Presentation on theme: "Mexican Transport Market: Challenges and Opportunities Roberto Diaz – National President of CANACAR."— Presentation transcript:
Mexican Transport Market: Challenges and Opportunities Roberto Diaz – National President of CANACAR
Freight Movement by Transportation Mode 2 Mexico is playing a leading role in global logistics. 498 million tonnes: 55.8% 112 million tonnes: 12.5 % 1 million tonnes: 0.1% 282 million tonnes: 31.6 % Source: Own Elaboration based on Estadística Básica del Autotransporte Federal 2012,
Mexico: Shares more than 3,000 km of border with the biggest world economy and has 9,600 km of coasts in both, the Pacific and the Atlantic Ocean Has 12 trade agreements with 44 countries and 9 Economic Complementation Agreements in the framework of Latin American Integration Association (ALADI) Currently in negotiations for Transpacific Agreement 3
Goods Transport: Business Structure 4 TOTAL Permittees: 132,995 Vehicles: 715,683 Note: the total includes tractors and cranes. Source: Own elaboration based on Estadística Básica del Autotransporte Federal 2012,
Mexican Vehicle Park by Services 5 General cargo Type of service Units 616,079 Specialised cargo: 99,604 Dangerous goods 80,689 Vehicle transportation 4,137 Transport of valuables 2,553 Truck pulling crane 8,852 Towing and rescue services 705 Abnormal loads 2,668 Total: 715,683 Source: Own Elaboration based on Estadística Básica del Autotransporte Federal 2012.
6 Total tonnes transported: 893 million tonnes (all modes) By rail: 112 million tonnes By road: 498 million tonnes Total tonnes transported: 893 million tonnes (all modes) By rail: 112 million tonnes By road: 498 million tonnes Importance of Road Transport in Mexico Source: Own elaboration based on DGAF 2012 e INEGI 81.6 % of all land transportation 55.8 % of all transportation modes 81.6 % of all land transportation 55.8 % of all transportation modes Direct employment: 2,178,000 Indirect employment: 2,600,000 2.8 % GDP (2013) participation: 2.8 % Direct employment: 2,178,000 Indirect employment: 2,600,000 2.8 % GDP (2013) participation: 2.8 % Road Freights Economy Movements by mode
7 USA YEAR 2009 2010 2011 2012 297,614 383,692 448,787 472,934 2013486,790 CANADA 15,548 19,293 20,340 20,828 20,299 WORLD 464,167 599,955 700,218 741,666 761,398 NORTH AMERICA 313,162 402,985 469,127 493,762 507,089 % % 67.5 67.2 67.0 66.6 NAFTAs Economic Impact on Mexico (Trade figures in million of dollars) Source: Own elaboration based on Secretaría de Economía information.
8 Trade with USA Year Trade flow by land 297,614 2009 383,692 2010 2011 448,787 472,934 2012 241,797 308,175 352,468 387,771 2013 486,790405,334 % % 64.1 64.0 64.1 63.8 63.9 Mexico - USA (Trade figures in million of dollars) Source: Own elaboration based on Bureau of Transportation Statistics.
9 ROAD RAIL TOTALTOTAL MODEMODE2010201020092009201120112012201220132013 207,204 260,058 295,303 323,249 335,512 34,593 48,116 57,165 64,522 69,823 241,797241,797308,175308,175352,468352,468387,771387,771405,334405,334 % 86 14 100100 % 84 16 100100 % 84 16 100100 % 83 17 100100 % 83 17 100100 Mexico – USA. Trade flow by land. (Trade figures in million of dollars) Source: Own elaboration based on Bureau of Transportation Statistics.
10 Mexico – USA Border Crossings During 2013, more than 16,465 trucks crossed the northern border daily. Source: Own Elaboration based on SHCP figures. *Estimated information. 2011 I/E Import Export TOTAL 3,328,104 2,918,973 6,247,077 2012* 3,133,545 2,911,457 6,045,002 Monthly Average Monthly Average 257,100 236,850 493,950 2013 3,127,911 2,881,798 6,009,709 Growth 2012 - 2013 Growth 2012 - 2013 -0.18% -1.02% -0.58%
Road Transport can and must be a leading actor for Mexicos transformation process. 12 Legal framework Legal Certainty Vehicle Park Modernization Infrastructure Safety The five main pillars upon which Road Transport Agenda for Mexico rests.
13 Legal framework Mexican politics remain unimodal instead multimodal. This obsolete culture must welcome new intermodal and multimodal public policies in order to develop a national system which integrates all transportation modes for a better performance of the value chain. It is necessary to establish an International Logistics Development Council which defines and thrusts strategic routes for Road Transport.
This pillar is vital for all transport sectors, considering the big investments they require. The national entrepreneurs demand it for self international protection. Principles of equity, reciprocity and most-favoured- nation treatment must always be applied. No more simulations. Mexico must demand respect for the commitments other countries undertake with International Trade Agreements. 14 Legal Certainty
Mexico needs a Vehicle Park Modernization for a secure, sustainable and competitive Road Transport sector. This action will help to decrease the level of road accidents and reduce high levels of contamination, improving considerably Mexicos competitiveness. 37% of the total vehicle units in Mexico have been more than 20 years in circulation; if we do not stop this practice, by the end of this six-year period, the number of units will be 13% increased. 15 Vehicle Park Modernization
To revert this, Mexico needs its Government, transport operators, suppliers and all stakeholders to take rigorous and results-oriented actions: Prevent the massive entry of obsolete, insecure and pollutant units from other countries. Develop appropriate financial frameworks for micro and small transport operators. Reactivate the Scrapping Program. Create a Promoting Fund of Specialised Transportation Implement a program of assurance and financing for micro and little transport operators. 16 Vehicle Park Modernization
The reactivation of Scrapping Program must: Regulate the model year of the imported vehicles and how many years they have been operating. Update the fiscal stimulus package. Provide fiscal stimulus for the transport operators who buy new or semi new vehicle units. 17 Vehicle Park Modernization
18 Infrastructure The transport technical standards should make feasible the balance between: Safety – Sustainability – Competitiveness A new National Program of Infrastructure must be created based on: Logistics – Infrastructure – Transport Federal and state roads State Roads by circulation rails Two rails 128,320Four or more rails 13,,041 Roads by physical conditions Pavement 141,361Coating 148,782 d Improved gap 75,314.Unpaved road 8,805 State 80,774 Federal 49,102
19 Safety Road Safety Comprehensive review of Regulations and Standards in order to simplify its compliance and its supervision and monitoring processes. Promote self-regulation outlines in the transport sector to contribute with the respective authorities. Intensify campaigns for prevention of road accidents in order to raise awareness among road users. Introduce training programs for transport operators.
Public Safety Develop a system that integrates all information of criminal acts like: critical areas, modus operandi, stolen goods and vehicles in order to create adequate security protocols. Reactivation of Road Transport National Security Program and Public Institutions that look after transport operators interests and rights. 20 Safety