Special Feature Mexico, Dressed to Compete on International Runways. The Lifestyle The Fine Art of Exhibiting. Negocios para exportadores

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1 Special Feature Mexico, Dressed to Compete on International Runways The Lifestyle The Fine Art of Exhibiting Negocios para exportadores The Consolidation of Infrastructure Works in Mexico XII I

2 Mexico is on the move. Our country has concluded an important transformative cycle that includes 11 structural reforms. With these profound changes, Mexico is breaking the restraints that have prevented it from reaching its full potential. Six of these transformative reforms aim to elevate the productivity and competitiveness of our economy, to accelerate its growth. They form a platform that will enable us to drive development in the coming years. With the Labor Reform, Mexico advances towards a more efficient and flexible labor market that permits the incorporation of women and young adults. Meanwhile, the Economic Competition Reform establishes clear rules that set competing companies on a level footing and bring down entry barriers to new participants across all sectors. In the same way, the Telecommunications and Broadcasting Reform encourages effective competition in the sector, enabling Mexico to close the digital gap and integrate more Mexicans into the knowledge society. In addition, it generates great opportunities for new productive investments and latest technologies. The Tax Reform increases the State s financial capacity and favors public investment in priority areas for economic activity, such as science, technology, and infrastructure. In its turn, the Financial Reform gives place to the conditions that allow the robust Mexican bank to participate more actively in the country s growth, through more credit options and at lower interest rates for families and businesses. Finally, the Energy Reform will allow the participation of a higher number of companies, thus modernizing the sector with more productive investment and cutting-edge technologies. This ensures the supply of electricity and hydrocarbons at competitive prices for industries and homes. The transformative reforms are already a reality. Now, the Mexican Government is putting them into action. To do so, we follow an agenda of actions in concrete terms that will allow them to be implemented effectively. By combining the efforts of authorities, the private sector, and citizens, we are building a more prosperous Mexico. Enrique Peña Nieto President of the United Mexican States

3 Table of Contents December 2014 January Special Report Investment Envelops the Energy Landscape in Mexico Guest Opinion Smog Slowly Lifting From Mexico City s Public Transport Special Feature Mexico, Dressed to Compete on International Runways cover feature The Consolidation of Infrastructure Works In Mexico 24 photo courtesy of sct From ProMéxico Briefs 54 figures Special Feature: Textile and Footwear Industries Mexico s Partner 42 Premium Knits 26 Terminal Marítima Mazatlán 44 Dues 28 Tsol 46 Grupo Industrial Brigitte 30 Aldesa 48 Uniformes Unión 32 Katoen Natie 50 Entretelas Brinco 34 Lintel 52 EDC de México 36 Tuscor Lloyds

4 The Lifestyle The Complete Guide to the Mexican Way of Life photo courtesy of museo tamayo 58 The Lifestyle Briefs photo courtesy of ten arquitectos 62 Enrique Norten: The Mexican Who Changed the Face of Architecture The Fine Art of Exhibiting photo pedro rosenbleuth Many of Mexico s contemporary art galleries are rated among the most important in the region and several have an international presence. Each has its own unmistakable voice. 64 photo courtesy of oaxaca cuina mexicana 68 A Taste of Mexico in Barcelona photo archive 70 Five Mexican Spirits to Lift the Spirits

5 Para exportadores THE NEW MEXICO CITY Negocios ProMéxico INTERNATIONAL AIRPORT The most important infrastructure work of the last decades La misión: pymes mexicanas con presencia global The New Mexico City International Airport will contribute to create the identity of Mexico in the 21st Century The New Mexico City International Airport is a model that will be the inspiration for future airports The biggest airport in Latin America The airport will be six times bigger than the actual one with a surface of 4,430 hectares 6 runways with triple simultaneous operations A terminal building with 550,000 sqm of construction 120 million passengers in its last stage 1.2 million tons of cargo for 2030 First international airport in the world with LEED Platinum certification WHY A NEW AIRPORT? It will generate employment It will increase the investments It will elevate the productivity It will strengthen the business environment It will allow an equilibrated regional development 94 De ProMéxico 74 breves 76 México en el mundo 82 Conceptos clave para incursionar con éxito en nuevos mercados 84 Sobre el cumplimiento de las obligaciones fiscales y el comercio exterior 88 fotos archivo Logística: pieza clave del comercio internacional 86 La importancia de la banca en el comercio exterior de México 90 December 2014 January

6 Negocios ProMéxico ProMéxico Francisco N. González Díaz CEO Karla Mawcinitt Bueno Communication and Image General Coordinator Sebastián Escalante Bañuelos Director of Publications and Content Copy Editing Felipe Gómez Antúnez Jorge Morales Becerra Contreras Advertising Cover Photo Archive Editorial Council consejo editorial Ildefonso Guajardo Villarreal Francisco de Rosenzweig Mendialdua Enrique Jacob Rocha Francisco N. González Díaz Embajador Alfonso de Maria y Campos Castelló Luis Miguel Pando Leyva Francisco Javier Méndez Aguiñaga Rodolfo Balmaceda Guillermo Wolf Jaime Zabludovsky Gabriela de la Riva Adolfo Laborde Carranco Silvia Núñez García María Cristina Rosas González Ulises Granados Quiroz Karla I. Mawcinitt Bueno Negocios ProMéxico es una publicación mensual editada por ProMéxico, Camino a Santa Teresa número 1679, colonia Jardines del Pedregal, delegación Álvaro Obregón, CP 01900, México, DF Teléfono: (52) Portal en Internet: correo electrónico: negocios@promexico.gob.mx. Editor responsable: Gabriel Sebastián Escalante Bañuelos. Reserva de derechos al uso exclusivo No Licitud de título: 14459; licitud de contenido: 12032, ambos otorgados por la Comisión Calificadora de Publicaciones y Revistas Ilustradas de la Secretaría de Gobernación. ISSN: Negocios ProMéxico año 7, número XII 2014 I 2015, diciembre enero 2015, se imprimió un tiraje de 13,000 ejemplares. Impresa por Cía. Impresora El Universal, S.A. de C.V. Las opiniones expresadas por los autores no reflejan necesariamente la postura del editor de la publicación. Queda estrictamente prohibida la reproducción total o parcial de los contenidos e imágenes de la publicación sin previa autorización de ProMéxico. Publicación gratuita. Está prohibida su venta y distribución comercial. ProMéxico is not responsible for inaccurate information or omissions that might exist in the information provided by the participant companies nor of their economic solvency. The institution might or might not agree with an author s statements; therefore the responsibility of each text falls on the writers, not on the institution, except when stated otherwise. Although this magazine verifies all the information printed on its pages, it will not accept responsibility derived from any omissions, inaccuracies or mistakes. December 2014 January Download the PDF version and read the interactive edition of Negocios ProMéxico at negocios.promexico.gob.mx. This publication is not for sale. Its sale and commercial distribution are forbidden. December 2014 January

