Transport

A significant component of the Mexican economy, the transport sector accounted for 6.4% of the country’s GDP and 5.3% of national employment in 2014, according to the Mexican Chamber for the Construction Industry. The country’s significant expansion of manufacturing in recent years is both benefitting the transport sector and placing it under increased pressure. Against this background, the current administration introduced a wide-ranging national infrastructure programme for 2014-18, allocating $39.2bn for the improvement of transportation links. Though declining oil prices since mid-2014 have negatively impacted the country’s budgetary position, leading the government to cut expenditure, no major cuts to large-scale transport infrastructure have taken place, aside from a small number of railway projects. Nonetheless, the current fiscal context may well lead to delays in project execution and will require the government to use the country’s evolving public-private partnership model to seek out increased private sector participation.

This chapter features an interview with Norman Foster, Chairman and Founder, Foster + Partners.