Analyzed Mexico's economic environment and looked for high-growth industries to do business in. Decided to focus on infrastructure/transportation. Due to the lack of passenger rail service in Mexico City, developed a proposal for new rail service connecting Mexico City to Pachuca, Teotihuacán, and Puebla.

1. ì
Bringing
commuter
train
service
to
Central
Mexico
Regional
Business
Environment:
La4n
America
|
Team
Mexico
|
Summer
2013

2. Team
Mexico
Dayvisson
Da
Silva
Sean
Foley
Shinya
Ishihara
Huiling
Liu
Sanjeev
Raghuvanshi
Greg
Venegas-­‐Estrada

3. Agenda
ì Introduc4on
ì Industry
Analysis
ì Business
Proposal
ì Bombardier
Joint
Venture
ì Country
Stats
&
Poli4cal
Analysis
ì Economic
Analysis
ì Social
Impact
ì Summary

5. ì
Industry
Analysis
By
Huiling
Liu

6. Mexico:
Transportation
Industry
ì Current
ì 30%
popula4on:
Private
Car
ì 70%
popula4on:
Public
Transporta4on
ì Opportuni4es
ì The
last
two
presidents
allocated
funds
mainly
towards
roads
and
ports,
telecommunica4ons
ì No
compe44on
in
passenger
train
service.

7. ì
Business
Proposal
By
Greg
Venegas-­‐Estrada

9. Mexico
City
Metropolitan
Area
• Includes
the
Federal
District,
and
municipali4es
in
Mexico
State
and
Hidalgo.
• 2010
Popula4on:
21.2
million
• 9
million
people
live
within
the
Federal
District.
• Majority
of
people
living
in
the
metro
area
commute
to
the
Federal
District
or
within
Mexico
State.
Source:
Censo
de
Población
y
Vivienda
2010
–
Estados
Unidos
Mexicanos
–
Resultados
Preliminares

10. Current
transportation
options
outside
the
Federal
District

11. TRE line A !
Mexico!City!–!Pachuca!

12. Benefits
• Popula4on
within
5km
radius
:
5
million
• Daily
commu4ng
trips:
5.75
million
• Distance:
110
kilometers.
• Current
commute
4me:
• By
car:
2
½-­‐3
hours
• By
public
transporta4on:
3+
hours
• Future
commute
4me:
90
minutes

13. TRE line B !
Mexico!City!–!Teotihuacán!

14. Benefits
• Popula4on
within
5km
radius
:
4
million
• Distance:
65
kilometers.
• Current
commute
4me:
• By
car:
1
½-­‐2
hours
• By
public
transporta4on:
2
½
+
hours
• Future
commute
4me:
1
hour.
• Poten4al
for
tourist
demand
connec4ng
Mexico
City
to
Teo4huacán
archeological
site
and
pyramids.

15. TRE line C !
Mexico!City!–!Chalco!–!Puebla!

16. Benefits
• Link
from
Downtown
Mexico
City
to
Interna4onal
Airport
• Popula4on
within
5km
radius:
9
million
• Distance
from
Buenavista
to
Chalco:
46
kilometers.
• Current
commute
4me
from
Chalco
to
Buenavista
sta4on:
• By
car:
1
½
-­‐
2
hours
• By
public
transporta4on:
3
hours
• Future
commute
4me:
1
hour.
• Distance
from
Buenavista
to
Puebla:
165
kms.
• Travel
4me
from
Puebla
to
Mexico
City:
• By
car:
2
–
2½
hours
• By
public
transporta4on:
3+
hours
• Future
commute
4me:
1
hour
45
minutes.

17. Current
transportation
hubs
outside
Mexico
City

18. • Retail
space
available.
• Introduce
Park-­‐n-­‐Rides
to
Mexico.
• Offer
connec4vity
to
Metro
and
Bus
Rapid
Transit.
(Where
available).
Station
Proposal

19. • Child
care
services.
• Cyber
cafés.
• Banks
• Schools
• Hotel
(where
feasible).
Retail

20. Partnership
ì Grupo
Mexico
owns
railway
rights.
ì Currently
focused
on
freight
train
service.
ì Many
railways
siing
idle,
abandoned.
ì Provides
more
efficient
use
of
exis4ng
assets.
Source:
Grupo
Mexico
corporate
site