7 From proméxico. Mexico is destined to become a world-class logistics platform that facilitates mobility, people-to-people connectivity and trade of merchandise and services, generating nationwide prosperity and growth. The thrust behind multiple infrastructure projects in the country is a strategic program to accelerate national economic development. In this regard, the National Infrastructure Plan provides an historic investment of over 600 billion dollars to expand and modernize 3,000 kilometers of highways and increase our seaport capacity, in order to handle from 280 to 500 million tons a year. This investment also considers the construction, expansion and modernization of 14 airports, including the new Mexico City International Airport, which will increase its capacity to 120 million annual passengers, among other unprecedented transport and communications projects. Mexico is adding institutional efforts to enhance physical connectivity within the country through the development of ground-breaking infrastructure projects that bring our communities closer together. National and international connectivity has also been boosted by streamlining trade and customs procedures so that business in our country is increasingly competitive. In this issue of Negocios, we are proud to share with you the successful results in the development of national infrastructure. In addition, this issue addresses the textile and clothing industry in Mexico, highlighting its relevance on the international market. Our country is an important exporter of leather goods and footwear, and has developed coordinated strategies with the public and private sector to penetrate new markets. In 2013, Mexico exported more than 6 billion dollars in textile products and garments and is now a firmly established supplier of textiles and clothing to the US. Mexico is renowned for its innovation in design, style and quality. Multiple companies have undertaken high value-added strategies to continue the country s success in international fashion showcases. We hope the contents of this edition will be of your interest. Welcome to Negocios! Francisco N. González Díaz CEO ProMéxico 11

8 BRIEFS FOOD Long term bet US cereal and snack maker Kellogg s plans investment of approximately 52 million usd in Mexico over the next three years. Resources will focus on the company s major production plant in the central state of Querétaro, to upgrade areas such as sustainability, productivity, and innovation, and target the healthy-lifestyle market niche. IT GROWING STRONG IN MEXICO Chinese information technology equipment and services giant Huawei will invest approximately 1.5 billion usd in the central state of Querétaro, in the construction of four information and communication technology facilities. The investment will be made over the next five years and will generate over 1,100 jobs. The four centers will be a Global Technical Care Center, a Regional Center for Network Operations, a Regional Innovation Center and a Regional Technical Training Center. The Innovation Center is already under construction in El Marqués industrial park and is slated to be operational in the second half of photo archive AUTOMOTIVE New Home for Mexican Sports Car Mexican high-performance boutique auto maker Vuhl will establish its first manufacturing plant in the central state of Querétaro. The 10 million usd facility is expected to produce chassis, suspensions and do the final assembly of the company s Vuhl 05 model. photo courtesy of vuhl photo courtesy of huawei 13

9 BRIEFS BRIEFS AUTOMOTIVE Targeting in Mexico AUTOMOTIVE Painting a Successful Business Italian packaging injection molder EuroPlast is planning to establish a mold-making operation in the central state of Querétaro. At an investment of 2.5 million usd, the facility will produce specialized molds for the automotive industry. US off-road vehicle manufacturer Polaris Industries plans investment of 110 million usd to expand operational capacity at its production plant in the northeastern state of Nuevo León. Expansion is expected to focus on painting and welding processes for all-terrain and light utility vehicles. photo archive AUTOMOTIVE Innovating the Future Mexican-US auto parts manufacturer Sistemas Automotrices de México (Sisamex) inaugurated a Technological and Human Development Center in the northeastern state of Nuevo León at a cost of approximately 7 million usd. The laboratory complex is planned to develop innovations for the company s product line of axle and brake components. photo archive photo archive MANUFACTURE Unpacked Investment US beverage giant Constellation Brands will build a new cardboard packaging plant in the northern state of Coahuila. The 50 million usd facility will provide packaging for the Modelo beer brand. METALLURGICAL Exploring New Opportunities photo courtesy of polaris industries photo archive PLASTICS Technimark Opens New Plant US plastic injection molder Technimark inaugurated a new 5 million usd process plant in the central state of Guanajuato. The site the company s third in Mexico will provide molding processes for rigid packaging. photo archive AUTOMOTIVE A Well Lit Path to Success Austrian automotive lights manufacturer ZKW has a 40 million usd investment underway to build a production plant in the central state of Guanajuato. The site is expected to provide lighting systems for regional OEMs such as Volkswagen, General Motors, BMW, Mercedes Benz, Volvo and Audi. TenarisTamsa, the Mexican subsidiary of Luxembourg-based pipe maker Tenaris, plans investment of approximately 350 million usd over the next two years. Outlays are intended to boost capacity for production of steel drilling pipe in the face of an expected increase in deep-water petroleum drilling in Mexico in the coming years. photo archive

10 BRIEFS BRIEFS AUTOMOTIVE RENEWABLE ENERGY photo archive photo archive LOGISTICS Growing at Cruise Speed German freight shipper DHL Express carried out an expansion of its domestic air freight hub in the central state of Querétaro at a cost of approximately 14.5 million usd. The expansion will allow DHL Express to increase its capacity at the distribution center by 250%, to meet growing demand driven by the region s aerospace and automotive industries. Strong as Steel Partnership Chinese metal caster IKD Auto Products and Mexican zinc and aluminum alloy specialists Faeza Alloyers are teaming up to establish a new process plant in the central state of Guanajuato. The 9 million usd first stage of the operation is planned to produce small cast parts for automotive OEMs. ELECTRONICS A Business With Clear Direction Taiwanese electronics manufacturer Lite-On will invest 12 million USD to establish a production plant in the western state of Jalisco. The plant is expected to produce components for vehicle navigation systems. photo courtesy of dhl photo archive INFRASTRUCTURE A Region like no other When you think about the San Diego-Tijuana region, the whole is more than the sum of its parts. This area has an extensive binational business community that includes a growing number of cross-border partnerships, joint ventures and alliances. San Diego s thriving wireless telecommunications, software and biotechnology sectors, along with Tijuana s large number of world-class manufacturing facilities, create the perfect link between R+D and manufacturing. Cross-border infrastructure is also blooming: expanded natural gas linkages will soon provide a cleaner, cost effective energy supply, and the new Binational Terminal connecting Tijuana s international airport to San Diego is expected to start operations in Taking a closer look at Tijuana, El Florido Master Plan stands out. Its loca- tion is only a 15-minute drive from the Tijuana-San Diego border and it has a population of 150,000 inhabitants. Many housing developers have chosen the area, which now has over 35,000 houses, where factory line workers and supervisors live. The availability of a diversified labor force is plentiful. El Florido s newest industrial area, La Encantada Industrial Park, has companies like Precision Dynamics, RSI, Ryerson, Allegion and Smiths. In 2015, Essilor and G-Box will begin their manufacturing operations on site. La Encantada Industrial ENEL grows with the wind Italian renewable energy developer Enel Green Power has completed and connected to the grid its new wind farm Dominica I in Mexico. The power plant is located in the municipality of Charcas, San Luis Potosí, and owned by Dominica Energía Limpia, a subsidiary of Enel Green Power Mexico. It is the first operational wind farm in the state of San Luis Potosí. With a total installed capacity of 100 MW, Dominica I comprises 50 wind turbines of 2 MW each and is capable of generating up to 260 GWh per year. Construction of the wind farm required a total investment of around 196 million USD. The project is supported by two long-term PPAs for the supply of energy, worth a total of about 485 million USD. This wind farm has enabled Enel Green Power to reach an installed capacity in Mexico of nearly 300 MW, whilst another 200 MW are currently under construction with the Sureste and Dominica II plants. Park offers state-of-the-art infrastructure and services. Complete build-to-suit capabilities as well as full support in the processes of obtaining licenses and permits are backed by 25 years of experience. A turnkey project with high-end tenant improvements is delivered in six to eight months from planning to completion. Environmental integrity, economic viability and fantastic connectivity make La Encantada Industrial Park an important factor to consider when looking for a competitive edge. florido.com photo courtesy of el florido

