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Mexico:

Infrastructures:
Mexico has matured into a global manufacturing hub, offering world-class industrial real
estate and modern infrastructure throughout the country.
Highway Infrastructure: The highway network in Mexico is one of the most extensive in
Latin America. Indeed, all areas of the country are linked by it. As of 1997, Mexico had
323,761 kilometres (201,185 miles) of highways of which 96,205 kilometres (59,792 miles)
were paved. There were also 6,335 kilometres (3,937 miles) of expressways.
Railway Infrastructure: The railway system within Mexico is extensive, consisting of
30,952 kilometres (19,233 miles) of rail lines as of 1998. The Mexican National Railways
(Ferrocarriles Nacionales MexicanosFNM) was a state-owned company that carried 80
percent of the rail traffic and operated on 70 percent of the tracks.
Airline Infrastructure: As of 1999, Mexico was estimated to have 1,806 airports of which
233 had paved runways. Much like it has done with its railways, Mexico has recently gone
through the process of privatizing its main airports. There are 35 airports in Mexico that carry
97 percent of the passenger traffic.
Electricity: In 1998, 176.05 billion kilowatts (bkw) of electricity were produced in Mexico
while the country consumed 164.76 bkw of electricity in that same year. Of the electricity
produced, 78 percent was produced from fossil fuels while 14 percent was hydro-electrical
energy. In the 1960s, the government nationalized the country's electricity-producing
companies.
Telecommunication: Presently, the telecommunications industry in Mexico is dominated by
1 companyTelmex (Mexican Telephone or Telefonos de Mexico). Telmex was privatized in
1990 and by 1999 had increased the number of telephone lines in Mexico by 104 percent.
Despite the increase in available lines, there has been little improvement in the services
rendered by Telmex.
Other infrastructure: Radio, television, and Internet usage in Mexico are prevalent. Mexico
had 2.45 million Internet users as of 1999. The government owns and runs a number of radio
networks. There are over 20 private radio networks spanning over 700 radio stations in
Mexico. Televista (Mexican Telesystem or Telesistema Mexicano) is the dominant television

company in Mexico, with an estimated 80 percent share of the television audience. There are
over 326 television stations in Mexico and most of them are owned or associated with
Televista.
Mexicos Infrastructure Opportunities 2013-2018
Mexico: Building a WorldClass Infrastructure
Mexico's government expects public and private investment in infrastructure to reach 7.75
trillion pesos ($590 billion) over the next five years in an effort to raise the country's
economic growth capacity, officials said Monday. President Enrique Pea Nieto has
announced the 20132018 National Infrastructure Program (NIP), designed to address current
transport bottlenecks.
Mexican Government Boosts Infrastructure Investment Plan
The 2014-2018 national infrastructure plan includes 743 projects in areas such as energy,
communications and transport. The amount is a marked increase over the $340 billion
outlined by the government a year ago, with the addition of projects in housing and urban
development, health and tourism. The energy sector is likely to take up the lion's share of the
investment, with 3.9 trillion pesos over the next five years as Mexico opens the state-run oil
and electricity sectors to private investment and competition for the first time in decades.
Investment in communications and transport, including highways, railways, ports, and
broadband networks, is expected to exceed 1.3 trillion pesos.
Natural resources: New Mexico is the third largest net supplier of energy to the nation,
thanks largely to its petroleum and natural gas production. The industry has played a
significant role in the economic growth of the state for nearly a century. The first commercial
oil well was drilled here, in the Four Corners region outside Farmington, in 1922. Renewable
energy generation as a percentage of total production is increasing annually. Thanks to these
natural resources New Mexico generates 2.7 times the total energy consumed state wide and
pays less than the nation for electricity: 11.4 cents per Kwh for residences; 9.3 cents for
commercial; and 5.8 cents for industrial.
Oil and Gas: New Mexico ranked sixth nationally in oil production and seventh in natural
gas production in 2013. There are two petroleum refineries here. There are approximately 700
companies in the states oil and gas industry employing 11,000. These include petroleum and
gas production, drilling, and service companies.

