Latin America Advisor 2023-10-31 – Inter-American Dialogue

LATIN AMERICA ADVISOR

A daily publication Of the dialogue

October 31, 2023

Can a Mexican Railway Compete With the Canal?

Mexico’s government is seeking to revive a railway to compete with the Panama Canal. A railway bridge in the municipality of Jesús Carranza, in Mexico’s Veracruz state, is pictured. // File Photo: Gerardolagunes via Creative Commons.

Q

Mexico’s government wants to revive a century-old railway line that would link the Gulf of Mexico and the Pacific Ocean in an effort to take container traffic away from the Panama Canal, the Financial Times reported Oct. 2. The plan comes as the Panama Canal has had to reduce the number of ships allowed through the waterway amid a drought and low water levels. Is the revival of the railway line cost-effective and a good idea for Mexico? Would it successfully take business away from the Panama Canal? How lucrative would the plan be for Mexico in the long term, and is Mexico’s next president, to be elected in June, likely to continue it?

A

Nicolás Mariscal, member of the Advisor board and chairman of Grupo Marhnos in Mexico City: “Since the 19th century, Mexican statesmen have aspired to connect the Pacific and Atlantic Oceans through the Isthmus of Tehuantepec. However, the country has never seriously pursued such a project until now. Nevertheless, the current government has made it a central part of its agenda. The situation with the Panama Canal could serve as a significant motivation to move forward. Moreover, with Asian countries becoming the hub of global economic development, the Isthmus could become a focal point for exporting goods and reducing transportation costs. The next government might continue this initiative, regardless of the election outcome, as it could aid in the development of Mexico’s southern regions and some of the nation’s poorest states. However, the challenge extends beyond just building a railway line; it involves constructing essential…”

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The Inter-American Dialogue publishes the Latin America Advisor every business day for a distinguished membership of informed corporate leaders, scholars, and government officials invested in Latin America’s development and future. The Advisor‘s highly regarded Q&A section covers questions submitted by subscribers themselves. Commentators regularly include heads of state, business leaders, diplomats, economists, analysts, and thought leaders from around the world. Many of the world’s largest and fastest-growing companies subscribe to the Advisor. To subscribe, click here. For terms and conditions, click here. For more information, contact Gene Kuleta, editor of the Advisor, at gkuleta@thedialogue.org.

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Gene Kuleta
Editor
P. 202.463.2920
E. gkuleta@thedialogue.org

Carl David
Goette-Luciak
Reporter

Nili Blanck
Reporter

board of advisors

Diego Arria
Director,
Columbus Group

Merike Blofield
Professor of Political Science,
University of Hamburg

Devry Boughner Vorwerk
CEO,
DevryBV Sustainable Strategies

Joyce Chang
Global Head of Research,
J.P. Morgan

Marlene Fernández
Corporate Vice President for Gov’t Relations,
Arcos Dorados (McDonald’s)

Peter Hakim
President Emeritus,
Inter-American Dialogue

Donna Hrinak
Director,
Adtalem Global Education

Jon E. Huenemann
Council Member,
GLG Inc.

James R. Jones
Chairman,
Monarch Global Strategies

Craig Kelly
Senior Director,
Int’l Gov’t Relations,
Exxon Mobil

Barbara Kotschwar
Professor of Political Economy,
Georgetown University

John Maisto
Director,
US Education Finance Group

Nicolas Mariscal
Chairman,
Grupo Marhnos

Thomas F. McLarty III
Chairman,
McLarty Associates

Beatrice Rangel
Director,
AMLA Consulting

Ernesto Revilla
Head of Latin American Economics, Citi

Gustavo Roosen
President,
IESA

Andrés Rozental
President, Rozental &
Asociados

Shelly Shetty
Managing Director,
Sovereigns, Fitch

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