Spotlight: The superpowers' infra footprint in Mexico

While China managed to get a foot in the door of Mexico’s infrastructure sector, US companies are not as present.

Chinese players won two projects during the first three years of Andrés Manuel López Obrador’s administration, and the scenario could change for US players, according to a recent investment announcement by US authorities. 

BNamericas takes a look at both countries’ Mexican infrastructure interests. 

China 

One state-owned company is involved in the 32.3bn-peso (US$1.6bn) modernization of Mexico City’s metro line No. 1. Chinese locomotive manufacturer CRRC won the contract in joint venture with China Communications Construction Company (CCCC) at the end of 2020. 

CCCC is also leading the consortium that won the 13bn-peso stretch one of the Maya train in April 2020. 

“All [works] are advancing adequately and without a doubt Mexico could become an important market given the existing demand for a large number of projects,” Enrique Dussel Peters, an expert on Chinese investments in Mexico and head of Chinese-Mexican think tank Cechimex, told BNamericas. 

The think tank, which tracks Chinese investments in Latin America, is currently working on its 2022 report, which will be released soon. 

China’s Mexican portfolio could grow even more this year with opportunities in Nuevo León state, where the local government has asked Chinese investors to present bids for the upcoming railway and other projects that are expected to be launched this year. 

The state’s economy minister, Iván Rivas Rodríguez, told daily El Economista on May 7 that governor Samuel García asked him to meet with Chinese investors to extend the invitation. Rivas reportedly also met with 20 members of Chinese companies and China’s ambassador to Mexico, Zhu Qingqiao.  

Nuevo León is planning to finish two of Metrorrey’s three new lines by 2027, in addition to two major public-private partnership highways and a suburban train. 

US

Meanwhile, US ambassador to Mexico Ken Salazar announced Thursday a US$30mn investment from the USAID Mexico agency, dubbed Promosur, to create up to US$250mn in investment and sustainable development opportunities in the country’s south and southeast. 

The announcement came after Salazar met with governors of the area to discuss economic opportunities. 

Last year, the White House also announced the administration will “aim to create US$250mn in new investment and sales in southern Mexico.” 

The funds will go mainly to agriculture and eco-tourism, but also infrastructure, according to the statement, which was released after vice president Kamala Harris visited the country in June. 

Asked whether the US would complain about China’s presence in the country, Dussel said, “at the moment there has been no controversy with the US about the existing projects, also considering that at the moment they are few and with little participation with respect to the total.”

López Obrador said in April that US investors could find many opportunities in the southeast, for example, the 300km Tehuantepec isthmus rail corridor, which will connect the coasts of Veracruz and Oaxaca.