Specialty Cargo to Benefit From Upcoming Oil and Gas Investments

Q: How would you evaluate Mexico’s recovery curve in terms of the country’s industrial sectors?

A: 2020 was not a good year but 2021 saw many industries regain their momentum, especially due to investments that have been made in the oil and gas industry, in addition to the daily operations of mining companies that have contributed significantly to the Mexican economy through job creation. Mexico continues to be one of the world’s most important producers of gold and silver, which is among the reasons we have had a long-standing presence in the sector. We play a role in securing specialty cargo in the mining sector, which includes the transportation by helicopter of gold for security reasons. In the oil and gas sector, there have been a number of setbacks over the last decade but we saw the situation improve in 2021 as oil prices began to surpass the US$100 benchmark. In this sense, 2021 represented a year for recovery in that sector as well.

Q: How has PEMEX’s role changed your involvement in the oil and gas sector?

A: We still do direct supply to PEMEX but most of the work we do for them is through their contractors. They are our clients. That segment of our portfolio has maintained its volume throughout 2021 but has not grown much yet. We have been working on the Dos Bocas project  but only through construction companies involved in the project, not through PEMEX itself. We believe all concessions made to foreign companies will continue to be respected and we have seen nothing to make us suspect otherwise. While direct foreign investment has decreased, the increase in the price of oil has guaranteed a degree of capital influx into the industry. This revenue has allowed PEMEX to cover its back payment obligations, which are considerable. The NOC also continues to promise the release of new tenders for maintenance work, which in many cases is urgent given the age and state of its facilities. We can play a significant role in the completion of these projects, regardless of whether the NOC chooses to replace certain components of its infrastructure or if it chooses the more economical route of reconfiguring what it already has.  

Q: How has the development of the Dos Bocas refinery reshaped your oil and gas portfolio?

A: In 2021, the refinery  entered its heavy cargo phase, thus creating significant opportunities for us. An example is the growth and development of the nearby town of Paraiso, Tabasco. This town has a number of significant infrastructure deficiencies that include inadequate water supply, sewage treatment and housing and road conditions. These present opportunities for contractors like us. These include the construction of a new highway connecting Paraiso and the Dos Bocas port to shoreline highways that lead directly into the border with Campeche. In addition, all highway construction projects ignite housing and real estate investments, along with logistics infrastructure that includes industrial parks and distribution warehouses. 

Adjacent development applies to the expansion of the Dos Bocas port as well. There is a strong need for heavy machinery and specialized cranes that can be installed and operated from vessels, considered an important part of any port’s growth and construction development. We have also sold equipment used for offshore platforms that are shipped and installed within the Dos Bocas port infrastructure.

Cargotec de Mexico, formerly known as Cargotecnia, is a Mexican supplier of specialized industrial lift products and technologies. It is involved in a wide range of industries that include mining, energy, construction and oil and gas.