Spotlight on Mexico's Interoceanic Corridor and the ProIstmo I Industrial Centre, featured at the world's foremost industrial trade show

(MENAFN- Oxford Business Group) • The presentation was led by Oliver Cornock, Global Editor-in-Chief of Oxford Business Group.
• The project entails the modernisation of over 300 kilometres of road and rail infrastructure and the establishment of industrial hubs in Veracruz, Oaxaca, and Chiapas.
• Oxford Business Group and MexStrategy both singled out ProIstmo I Center, in Texistepec Veracruz, as the most advanced site to attract investments from North America, Asia, and Europe.

Hannover, May 2024: Oxford Business Group launched its special edition of "The Report: Redefining Trade: ProIstmo and the Interoceanic Corridor of Mexico" at the Hannover Messe. A 5-minute video featuring insights from key business leaders complements the report by analysing the project and its implications for south-eastern Mexico, the national economy, and the global trade system as a whole.

The video is available to view here:

Oliver Cornock, Global Editor-in-Chief of OBG, speaking at the launch event in the world's leading industrial fair, said: " Having analysed the Interoceanic Corridor as my colleagues and the ProIstmo I hub, I am convinced there could not be a more fitting place to discuss these globally significant projects."

Cornock went on to say that despite economic and geopolitical challenges, global trade is expected to grow nearly 300% from 2019 levels by 2050, according to some estimates. This means that existing global trade infrastructure, especially the Panama Canal, will be less capable of handling these trade volumes, especially as ships continue to grow larger and the climate (especially rainfall) becomes more unpredictable; a drought is currently affecting the operational capacity of the canal.

“The Corridor and ProIstmo I Centre have the potential to become a global logistics hub supporting Panama's operations,” Cornock noted.

A key feature of the corridor is the ten industrial complexes located along the 300-kilometre isthmus between the two oceans. The most advanced and ready-to-attract investment among these is ProIstmo, in the Veracruz municipality of Texistepec, covering nearly 500 hectares. As part of its strategy to attract investments, there is an aggressive fiscal incentives scheme for the first 6 years of operation, including up to 100% tax exemption in the first three years of a company’s operation in the hub.

The logistical competitiveness and industrial potential of ProIstmo I Centre globally are high and with a positive outlook amidst the global relocation scenario of value chains, according to the Report.

Potential sectors of interest include, but are not limited to: semiconductors, automotive and auto parts, medical devices, pharmaceuticals, agribusiness, ICT, and clean energy.

“Thanks to the investments made in infrastructure, the Interoceanic Corridor and ProIstmo I Industrial Centre are a reality, as well as a historic opportunity to balance Mexico's development and generate competitive solutions to global trade,” said Javier Aguilera, Chairman of the Board of ProIstmo, in an interview with Oxford Business Group.

Outlining the Interoceanic Corridor

“Beyond the crucial link between the Atlantic and Pacific oceans, one of the standout features of the corridor is its industrial processing capacity, especially in terms of value addition to raw products passing from Asia, leveraging efficient logistics and cost optimisation,” Cornock added.

Furthermore, with its proximity to the United States, the corridor is poised to capitalise on the trend of nearshoring production post-pandemic, offering attractive incentives to relocate factories and supply chains to Mexico for exporting products to the North American market.

Crucially, the success of the Interoceanic Corridor depends on robust investments in infrastructure, including ports, roads, railway networks, and transportation facilities, many of which are already completed or in advanced stages of construction. With modern logistical infrastructure, the corridor aims to optimise transportation processes, reducing transit times and enhancing competitiveness.

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