BANOBRAS to Participate in Nearshoring-Related Projects
The eventual construction of the Tesla Gigafactory in Santa Catarina, Nuevo Leon highlighted the importance of building appropriate infrastructure to keep up with the expansion forecasted owing to the nearshoring phenomenon. On the back of this development, Mexico’s National Bank for Public Works and Services (BANOBRAS) said it will participate in projects to ensure companies can capitalize on nearshoring’s potential.
Jorge Mendoza, Director, BANOBRAS, said the institution will work on projects that help companies to move to Mexico and that the country needs to have the basic infrastructure to allow for rapid and sustainable growth. “Mexico is somehow taking off. The Ministry of Finance says we could grow by 3% and that put us in a favorable position in case the US successfully exits its high-interest rates cycle, which would allow us to jointly grow and integrate as a region,” he added.
In an interview with Forbes, Mendoza pointed out that the institution is working on an agenda to participate in the nearshoring trend. “We noticed that several US and Chinese companies are settling near the [northern] border, especially in Nuevo Leon. What we want is BANOBRAS to participate in projects around these nearshoring areas,” he said.
According to the US-based consultancy firm CBRE, Monterey holds over 50% of nearshoring investments, followed by Saltillo with 11%, Merida with 6%, Chihuahua and Ciudad Juarez with 7%, Mexico City with 7%, San Luis Potosi with 6% and Guanajuato with 3%.
In this context, Mendoza said BANOBRAS is participating in projects in Mexico’s north. These projects are focused on road infrastructure and water management, tackling some of the main concerns about companies moving operations to Mexico.
Through the National Fund for Infrastructure (FONADIN), BANOBRAS will participate in the modernization of the Reynosa-Pharr international bridge to expand its capacity and install a border crossing point. Featuring an investment of over US$110 million, the project aims to avoid bottlenecks in the fourth busiest crossing point between Mexico and the US.
Another project is the Mesa de Otay II crossing point, a potential third crossing point in Tijuana via the construction of 21 buildings for customs, migration offices and inspection points, among other infrastructure. The project also includes the construction of a crossing checkpoint with 20 lanes, of which 10 will be for vehicles and 10 for cargo trucks.
The institution is also working on a 10km elevated viaduct in Tijuana, whose construction would be carried out by the army with an investment of MX$12 billion (US$661.4 million). The project aims to connect Tijuana International Airport with the Playas municipality, a region close to the US border.
The El Cuchillo II Aqueduct, which aims to guarantee the water supply for Monterrey, is another important project expected to source over 5,000m³/s and be completed by the end of 2023.