Image credits: John Schnobrich
Weekly Roundups

Real Estate Contracts Move to Digital

By Lorenzo Núñez | Thu, 07/22/2021 - 18:41

Mexico City´s Minister of Tourism commented that tourism has been heavily affected during the pandemic and highlighted keys to its recovery. AMLO announces Solar Energy Plant in Sonora, Kansas City Southern released a report where they show an increase in revenue and traditional paper contracts may be a thing of the past.

This and much more in your weekly round up!

Sustainable Tourism for Economic Recovery

The economic impact of COVID-19 was significant but, looking to the future, it is necessary to foster a rapid economic recovery without neglecting sustainability. This is how Mexico's tourism strategies are shifting towards sustainable models that promote a more equitable recovery.

During the inauguration of the event "Mexico City, Capital of Sustainable Tourism: International Meeting of Nature Tourism," the Minister of Tourism of the Mexico City Government, Carlos Mackinlay Grohmann, pointed out that the COVID-19 pandemic has been devastating for tourism. However, crises also provide opportunities to generate profound and significant changes, he said. Mackinlay indicated that the Ministry of Tourism is working on creating improved forms of tourism capable of generating greater social wellbeing. Read the article here.

AMLO Announces Solar Energy Plant in Sonora

With the approval of the Puerto Peñasco solar energy project in the northern state of Sonora, President Andrés Manuel López Obrador (AMLO) has demonstrated willingness to work with private energy actors as long as the Federal Electricity Commission (CFE) remains the majority participant. CFE will own 54 percent of the solar plant while 46 percent will go to the Sonoran government.

The project itself will be built on almost five thousand acres in Puerto Peñasco, and after its projected completion in December 2023 it will be the 8th biggest solar field in the world. This plan will finally connect Baja California to the county’s energy grid with the building of transmission lines aside from producing 1,000 MW and powering over four million homes and businesses in the region. Here is the rest of the piece.

Scientists Demand Transparency Following Gulf of Mexico Fire

Following the accident on July 2, in which the fracture of a pipeline 80 meters under the sea in the Gulf of Mexico caused a gas spill followed by an underwater fire, scientists and environmentalists are demanding access to the site and information related to the disaster.

PEMEX reported that the pipeline fracture resulted from an intense electrical storm and that the fire was caused by electrical discharges that fell into the sea. The state-owned company noted that the fire consumed all the gas, and the leak has been repaired by sealing it with nitrogen. The company also assured that it had ruled out permanent damage to the area’s ecosystems. Read the whole article.

USMCA Could Boost Infrastructure Development

Mexico is seeing a slow economic recovery from the effects of the pandemic but investment in infrastructure can bring significant benefits to the country, especially considering the options that the USMCA entails and the geopolitical context.

Investment in Mexico during the first months of economic reactivation after the recession caused by the pandemic is insufficient. Investment as a percentage of GDP stood at 19.4 percent during the first quarter of 2021, while experts estimate that the country needs to reach 24 percent to detonate the country's growth, reports Expansion. Apart from GDP, the monthly Gross Fixed Investment Indicator, published by INEGI, stopped growing in its monthly comparison, cutting the recovery streak experienced during the first three months of the year. Complete piece.

Digitalization Increases in Real Estate Processes

The Real Estate contract process is transforming. It is leaving traditional contract processes behind and moving towards a more digitalized format.

The Real Estate industry has been one of the industries that has experienced one the biggest changes since the pandemic began. With entire projects modifying their focus to include more recreational areas that aim to replace tight workspaces, and with leading real estate leaders believing that traditional workplaces will remain a thing of the past, it is expected to have real estate contracts change from traditional means to a digitized way of signing a contract.

As seen by the digital contract management platform TRATO, construction companies and architectural firms have digitalized their contract processes. With digitalization in real estate processes increasing 128 percent so far in 2021 compared to the same period in 2020.    Read what the company said here.

Expanding Infrastructure Needed for Field Development

The infrastructure and facilities utilized for upstream field development in Mexico were significantly impacted by the economic effects of the pandemic: ports operated with fewer personnel, while ducts and pipelines administered less traffic, while having less access to maintenance and repair services. Even the offshore drilling market experienced a dip in day rates despite drilling activity barely being reduced.

However, as many new operators transition to field development and production phases, demand for new oil and gas infrastructure has increased. A number of industry trends have contributed to this scenario, while a group of industry players has also risen to the ensuing challenge. Read about them here.

Kansas City Southern Reports Increase in Revenue

Kansas City Southern has published their 2021’s Q2 results, where the company has reported revenues of US$749.5 million, representing a 37 percent increase compared to 2Q2020.  While overall, carload volumes were up 31 percent compared to last year.

Second quarter operating expenses were US$1,181.2 million, including a US$700 million termination fee paid to Canadian Pacific. The US$700 million reimbursement from Canadian National will be recognized upon KCS shareholder vote on the merger with Canadian National. The company also reported an operating loss of US$431.7 million, as well as a net loss of US$378 million or US$4.17 dollars per diluted share and an operating ratio of 157.6 percent. Here is our coverage.

Photo by:   John Schnobrich
Lorenzo Núñez Lorenzo Núñez Junior Journalist & Industry Analyst