21. .
VERACRUZ
PUEBLA
OAXACA
MORELOS
D.F.
EDO.
MEXICO
HIDALGO
TLAXCALA
MAPADECAPACIDADESDEVIAENTERRITORIOFERROSUR
La Soledad HC-15 /HA-25
19 de Marzo HA-5
Emp. El Rey H-41/HA-0
Gral.ZaragozaAB-40
RosalAB-38
ElGorriónAB-31
ValentínAB-26
TetepangoAB-22
TlaxcoapanAB-15
Emp.CentralAB-9
Tula A-80/AB-0
Tolteca A-77
Cruz Azul A-71
Dorantes A-67
El Salto A-63
Huehuetoca C.M.A-47/B-47
(Límite territorial)
Temascalapa H-39
Paula H-34
Xolox H-28
Teocalco
Lecheria A-21
Buenavista
Axochiapan VC-114.3
(Límite territorial)
Valle de México
ApizacoS-139/SA-0
Tetlapayac S-104
Apan S-93
copi S-84A nalco
C . Sah gú B 24d a n H -
Tlanalapa HB-15
Sta. Inés
HB-11
San Agustín H-61 / HB-0
Tepa HC-0 /H-67
La Trinidad HC-5
Xochihucán HC-9
Téllez HA-19
Relinas
H-54
Tezontepec
H-50
Las Colonias HC-18
Cadena HC-19
Pachuca HC-26/AB-69
Emp.Dtto.AB-65
ConcepciónAB-63
TecamatlAB-55
BenitoJuárezAB-42
LaPalmaS-62
OtumbaS-56
OmetuscoS-68
Los Reyes VK-27
(Límite territorial)
Amecameca VK-63 / VL-0
San Sebastián VK-94
Cuautla VK-123/VC-160
Atlixco VC-39
Izúcar de Matamoros VC-77
Irolo
S-78 / HB-28
Moyotzingo VB-75
San Martín VB-70
Mezquite SC-296
Acultzingo SC-289
Vaquería SC-276
Puente Colorado SC-267
San A. Soledad
SC-250 / EA-40
Cañada EA-34
La Defensa EA-31
Llano Grande EA-24
Cabras EA-19
Carmen EA-16
Miahuatlan EA-11
EsperanzaS-245
/EA-51
LosReyesS-238
Jesús de Nazareno
S-234/SC-234
Sta. Ma. Techicalco S-232
San Pedro S-226
San Andrés S-221
San Juan Atenco S-217
Aljibes S-210
Rinconada S-201
Moctezuma S-189
SanMarcosS-182
ChiapaVB-167
Sesma VB-170
Manantiales VB-175
Vicencio VB-179
Carmela VB-184
Oriental VB-189 (Límite territorial)
TamarizS-176
HuamantlaS-165
AcocotlaS-153
Santa Cruz SA-11
Santa Ana SA-17
Teolocholco SA-26
Zacatelco SA-29
Panzacola SA-35
Grajales VB-163
Jara VB-158
Ixtenco VB-153
Citlaltepec
VB-149
Los Pinales VB-146
Acajete VB-139
Tepatlaxco VB-136
Amozoc VB-128 / E-17
Tres Jagueyes E-29
Cártago E-32
Tepeaca E-38
Ajajalpan E-43
Buenaventura E-46
San Simón E-49
Zoyapetlayoca E-51 Porrero Rubín E-53
Rosendo Márquez E-55
Huixcolotla E-61
Tecamachalco E-66
Alseseca E-70
Las Animas E-78
Rancho Chico E-83
Tlacotepec E-88
Tlacoyalco E-94
Libertad E-96
Pazoltepec E-98
Temalacayuca E-102
Tepanco E-105
Cuayucatepec E-113
Carnero E-119
Tehuacán E-128
La Huerta E-142
Sánchez E-149
Puebla
VB-110 / SA-45
Muñoz S-129
Calderón S-116
Cerrito S-114
Soltepec S-110
Altepexi E-160
San Sebastián E-167
Nopala E-174
-
La Patrona G-10
Los Angeles G-13
Cerro Blanco G-14
Cuichapa G-17
Xuchiles G-24
Omelaca G-28
La Zafra G-30
Pocitos G-33
Presidio G-35
El Paraiso G-38
Motzorongo G-42
Tezonapa G-48
RefugioG-52
RanchoTablasG-54
LaEstrellaG-56
AcatlánG-61
LaMargaritaG-69
VicenteG-70
CamaloteG-71
ElCañaveralG-76
LasPrietasG-85
TIERRA BLANCA
G-95 / GA-101
El Cien G-99
Amapa G-104
La Granja G-110
Las Yaguas G-113
Tres Valles G-134
TuxtepecGF-13
GelaGF-6
Papaloapan G-145
LasPiñasG-152
B.JuárezG-159
GuadavíctorG-161
ObispoG-167
LomaBonitaG-173
DobladeroG-189
BananoGF-1
Pdte. Juárez GF-20
AzuetaG-201
MasocoG-209
GarzaBlancaG-210
IslaG-221
Angostura G-262
CoatzacoalcosZ-5/ZT-5/FA-0
Amatlan G-6
Córdoba G-0 / S-318
VERACRUZ S-417 / V-470 / GA-0
Santa Fe V-461
Espartal GA-14
El Tejar GA-20
Paso del Toro GA-25
Los Robles GA-33
Guayabo GA-42
El Rodeo GA-46
Tlalixcoyan GA-51
Piedras Negras GA-56
Madereros GA-60
Cospalapam GA-68
Joachin GA-72
Moreno Sur GA-79
Jicaro GA-83
Estanzuela GA-89
