Construction Surge, New Innovations: The Week in Infrastructure

In this week’s roundup, construction and infrastructure news highlight significant strides and investments shaping Mexico’s future. Mexico’s construction sector is making a comeback with a rise in production value in June 2024, marking a break from a five-month decline. In transportation, President López Obrador has inaugurated the second phase of the Mexico-Toluca Interurban Train, promising significant job creation and setting the stage for the final extension to Observatorio station.

In the manufacturing sector, BYDSA, has celebrated the opening of Phase II at its Leon plant, boosting production capacity and creating new jobs. On the other hand, PPG is debuting its Steelguard 951 fire protection coating in the Americas, offering up to four hours of fire resistance and corrosion protection for high-risk facilities. 

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Value of the Construction Sector Grows 3.9% in June 2024

In June 2024, Mexico’s construction sector saw a 3.9% increase in production value, ending a five-month decline. Despite this, employment and working hours fell, and real average wages dropped by 3.3%. The sector’s annual production value decreased by 2.3%, but employment rose by 1.3% from the previous year. The edification sub-sector led with 41.9% of total activity, while Quintana Roo was the top contributor by state.

López Obrador Inaugurates Second Phase of the Interurban Train

The Mexican government inaugurated the second phase of the Mexico-Toluca Interurban Train, cutting travel time between Mexico City and the State of Mexico to 40 minutes. The project, costing MX$100 billion (US$5 billion), includes 58km of track, 20 electric trains, and seven stations, benefiting over 5 million users. It will transport up to 235,000 passengers daily and has generated thousands of jobs. The third phase, extending the line to Observatorio station, is scheduled for completion by December 2024.

BYDSA Inaugurates Phase II in Leon, Plans US$12 Million Expansion

Botanas y Derivados (BYDSA), a Xignux subsidiary, inaugurated Phase II of its Leon, Guanajuato plant, investing over US$28 million to triple production capacity and create 500 jobs. The expansion, which will also include an additional US$12 million investment in the next five years, focuses on using locally sourced potatoes. BYDSA aims to enhance its footprint in Mexico’s snack industry while supporting local agriculture and community development.

PPG Launches Steelguard 951 Fire Protection Coating in Americas

PPG is introducing the PPG Steelguard 951 epoxy intumescent fire protection coating in North and Latin America. Designed for advanced manufacturing and high-risk environments, this coating provides up to four hours of fire protection and resists corrosion to ISO 12944 C5 standards. Suitable for semiconductor plants, EV battery facilities, and data centers, it meets rigorous national and international fire and corrosion standards.

FIBRA MTY Secures US$250 Million Loan

FIBRA Monterrey (FMTY) has secured a US$250 million unsecured loan, with an option to increase it to US$280 million. This loan, the largest bilateral loan in the trust’s history, will be used for debt refinancing, property investments, and general corporate purposes. It features a variable interest rate based on SOFR 1M, with a margin of 175 to 195 basis points depending on the debt-to-assets ratio, which FMTY expects to maintain at the lower end. The loan has a five-year term and is anticipated to improve FMTY’s financial position.

Arelion Launches New Monterrey-Queretaro DWDM Route

Arelion, a telecom company that provides networking and mobile data solutions that connect business content and applications, has launched a new DWDM route from Monterrey to Queretaro, offering high-capacity, underground fiber connectivity. This expansion enhances access to Arelion’s cloud, content, and security services, supports Mexico’s growing tech and manufacturing sectors, and connects key data hubs. The route, set to go live in late Q324, strengthens Arelion’s low-latency services and supports global cloud and media providers.

Mota Engil Expands Port of Matamoros Into Terminal Puerto del Norte

Mota Engil México, in collaboration with API Tamaulipas, is modernizing and expanding the Port of Matamoros into the Terminal Puerto del Norte. This ambitious project, with an investment exceeding MX$5.6 billion (US$279.19 million), will include new docking positions and significant infrastructure improvements. Scheduled to start soon, the development aims to enhance the port’s role as a key node in North Mexico’s trade network, with facilities to handle various types of cargo and support significant trade volumes.