11 Negocios ProMéxico Special Report photo courtesy of gamesa Special Report Negocios ProMéxico Investment Envelops the Energy Landscape in Mexico The recent Energy Reform has changed the face of the Mexican power sector. The gateways to the power generation, transmission, and distribution markets have been flung open, and investment from private companies is expected to start flooding in. by wallace porter* and michelle adams** Mexico s new energy landscape features the prominent presence of renewable energies and the Mexican government is swift to confirm its commitment to a 35% of clean energy power generation by Additionally, the government s National Infrastructure Program aims for an efficient interconnection of clean technologies to the national energy grid. The modernization and development of the grid s transmission lines is expected to further evolve the development of renewable energy generation projects. According to Mexico s Energy Reform: A Game Changer in the Nation s History a recent publication by law firm Goodrich Riquelme y Asociados project investments from the private sector could reach 27% of overall investment in the Mexican energy sector, and private investments that originate from the structural reforms are expected to reach 20 billion usd annually between 2015 and The study also predicts that by 2018, these investments will represent 15% of the energy sector s total investment capital. While the finer details of the Energy Reform were being ironed out, several projects in the energy sector were put on hold. Francisco González, ProMéxico s CEO, has stated that trend is due to change over the next two years. As new projects start to materialize, he expects that 80% of them will be in the wind sector, 15% in solar, and the rest will be distributed between biomass, geothermal, and hydroelectric. González also stressed that most companies that negotiated projects prior to the Energy Reform had already anticipated the arrival of that legislative change. Despite the uncertainty caused by the Energy Reform process, significant financial resources have been allocated in According to a Bloomberg New Energy Finance study, this year investment in Mexico s renewable energy sector will surpass the 2010 record of 2.4 billion usd. During the first half of 2014, investment reached 1.3 billion usd; a significant figure, considering that last year s entire investment only amounted to 1.6 billion usd. This year is destined to be a record breaker, with Mexico and Central America expected to install 1 GW of wind capacity, surpassing the 757 MW record of The figure is likely to leap to 1.3 GW in 2015 and 2016, while solar installations in the region are expected to increase to 193 MW in 2015 and 355 MW in The new landscape offers boundless opportunities to the private sector, and it is through the eyes of the private sector that we can gather whether those goals are within easy reach. The investment stemming from the private sector flaunts an international profile, with companies arriving from the US, Spain, Denmark, and China. The Spanish energy giant Iberdrola recently announced an investment of 5 billion usd to be allocated between 2014 and According to Eduardo Andrade, Corporate Director of Iberdrola México, the financial resources will be designated to the generation, transportation, and distribution of energy. Andrade stated that Iberdrola will continue to focus on Mexico due to a certainty that exists in the country, and because the market is gaining momentum continuously. As the largest private energy generator in Mexico, Iberdrola with support from the Federal Electricity Commission (CFE) intends to direct 270 million usd toward a 300MW combined cycle plant in Ensenada, Baja California. The electricity generated by that plant will be delivered directly to CFE for 25 years, as stated in the agreements. Baja California s governor, Francisco Vega de Lamadrid, has declared that Baja California is striving to provide the most competitive electricity tariffs in the country, an ambition that will depend on the constant participation of private entities. Another player that will help to make that vision a reality is InterGen, a company that signed a contract in February to supply gas generated electricity from its La Rosita thermoelectric plant to Baja California s water commission. In the same state, IEnova the company responsible for the operation of the Energía Costa Azul LNG storage plant is developing the Energía Sierra Juarez wind farm. That project will require an investment of 300 million usd during its construction stage, and is poised to become the largest wind energy development in the state.in April 2014, IEnova announced that it will sell 50% of the project to InterGen, an initiative that is still being assessed by regulators from both countries. Energía Sierra Juárez s commitment to Mexico s goal of reducing emissions is clear since it is estimated to prevent 1.5 million tonnes from being released into the atmosphere every year. The participation of international players will continue to play an important role in the Mexican energy market. Private banks, in particular, are aware of the future that those companies hold in the wind energy sector, especially considering that the rules of the market have changed. In anticipation for Open Season II, Santander México has formed a joint venture with Spanish wind park developer Gamesa Corporación Tecnológica and is aiming to build wind parks with an installed capacity of 500 MW in Oaxaca. That effort will consolidate the partnership as the largest private investment group in the sector and will strengthen Santander México s position in the energy market. For Actis Capital, it is important to assess the macro-level elements of a country prior to making an investment decision. According to Michael Harrington, Actis Capital s Director of Energy for Latin America, one of Mexico s advantages is its competitive installation costs. The cost of installing a wind farm is roughly 2 million usd per megawatt, whereas the cost in other Central American markets can approach 3 million usd. Michael Till, Co-Head of Energy at Actis Capital, commented that, backed by the Energy Reform, Mexico has developed compelling fundamentals for investing 18 December 2014 January 2015 December 2014 January

12 Negocios ProMéxico Special Report photo courtesy of gamesa Special Report Negocios ProMéxico The participation of international players will continue to play an important role in the Mexican energy market. Private banks, in particular, are aware of the future that those companies hold in the wind energy sector, especially considering that the rules of the market have changed. in power generation, an evolving and supportive regulatory framework, and a deep project finance capacity. The certainty provided by the new framework has also sparked an interest in non-traditional renewable sources. Reykjavik Geothermal started pursuing Mexico after finding out about the government s aforementioned commitment to include 35% of renewable sources in its energy mix by Geothermal energy could play an important role in the fulfillment of that objective, as is evidenced with the drafting of secondary legislation of the Energy Reform aimed at facilitating the development of that energy source. One of the main reasons why the utilization of the country s geothermal potential of approximately 9GW has not been optimized was the absence of such legislation. Mexico has the fourth largest installed geothermal capacity in the world at 964.5MW, which proves that energy source still has substantial development potential. Reykjavik Geothermal formed a joint venture with Mexxus Drilling, a leading Mexican geothermal drilling services provider with experience in supporting CFE s geothermal activities including Los Humeros and Cerro Prieto, which are two of Mexico s four geothermal plants. The joint venture, Mexxus RG, was created without any concessions in mind or in place. However, CFE awarded it a concession to develop a geothermal project in Ceboruco, Nayarit, which will be the first geothermal IPP concession in Mexico. While the legislative shortcomings have been taken care of, financing continues to be the biggest challenge for the development of geothermal energy. Chris McCormick, Director of Strategy and Project Finance for Reykjavik Geothermal, explains that the exploration phase alone requires an investment of approximately 5 million usd for each well and that building a plant can cost up to 4 million usd per megawatt. That compares to roughly 1 million usd per megawatt for a combined cycle natural gas plant. Fortunately, Mexico has the ability to diversify development risk, enabling the creation of financial structures that facilitate development. Nacional Financiera (Nafinsa), Münich RE, IDB, and the Ministry of Energy (Sener) are aware of this condition and have developed a risk mitigation strategy to cover it. Sener and Nafinsa will head the risk mitigation program with funds from IDB and the Clean Tech- nology Fund. The model will allow the installed capacity of the project to be expanded from its initial 30 MW to an additional 200 MW for the year The involvement of IDB, as well as the flexibility of Sener and Nafinsa, indicates that the new legislation for geothermal energy is creating confidence among investors, in spite of the inherent risks involved in these projects. The allocation of monetary resources, as well as the participation of international heavyweights in the first year following the enactment of the Energy Reform, is aligned with the legislation s paramount goal of attracting capital. Nevertheless, Mexico s steep climb to achieve the targets set out by the General Climate Change Law will be arduous. Backed by the Energy Reform, and with the support of experienced players in the private sector, the According to Mexico s Energy Reform: A Game Changer in the Nation s History a recent publication by law firm Goodrich Riquelme y Asociados project investments from the private sector could reach 27% of overall investment in the Mexican energy sector, and private investments that originate from the structural reforms are expected to reach 20 billion usd annually between 2015 and The study also predicts that by 2018, these investments will represent 15% of the energy sector s total investment capital. task appears to be a little less overwhelming. Mexico s transition to a dynamic renewable energy market should be swift and hopefully it will increase the country s competitiveness and industrial capacity. N * Senior Editor of Mexico Energy & Sustainability Review. ** Editor of Mexico Energy & Sustainability Review. 20 December 2014 January 2015 December 2014 January

