STRATEGIC
SINALOA
STRATEGIC SINALOA Mexico is going through deep structural changes. It is building a new role in the global economic stage. Its strategic location turns it into a bridge and a natural partner of the two economic borders with the greatest growth in the world: Asia and North America. Thanks to its strengths and geographic location, Sinaloa aims to become the logistics platform of Northwestern Mexico, by connecting its ports with those in the Atlantic, the inland dry ports, and the southern border of the United States, thus contributing to Mexico’s becoming a Global Logistics Center.
This vision is reflected in the National Development Plan 2012-2018, which intends to turn Mexico into a Global Logistics Center of high added value through modernization and the development of rail, road, and port infrastructures. Sinaloa takes part in this vision, therefore it intensely promotes and manages access to infrastructure and energy by means of an ambitious project which includes the construction of the first Comprehensive Natural Gas Supply and Transport System, the modernization and expansion of transversal Topolobampo and Mazatlan ports, as well as the construction of railway and road transversal axes connecting Northeast Mexico and Southeast United States with Asia and Australia’s top markets. With the energy and logistic platforms, and thanks to its privileged geographic location, Sinaloa will play a strategic role as the gate to the Northern Economic Corridor, with the potential to become one of the regions with the greatest industrial and commercial dynamism in Latin America. The goal of the negotiation process of the Trans Pacific Partnership Agreement is to create a platform for a potential economic integration across the Asia-Pacific region. The member countries in the negotiations of TPP intend to design a high quality and inclusive agreement that lays the foundations for economic growth, the development and generation of employment in the member countries, and that in turn becomes the basis for the future Asia-Pacific Free Trade Agreement (FTAAP). The participating countries are: Australia, Brunei Darussalam, Canada, Chile, The United States, Malaysia, New Zealand, Vietnam, Peru, Singapore and recently, Mexico
The dimensions of this market comprise 600 million inhabitants, 38.4 of the GWP and more than 25% of international trade.
ASIA-PACIFIC ECONOMIC COOPERATION FORUM The Northern Economic Corridor connects the American and Asian markets in two ways through the Pacific Ocean with the eastern border of The United States, by creating the new route for economies of the Asia-Pacific block (APEC), which comprises 21 countries that, when grouped together, concentrate the greatest economic growth and production of goods and services in the entire planet. According to figures by the APEC Forum, this area is responsible for 53% of the world’s production and 47% of global trade. The Northern Economic Corridor will become a node of distribution and industrialization of goods exchange.
53%
World’s Production
47%
Manufacturing industry
APEC
APEC: It is the Asia Pacific Cooperation Forum that seeks to facilitate and promote free trade, investment, and cooperation between Pacific Coast countries.
MEMBERS OF APEC 21 ECONOMIES
More than 500 million inhabitants and 26% of the GWP
COUNTRIES: Australia, Brunei, Canada, Indonesia, Japan, South Korea, Malaysia, New Zealand, The Philippines, Singapore, Thailand, The United States, China, Taipei, Hong Kong, Mexico, Papua New Guinea, Chile, Peru, Russia, Vietnam
Northern Economic Corridor With the opening of the Superhighway Mazatlan-Durango, the largest public work project in the history of Mexican roads, in which more than 28,000 million pesos were invested, the road axis connecting the Pacific and the Atlantic is formed, and it integrates 7 states: Durango, Zacatecas, Chihuahua, Coahuila, Nuevo Leon, Tamaulipas and Sinaloa, thus creating the new business region in Mexico: The Northern Economic Corridor. These states have different productive chains and dynamic trade that demand for logistic services for distribution and export; additionally, four of them share borders with New Mexico and Texas.
The seven states grouped in the Northern Economic Corridor add up to 40% of Mexico’s total territory.
60%
International Trade Flow of North America.
The sum of their Gross Domestic Product represents 22.5% of the country’s GDP. The area comprises a market that concentrates 60% of the international trade flow of North America. It comprises 27% of the manufacturing industry and 58% of the maquila industry of the country.
27%
Manufacturing Industry
Infrastructure of the region: • • • • • •
15 international airports 2 large cross-border rail operators into the United States: Kansas City Southern and Ferromex. 8 international land custom stations to service freight vehicles and rail transport. 5 international bridges recording around 7 million crossings every year. 3 inland customs 4 Sea ports; two in the Pacific and two in the Atlantic.
