Covid-19 Threats Bajio’s Logistics Plan

Earlier this year, Mexico ranked eighth on Agility’s Emerging Markets Logistics Index. Even though this is a high place to be in, the country lost its seventh place from 2019 due to the effects of US President Donald Trump’s immigrant policies implemented at the border.

Queretaro and other Bajio states were signaled as the most promising hubs for logistics operations as they host many manufacturing plants, have well-positioned cargo airports and strong logistics companies with operations there. Queretaro’s Logistics and Innovation Cluster expects 6 percent growth for the state in 2020 with USMCA’s eventual implementation. With this agreement, that now includes a specialized chapter on logistics SMEs, Queretaro and the Bajio expect positive results. Another agreement that brings high hopes to the region is the CPTPP, which intends to boost the national and international logistics sector by overcoming economic challenges.

To support this goal and in an effort to consolidate the Bajio region as an economic and logistics driver for the country, governors from Aguascalientes, Guanajuato, Jalisco, Queretaro and San Luis Potosi have signed the Center-Bajio-Western Alliance to implement common practices and become a bloc for shared development. Unfortunately, the panorama has now been clouded by the recent sanitary emergency brought by the COVID-19 outbreak, which has strongly affected the Asian and North American region and has significantly slowed down production and trade activities. The automotive industry, in particular, has taken a dire hit as plants across the world have shut down to prevent contagion.

Although this scenario is still a long way from being resolved, industry experts such as Jorge Rivedeneyra, President of CANACINTRA’s Queretaro chapter, are also confident that this might be an opportunity for more companies to bring their operations to Mexico. “Given the country’s vast workforce and privileged geopolitical position, Mexico would be an attractive destination to redirect investment for industrial projects as a way to ease logistic operations,” he said.