13 Negocios ProMéxico Guest Opinion photos archive Guest Opinion Negocios ProMéxico Smog Slowly Lifting From Mexico City s Public TransporT IBM s 2011 Commuter Pain Survey rated Mexico City as the most painful city for commuting. This situation has now risen to such a level that people will actually avoid trips altogether when possible due to the traffic. Of course, that is not possible for the more than 22 million trips taken a day by the residents of Mexico City. However, the public and private sector efforts have been very important to the city s transport reform. by chris dalby* and mariana palacios** The Mexican Institute for Competitiveness (IMCO) reports that an estimated 3.3 million man hours a day are lost due to the traffic, since many of the city s workers spend up to four hours a day in the commute. Cars also generate 18% of the capital s CO 2 emissions and lead to 24,000 deaths a year nationwide on top of 14,000 more from poor air quality. In the last twenty years, the vehicle park in Mexico has doubled to around 3.5 million but 32% of these are over 20 years old and 11% have no emission control mechanisms. Some analysts suggest that combined externalities across Mexico s five largest cities cost the country about 4% of GDP. One statistic is actually misleading: 20% to 30% of the 22 million trips made a day in Mexico City are made by car, says Guillermo Calderón Aguilera, General Director of the Mexico City Metrobús, while 70% to 80% are made by public transportation. However, cars take up around 80% of the roadways, leading to a disproportionate impact on the city s mobility. Furthermore, UN Habitat finds that 66% of transportation spending in the city has been dedicated to improving infrastructure for cars, including the second floor of the Periférico the capital s main ring road. To compound the situation, the massive part of the population that is using public transport is not exactly enthused at it. IMCO statistics report that 90% of users say that on the whole, public transport is uncomfortable, 80% see it as unsafe and 70% think it is too slow. However, it is time to fight back. Many public transport options in Mexico concern privately owned microbuses that operate solo, with little supervision as to maintenance and security, and that account for many traffic accidents. Those also tend to congregate along Mexico City s busiest commuter routes. It is estimated by Mexico City s authorities that 43% of these microbuses congregate on the city s 10 most popular routes. That leads to significant worsening of congestion, given the hop-on hopoff nature of these vehicles. The local government has been taking active steps for the last decade to move Mexico City toward a model of urban mobility. In so doing, it has built five lines for the Metrobús, designed a massively successful system of public bicycles named Ecobici, and is expanding these two along with its metro to provide as many people as possible with an efficient and sustainable journey from home to work and back again. Mexico City s vision of urban mobility has been developed through collaboration with international bodies such as the Institute for Transportation and Development Policy (ITDP). Calderón Aguilera describes the pyramid of transportation in the city as being inverted. Right now, cars are at the top of the pyramid, getting the lion s share of transportation spending, despite accounting for a minority of commuters. Meanwhile, pedestrians, who should be at the top, are at a disadvantage as they have trouble navigating a city designed for cars to move with ease. The pyramid, as he described, was part of a new mobility law announced in July That law guarantees the right to mobility to Mexico City residents, which might sound rather ineffectual if it was not matched by a consolidation of transport operators. It creates a regulatory body that will oversee all transport operators from January 2015, ensuring that new bus, metro, BRT and Ecobici expansions are part of one united transportation roadmap for the capital. That is why the Metrobús has been a runaway success. Occupying a dedicated lane of traffic on each route it uses, the Metrobús vehicles are comfortable, clean and safe. Calderón Aguilera, who has headed up Mexico City s Metrobús system since its inception almost 10 years ago, lists its accomplishments. Our mission was to get cars off the road, reduce CO 2 emissions and provide people with a safer and faster way to get around. We have succeeded in all of those. Since 2005, the Metrobús expansion to five lines has taken over 1,300 microbuses off the roads and has reduced the time of the average commute along its routes by 40%. Furthermore, 17% of our users are car owners who make the conscious decision to leave their cars at home and use Metrobús to get to work. That means 150,000 less car journeys a day. With 105 kilometers of dedicated road across five lines and a sixth to be added in 2015, Metrobús is growing. It carries 900,000 passengers a day and estimates that just one of its articulated buses carries the passengers that would otherwise take up 126 cars. So go the statistics for Metrobús passenger numbers but the impact of the chosen vehicles is equally influential. The Metrobús was the first public transport system to implement Euro III, IV, and V in Latin America, and any heavy vehicle manufacturers wishing to bid for Metrobús spots must fit the city s requirements for emissions reductions, including the use of exclusively ultra-low sulfur diesel. So far, Volvo, Mercedes-Benz, Scania, Dina, and MAN are the companies whose buses trundle along the Metrobús routes. By 2018, Metrobús aims to reach 200 kilometers of coverage city-wide. However, for all of those efforts, Metrobús cannot do it all alone. Another success story has been that of Ecobici, which Tanya Müller, Secretary of Environment for Mexico City, says greatly encouraged public participation in sustainability. One of the elements that have the biggest impact on quality of life is the time it takes to commute. Mexico City, as a whole, saw an increase of 40% in the use of bikes in the last couple of years. Ecobici alone saw an increase of 50% in its total users in There is a predisposition among residents to change their transportation habits, as long as they can do so efficiently and safely. Meanwhile, the metro remains the central pillar of the city s urban mobility system. With 12 lines winding their way through km of track connecting 195 stations and carrying 4.4 million passengers a day, one might think it is well equipped to service Mexico City s needs. Yet it is only the eighth biggest metro in the world, smaller than Madrid or Berlin. Finally, for those commutes that require shuttling outside of Mexico City, the long proposed light rail line from Mexico City to Querétaro would help alleviate growing road traffic in that direction. That has been one of the pledges on the transportation agenda of President Enrique Peña Nieto. With a cost estimate of 3.75 billion USD, the high-speed railway would ideally carry 23,000 passengers a day, leading to 18,000 cars being taken off the road. The public sector efforts have certainly been the backbone of the city s transport reform. However, they have been matched by increasing efforts from the private sector. For example, 2014 s transport wunderkind, Uber, first rolled out into Mexico City streets in June and has made its usual splash. Car-sharing service Carrot has also put up pick-up points around the city but has so far not had a massive impact on carpooling. Consistent and ongoing funding public and private transportation and mobility projects is a concern. Those are some of the efforts transforming Mexico City s image from a city beleaguered by transport and pollution problems into one which is determined to break their back. The likes of Beijing or Tehran might do well to take a page out of Mexico City s books. N *Senior Editor of Mexico Automotive Review. ** Editor of Mexico Automotive Review. 22 December 2014 January 2015 December 2014 January

