Mexico is Working on an Alternative to Panama Canal

Mexico is Working on an Alternative to Panama Canal

Mexico wants to accelerate the development of a trade route between the Atlantic and the Pacific Oceans. The Ministry of Economy has issued the first tenders for industrial parks along the 300-kilometre railway line under construction.

The railway, connecting both oceans via the Isthmus of Tehuantepec in the south of Mexico, should become an alternative to the Panama Canal.

The “inter-oceanic corridor” is one of the most significant projects of President Andrés Manuel López Obrador. During a meeting with potential investors and chambers of commerce, the government launched tenders for six of the ten planned industrial parks.

According to the Reuters news agency, the railway should be ready this year.

Since the mid-1990s, many companies have established themselves in Mexico because they can export to the United States without customs duties. For example, the car manufacturers Volkswagen and BMW also have factories in Mexico. But most of the factories are in the north and centre of the country.

With the railway, the government also wants to open up the poorer south for industry. However, these plans also meet resistance from residents, who fear negative consequences for their local communities.

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