Mexico's top US$1bn+ infra projects in 2021

At least eight projects above US$1bn will lead the Mexican government's infrastructure agenda in 2021, including permitting, negotiations, planning, financing and construction processes.

Works have already started for some projects. Construction on others is planned to start or may begin this year. Some will be fully financed by the public sector, while others require heavy private sector investment. 

BNamericas presents the top eight infrastructure projects on Mexico’s agenda this year.

Maya train 

Probably the government’s most important infrastructure project for the next four years, the 1,500km passenger and freight rail line will connect the southeastern states of Tabasco, Chiapas, Campeche, Yucatán and Quintana Roo. 

The rail line, which is overseen by tourism board Fonatur, is the No. 1 project not only because of its 161bn-peso (US$8bn) price tag according to the 2021 spending budget, but also because Fonatur will award several Maya train tenders this year, including the fifth stretch. 

The government also promised to double and even triple construction speed to make up for delays caused by the coronavirus pandemic. Works started in April 2019.

Mexico-Toluca interurban train

The ongoing construction of the 58km, 90bn-peso rail link between Toluca city in Mexico state and the western Observatorio metro station in Mexico City is another priority. The 2021 budget has earmarked 7bn pesos for the train as costs have tripled over the years. The project kicked off in 2014 and is expected to finish in 2023.

According to the latest report, progress for the 36.3km stretch one, between Zinacantepec and the tunnel that will connect to the outskirts of Mexico City, is 99.1% complete. The second stretch, a 4.7km tunnel known as Bi Túnel, is already completed. And stretch three, which will run 16.7km between the tunnel and Observatorio station, is 52.4% complete.

AIFA

Defense ministry Sedena is building the 74bn-peso Felipe Ángeles international airport (AIFA) at the Santa Lucía military airbase in Mexico state. Works started in 2019 and are expected to finish in 2022.

The private sector is not involved, meaning all planning, construction and even operation have been assigned directly by the president to the armed forces. 

AIFA, however, has created several highway opportunities for the private sector which will build road connections. 

Reported progress is 43% over the last 15 months, and with little time left before inauguration, Sedena must complete this year the control tower, two runways, a 55km aqueduct, some road and highway accesses and a 23km rail branch. 

T-MEC corridor

While a date to begin building the US$3.3bn T-MEC corridor has not been defined yet, planning advanced and the project is expected to gain traction in 2021, including the possibility of starting construction.

Investment firms National Standard Finance and Caxxor Group are leading the private-sector initiative for a rail and maritime link between Mazatlán city in Sinaloa state and Winnipeg, Canada, via the US.

Carrying the Spanish acronym of the trade agreement the three countries signed last year, the corridor was announced just three months ago, but planning and negotiations with the three governments have already begun. The firms expect to complete a new port in Mazatlán by 2024 as part of stage one, Caxxor Group CEO Carlos Ortiz told Spanish news agency EFE in December.

Its most important element will be the US$900mn port, which will become Mexico’s most important sea terminal, according to Ortiz. But the project also consists of the rehabilitation of 167km of rail lines and 180km of new rails in Mexico with an investment of US$650mn and US$700mn, respectively. 

Ortiz also unveiled during a press conference last month that the Mazatlán port will be built in five stages, with the last expected to be completed by 2035. Its location will be unveiled at the end of January.

While the project will benefit the states of Sinaloa, Durango, Nuevo León and Coahuila, there have also been talks about including the southern region, especially with the ongoing construction of the Maya train.

Mexico-Querétaro high-speed train 

During the presentation of the restructured national infrastructure program (PNI) in October, the government confirmed the construction of the 51.3bn-peso Mexico-Querétaro high-speed train, which is set to start in June.

Updated details have not been published yet, but the communications and transportations ministry (SCT) had already presented a proposal under the previous administration to start works in 2015. The previous government awarded but then canceled the project that same year. 

The government still holds the rights-of-way and the original plans included a three-track railroad with 14 stations between Ecatepec in Mexico state and Santiago de Querétaro.

It also included a 50.8bn-peso investment to build a 210km line with trains traveling at up to 300km/h, each with a capacity for 426 passengers.

Cancún urban tourist transport system

Quintana Roo state has planned for this year the launch of a tender to design, construct and operate the estimated 32.9bn-peso light rail transportation system to connect the urban area of Cancún with the city’s airport and one of the Maya train’s stations.

According to the calendar provided by the state’s strategic projects agency (Agepro), construction is expected to start in the second half. 

Early details show it will involve a 47km rail link to connect the main thoroughfare in the city's hotel district with Cancún international airport and the Maya train station that will join stretches four and five of the network.

Lechería-AIFA suburban train branch

Works for the 23km, 26bn-peso rail branch that will connect Mexico City with the upcoming Santa Lucía airport are planned to start in March, according to the PNI. Operations should start by 2022.

The project seeks to extend the line from Lechería station of the Mexico City-Mexico state suburban train to AIFA in the northeast. It will start with four stations plus the AIFA terminal. 

According to the investment calendar, the government plans to allocate 1.6bn pesos this year, 7.2bn pesos next year and 3.5bn pesos in 2022 for the rail link and the airport. The government is also mulling another railway proposal to connect the airport with Hidalgo state.

Tehuantepec isthmus rail corridor

The government will continue works on the 20bn-peso Tehuantepec isthmus rail corridor, or interoceanic corridor, which includes the rehabilitation of a 213km rail line that links Salina Cruz port in Oaxaca state and Coatzacoalcos port in Veracruz state

In 2020, the consortiums that won the rehabilitation of the rail line, which was divided into five stretches, achieved overall progress of 21%, despite local opposition in the south.

Works started last year and are expected to finish in 2023/24.

But most of the investment is being directed toward the expansion and modernization of the ports, especially the Salina Cruz terminal, where the government is also building a port.