14 Negocios ProMéxico Cover Feature photo courtesy of sct Cover Feature Negocios ProMéxico The Consolidation of Infrastructure Works in Mexico The Ministry of Communications and Transportation (SCT) is making headway in the construction of a modern Mexico. With the addition of initiatives and the joint efforts of all sectors, the country is being pushed forward and established as a high value-added global logistics platform that influences national and international markets. by ministry of communications and transportation (sct) The Federal Government is executing a program of highly ambitious works aimed at establishing a vital strategic connectivity that boosts the country s growth and economic development. Infrastructure development impacts the economic momentum of Mexico, leveraging its privileged geographic position. The government s commitment is to consolidate infrastructure as an effective lever to spur national development, which is a necessary step on the way to transformation. Data from the SCT indicate that from 2013 to 2018 private investment will climb to more than 800 billion pesos to clinch infrastructure projects or finish those already started. On land, on the coasts, in the skies and even in space, Mexico is flying into the future with a number of infrastructure works that will bring about enhanced social integration and improved living conditions. The addition of kilometers to the network of highways, major roads, bridges and rural roads across the country and the development of airspace projects with the building of new airports or putting satellites in orbit, will be common goals. Furthermore, the movement of cargo in ports and providing Wi-Fi connectivity in public places nationwide leads to more and better services. The SCT has identified more than 1,500 strategic infrastructure projects to develop in the 2,440 municipalities around the country. Infrastructure projects are already underway in more than 70% of Mexico s municipalities, among them the construction of 46 new highways and 90 major roads. This represents more than half of what has been achieved in the history of the country, with the development of more than 3,000 kilometers of roadways, as well as the launching of eight railroad lines, three of which will be high speed. The National Infrastructure Program being developed in the country is the most ambitious project in the history of Mexico. President Enrique Peña Nieto s administration has so far completed nine highways, 12 major roads, 1,467 rural roads and service roads. These infrastructure works amount to 19,269 kilometers that will enrich the national road network. They involve an investment of close to 106 billion pesos and will generate more than 600,000 jobs. Among the infrastructure works that have been developed are: Mexico-Tuxpan Corridor. The current administration finished this road 20 years after it was started. It crosses the Sierra Norte of Puebla reducing road time to 2 hours 45 minutes. With these new roads, the port of Tuxpan has become the closest port to the center of the country. J Caborca-Sonoyta Highway. With the modernization and expansion of traffic lanes, this road crosses the desert of Altar. It is the only road that connects to the northwest of the country. J Jerez-Tlaltenango Highway. This road is in Zacatecas and communicates the north with central Mexico connecting with the Torreón-Guadalajara road. J Texcoco-Calpulalpan Highway. Communicates the center of the country with the Gulf of Mexico making it easier to get around and increasing road safety for users. J La Laguna Northern Bypass. Communicates strategically with the country s northern border. This road has increased the region s communication and boosted productivity. J Palenque Airport. Modern terminal with the capacity to receive 300 thousand passengers a year. J Lázaro Cárdenas Port. A new container terminal has been modernized and equipped to increase its cargo capacity by 50%. J Resurfacing Works in Cancún, Quintana Roo. Around 75 kilometers of 109 streets were resurfaced in order to boost tourism in Cancún, Quintana Roo. An additional 300 kilometers of farm roads have been built to support the region s inhabitants. In addition to these works currently in the process of completion, the new International Airport of Mexico City (AICM) will be built; the emblematic work of the federal government will be a symbol of identity and reference in the 21st century. This project is vital to the country, and once in operation will move 120 million passengers a year, with the consequent economic spillover. Another great project to move Mexico is the recovery of passenger trains to transport millions of people. Particularly important in this respect are the Mexico- Toluca (Estado de México) and Mexico- Querétaro railroad lines and the electric train linking Guadalajara, Jalisco and the Metro of Monterrey, Nuevo León. Furthermore, there is the commitment to provide Wi-Fi connectivity in 250,000 public sites including schools, hospitals, libraries, cultural buildings and others, to bring technology and information into all corners of the country. The goal for 2014 has already been surpassed with 65,000 sites connected. These actions support the nation s growth and competitiveness by invigorating all commercial activities. Thanks to the constitutional reforms pushed by this administration, Mexico has huge growth opportunities. Continuing with the investment program and carrying out the infrastructure works will bolster the country s economic activity and development. The commitment is to improve the quality of life of its inhabitants. Thus, in today s Mexico, the far-sighted works of the SCT converge to unite horizons and shape the destiny of millions of Mexicans. N The National Infrastructure Program being developed in the country is the most ambitious project in the history of Mexico. President Enrique Peña Nieto s administration has so far completed nine highways, 12 major roads, 1,467 rural roads and service roads. 24 December 2014 January 2015 December 2014 January

15 Negocios ProMéxico Mexico s Partner photos courtesy of tmaz Mexico s Partner Negocios ProMéxico Terminal Marítima Mazatlán, A Gateway to the Asian Market The Chilean-funded company has been operating since 2012 in the port of Mazatlán, Sinaloa, a state with nearly 650 km of coastline on the Pacific Ocean. by antonio vázquez In just two years, the Terminal Marítima Mazatlán in Sinaloa has become one of the most important seaports run by the Chilean group SAAM, and one of the main ports for imports and exports in different sectors of the Mexican economy. In 2011, the Port Authority of Mazatlán (API in Spanish), an organization that works with the government of Mexico for the operation of this port in Sinaloa a state that has more than 650 kilometers of coastline on the Pacific Ocean launched a bid that the SAAM group, a Chilean corporation expert in port activities, vowed not to let go. We saw an opportunity to expand SAAM s participation in Mexico. There were several elements that came together: the need for participation, the bid that was launched and the Mazatlán-Matamoros (Tamaulipas) logistics corridor which, if viewed on a map, is a shorter way to reach China and the eastern US, which makes for a very attractive business potential at the macro level, says Miguel Chávez, CEO of Terminal Marítima Mazatlán. The time was ripe for the Chilean company. With over 16 years of operations in the country, at the front of terminals in Veracruz on the Gulf of Mexico and Lázaro Cárdenas in Michoacán, SAAM Group decided to invest heavily in Mazatlán, reflected in quality facilities and equipment, in order to export mainly to Asian markets. The Chilean firm has invested nearly 30 million USD in Mazatlán, which has been earmarked for the purchase of mobile cranes, reconstruction of a wharf, construction of access routes, acquisition of port control systems and equipment, obtaining quality and environmental certifications, and the recovery and design of an electrical network. The Chilean company is the largest port operator in Latin America, with 11 sites in the region and one in Miami, Florida. In just over three decades in Mexico, SAAM Group has invested nearly 200 million USD in the three ports it operates in the country, where its services include containers, general and bulk cargo, shipping, customs clearance and software specialized, among others. Chávez stresses that the SAAM terminal in Mazatlán is the only one of its kind, offering a comprehensive service to each of its clients in an area of over 16 hectares which today is ready to operate its various services. In just over three decades in Mexico, SAAM Group has invested nearly 200 million usd in the three ports it operates in the country, where its services include containers, general and bulk cargo, shipping, customs clearance and software specialized, among others. Terminal Marítima Mazatlán has the capacity to operate 200,000 TEUs per year. In less than two years, it has moved around 30,000 TEUs per year, with annual growth of up to 20%. We can do customs clearance, cross-docking; we have yards for bulk storage [...] we move steel, copper, and as this port was previously for the automotive sector, we are able to move cars, adds Chávez. Our main activities are steel imports and the export of basic commodities from the region. We have specialized warehouses for handling steel of up to 5,000 square meters, which means loading can be carried out very efficiently without damaging the material. That s part of the added value we offer in the north of the country, he explains. The terminal holds environmental certifications and is working to obtain ISO 9000 and 14000, which are focused on quality and environmental friendliness. Mazatlán is also one of the safest areas of the country. There is a very positive outlook in that regard and part of our plan for 2015 is to demonstrate the potential that exists for offering first world freight services from here, reveals Chávez. Over a period of about three years, Terminal Marítima Mazatlán intends to grow its operating capacity to establish itself as the primary operating port offering services to seven states in northern and northeastern Mexico. We are focused on growth in the north and northeast. We are seeing the possibility of attracting automotive industries from the Bajío region, expanding our services and providing logistics solutions to virtually any industry, concludes Miguel Chávez. N 26 December 2014 January 2015 December 2014 January