Fulgencio D. Vázquez GA-95
ElLaurelalS-413
TejeríaS-409
SantaRitaS-405
MataLomaS-399
M.F.AltamiranoS-394
SoledadS-382
CamarónS-361
PasodeMachoS-348
PeñuelaS-323
FortínS-310/SC-336
ParajeNuevoS-327
PotreroS-334
MatadeAguaS-373
MetlacS-307
SumideroS-304
MolinoS-298
ORIZABAS-292
RíoBlancoS-287
NogalesS-285
SantaRosaS-283
Encinar SC-311 / S-281
Tecamalucan SC-303
Venta Salada E-181
Aldama E-193
San Antonio E-196
Ignacio Mejía E-200
Mejía Viejo E-205
Los Cues E-217
Tecomavaca E-225
Quiotepec E-235
Los Obos E-245
La Venta E-251
Cuicatlán E-253
San Pedrito E-256
Tomellín E-258
Organal E-266
Almoloyas E-276
Venado E-284
Santa Catarina E-293
Anonas E-303
Parían E-309
Escondida E-315
Las Sedas E-323
Telixtlahuaca E-332
Suchilquitongo E-339
Mixteca E-341
Lachixolana E-342
Don Benito E-343
Magdalena E-345
Etla E-349
Mogotle E-354
Hacienda Blanca E-358
OAXACA E-367
San Cristobal GB-48+500
Km. GB-1+500
Rodríguez Clara G-237
Jimba G-247
Los Tigres G-255
Juanita G-272
Bellaco G-276
Campo Nuevo G-295
Azufrera Z-46
Jáltipan Z-43
Chinameca Z-37
Guanomex ZA-8
Minatitlan ZA-12
Hibueras Z-30/ZA-0
Guasuntlán Z-25
H.P.Sánchez Z-20
BertaZ-10
Agustín Lira A.
Cangrejera
El Chapo
Cuichapa
Achotal G-286
Medias Aguas Z-97/G-300
Juile Z-86
Miguel Alemán Z-83
Almagres Z-76
Correa Z-69
Ojapa Z-64
Mina Mana Z-61
Texistepec Z-57
Adolfo Ruiz Cortines Z-103
Macaya Z-106
Adalapa
FERROCARRILDELISTMODETEHUANTEPEC
Las Tres Gardenias Z-110
Súchil Z-116
Jesús Carranza Z-126
Adriánbs *2011
GOLFO DE MEXICOSan Lorenzo
VB-0 / HB-37
Calpulalpan VB-9.4
TeotihuacánS-45
(LímiteterritorialS-47.616)
A Queretario
FXE
z
LíeaJuáre
n
A Queretaro
KCSM
aesFuerdervicio
La Unión VB-103
Xalostoc VK-2/S-15
Fuera de servicio
Guadalupe S-124
Tenango VK-54 San Rafael VL-12
Nuevo Carnero EA-5
Fuera de servicio
Límite Territorial E-150
Límite Territorial FA-18
Productora Nacional VC-142
Jaltocan H-19
(Límite territorial
H-18+800)
Santa Clara VB-94
Xalapa
Atencingo VC-97
1+VB-11000
V10+255B-7
SA-42+650
Límite
de Patio
Límite
de Patio
S-292+220/SC-323.320
0S-289+50
0S-320+40
650S-31+0
Límite
de Patio
60G-2+1
A-4 0G + 50
1500S-4+0
Límite
de Patio
v-465+000
9+G-7289
Límite
de Patio
A-99 0 0G + 0
9+5G-152
-400G17+0
0GF-20+00
Límite
de Patio
Z- 2+809 0
28G-9+869
Límite
de Patio
A60F-+00
8Z-5+00
Límite
de Patio
ZA1+000-2
ZA-0+000
Límite
de Patio
7S-136+00
0S-141+00
SA-2+000
Límite
de PatioPantaco
Línea SB
Ecatepec S-22
Tepexpan S-33
Línea TS
Línea SH
Cuatitlán C.M. A-29
Línea N
Línea C
Línea YB
Línea YH
Línea NA
M
Línea
orelos Línea B
Línea B
A Toluca
KCSM Naucalpan N-11
Línea YL
Tultepec H-9
SIMBOLOGIA
FERROSUR (FSRR)
LINEA CORTA OAXACA (SCT)
FERROVALLE (FVTM)
KANSAS (KCSM)
FERROMEX (FXE)
FERROCARRIL DEL ISTMO (FIT)
FERROCARRIL SUBURBANO
OTRAS LINEAS
DIVISION ESTATAL
ESTACION
Línea VK
Huehuetoca N.M. B-47
Fuera de servicio
Fuera de servicio
Línea V
Línea V
Línea V
.C
O
T
FF
CDELISTM
DETEHUAN
EPEC
Tlalnepantla NA-9
Xoxtla VB-87
Tlaloc VB-57
Huitzilzingo VK-42
Tepetlixpa VK-73
Nepopualco VK-89
San Juan Texcalpa VK-105
Atlatlahuacan VK-109
Km. VB-72+500
Km. VB-11+000
Fuera de servicio
Cuautitlán N.M. B-28
Cerro
Jardín
Línea V
Fuera de servicio
Límite
de Patio
E-119+000
E-114+500
Límite
de Patio
E-130+000
E-126+000
EA-10+235
Límite
de Patio
E-19+000
VB-126+000
VB-127+900
CAPACIDAD 130 TON.
CAPACIDAD 120 TON.
CAPACIDAD 110 TON.
CAPACIDAD 100 TON.
Grupo
Mexico’s
Railway
Network
Source:
Grupo
Mexico
corporate
site

