Industrial Sector Contracts in August: The Weekly Roundup

This week, INEGI reported that the industrial sector experienced a slight decline in August after years of growth, mainly driven by downturns in construction. Meanwhile, proptech Hofix is investing US$5 million to expand its digital rental platform. 

In other news, Quintana Roo introduced reforms requiring environmental impact assessments for real estate projects, while Zacatecas kicked off two major industrial developments. 

Your weekly dose of Infrastructure is here!

Mexican Industrial Sector Drops 0.3% in August

Mexico’s industrial sector contracted by 0.3% in August, ending 41 months of growth, mainly due to drops in construction and mining. Construction fell 4.1%, driven by a 23.4% decrease in civil engineering projects. While mining saw slight improvement, analysts predict ongoing weakness, citing economic uncertainty and reduced public investment. While utilities and manufacturing showed modest gains, analysts expect continued weakness due to economic uncertainty and fluctuating demand.

Hofix to Invest US$5 Million to Grow in Mexico

Mexico-based proptech Hofix announced a US$5 million investment to expand its digital platform, which enables rental agreements in 24 hours without the need for a guarantor. The platform offers up to 12 months of rent protection and covers legal and tenant issues. Hofix expects 400% growth by the end of 2024, driven by partnerships and service expansion to 25 regions. 

Authorities Begin Preliminary Works on Mexico-Queretaro Train

The Mexican government has begun preliminary work on the Mexico-Queretaro Train, a 225km passenger rail project designed to connect Mexico City with the State of Mexico, Hidalgo, and Queretaro. Expected to benefit nearly 6 million people, the train aims to improve community connectivity, enhance safety, reduce carbon footprints, and create about 490,000 jobs — 165,000 direct and 325,000 indirect.

GSA, El Paso Council Seek to Eliminate Cargo Traffic at BOTA

The GSA plans to eliminate commercial cargo operations at the BOTA in El Paso, Texas, to ease traffic congestion and improve public health. This initiative, outlined in a Draft Environmental Impact Statement (EIS), will redirect cargo to nearby ports. The El Paso City Council has expressed strong support for the plan, emphasizing its economic benefits and potential to reduce emissions. A public meeting on the draft EIS is scheduled for Oct. 17, 2024, for community input.

Quintana Roo Real Estate Law Reform Targets Environmental Impact

Quintana Roo has reformed its Ecological Balance Law, requiring all real estate transactions to include an Environmental Impact Statement (MIA) to prevent irregular development and protect the environment. This reform strengthens environmental regulations, but poses challenges for developers due to longer processes. It applies to infrastructure projects like roads and developments with significant environmental impact.

Zacatecas Launches Two Industrial Projects to Boost Key Sectors

Zacatecas has launched two major industrial projects, including a new industrial park in Fresnillo and new buildings in Parque Aeropuerto I, representing a US$33.6 million investment. Spanning over 15ha, the developments will attract over 10 companies across sectors like manufacturing, automotive, and mining, creating 800 jobs. With modern infrastructure and strong logistical connectivity, Zacatecas aims to become a key industrial hub in Mexico, leveraging its strategic location and skilled workforce.

Liberty Networks, Gold Data, Sparkle Partner for Subsea Cable

Liberty Networks, Gold Data, and Sparkle have partnered to develop the MANTA subsea cable system, a 5,600km project aimed at transforming connectivity between the United States, Mexico, and Latin America. The cable will support 20 Tb/fiber pair capacity, with landing points in Veracruz, Mexico, and Apalachee, Florida. This new infrastructure will enhance data flow and low-latency routes to key hubs, addressing growing regional demand for reliable connectivity. The system is expected to be operational by 2027.