16 Negocios ProMéxico Mexico s Partner photos archive Mexico s Partner Negocios ProMéxico Tsol, Everything Under Control If smart systems have become essential to our daily lives, how much more so must they be to industries with complex processes and valuable asset flows. Tsol s mission is to offer solutions that keep it all under control. by omar magaña Erik Markeset is a logistics and supply chain consultant. He is also an expert on information technologies that help optimize processes in these two areas and reduce their associated risks and costs. Markeset has two nationalities he is US and Mexican citizen and one company, Tsol Soluciones en Logística, which selects and implements transportation and storage management systems to meet the needs of companies that depend on precise, well-timed and affordable flows of raw materials and finished products. Mexico is a land of opportunities for technological companies like Tsol. Many companies out there still manage their logistics manually or using spreadsheets and Tsol s job, he says, is to guide them to a new scenario where specialized hardware and software provides clear, verifiable data on the movement of assets. Our medium is where logistics and technology converge, says Markeset, who not only founded and manages Tsol, but who also happens to be president of the Mexican Chapter of the Council of Supply Chain Management Professionals (CSCMP). Tsol doesn t develop the actual tools; rather, it integrates ad hoc products created by HighJump, Oracle, Llamasoft and the other firms it represents into technological solutions packages tailored to the customer s needs. We aim to offer the market a menu of tools and solutions for different problems, says Markeset. HighJump has a portfolio of warehouse management solutions and integrated supply chain management and control packages for the aerospace, automotive, consumer, food and beverage, hi-tech, manufacturing and retail industries, including solutions for providers of logistics services themselves. Llamasoft s products are geared toward the design of supply chains, the conducting of tests and the anticipation of contingencies that could arise when the process is active, while Oracle has programs like Oracle Transportation Management (OTM), an allin-one system that allows com- panies to migrate information related to their transportation operations to a single platform so they can better manage their fleets, merchandise and global trading operations, thereby providing greater certainty as regards their supply chains and the transportation and storage of their goods. Like its founder, Tsol blurs the borders of North America. My Mexican engineers are helping implement solutions in the US for Mexican and American companies, says Markeset. Tsol also exports knowhow to South America, mostly Colombia, Panama, Peru and Venezuela. Its most recent success story, covered by Inbound Logistics magazine in its September 2014 issue, involved Yobel, a Peruvian logistics service provider with operations in over a dozen South American countries. Yobel chose HighJump s Warehouse Advantage system to manage and control its storage operations. Every month, the company handles 15 million units that need to be sent to some 70,000 geographical locations in Latin America. After working closely with Tsol and HighJump, Yobel decided to enter into an alliance with them to meet the logistics needs of its South American customers. Green pastures Markeset has found in Mexico an ecosystem conducive to the development of its business. Not only are there ample opportunities to be had in the technological sector, but the country has human capital trained to implement logistics systems. Globally, we compete with companies that work out of India and tend to be cheap, but we also compete with American companies whose services are more expensive, he says. Mexico has done its part to optimize logistics tasks: infrastructure is being developed and the training of human capital promoted. Technology, insists Markeset, allows companies to be more efficient when it comes to processes as complex as the transportation of goods and inputs, allowing them to reduce both the cost and the environmental impact of transportation. Tsol is an excellent ambassador for a country that wants the rest of the world to view it as a stable economy with fertile ground for the development of businesses. Technology can help show foreign companies that are considering investing in Mexico that we have access to cutting-edge systems, says Markeset. Mexico has done its part to optimize logistics tasks: infrastructure is being developed and the training of human capital promoted. Technology, insists Markeset, allows companies to be more efficient when it comes to processes as complex as the transportation of goods and inputs, allowing them to reduce both the cost and the environmental impact of transportation. Tsol is seeking to step up its participation in the automotive supply chain in Mexico. According to Markeset, manufacturers are coming here in the understanding they will find the local suppliers and complex logistics services they need to guarantee the delivery of valuable supplies on time. There should be some great business opportunities in the retail and e-commerce industries in the future, says Markeset. Now that we re emerging from the crisis and recession, we re seeing a change in companies that were previously reluctant to invest in technology. In 2013, we saw improvements. We did better in 2014 and 2015 is looking promising. We re seeing an evolution in the thinking of Mexican companies as regards technology, particularly among professionals in the logistics business. With Mexico about to enter a new free trade agreement the Trans-Pacific Partnership (TPP), Markeset is confident new windows of opportunity will open up in Latin American economies where there are still fiscal barriers that make it difficult for technological companies like Tsol to export their services. N tsolco.com 28 December 2014 January 2015 December 2014 January