22. ì
Support
by
the
federal
government
Source:
Financial
Times

23. Future
passenger
train
service
in
Central
Mexico

24. ì
Bombardier
Joint
Venture
By
Sanjeev
Raghuvanshi

25. Bombardier
Joint
Venture
ì Bombardier
Transporta4on:
ì German
Subsidiary
of
Bombardier
Inc.,
Canada
ì Industry
leader
in
ground
transporta4on
ì 40
Years
of
worldwide
experience
in
railways
ì Successfully
built
train
projects
in
the
U.S.
and
Mexico
ì Advantages:
ì Shorter
implementa4on
4mes
ì Cost
control
due
to
risk
minimiza4on
ì Low
life-­‐cycle
costs
ì Complete
project
financing
ì Complete
pornolio
of
products,
services
and
latest
innova4ons
Source:
Bombardier
corporate
site

26. Source:
Bombardier
corporate
site

27. What
Bombardier
can
offer
ì Already
an4cipa4ng
bidding
on
all
three
of
new
Mexican
passenger
rail
projects
(Government-­‐ini4ated
routes).
ì One
Stop
Global
Provider
ì Design,
Build,
Operate
and
Maintain
Projects
ì Electrical
and
Mechanical
Systems
Supplier
ì Fully
Comprehensive
Service
Provider
ì Credible
Systems
Integrator
ì Financing
Source:
Bombardier
corporate
site

