Economy Secretary Ninfa Cantú Deándar Speaks to Breakbulk on Eve of BBAM2024
We are thrilled to welcome the Tamaulipas State Department in Mexico as a first-time exhibitor at Breakbulk Americas 2024 in Houston. In a Q&A with Economy Secretary Ninfa Cantú Deándar, we find out more about Tamaulipas’s booming project sector, its role as a foreign trade hub and how the state is benefiting from riding the “nearshoring” wave.
From Issue 5, 2024 of Breakbulk Magazine.
Q: What is the current outlook for the industrial project sector in Tamaulipas? Are there specific sectors that the state is prioritizing for growth and investment?
A: Since Américo Villarreal Anaya’s (the governor of Tamaulipas) administration began in October 2022, 117 projects of private investment have been confirmed, representing an announced investment of 19,277 million pesos (about US$1 billion, at current conversion rates) and the creation of 27,250 jobs.
These projects are categorized into various sectors including commercial and services, logistics, automotive, chemical and petrochemical, electric and electronics, medical and energy. Right now, we are working with 123 potential projects, which could create more than 29,615 jobs and investments of 13,174 million pesos.
Q: Amid the global trend towards nearshoring, what steps is Tamaulipas taking to lure more international companies looking to relocate their operations closer to the U.S.?
A: We are taking actions to attract new investments, some of which are:
- Expansion of the World Trade Bridge: The expansion of the World Trade Bridge (a cross-border bridge linking Nuevo Laredo, Tamaulipas with Laredo, Texas) is essential for strengthening connectivity and efficiency in trade between the U.S. and Mexico, benefiting the economies of both nations and supporting economic growth in the border region. The main objectives of this project are to increase transit capacity, improve trade efficiency, enhance security, boost trade volume and stimulate regional economic growth. This project (approved by the Biden administration in June) will allow the bridge to grow from eight to 18 lanes.
- Expansion of Pharr Bridge: This major infrastructure project is aimed at enhancing the bridge’s capacity and efficiency to facilitate trade between the United States and Mexico (the bridge connects Reynosa, Tamaulipas with Pharr, Texas). Some of the project’s benefits include an increase in the number of lanes from eight to 18 to enable a more efficient flow of trucks and commercial vehicles, new facilities for customs and security inspections, upgraded control infrastructure for better traffic and customs management, a reduction in waiting times at the border and larger trade volumes.
- The Tamaulipas-Bajío Highway: This key infrastructure project is aimed at improving transportation and connectivity between the northern region of Tamaulipas and Bajío, an important industrial and economic hub in central Mexico. This route facilitates efficient flow of goods from our maritime ports to Mexico’s central regions.
- Soft landing services in Tamaulipas: Soft landing is designed to support overseas companies and investors in their entry and establishment in the state, providing a smooth and secure transition to the new market. Services include initial advisory and consulting, establishment support, administrative and legal support, networking and business development, logistics and operations support. The benefits of soft landing include risk reduction for investors, quick market entry to allow companies to start their activities more quickly, and integration into the local business environment by leveraging local resources and networks for growth.
Q: In the previous edition of Breakbulk Magazine, you pointed to Tamaulipas’ strategic location for international trade and its “excellent connectivity and infrastructure.” How have these advantages translated into increased investment in sectors such as energy, power and infrastructure? Can you share any recent partnerships or agreements?
A: Since the arrival of new investments, our state has been preparing with all the infrastructure and services required by the new companies, such as improvements in our highways and international crossings, energy, electrical power and infrastructure. Notable developments include:
- Energy and Electrical Energy: Tamaulipas has established itself as a leader in wind energy production in Mexico. For example, the Reynosa Wind Farm, one of the largest in Latin America, has attracted substantial investments and is significantly contributing to the country’s renewable electricity generation capacity. In natural gas, the Burgos Basin remains a key area for investment in natural gas extraction. Companies such as Shell and ExxonMobil have shown interest in expanding their operations in this area, leveraging unconventional gas resources. These agreements align with Mexico’s energy policy, which aims to strengthen domestic hydrocarbon production.
- Infrastructure: The Port of Altamira is one of the primary logistics hubs in the Gulf of Mexico. Recently, its two container cargo terminals, Altamira Terminal Portuaria (ATP) and Infraestructura Portuaria Mexicana (IPM), have expanded their areas to increase waterfront space and acquired new yard cranes to enhance port operations. These actions position Altamira as a crucial point for international trade. Meanwhile, investments in modernizing highways and expanding the railway network have been key to improving Tamaulipas’ connectivity with the rest of the country and with the U.S. Recently, an agreement was signed with Kansas City Southern de México (KCSM) to enhance railway infrastructure, facilitating the movement of goods from the interior of Mexico to the ports and the border.
Q: How is Tamaulipas strengthening its logistics infrastructure to meet the rising demand from industry? Can you share details of any expansion projects or upgrades at the ports of Altamira, Matamoros or Tampico?
A: Tamaulipas is strengthening its logistics infrastructure to meet the growing demands of the industry, particularly at its key ports: Altamira, Matamoros and Tampico. These improvements are crucial for consolidating the state’s position as a logistics and international trade hub. Here are details on recent expansion and enhancement projects at these ports:
- Port of Altamira: The Port of Altamira, one of the most important ports in the Gulf of Mexico, has undergone a series of expansion projects to increase its capacity and efficiency. Significant investments have been made in cargo terminals, including specialized terminals for containers, general cargo, and petrochemical products. Beyond physical expansion, Altamira has modernized its technological infrastructure, including advanced cargo management systems and the implementation of automation technologies to speed up port operations. These improvements are aimed at reducing wait times and enhancing the port’s global competitiveness.
- North Port in Matamoros: The Port of the North, located near the U.S. border, has seen a series of investments aimed at enhancing its infrastructure to handle higher cargo volumes. This port is being developed as a key point for offshore operations carried out in the Gulf of Mexico.
- The Port of Tampico: The Port of Tampico has undergone a rehabilitation plan to modernize its facilities and improve its operational capacity. Docks and storage areas have been renovated and new security and cargo management systems have been implemented. These improvements aim to revitalize the port and make it more competitive in handling various types of cargo, including agricultural and mineral bulk. The “Tampico 1900” project involves a remodeling of the old customs house to create cultural, commercial and hospitality spaces, including restaurants, a boutique hotel and an event hall. This initiative aims to boost tourism and commercial flows into the southern region.
Q: Tamaulipas State Government is exhibiting at Breakbulk Americas for the first time this year. What do you hope to achieve at the event, and what conversations are you looking forward to having?
A: We are looking forward to promoting the competitive advantages, unique characteristics and the potential that our state has to offer in the attraction of new investment and cargo projects. Tamaulipas is an attractive destination for investment and the development of logistics projects. We are confident that we will discover new opportunities for collaboration and business and build strategic alliances to explore new development opportunities in the logistics sector.
Meet the Tamaulipas State Department team at Breakbulk Americas Stand S16.
TOP PHOTO: The Port of Tampico in the state of Tamaulipas.
SECOND PHOTO: Ninfa Cantú Deándar
