NEWS

What is the Istmo of Tehuantepec Megaproject?

Monday, May 24, 2021

Innovation and infrastructure renewal are fundamental today to guarantee the logistics functionality of a country. Without them, the competitive advantages of a geographical area are affected by the lag and lack of operability in its distribution routes. For this reason, Mexico cannot be left behind since it is the exporting engine of Latin America, which is why in the infrastructure package we find several projects that aim to highlight the competitive advantages of our country, making it a greater photo of foreign investment and a country to distribute products to the whole world.

One of the most ambitious projects that will change commerce in Mexico is the so-called ¨Megaproject of the Istmo of Tehuantepec.

Megaproject of the Istmo of Tehuantepec was called the modern proposal for the use of the shortest Mexican space between the two oceans, in order to draw a communication route that allows linking the most powerful economies in the world, in the context of globalization, and, at the same time, promote a set of industrial, agro-industrial, forestry, petrochemical, mining, fishing, tourism and urban infrastructure “trigger projects”.

The modernization of the port, rail and road structures are key in this company, with the most visible poles in Veracruz (Coatzacoalcos) and Oaxaca (Salina Cruz). The mission of CIIT is to promote the integral, sustainable, sustainable and inclusive development of the region of the Isthmus of Tehuantepec, with full respect for the history, culture and traditions of the Isthmus of Oaxaca and Veracruz, for the above CIIT adds the missions of integral way of the Port Administrations and the Tehuantepec Isthmus Railroad, to develop and provide high quality infrastructure and services.

The redesign of the world geo-economy in process and its projections for the next 25 and 50 years mark the logic of the mega-projects of interconnection of the large commercial maritime basins: North Atlantic, Pacific, Indian Ocean and China Sea. The Project of the Budget of Expenditures of the Federation (PPEF) 2021 contemplates an amount of 4, 704,339,864 pesos.

According to a statement from the Ministry of Finance and Public Credit, 70% of this figure is contemplated for the Interoceanic Corridor of the Isthmus, with 3,319,424,292 pesos, of which 229,774,707 pesos will be used for the development of Port Infrastructure in Laguna de Little birds, Stage 2.

The remaining 30% of the budget that has been requested for 2021 in the region would be used in the Tehuantepec Isthmus Railroad (FIT), with a total of 1,384,915,572 pesos, which means 31% less compared to the 2,018,298,114 pesos allocated in last year’s PEF.

One of the key points mentioned by President Andrés Manuel López Obrador was the creation of 10 industrial parks that allow direct foreign investment, this due to the great competitive advantage left by the development of the Istmo project infrastructure.

On the other hand, something important that the president mentioned No work on the Isthmus of Tehuantepec will be concessioned. Nor will foreign firms participate because it is a matter of sovereignty, indicated the president. Therefore, SEMAR will be the one who operates these projects to avoid concessions to the private sector.

The reality is that the project is ambitious and aims to project Mexico as a first-world logistics route. The development of the project will bring foreign investment, which is needed to generate greater foreign trade operations.

During the year we will see the progress of this until the culmination of the project that promises a lot for the development not only of the area but of the country.