A Look at the Emerging Mexico Shipping Industry

An industry worth investing in might be the commercial shipping industry, which is the major means of transporting any essential raw materials internationally. About 80% of all the world's cargo, including all hydrocarbons, are transported via water. The Mexican shipping industry has a major part to play in the worldwide shipping operation. Along with the shipping industry, transportation within the country has to be adequate to support it. The increased foreign trade is pressuring the transportation industry, giving them a hard time of keeping up with the demands.

Imports of intermodal transport equipment has seen a major increase over the past 3 years. The import market will continue to grow at a two-digit percentage rate, at least for the next three to four years. Around 66% of Mexico's total imports were supplied by the United States in 2006. The future could see an increase in that number if America were to take advantage of everything that NAFTA has to offer and get more aggressive.

 Lazaro Cardenas is the only port in all of Mexico which can accept the huge container vessels containing up to 12,500 TEUs. The port hopes to capitalize on clogged US West Coast ports, acting as an alternative route for shipping into the central US. In order to do so, the port is working on infrastructure plans and making agreements with various shipping corporations and transportation companies to receive containers inbound from Asia going to the USA. The Pacific Coast port of Manzanillo is one of the busiest ports in Mexico. The port has enjoyed rapid growth over the past 5 years. Plans for expanding Manzanillo have received highest priority in Mexico's Nation Program for Infrastructure, according to the President.

All efforts and plans are being forged by the Mexican government as well as the private sector (domestic and international) to expand its shipping industry to generate a considerable amount of revenue through import duties, taxes, and exports and serve a large portion of Mexico’s GDP. The US is likely to be badly affected by all the plans and actions by the Mexican government. American shipping will likely experience revenue declines while Mexico continues to enjoy the surge.

The Mexican shipping industry has had a long and hard climb, but it's finally on par with American and Chinese shipping industries. This makes Mexican shipping a great area for business opportunities and investments.