58%
Of the country’s Maquila Industry
15
International Airports
2
Rail Operators
5
International Bridges
8
Border Customs Stations
4
Sea Ports
The corridor as part of the context of integration to the National Transport Strategic Trunk Corridors.
ECONOMIC INTEGRATION The Mazatlan-Matamoros road axis is the shortest distance for the exchange of goods between AsiaPacific, Northeastern Mexico and Southeastern USA. The construction of this modern road, bypasses, and beltways benefits the large industrial centers of Northern Mexico, thus achieving significant mileage and timing reduction compared to other ports in the Pacific. Sinaloa
It is the most important agricultural state in Mexico It produces 30% of national food production. 2 deep water ports, Mazatlan and Topolobampo; entrance and exit from the corridor towards the Sea of Cortez, the Pacific Ocean and Asia.
Coahuila
Among its great industries is the top milk producer in Mexico and one of the largest in the world. It is the largest producer of refined silver in Latin America and the country’s largest producer of refined gold. It has a solid automotive cluster, including plants by Chrysler and General Motors, and dozens of supplying companies. It is Mexico’s largest steel producer, with a 4 million ton liquid steel annual production. The country’s main coal producer, it has 95% of national resources of coking coal.
Chihuahua
Strong maquila industry with 425 plants in 25 industrial parks, which represent 12.47% of maquila plants in Mexico
Durango
The country’s second state in production of gold and silver, third in lead, fifth in copper, and sixth in zinc, as well as one of the main wood producers. It develops a great Multimodal Center in 1,600 hectares with rail terminal, Customs bonded warehouse, intermodal terminal, solar cluster, agroindustrial and livestock city.
Zacatecas
Leader of mining production in Mexico, with extraction of silver, gold, mercury, iron, zinc, lead, bismuth, antimony, copper, quartz, kaolin, onyx, limestone, cadmium and wollastonite.
Nuevo León
It concentrates 213 industrial groups. National second place in the service sector. National third place in the manufacturing industry. Develops Monterrey’s interport in 1,300 hectares, projected to become the most important logistic platform in Latin America.
Tamaulipas
15 border crossings to The United States. 30 % of Mexico’s foreign trade. 28 % of NAFTA zone’s commercial traffic. 1 deep water port which is the sea entrance from and exit to Europe. Great manufacturing industry.
MAZATLAN AND TOPOLOBAMPO PORTS Every year, sea ports move an enormous volume of goods around the world, playing a crucial role in foreign trade. From the total of goods commercialized, 90% are shipped by sea and from those, 75% are transported in containers.
In 2011 nearly 540 million containers were transported around the world. 61% of which took place in Asia, 15% in Europe, and 12% in the Americas.
International analysts estimate that in the next five years there will be a 6.7 annual growth in the number of containers transported around the world by shipping companies. In Mexico’s new logistic outlook, the opportunities for the development of Sinaloa’s ports are unbeatable, thanks to their privileged geographic location.
MazatlAn GATE TO THE PACIFIC FROM THE NORTHERN ECONOMIC CORRIDOR
70% OF THE PORT CARGO IN MEXICO IS MANAGED IN THE PACIFIC.
Some significant background for Mazatlan is the successful experience of the Lazaro Cardenas Port, which thanks to the opening of the highway that connects it to trunk road axes, multiplied its TEUs cargo by 28.5 times.
Exchange of goods towards and from Japan, Korea, Venezuela, Colombia, Ecuador, Brazil, Peru, Chile, Spain, Portugal, France, Italy, Greece, Cyprus, Lebanon, Libya, Syria, Saudi Arabia, Arab Emirates, Romania, Bulgaria, Turkey, Egypt, Algeria, Morocco, Tunisia, Africa.
The research conducted by specialized consultants to determine the socio-economic and market impact of the new highway Mazatlan Durango and its integration to the Northern Economic Corridor, as well as to recover the large investment in the highway, makes it essential to have a greater commercial exchange. It is estimated that, in the medium term, a total of 600 thousand containers of national cargo, and 1.4 millions of international cargo could be achieved; the latter is feasible due to the fact that the Los Angeles and Long Beach ports are completely saturated and without possibilities to grow.
