1. Bi-weekly Mexico Intelligence Report
October 20, 2010
President Calderon continues to develop strategies to fight organized crime. On
Wednesday, October 13, a proposal that would entirely eliminate municipal police was
sent to the Mexican Congress. Municipal police have historically received poor training,
sub-standard wages and a lack of equipment, making them vulnerable to corruption.
States reporting the highest number of drug-related crimes over the last two weeks
include: Tamaulipas, Puebla, Coahuila, Culiacan, Veracruz, Chihuahua, Michoacán and
especially Nuevo Leon. On Tuesday October 14, criminals blocked major highways in
Monterrey with dozens of trucks. Additionally, gun battles between cartels and police
continue to plague Nuevo Laredo and Reynosa, creating an unstable environment for
business and logistics operations in these communities.
Cargo Theft and Supply Chain Risk
 The most frequently targeted products during this two-week period include:
milk, alcohol, metals and televisions.
 Authorities are concerned about the increasing number of underage gang
members, custom agents and corrupt police involved with organized cargo theft
gangs. Last week, a truckload of textiles worth $3 million MXN ($241,800
USD), was hijacked along the Puebla – Orizaba highway. Police discovered
warehouse security guards were involved with cargo thieves.
 Special media attention was given to police impersonation incidents. This trend
was prevalent in Sinaloa and to a lesser extent in Puebla, Oaxaca and Zacatecas.
Four members of an organized gang were arrested last week for wearing police
uniforms and conducting fake inspections; the impersonators stole various trucks
around the Oaxaca - Puebla border.
 The states of Nuevo Leon and Coahuila have become hot spots for thieves
specializing in construction materials. On September 28, a truck loaded with
steel bars was stolen in Monterrey. The owner reported the theft and located the
load via GPS tracking system. The load was recovered and the thieves were
arrested after a brief gun battle with police.
 Cargo theft rate in Manzanillo and Guadalajara is higher than ever. According to
CANACAR, the most dangerous regions within the state of Colima and Jalisco
include: Manzanillo-Guadalajara; Guadalajara-Santa Rosa-La Barca and Anillo
Periferico.
Cargo theft is starting to become a significant issue for companies in the state of
Morelos. During 2010, many companies have reported an increase in security spending
and cargo insurance prices have risen by almost 20% in Morelos.
Natural Disaster and Infrastructure
Last week, intensive rains in Chiapas and Oaxaca caused serious damage to 45
communities and affected the infrastructure of several state highways in both states.