Solar: New Mexico has tremendous potential for solar energy production. Straddling the
eastern and western transmission interconnects, New Mexico is ideally located to export CSP
power to out-of-state markets, driven by other states Renewable Energy Portfolio Standards.
Wind: New Mexico has a total of 750 megawatts (MW) of wind power capacity installed at
eight utility-scale wind power plants:
1)204 New Mexico Wind Energy Center 2) 120 MW San Juan Mesa Wind Project, Roosevelt
County 3)102 MW Red Mesa Wind Energy Center, Cibola County 4)100 MW High
Lonesome Mesa, Torrance County 5)90 MW Aragonne Wind Facility, Guadalupe County
6)80 MW Caprock Wind Ranch, Quay County 7)50MW Macho Springs Power 8)2 MW
Llano Estacado, Curry County.
Mineral Resources: More than $2.8 billion worth of minerals were extracted from New
Mexico mines in 2012, representing an increase of $1 billion from 2010. . Mineral extraction
employs more than 6,800 and provided $43.2 million in revenue to the state in 2012
Coal: Coal has been mined in New Mexico since the 1850s, and the state was ranked 12th in
coal production in 2012. All of the current coal production here is taking place in the San
Juan Basin. In 2012 22.4 million short tons of coal were produced here. The industry
employs more than 1,500.
Potash: New Mexico is the leading state for potash production. The industry employed
nearly 1,500 in 2012. All of the potash mines are located in south-eastern New Mexico near
Carlsbad. The fertilizer industry accounted for about 85 percent of U.S. potash sales, and the
chemical industry the remainder.
Copper: New Mexico is the third largest producer of copper in the country. In 2012 226.6
million pounds were produced here with a value of just over $400 million. Copper mining
employed 1,841 persons with a total payroll exceeding $100 million in 2012.
Industry Scenario:
Mexicos economy can be characterised by the high degree of contrast that exists between its
industries. On the one hand, Mexico has a wealth of modern and highly advanced industries
that contributes a significant portion to its GDP; yet at the same time, a number of industries
in Mexico are fairly outdated and labour intensive. A vast number of Mexican industries are
catered towards serving the US market. Since the advent of NAFTA, trade between Mexico

and the US have more than tripled. Starting in the late-1980s-early 1990s, Mexican industries
have been increasingly heading towards privatisation with the banking and
telecommunications industries among the early pioneers. Mexicos oil production though still
remains in the hands of the state-owned Pemex.
Major Mexican industries include food and beverages, tobacco, chemicals, iron and steel,
petroleum, mining, textiles, clothing, motor vehicles, consumer durables, tourism.
Agriculture was responsible for 4.2 percent of Mexicos GDP in 2010. The role of agriculture
in Mexicos economy has been gradually diminishing as the nation slowly transitions to a
higher level of development. Over the last 40 years, Agricultures contribution to Mexicos
GDP has fallen by more than 20 percentage points.
One of the most important industries in Mexico is the automotive industry. Many major car
manufacturers have set up their operations in Mexico, including General Motors, Ford,
Chrysler, BMW, Toyota, Honda, Volkswagen and Mercedes Benz.
The electronics industry has also seen rapid expansion in Mexico in the last decade. Mexico
is currently the 2nd largest supplier of electronics to the US after China.
The oil industry though, still remains as the largest industry in Mexico. In 2010, Mexico was
the 7th largest producer of oil in the world producing 3.001 million barrels a day as well
as being the 2nd largest exporter of oil to U.S. Mexico also produces 60.35 billion cubic
metres of natural gas every year, making it the 12th largest producer in the world.
Tourism in Mexico is supported by 3.254 million jobs in the country, which makes up 7.3
percent of total labour force, and expects to contribute 13 percent of the GDP in 2011.
Mexicos banking system is also financially strong with well-capitalised and profitable profit
banks. The presence of companies such as Citigroup, BBVA and HSBC has also been seen as
one of the primary reasons why Mexico was able to recover from its currency crisis in 1994.
The Mexican Stock Exchange is also highly capitalised and developed. It is the second largest
stock exchange in Latin America, behind Brazil, with an estimated market value of over
US$700 billion.
Bibliography:www.nationsencyclopedia.com/economies/Americas/Mexico,online.wsj.com/a
rticles,www.export.gov/MEXICO,www.gonm.biz/Natural_Resource,www.economywatch.co
m/world_economy/mexico