Projected infrastructure work in Mazatlan
1 Dredging of navigation channel and extension of the entrance
5 Fishing boat shelter
2 New Ferrys-PEMEX terminal
6 Dredging of the coastal lagoon “El Infiernillo�
3 New touristic cruise ship terminal
7 Roads and beltway south entrance
4 New multiple use terminal
8 Logistic area with industrial park, inland customs and bonded warehouse
Through the infrastructure works proposed and a comprehensive urban ordering Port-City, Mazatlan is consolidated as a logistic, industrial, touristic, and commercial center.
Mazatlรกn Re-structuring Project
TopolobampO
TopolobampO NORTHWESTERN INDUSTRIAL LOGISTIC PLATFORM
Topolobampo has a privileged location to develop as the Northwestern Logistic Platform. Located 700 km away from El Paso, Texas and 970 km away from Laredo, Texas, both are main entrances and exits for Mexican foreign trade. In addition, it has the capacity for the exchange of goods coming from Asia, especially from China, Japan, and also from Australia.
Currently, international sea trade from Asia to the East of the United States enters through the Los Angeles and Long Beach ports in California, which are saturated and without possibilities to grow. It is a total of 14 million containers per year, 90% of which come from Asia, and which are transported by rail to DallasForth Worth, in an 8-day journey. This city is a logistic distribution center of the east coast of North America, which manages 60% of the containerized cargo, 68% of which comes from Asia.
The connection Topolobampo-Chihuahua opens a third commercial route, this time towards Central United States through the most modern intermodal logistic center, built by Union Pacific in Santa Teresa, New Mexico: Sunland Park. Likewise, as a result of the common vision of the governments of Sinaloa and Chihuahua, the construction of the transversal road connection Bahuichivo-Choix is in progress, which will make it possible for Topolobampo Port to be the access route into Northeast Mexico and Central USA. The rail journey Topo-Chihuahua-Ojinaga-Presidio-Dallas is much shorter, for it is a 4-day journey, compared to the 8-day journey from Los Angeles to Dallas.
New proposed route, highway “Chihuahua - Los Mochis” Indicator
New proposed route type “B”
Original Proposed route Type “C”
Travel time
1:45 HR
3:00 HR
Speed Average
85 Km/Hr
45 km/Hr
Total length
144 Km
152 Km
Construction Cost
MXN 5´580m
MXN 3´960 m
Bahuichivo
NEW PROPOSED ROUTE Vía Témoris “Type B”
ORIGINAL PROPOSED ROUTE
CEROCACHI
TÉMORIS
Vía Cerocachi “Type C”
Bosigochi
Cieneguita LLuvia de Oro
Sta. Matilde El Cajón viejo
Baguerechi
Huirocoba Las Juntas CHIHUAHUA
Mezquite Caido
Infrastructure works projected in Topolobampo
Agua Caliente
SINALOA
Choix
1 Modernize the current loading seaport, by creating a multimodal center that has a customs station and a bonded warehouse; developing industrial parks and the construction of the road and rail corridor between Los Mochis and Chihuahua. 2 Build a beltway in the southwest of Los Mochis city, at the intersection with the Mexico 15 highway, with a collector road. 3 Expand the Los Mochis-Topolobampo highway to six lanes, in order to make the traffic of the Topolobampo-Chihuahua Corridor more efficient.
SINALOA GAS NATURAL The permanent management and promotion by Governor Mario Lopez Valdez before the Ministry of Energy, the Energy Regulatory Commission, and the Federal Electricity Commission, resulted in the creation of the Northern-Northwestern Natural Gas Supply and Transporting System, which provides the Mexican government with the chance to have the first redundancy system in the country, thus assuring enough supply of natural gas at competitive prices and increasing the production of electric power through cleaner and more efficient processes. With this, Sinaloa and the states included in the NorthernNorthwestern Natural Gas Supply and Transporting System take part in the goal set forth in the National development Plan 2012-2018 by increasing the consumption of natural gas through the strengthening of the distribution and transport infrastructure, to assure the supply of energy in optimal safety, quality and pricing conditions.
In alignment with this policy, the State Development Plan proposes new innovation and competitiveness strategies, among which one that stands out is producing cleaner and cheaper energy to trigger the secondary sector with an industry that takes advantage of natural gas and renewable energy.
