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Real Mexico - Part 2 - Infrastructure, Business Partners


by Terry Sovil

In this article we will continue our look at the Real Mexico. These are the business parts of this country that work and are a primary reason why Mexico is viewed as a good place to invest and do business with. One of the big reasons is the fantastic infrastructure that Mexico has and the global business partners they work with.

Infrastructure

Mexico is a country well connected with quality infrastructure. The network of roads and railroad systems connects the interior and the north and south borders. This connects Mexico to the United States, Guatemala and Belize on the north and south (up or down) and the west and east coasts joining sea Ports on the Pacific Ocean with those on the Gulf of Mexico and the Caribbean Sea/Atlantic Ocean. There are also numerous dry ports (distribution terminals) that help connect the sea ports reducing costs and speeding the handling of goods.

Mexico has:

  • 50 access points along the border between Mexico and the United States. The annual traffic is 4.7 million trucks and more than 64 million personal vehicles.
  • 74 open airports (11 for domestic traffic and 63 for international transportation). The state of Colima has an international airport in Manzanillo and a domestic airport in Colima city, the capitol of Colima. (See Map Below)
  • 114 sea ports (53 cabotage ports and 61 grand cargo and cabotage ports) with Manzanillo having one of the largest deep water ports in Mexico. A cabotage port involves the transport of goods, or passengers, within the same country by a vessel registered in another country. (See Map Below)
  • 27 thousand kilometers of railroads with Manzanillo well connected by rail to Guadalajara. (See Map Below).
  • Mexico has 133 thousand kilometers of paved roads (120 thousand kilometers of two lane roads and 13 thousand kilometers of highways of four lanes or more). Manzanillo has excellent roads throughout the state of Colima and good connections to Guadalajara and Colima city by truck, car or bus. (See Map Below)

Notice on the map at the very bottom, Map of NAIPN - NASCO Corridor, that this is NOT a blueprint or plan. The infrastructure shown is not drawn to scale but shows highways that exist today. This is the NASCO (North American SuperCorridor Coalition, Inc.) routes also called the SuperCorridor and NAFTA Highway. You will see Manzanillo in the lower left with rail and highway connections to Guadalajara and then up to San Antonio. From San Antonio, Texas the rail heads north through Fargo, North Dakota and on to Winnipeg, Canada. From San Antonio it also heads eastward through Kansas City, Chicago and then Detroit/Windsor.

Global business partners

Mexico has been working on diversifying its markets through the use of trade agreements. Mexico has positioned itself as an entrance door to a market that represents 60% of the world's GDP (gross domestic product). That's over a billion potential customers.

Mexico is in the #2 position worldwide, based on the number of Free Trade Agreements (FTA) it holds. It has signed 10 Free Trade Agreements and an Economic Partnership Agreement (EPA), gaining preferential access to the markets of 43 countries that include the largest economies of the world, such as the United States, Canada, the 27 members of the European Union and Japan. Mexico also has 3 Economic Complementation Agreements (ECA) with Argentina, Brazil and Peru, and an Economic Co-operation Agreement with Cuba.

Real Mexico 2 - Mexican Free Trade Agreements If you look at the chart above you will see the NAFTA (North America Free Trade Agreement) is worth 27.7% of the world's GDP but Mexico has a European Free Trade Association agreement worth 27.6% and an EPA with Japan worth 10%. They are working hard to add business partners outside the USA to diversify.

Stability

Through a process called a RIPPA - Reciprocal Promotion and Protection of Investments - Mexico offers legal certainty for foreign investment. This is part of an overall strategy set by the government of Mexico to a legal framework that offers stronger protection for foreign investment in Mexico and Mexican investment abroad.

RIPPAs deal with the areas such as:

  • A solid definition of the investment
  • The scope of application - setting clear definition for what will be done
  • Promoting the project
  • Treatment of the investment
  • Transfers and resolution of controversies between the investor and the government and within the government

Real Mexico 2 - Mexican RIPPA Agreements

Mexico has signed 28 RIPPA agreements.

Map of Mexico's Main Roads

Real Mexico 2 - Mexican Roads

Map of Mexico's Airports

Real Mexico 2 - Mexican Airports

Map of Mexico's Seaports

Real Mexico 2 - Mexican Seaports

Map of Mexico's Railroads

Real Mexico 2 - Mexican Railroads

Map of NAIPN - NASCO Corridor

Real Mexico 2 - Mexican NASCO Corridor

Aquatic Sports and Adventures
Address: Privada Los Naranjos #30, Santiago, Manzanillo, Colima, Mexico  28860
Phone in the USA direct to the shop in MX: 909-266-0271
Phone Internationally to MX: 011-52-314-334-6394
Phone from MX: 314-334-6394
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