17 Negocios ProMéxico Mexico s Partner photos courtesy of aldesa Mexico s Partner Negocios ProMéxico Aldesa, a Successful Equation between Spain and Mexico Established in the country for eight years, the Spanish firm has enjoyed annual growth of about 30%. by antonio vázquez We observed that Mexico was an attractive country due to its overall situation, its macroeconomic indicators and the various trade agreements with other countries in Europe. That is how José María Argüelles, Managing Director for International Development of Grupo Aldesa, summarizes the company s decision to start operations in the country. Since 2006, when it established itself in Mexico, the Spanish firm has grown at a rate of 30% annually in the country and generated employment for about 1,100 people. That year, when the Spanish economy was experiencing a boom, Aldesa a specialist in construction and infrastructure in areas spanning industry, the energy sector, tunnels and underground works, railroads and concessions chose Mexico as a point from which to diversify geographically. The first investment the company made in the country was in Huatulco, in the state of Oaxaca, where it spent some resources in land acquisition to develop a tourist resort. At that time, Aldesa realized the huge business potential that existed in building roads, and in other sectors. Shortly thereafter, the company won a concession to build and operate for 30 years, a 150-kilometer highway project connecting the two major cities in Chiapas: Tuxtla Gutiérrez to San Cristóbal and the Arriaga-Ocozocuatla extension. In 2008, the company went after something bigger: the bid for the Durango-Mazatlán superhighway. Aldesa subsequently took charge of other important projects such as the construction, operation and maintenance of the Siglo XXI highway in the state of Morelos. The year 2013 saw the company s consolidation in Mexico: it won contracts for more than 5,000 million pesos (over 380 million USD). We are a company with Spanish equity but with more than 1,000 employees in Mexico and 95% of them are Mexicans, says Argüelles. Why has a firm like Aldesa been so successful in Mexico? Argüelles explains that the model it developed in Spain has been brought to Mexico but adapted to the country s needs, taking into account the opinions of the directors here. We are trying to bring over a model that has been successful for us in Spain working with energy service companies. In Mexico it involves making a large investment in municipalities, then as a result of the savings you make with the new technologies, you can pay off the debt acquired with the company and at the same time improve the town s lighting, says Argüelles. Aldesa, which has a presence in countries like Poland, Romania, Guatemala and India, considers Mexico a strategic ally. The country accounts for almost one third of total revenues of the Spanish corporation. Aldesa has sought to be at the forefront of the countries where it operates. In Mexico we are in the top 10 construction companies and among the top 500 companies, emphasizes José María Argüelles. If the European company has something, it is the humility to learn from the surroundings where it works. We come Aldesa, which has a presence in countries like Poland, Romania, Guatemala and India, considers Mexico a strategic ally. The country accounts for almost one third of total revenues of the Spanish corporation. to learn, not to teach, to take the best aspects of the two countries, says Argüelles. The talent of Mexican human resources has been a surprise. Argüelles rates Mexican engineers hired by the company as first-world professionals who deal with complex problems and manage to solve them adeptly. We have well-trained professionals from local schools and also from abroad, who, when given a chance to work, develop in an excellent manner, he adds. Aldesa holds ISO 9001, ISO and OHSAS certifications, which help to reduce errors in each of its processes. It also maintains an internal sustainability policy that governs, among other things, compliance with local legislation, use of processes that reduce pollution, training for all staff in this area and continuous monitoring of its environmental objectives. According to José María Argüelles, the structural reforms promoted by the government of Mexico in the last year will attract foreign investment and generate more jobs in the country. These are reforms that benefit the liberalization of the economy, which will allow greater competitiveness and reduce the cost of services for citizens. We observe this with tremendous optimism, as reforms that are on the right track, perhaps the most important of which has been the energy reform, he concludes. N 30 December 2014 January 2015 December 2014 January

18 Negocios ProMéxico Mexico s Partner photo courtesy of katoen natie Mexico s Partner Negocios ProMéxico Katoen Natie, A Strategic Partner in Mexico A logistics company with a global footprint takes advantage of business opportunities that exist in Mexico by revolutionizing the supply chain for the industries with the best outlook for the future. by omar magaña Katoen Natie, a multinational company that has accumulated a century of experience in the comprehensive management of logistics services, has a strategic position for the economic sectors in Mexico that require the continuous and secure supply of plastic resins and other derivatives of the petrochemical industry. Since 2001, the company of Belgian origin, with David Rubio Echaniz at the head of operations in Mexico, has seen fit to invest in those regions of the country that are considered important nodes for the input, generation, transfer and receipt of plastics that will be required in the future by thriving industries such as the automotive sector. We see it as an interesting area with a lot of growth, says its director and representative in Mexico. The company sees Mexico as a strategic point of significant growth. If we look at traditional markets, growth is either zero or negative; the company seeks markets where there is opportunity for growth and Mexico is among the most important, he remarks. Katoen Natie operates in Altamira, Tamaulipas; Silao, Guanajuato; Huehuetoca, Estado de México, and Pantaco, Mexico City. Thus, it can offer industries a complete service for the management, movement, storage and transfer of raw materials derived from petrochemicals efficiently and at lower costs, since it exploits the combined advantages of rail and trucking services. The most recent of the investments made by the firm in the country covers the years , for the construction of an intermodal terminal in Huehuetoca, Estado de México about 65 kilometers north of Mexico City which is interconnected to the railroads run by Kansas City Southern de México and Ferromex. According to Rubio Echaniz, the metropolitan area of Mexico City consumes 60% of the plastic resins that are mobilized by the company in his charge. That led to the decision to develop a distribution center with the features of the one that Katoen Natie established near the Circuito Katoen Natie operates in Altamira, Tamaulipas; Silao, Guanajuato; Huehuetoca, Estado de México, and Pantaco, Mexico City. Thus, it can offer industries a complete service for the management, movement, storage and transfer of raw materials derived from petrochemicals efficiently and at lower costs, since it exploits the combined advantages of rail and trucking services. Mexiquense and Mexico- Querétaro highways. The Belgian company spent 25 million USD on building the distribution center on an area of 10 hectares, with five more in reserve. It manages the loading of up to 230 railcars and the transfer of some 20,000 tons of plastic products every month for distribution in the Valley of Mexico by truck. The terminal also has an 18,000-square-meter warehouse and a bagging machine. The connectivity of the intermodal terminal with the railroad together with the six kilometers of track owned by Katoen Natie has transformed the dynamics of logistics and supply of the chain value of the plastics industry in Mexico because the materials that previously were moved on a smaller scale using the highways can now circulate in large volumes, reducing the cost and environmental impact of the transfer. Furthermore, Katoen Natie maintains strategic partnerships with trucking companies that comply with regulations for handling petrochemicals. We look for market leaders that meet the highest international standards. We are part of the petrochemical sector and the industry has some statutes and procedures such as full responsibility for product handling, highlights Rubio. Connecting the Center and the Coast Katoen Natie views its intermodal terminal in Huehuetoca as a logistics platform that allows Mexican companies, as well as receiving imported raw materials, to export goods manufactured in the center of the country from the ports of Manzanillo, Lázaro Cárdenas and Altamira. The terminal has grown even better than our investment plans and that has given us great encouragement, says Rubio. For its part, the transfer terminal which Katoen Natie set up in Silao helps to strengthen the supply chain for the automotive and footwear industries in the Bajío region. The terminal is located in Parque Industrial Silao FIPASI and allows the operation of railcars up to 90 tons. Given the strategic position of Mexico with respect to the most dynamic market in the world, the US, the country must support policies for infrastructure development that favor the optimal movement of goods, believes Rubio. We definitely need to remove bottlenecks in order to provide a better service and I think the federal government is already dealing with this, he adds. The automotive sector, for example, is enjoying a good period and the arrival of new carmakers to Mexico paints a good picture for a company that is contributing to opening up new supply channels, particularly for goods related to petrochemicals and specialty chemicals, two of the seven business units that constitute Katoen Natie globally. The per capita consumption of plastic resins in Mexico, compared to countries in Europe or with the US, is one third or less but there is opportunity for growth, concludes Rubio. N 32 December 2014 January 2015 December 2014 January

