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Mexico has a natural competitive advantage over other countries in the world--it shares a 2,000 mile border with the United States, and is part of the large North American market that includes Canada. Mexico has expanded its logistics network with the U.S. and the world in order to enhance its competitive advantage. In the real estate market, there are three well known words for success: location, location, location. There are three more when setting up your operation in Mexico: logistics, logistics, logistics.
Many of the largest international logistics companies are already located in Mexico. In addition, the increase in the use of third-party logistics or contract logistics service providers is a worldwide trend. Mexico is industrially competitive due to the entry of these international logistics corporations, and the growing importance and role logistics is taking in terms of manufacturing and distribution of products. Information technology and globalization have helped to increase this trend.
Mexico's logistics infrastructure has improved dramatically in the past 10 years, with the privatization of the maritime ports, railroads, airports, and toll highways.
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Today, Mexico's highway network extends over 110,000 kilometers, of which more than 10 percent are four-lane thoroughfares.
In addition, foreign investment has played an important role in the recent expansion of Mexico's logistics infrastructure. Mexico will continue with its plans for future infrastructure development that will bring more opportunities and improve competitive costs for both domestic and international companies established in Mexico.
Goals to Improve the Competitiveness of Mexico's Logistics network include:
Expand the logistics infrastructure network
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Foster competition between the logistics companies in order to reduce associated costs of the transportation of goods.
Reduce delays associated with the clearing of goods through customs.
Strengthen relationships between the logistics service providers and the industrial sectors.
Set up more multimodal terminals, integrating key trade corridors.
Enlarge the docks (piers), transportation, and storage capacity of the maritime ports.
Reduce the time and cost of transferring components and products.
The efforts by Mexico's industrial and government leaders to reach these outlined goals will make Mexican goods more competitive since transportation costs represent a high ratio in terms of the cost of goods produced in Mexico.
Mexico's Industrial Location
Advantages
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