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Logistics in Mexico works well: US Department of Commerce

Logistics in Mexico works well, although not without some concerns, the US Department of Commerce said.

Basically, Mexico is a leading global logistics center, largely based on its 13 trade agreements with 50 countries.

Specifically, the World Bank’s Logistics Performance Index (most recent year) ranks Mexico 51st out of 160 countries in terms of logistics efficiency.

In fact, transportation and logistics services are expensive in Mexico, accounting for 8-15% of product costs in Mexico, compared to the 5-7% range in the United States.

According to the Ministry of Communications and Transportation (SCT) of Mexico, 60% of Mexican products for internal consumption travel by land in trucks, 14% by train and 26% by ship.

The Commerce Department indicates that the Mexican government seeks to reduce transportation costs throughout the economy to increase competitiveness and facilitate supply chains.

To do this, Mexico is modernizing its national transportation network. The National Development Plan of the Administration of President Andrés Manuel López Obrador seeks to improve cargo transportation infrastructure, particularly in southern Mexico.

This plan builds on the previous Administration’s National Infrastructure Plan, which launched improvements to roads, railways and ports.

Logistics

Currently, the Mexican transportation infrastructure includes:

  • Approximately 390,000 km of highways and roads.
  • More than 26,700 km of railways.
  • A total of 64 international commercial airports; 1,424 airfields (including military fields and small privately owned fields) and almost 500 heliports.
  • More than 100 seaports and intermodal terminals.
  • About 27,000 km of oil and gas pipelines.

The main sectors of the Mexican economy are manufacturing, oil and petrochemicals, tourism, agriculture, transportation and communications, construction, mining, and electric power.

 

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