Northern – NorthwesteRN System Chihuahua, Sonora and Sinaloa make up the Northern-Northwestern system in which the government agencies Federal Electricity Commission and Pemex are building the most modern network of gas pipelines in Mexico and eight new thermal power stations, three of them in Sinaloa. As a result from these great works, Sinaloa and its ports will have enough natural gas supply to trigger industrial development and generate cleaner and cheaper electric power.
Thanks to the timely intervention by President Enrique Peña Nieto, Pemex will start the construction of a stretch of the Pipeline from Tucson Arizona to Sasabe in Sonora, and it will be another natural gas supplying source, in addition to the one coming from the state of Texas.
Gas Pipeline Length 2,342 kms Construction segments: Punto de Interconexión Texas-Ciudad Juárez Tucson-Sásabe Sásabe-Puerto Libertad-Guaymas Guaymas- El Oro El Oro-Mazatlan Ciudad Juarez-El Encino El Encino-Topolobampo Investment
3.15 billion dollars
Project Scope • • •
• • •
Benefits of the access to natural gas
Electric power generation platform with the construction of 3 combined cycle power plants in the state, which will provide selfsufficiency and exporting capability. Stimulate agro-industry, by exploiting its competitive advantage in agricultural and cattle activities. Generate the necessary setting to attract investment and boost the development of intensive natural gas industry: Petrochemical (fertilizers), metallurgic, metal-mechanic, glass and automotive. Supply the main cities in the state for the benefit of households, the hospitality, and the urban public transportation system. Encourage the use of cleaner energy. 58% of Sinaloans will have access to cheaper natural gas.
• • • •
The combined cycle power plants are 23% more efficient with respect to conventional plants, thus reducing consumption pay rates. The installation of three thermal power stations projected for Sinaloa with a generating capacity of 2,267 MW, and with an estimated investment of 2.1 billion dollars. The great opportunity to have an energy platform as the basis to retain and attract companies, generate permanent and better paid jobs. Families will have a safer and cheaper energy service, and a more efficient and less polluting public transportation system.
The price to be paid for gas in Sinaloa will be 70% lower than the consumption costs of the Korean, Japanese, Chinese, and Indian industries, and 50% lower than those in Germany and Italy.
Sinaloa will be self-sufficient in the production of electric power, and will have the capacity to supply energy to other states.
THE FUTURE IS TODAY Sinaloa is getting ready to have two modern 4th generation ports equipped with natural gas, logistic centers, industrial parks, and air, ground, and rail connections.
The actions taken by the government have already created great opportunities to trigger industrial and agro-industrial projects which intensively demand for natural gas in their production processes. An example of such is the setting of the first nitrogen fertilizer plant at the Topolobampo Port, with the capacity to produce 2,200 tons of ammonia per day, something which would allow Mexico to stop importing this basic supply for agriculture, and to become an exporter to the countries in Asia, North America, and South America. This project, entered into by private German and Mexican investors and boosted by the government of Sinaloa, will generate revenues for over 900 million dollars. Only at its construction stage, which is scheduled to last two years and a half, 3,000 workers will be employed. This project is possible because there will be natural gas in Sinaloa at competitive prices in 2015.
It is time to think and work big!!!
Sinaloa is before an unrepeatable opportunity to exponentially increase its competitiveness and attractiveness, to assure a good future for the next generations through more quality jobs and world-class business opportunities while creating conditions to trigger the regional economy. As a strategic state, Sinaloa has a lot to offer: A privileged location, its logistics infrastructure, and its energy platform, but above all, its will to contribute to the prosperity of our country.
It’s time to get Mexico moving!
President of Mexico, ENRIQUE PEÑA NIETO: “Infrastructure is also indispensable to increase and democratize productivity, as well as to reduce inequality through balanced regional development”
GENERAL COORDINATION OF STRATEGIC PROJECTS Francisco Labastida Gomez de la Torre francisco.labastida@sinaloa.gob.mx flg888@megared.net.mx +52 (667) 717 5563
STATEHOUSE Av. Insurgentes s/n 2do. Piso Centro Sinaloa CP. 80129 Culiacan, Sinaloa, Mexico +52 (667) 758 5200