Northern States Continue To Invest In Transport Network
Upside risk is presented to our growth forecasts for two Mexican ports, Altamira and Tampico, as the state government for Tamaulipas has announced a massive forthcoming investment in the facilities. The investment will not only focus on the ports themselves but also their connecting infrastructure. This highlights that, while the central Mexican states are set for an economic boom, as they attract robust manufacturing sector-driven growth through improved transport links and incentive programmes, the northern states continue to invest as well, and will likely continue to attract the bulk of FDI inflows.
According to a press release from the government of the northern Mexican state of Tamaulipas, the Mexican transport and communications authority, SCT, is to invest MXN5.5bn (US$454mn) over the next three years in the state ports of Altamira, Tampico and Matamoros. The largest project will be the modernisation of the port of Matamoros, which will cost MXN1.5bn, and was one of President Nieto's campaign pledges. In Altamira work will include dredging to ensure a deeper draught capable of handling larger vessels, and new intermodal connections. These will take the form of a new railway line, new access roads and a new underpass.
These investments will provide upside risk to our medium-term (2013 to 2017) growth forecasts for the ports of Tampico and Altamira. Tampico has seen a huge reduction in its box handling in recent years, falling from 11,152 twenty-foot equivalent units (TEUs) in 2008 to just 447 in 2012. Our medium-term forecast currently averages 7.0% a year, so even with the upside risk from these investments it is doubtful that previous volumes will be recaptured. At Altamira, however, 2012 saw 578,685TEUs, a record volume of boxes, handled at the port, and in 2013 we forecast throughput of 603,728TEUs. Growth over the medium term is to average 11.0%, with significant upside from the improved intermodal links.
|Port of Altamira TEU Throughput, 2008-2017|