FOCUS | MEXICO
will be reduced startup times for new businesses and, it is hoped, enhanced competitiveness in international trade. The emphasis on public–private investments
targeting major infrastructure projects is also a key feature of Plan México. Back in January, Sheinbaum was already able to announce an additional $277bn in investments from foreign companies, including funding for more than 3,000km of railway lines, in excess of $13bn to improve Mexico’s electrical generation capacities, and 16 projects to increase the population’s access to water. The expansion of the rail network is of major significance and is a key pillar of the programme of public–private partnerships in infrastructure development. A constitutional amendment to establish passenger and freight railway transportation as a priority area for national development came early in her presidency. The state can now recover control over railway lines for passenger transport and can grant concessions to private entities or assignments to public companies for passenger rail operations. The aim is partly to reduce traffic on highways and provide an accessible public transportation alternative. Subsequently, the government announced
plans to invest 157bn pesos ($7.7bn) during 2025 in the construction of new passenger and freight operations on key parts of the rail network. This will include the final section of the Tren Maya between Palenque and Chetumal, and the conversion of the 1,500km network into a mixed traffic railway that can handle freight as well as passenger services. This will require the construction of ten freight complexes – five
intermodal terminals, four operating yards and a fuel loading spur. In March, Sheinbaum kickstarted the construction of the Mexico City-Pachuca electric commuter train development, which will see high-speed trains run from Buenavista in Mexico City to Hidalgo state capital Pachuca. It is hoped that travel times will be reduced by up to 30% compared with travel by road. Beyond rail infrastructure, the plan will also see 33bn pesos invested in the modernisation of six ports, including Progreso in Yucatán, and Ensenada in Baja California.
In the shadow of Trump With the ambitious Plan México under way, Sheinbaum can make a strong claim that Mexico is back in business. Some believe that Mexico can still drive a nearshoring boom, though no one expects it will be easy. The global political landscape in which Mexico must assert itself is febrile, fragile and fraught with unexpected twists and turns.
Sheinbaum’s first round of international visits saw her meet with then-US President Joe Biden and Canadian Prime Minister Justin Trudeau. Since then, Trudeau has been replaced by Mark Carney and, more importantly, the US has seen a strong shift to the right under the second Trump administration. In defining its policy on relations with the
US, Mexico faces many potential pitfalls. The US may be encouraged by the country’s tougher approach to drug cartels, but it was only in October 2024 that diplomatic relations with the US ambassador to Mexico, Ken Salazar, were resumed. They were previously suspended due to US criticism of Mexico's judicial reforms.
New diplomatic protocols now require Salazar to communicate with the Secretariat of Foreign Affairs in order to engage with the federal government, rather than speaking directly with members of the cabinet.
Sheinbaum has publicly congratulated Donald
Trump on his electoral victory, but she has had to play a careful game in determining how to respond to his threat to impose a 25% tariff on imports from Mexico. Her initial letter in response to that threat warned that “one tariff will follow another in response and so on, until we put our common businesses at risk”. While Trump bemoans the flow of drugs and gang members across the country’s southern border, Sheinbaum has noted with concern the flow south of firearms from the US into the hands of criminal gangs. When Trump’s executive order implemented tariffs, Sheinbaum threatened to retaliate with both tariffs and other tools, and quickly reached an agreement to delay the imposition of tariffs for one month. The deal included a pledge from Sheinbaum to deploy 10,000 National Guard troops to the US border, and Trump promising to clamp down on the trafficking of weapons to Mexico. For now, the balancing act is paying off, and Sheinbaum’s approach has been deemed more successful than many of her counterparts on the international stage. So far, so good, but even a week can be a long time in politics. Mexico will hope the current strategy pays off, as the flow of exports into the US will be a critical part of any plan to significantly grow the economy. In 2024, more than $137bn of vehicles (excluding rail) flowed north across the border, along with $105bn in machinery, $87bn in electronic and electrical equipment and more than $7bn of iron and steel. To put it starkly, exports account for more than
one-third of Mexico’s GDP, and over 80% of its exports flow into the US. Conversely, only 1% of US GDP comes from exports of goods to Mexico. With growth forecasts for Mexican GDP already below 1% for the year, the threat of US tariffs is serious. Uncertainty about the prospect of a hike in costs for US importers buying Mexican goods is likely to dampen the appetite among global investors to put money into Mexico. It is early days for the bilateral relationship between Trump and Sheinbaum, so while there are glimmers of hope, there is always a risk that things will turn sour. So, the future of Mexico’s industrial and infrastructure development is unclear, despite the ambitious plans that are in place.
In the aerospace sector, Mexico aims to be in the top ten countries in terms of production value, and to boost local and regional content in aerospace exports by 10%.
18 Summer 2025 |
ochmagazine.com
So, what does all this mean for the crane and hoist industry? Well, there is no clear answer. There are certainly opportunities in key sectors such as automotive, and the drive for infrastructure development will provide scope for new projects, but with international trade such an important factor, the future is not entirely in Mexico’s own hands. l
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