has been growing steadily and there are expectations of continued expansion and opportunities over the coming year. During the summer of 2012, tourist flows supported the sector's overall level of activity, including air cargo operations.
In terms of new airport projects, the newly-elected government will announce its airport plans for the upcoming six years once it takes office. The most important new airport project that could be announced is the Riviera Maya Airport at Tulum, in the State of Quintana Roo. In May 2011, this tender was suspended. Another project that might be resuscitated is the New Mexico City Airport, but its complexity may give rise to other types of concerns (social, environment, and political), which can be difficult to overcome.
Regarding ground support equipment, the private concessioned groups ASUR, GAP, and OMA, in conjunction with the government agency Aeropuertos y Servicios Auxiliares (ASA), will take into consideration foreseeable needs of equipment replacements, installation repairs, and new systems acquisitions into their master plans as they look toward the next several years. In the short and medium-term, they have a continued need for varied products and services that will keep their operations running smoothly.
For tender opportunities, please visit the websites:
Energy - Electrical Power Generation and Transmission; Oil & Gas Production; Refinery, Gas & Petrochemicals; Geothermal and Biomass
Electrical Power System: The current infrastructure of the Federal Electricity Commission (CFE) to generate electricity is composed of 214 generating stations with an installed capacity of 52,945 MW, including 25 independent power producer (IPP) stations (22 combined cycle and 3 wind power), and 32 stations in the central area. The CFE will continue to make large investments in infrastructure to increase the capacity of the electricity system, to maintain and modernize the power plants, and to increase the supply of gas in order to reduce cost. An intelligent network is necessary to secure energy efficiency; however, the strategy and the projects related to Smart Grid are still being analyzed. CFE's priorities for the years to come are energy efficiency and clean energy sources. The most updated projects included in the long term investment program (Programa de Obras e Inversiones del Sector Eléctrico - POISE), can be found at www.sener.gob.mx/portal/Default.aspx?id=1453
For tender opportunities, visit the website :
Oil and Gas Industry: At the end of 2011, PEMEX was considered the 54th largest crude oil and the 11th largest natural gas producer in the world. PEMEX's Exploration and Production subsidiary is the most important area within PEMEX that issues tenders on oil and gas drilling projects in which small, mid-sized, and large PEMEX contractors participate and demand drilling equipment and services.
PEMEX's 2011 infrastructure included: 344 production fields, 6,382 exploration wells, 225 marine platforms, 12 gas processing centers, 9,500 km of gas pipelines, 3,645 km of pipelines for oil refined products, 6 refineries, 8 petrochemical centers with 38 petrochemical plants, 19 liquefied gas distribution terminals, 77 storage refined oil plants, 11 oil tankers, 1,347 gasoline distribution vehicles, and 525 railroad cars for refined oil products.
PEMEX's major crude oil production and well drilling takes place in the Chicontepec, Cantarell, and Ku-Maloob Zaap regions (in 2011 a total of 900 new wells were drilled). In regards to natural gas, the five major regions are: Cantarell, Ku-Maloob-Zaap, Crudo Ligero Marino, Burgos, and Veracruz. All natural gas production and drilling is conducted on shore. Drilling is expected to continue during 2012-2018.
For tender opportunities, visit the website :
Environmental Technology - Water Supply and Sanitation; Water Resource Management and Pollution/Disposal Technologies
Mexico's environmental industry offers opportunities for U.S. technology in essentially all subsectors. Key subsectors in this market include: air, water, and soil pollution control; solid and toxic waste management; recycling; renewable energy; pollution prevention and resource recovery; site remediation; and environmental monitoring.
In SEMARNAT's Environment and Natural Resources Sector Program 2007-2012, some of the key areas of development and opportunity are scientific research, restoration and reforestation, and emissions control. Through SEMARNAT, Mexico has also been developing policies to assure the sustainability and protection of biodiversity in renewable energy and tourism projects.
Efforts to control emissions from greenhouse gases (as linked to climate change) may also open up an opportunity for green technologies. In June 2012, President Felipe Calderon signed the decree that enacted the first General Climate Change Law in Mexico. The general strategy for this law was presented in 2007 and it was complemented with a special climate change program in 2009. The government's goal is to reduce the country's output of carbon dioxide by 51 million tons by the end of 2012. The overall commitment is to reduce Mexico's emissions by 30% by 2020 and 50% by 2050.
With regards to water resources, at the end of 2011, 89.2% of the total population (113 million) had access to running water in their homes and 76.2% had sewage systems. Of the total availability of water, 77% is used by the agricultural sector, 9% by the industrial and services sector, and 14% is for the consumption of the population. Of the total wastewater collected in municipal and industrial wastewater treatment plants, only 36% received some type of treatment and only 10% was for reuse.
The National Water Commission (Comisión Nacional del Agua-CONAGUA), part of the Secretariat for the Environment and Natural Resources (SEMARNAT) is the federal agency responsible for the maintenance of the potable and municipal wastewater infrastructure in the country and is also responsible for the setting of environmental standards (Normas Oficiales Mexicanas-NOMs) related to the treatment, recycling and final disposal of municipal and industrial wastewater. Changes are expected as of January of 2013 with the creation of a Secretariat of Water Resources that will bring greater opportunities to U.S. manufacturers of water equipment and services. The opportunities will be in new municipal wastewater treatment plants, water recycling projects at the industrial level, and irrigation and pumping equipment for the agriculture sector.
For tender opportunities, visit the websites:
Telecommunications - Broadband internet, connection centers
Mexico sees information and telecommunications technologies (ICT) as key to its transition to a knowledge-based economy. The current NIP for the telecommunications sector promotes strategies to incentivize investment in the sector, improve competition and increase access to telecommunications technologies. Since 2007, a number of permits and concessions have been granted for basic and public phone services (mainly in national and international long distance), satellite communications, DTH television, and triple play services, among others. Permits and concessions for the radio-electric spectrum have included radio stations, television channels and digital terrestrial television and radio.
Several social programs targeted rural, low income, and marginal communities, improving their access to internet, phone and telegraph services. The Mexican Satellite System has been expanded with Two L band satellites for mobile communications, a Ku band satellite for land line communications and two control centers that are being built through an agreement between the Ministry of Communications and Transportation and Boeing Satellite Systems International. It is expected that the incoming administration will focus on increasing competition and access to broadband internet infrastructure, improving digital literacy in public schools, driving entrepreneurship by closing the digital gap in the economy, and augmenting government services through ICT.
The current NIP can be found at http://www.infraestructura.gob.mx/pdf/NationalInfrastructureProgram2007-2012.pdf. The website for public tender announcements from all government agencies is http://www.compranet.gob.mx
These major projects can translate into multiple business opportunities for U.S. firms during and after the tender process
When: Thursday, November 8, 2012, at 2 PM Eastern
Where: Your Computer
Cost: $40 per participant. Payable by credit card.
Learn more @ http://export.gov/tradeamericas/tradeevents/webinars/eg_ta_054153.asp
Director, Federal Relations
The American Institute of Architects