Ministry Expropriates Land for Interoceanic Corridor in Oaxaca

The Ministry of Agrarian, Territorial and Urban Development (SEDATU) announced it has expropriated land for the Interoceanic Corridor of the Isthmus of Tehuantepec in Oaxaca. According to the government, the land will be used for the construction and operation of the government’s coveted development hub.

SEDATU announced via the Federal Official Gazette (DOF) it expropriated over 502ha for the construction of Interoceanic Corridor infrastructure in the community of Santa Maria Mixtequilla, Oaxaca. Of the expropriated land, 180ha is destined for agricultural use and 323ha for common use. According to the document, the government is to pay MX$130.6 million (US$6.9 million) as compensation for the land. 

The government also expropriated 412ha of Ciudad Ixtepec’s rainfed agricultural land. The government said it was expropriated for public utility purposes. “This includes actions for urban and ecological planning and housing, as well as the development of industry and tourism,” the document states. 

The document mentioned that the land will be used for the creation of a development hub: the Interoceanic Corridor, which includes de construction of industrial parks for companies and the installation of public services for both companies and communities. 

The developer has five years to execute the project. If this development does not occur, the National Fund for Ejido Development (FIFONAFE) can revert the expropriation. 

According to the government, the Interoceanic Corridor will benefit the surrounding communities by providing them with mobility alternatives. As a part of the corridor’s works, the government started the modernization of the 459km of railway, including Line K, which used to connect Ciudad Ixtepec, Oaxaca and Ciudad Hidalgo, Chiapas. Authorities did not specify the amount of investment the project would require but said the project consists of the construction and refurbishment of 12 main stations and 15 minor stations. The developers would furthermore prevent railway accidents, boost livestock and agricultural production and will become a key mobility option.

The Interoceanic Corridor aims to boost Mexico’s logistic capabilities and allow the country’s transportation sector to compete with major players like Panama. However, according to Gene Towle, Executive Partner, Softec, the government bet too much on the project and expects immediate results while it could take up to 10 years to scale up, as reported by MBN.