19 Negocios ProMéxico Mexico s Partner photos courtesy of lintel Mexico s Partner Negocios ProMéxico Lintel, When a Factory is Part of LifE This design builder and developer of industrial parks has established hundreds of projects across the country, representing about 18 million square meters for the industrial sector. by antonio vázquez Building an industrial park is not only about raising walls and creating a service infrastructure. That is something well understood by Lintel, a Mexican company that has forged its own path in the creation and development of industrial parks for over three decades. Lintel began operations in 1983 in Ciudad Juárez in the border state of Chihuahua. Today, it has offices in central Mexico, in states like Guanajuato and San Luis Potosí. We are a company known for quality and innovation in the construction industry and industrial real estate development. We are also a socially responsible company, committed to the development of the country and to transforming the communities in which it invests capital, says Miguel Barreda Araiza, who is in charge of attracting new projects to the company. Over its 31 years of history, Lintel has revolutionized the field of industrial park construction. In all that time, it has developed over 18 million square meters of that type of infrastructure. The company has had a hand in hundreds of projects in some 25 cities in Chihuahua, Sonora, Baja California, Coahuila, Nuevo León, Estado de México, Guanajuato, San Luis Potosí and Aguascalientes. In Guanajuato alone, where it has strategic offices, Lintel has developed five parks within Puerto Interior Guanajuato and another one in León, Guanajuato, each with an approximate cost of 400 million pesos (about 30 million usd). We have developed projects for industrial parks based on what the customer requires. We have built parks for the electronics, medical device, food processing, and of course, automotive sectors, says Barreda Araiza. Chrysler, Getrag, Yazaki, Honeywell, Johnson & Johnson, Motorola, Lexmark, Phillips, Epson, Lear, Becton Dickinson, Wistron, Continental, Koito, Magna, and Omron among other prestigious global brands have a presence in the industrial parks created by Lintel. According to the company, 90% of its customers have returned to develop new projects and 95% are corporates with foreign capital, mainly from countries like Canada, Germany, Japan and the US. Lintel works with each customer to define the scope and requirements of each project. We offer added value to our clients. For example, in order to serve them in countries like Japan, we employ translators to facilitate dialogue. Additionally, we provide assurances that the infrastructure required for their process will not be a problem. We also ensure that people working in the company are close to their homes, reducing commuting times for workers, among other positive things, explains Barreda Araiza. Among its flagship projects is the development of the industrial parks Santa Fe I, II, III, IV and V in Puerto Interior Guanajuato, one of the most ambitious industrial developments in Mexico in recent years about 72 automotive companies have established themselves in the development, which has served as a trigger for the formation of a new automotive cluster in the region. According to the company, 90% of its customers have returned to develop new projects and 95% are corporates with foreign capital, mainly from countries like Canada, Germany, Japan and the US. There are great advantages in the Bajío region, such as geographic location and a network of suppliers, which together with Mexico s various trade agreements and the domestic workforce have attracted major auto manufacturers, most recently Honda, Mazda and BMW, Barreda points out. For business people, that means an encouraging outlook for the economy because locally the automotive industry recorded an average growth rate of more than 5%. In that context, an experienced and knowledgeable firm like Lintel will be present in order to attract more international firms in the industry. Bringing the first company to a new industrial park is a real challenge. Companies do not know if the park is going to succeed or not, they want companies that provide credibility. The name Lintel in association with this kind of development has intrinsic value: we plan the product, we investigate location, soil characteristics, studies, service feasibility, everything that provides certainty, says Barreda. He adds that with the support of organizations such as ProMéxico, Lintel has approached other markets, specifically in Asia, and has participated in trade missions that have allowed it to become known elsewhere. Throughout its existence, Lintel has created more than 10,000 jobs and also holds ISO 9001: 2008 quality management certification. Among its immediate plans, the firm has in mind the consolidation of its recent developments Colinas de Lagos, Colinas de León and Colinas de San Luis. In the coming years, the company plans to exploit the full potential of the automotive sector which is becoming established in the Bajío region of Mexico. By the nature of the business we anticipate an automotive sector in growth, so we will be seeking to work in other states as well, concludes Miguel Barreda. N 34 December 2014 January 2015 December 2014 January

20 Negocios ProMéxico Mexico s Partner photos courtesy of tuscor lloyds Mexico s Partner Negocios ProMéxico Tuscor Lloyds, Mexico s Window on Europe and Asia With 16 years in Mexico, Tuscor Lloyds runs maritime import and export operations with the European and Asian markets. by antonio vázquez From the Gulf of Mexico, Tuscor Lloyds a British company that offers cargo, container, and ship rental services, among others has found in Mexico the perfect window for import and export to Europe and Asia. Based in Manchester, United Kingdom, the company has maintained a presence in Mexico for 16 years, making the country one of its oldest international operations. We decided to open operations in Mexico since we had an account with Volkswagen. In early 2000, that allowed us to increase the amount of fares to Europe and the Medi- terranean from Mexico. That came hand in hand with other accounts, such as Wal-Mart, and gave us the opportunity to expand import traffic to Mexico, explains Mónica Hernández, Commercial Director at Tuscor Lloyds Mexico. Thus, from the ports in the state of Veracruz and Altamira in Tamaulipas both located on the Gulf of Mexico the firm has managed to connect the country with Northern Europe and the Mediterranean. In the port of Veracruz, Tuscor Lloyds has become the second and third forwarder with the largest amount of imports (about 13,000 TEUs for its different customers). Similarly, from Mexico it has established connectivity to Brazil, Colombia and some Asian countries. About four years ago we opened an office in Hong Kong that has been very successful. Year on year we have grown our figures for import and export between Asia and Mexico, so we opened another office in Manzanillo, Colima, on the Mexican Pacific. Those operations have grown 25% in a very competitive market, says Hernández. Mónica Hernández explains that the Tuscor Lloyds office in Mexico combines two roles: one commercial and one as an intermediary for markets in Asia and Europe. The services offered by the firm include cargo, containers, bilateral trades, export packaging, heavy duty cargo, insurance, oversized cargo, project cargo, supply chain and vessel leasing. Tuscor Lloyds presence in Mexico is very strong. We have customers like Wal-Mart that has a 24/7 demand for services; we have the largest papermakers, based in Burgos, and we are working for New Holland, which has presence in the state of Querétaro. Those are larger accounts, with a greater volume, Hernández said. Tuscor Lloyds can handle products ranging from wines and spirits, to moving whole factories from one country to another. The company is a logistics operator that offers a full service because it has its own ships and containers, allowing it to specialize in container cargo between Mexico and Europe and Asia. Tuscor Lloyds can handle products ranging from wines and spirits, to moving whole factories from one country to another. The company is a logistics operator that offers a full service because it has its own ships and containers, allowing it to specialize in container cargo between Mexico and Europe and Asia. Tuscor Lloyds has been operating for 20 years in England and is now a well-known company that has worked with other logistics agents. The length of time in business and continual customer satisfaction speak for themselves, said Hernández, who considers that one of the factors influencing the firm s decision to establish a branch in Mexico is its geographic location, which allows it to function as a door to both Europe and Asia. Similarly, the national railway infrastructure enables the distribution of cargo across the country, says Hernández. Last but not least, the trade agreements signed between Mexico and other nations means that customs clearance is faster. In the past three or four years, tariffs on the footwear and apparel industry from China have begun to be removed. That has presented us with great opportunities, as happened with the treaties signed with the European Union, says Hernández. We also want to increase imports and exports to Central America, something we will do throughout 2015, when we promote greater commercial traffic from Mexico with that region and with South America, concludes Mónica Hernández. N 36 December 2014 January 2015 December 2014 January