Construction Falls During 1Q21
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Construction Falls During 1Q21

Photo by:   Scott Blake
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Paloma Duran By Paloma Duran | Journalist and Industry Analyst - Thu, 05/13/2021 - 18:18

The construction industry registered a drop during 1Q21, adding to its recessionary cycle. CAF and Alstom presented proposals for the acquisition of trains, which will be used to meet passenger demand for the Mayan Train. In addition, there is a critical process in the Mexico-Canada rail development, as two Canadian companies want control over Kansas City Southern.

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Construction Production Falls During 1Q21

The construction industry had a 6.8 percent annual drop during 1Q21, extending its recessionary trend to 20 quarters, according to INEGI. The cycle of decline started in 2016 and since then it has reported contractions in its production levels. Analysts at BX+ said the construction industry is the one that has lagged the most because it has a weak return on investment and high input costs.

CAF and Alstom's proposals for Maya Train

CAF and Alstom presented their proposals for the acquisition of 42 trains, which will be used to meet passenger demand for the Mayan Train. The winner will be announced by FONATUR on May 26.

CAF México and Rubau México presented a MX$37.4 million (US$1.86 million) offer. While Bombardier Transportation México, Alstom Transport México, Gami Ingeniería e Instalaciones, Construcción Urales and Construcciones Urales Procesos Industriales, presented a MX$36.5 million (US$1.82 million) offer.

Key Rail Project Will Link Mexico, US, Canada

The USMCA aims to facilitate logistics between Mexico, the US and Canada through a rail project that will link the port of Mazatlan in Sinaloa, Mexico, to Winnipeg in Manitoba, Canada. Nevertheless, a critical process in the railway’s development is undergoing as two Canadian firms, Canadian National and Canadian Pacific, are locked in a bidding war for control over Kansas City Southern (KCS).

Investment Increases in Tulum and Playa del Carmen

The beach town resort cities of Tulúm and Playa del Carmen are experiencing a real estate investment boom, mainly with the selling of condos. While Cancun and the Riviera Maya have undergone a 5 to 10 percent increase in rentals. Alejandro García del Río, Marketing Manager of Inmuebles24, said “our allies in Cancun and Riviera Maya have told us that during the pandemic the luxury real estate market remained in the interest of investors.”  

DHL Strengthens its Presence in Silao and Chihuahua

DHL Supply Chain announced the company plans to incorporate two cross-dock complexes in Silao and Chihuahua with the goal to improve its logistics solutions and supply chain flexibility schemes. The new cross-docks will strengthen DHL's network, which currently has 11 complexes. "Chihuahua and Silao are not cities which would normally handle merchandise volumes. Nevertheless, these cities have been growing and have become an important connection to secure the supply chain capacity," declared Juan Carlos Aderman, Vice President of Transportation at DHL Supply Chain Mexico to Expansión.

Photo by:   Scott Blake

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