Mexico Ideal for International InvestmentTue, 11/01/2016 - 22:38
Q: How is MEXTYPSA’s client portfolio structured between the private and public sector?
A: When we entered the Mexican market we had no experience on road development here and no network. To gain a presence we worked solely with the private sector. We adhered to this model for the first three to four years and once we began to build up experience and knowledge we started working with the public sector, gaining its trust with the projects we successfully accomplished. Now, our portfolio consists of 50 percent public and 50 percent private projects and we want to maintain this balance. Our biggest clients in the private sector are construction companies. We also work with Volkswagen, Audi and Industrias Peñoles. In the public sector, we have worked with CONAGUA, the SCT, BANOBRAS and Mexico City’s Metro system. We provide added value in highway maintenance and asset structuring. MEXTYPSA works with roads and highways, on the general development of projects and also assists on concessions with project management, supervision and engineer recruitment. Moving forward we are looking to take part in projects where we can contribute added value, particularly in engineering as the local market cannot offer that at the moment.
Q: What are the biggest risks for international companies when investing in Mexican infrastructure projects?
A: MEXTYPSA is one of the few companies that do not get involved in the actual construction of projects as this raises the level of risk, especially when things do not go according to plan. We offer guidance and consulting services and are responsible for the design of a project. In terms of financing, the CKD platform still needs to develop. MEXTYPSA has participated in a variety of USPs and because of the uncertainty involved, they have not been highly successful. These instruments eventually should reduce the problem and the level of risk.
Q: What opportunities have the structural reforms in the energy sector created for MEXTYPSA?
A: The renewables market is changing but because of the uncertainty created by secondary reforms, investors are not yet confident about placing their money in these projects. There have been various instances in which companies decide to invest and during construction the government changes the rules, causing investors to lose money. For certainty to exist there must be regulations within the market, which will encourage further investment in the infrastructure industry. Mexico has extensive potential in the energy sector with strong oil and gas resources. These reforms hold a promising future and will open up more opportunities to work with CFE and PEMEX.
Q: Which sectors in the infrastructure industry are attractive to TYPSA?
A: TYPSA wants to be involved in asset structuring projects and from there move into different areas of construction, highway maintenance or simply optimization of existing structures. The company wants to actively participate in more projects in the Mexican energy sector. Our strategy is to provide quality engineering solutions and with its international expertise, TYPSA does not have many competitors. This allows us to gain access to an increased number of projects and gives us a competitive advantage because we can demonstrate skills to companies by generating various solutions to their problems.
Q: How do MEXTYPSA’s current projects demonstrate the company’s accumulated expertise?
A: We are working on some highway maintenance projects in the cities of Queretaro, San Luis Potosi and Villahermosa with SCT. The government is looking to expand the coverage of Mexico City’s metro system and we have an advantage because we have had the opportunity to work with them on several lines. MEXTYPSA also has participated in the due diligence process and construction supervision of a variety of sustainable infrastructure developments. Project management is one of our strengths and to capitalize on this, the company is developing several residential buildings and a commercial mall. Our goal is to maintain our position and use our experience in road construction to grow in the energy sector.