28. Alternative
ì Rated
AA
by
S&P
ì EU-­‐Mexico
Free
Trade
Agreement
ì Can
provide
short
term
and
long
term
financing
(DB
Finance)
ì Over
€15
billion
in
debt
issuance
program
ì Also:
knowledge,
technology
and
logis4cs
ì Transport
5.6M/day
ì “Long
Distance
Business
Unit”-­‐
Cross
Border
Rail
Services
ì Ex:
“DB
Schenker”
employees
and
services:
Embraer
(Brazil)
Source:
Deutsche
Bahn
AG
company
site

29. International
Interest
ì Investors
and
developers
have
already
begun
eyeing
Pena
Nieto's
plan
to
oversee
a
passenger
rail
renaissance
in
Mexico.
ì Markus
Mildner,
execu4ve
vice
president
of
Siemens
Mexico
,
has
said
the
German
industrial
conglomerate,
which
also
manufactures
trains,
is
interested
in
bidding.
ì He
calls
this
project
"viable."
Source:
Financial
Times

30. ì
Country
Stats
&
Political
Analysis
By
Shinya
Ishihara

31. Mexico:
Facts
ì Popula4on:
115
million
ì GDP:
USD$1,177.1
billion
ì GDP/Capita:
USD$10,238
ì GDP
growth:
3.7%
(Forecast
avg.
2012-­‐2017)
ì Capital
City:
Mexico
City
Source:
Economist
Intelligence
Unit

32. Mexico:
Facts

33. Mexico:
Political
Analysis
ì Packenham
Model
–
Enrique
Peña
Nieto
(2012-­‐2018)
ì Poli4cal
Party
Systems:
Consolidated
ì Par4do
Revolucionario
Ins4tucional
(PRI)
ì PAN
(Right)
/
PRD
(Ley)
ì Poli4cal
Creden4als
of
President:
Good
ì Leadership
Skills
of
President:
Good
ì Approval
ra4ng
is
high
ì Poli4cal
Consensus:
Moderate.
ì PRD
opposes
market-­‐oriented
policies

34. ì
Economic
Analysis
By
Huiling
Liu

35. Mexico:
Economic
Analysis
ì Hipskind
Model
ì Flexibility
of
Exchange
Rate:
Flexible
ì Size
of
Current
Account
Deficit:
ì Small
(1.4%
of
GDP)
ì Size
of
Budget
Deficit:
ì Small
(1.8%
of
GDP)
ì Amount
of
Foreign
Reserves:
ì Large
(USD$170
billion)
ì Amount
of
Foreign
Debt:
ì Small
(21%
of
GDP)
Source:
Economist
Intelligence
Unit

36. ì
Social
Impact
By
Dayvisson
Da
Silva

37. Mexico
City’s
Chaotic
Transport
System
Social
Impact
ì Road
traffic
accidents
cause
24,000
deaths
per
year
Source:
Publica4on:
BNA
-­‐
English
News
Provider:
Business
News
Americas
Date:
August
27
2012

38. transport,
cycle
and
pedestrian
infrastructure.
-­‐
76%
of
that
funding
was
spent
on
improvements
to
roads,
thus
favoring
the
individual
car
owner,
rather
than
public
transport.
6
Budget
in
public
transport
Highway
infrastructure,
public
spaces,
public
transport,
cycle
and
pedestrian
infrastructure
Roads
-­‐
favoring
the
individual
car
owner,
rather
than
public
transport
NaFonal
Government
Investments
(2011)
US$910
mil
76%
11%
Source:
Publica4on:
BNA
-­‐
English
News
Provider:
Business
News
Americas
Date:
August
27
2012

39.
Money
&
Time
Saving
-­‐
Quality
of
Life
Cars
over
public
transport
leads
to
more
traffic
-­‐
It
costs
$
15.8
Billion
per
year
in
terms
of
lost
man
hours
The
average
round-­‐trip
commute
to
work
in
Mexico
City
is
2
hours
and
30
minutes
Source:
Ins4tute
for
Transporta4on
and
Development
Policy

40. Environment
–
Pollution
Cost
of
environmental
degrada4on
5%
of
GDP
in
2011
Source:
Publica4on:
BNA
-­‐
English
News
Provider:
Business
News
Americas
Date:
August
27
2012

41. ì
Summary
By
Greg
Venegas-­‐Estrada

42. Summary
ì Corporate
Site
Selec4on:
Mexico
City.
ì Investment
azrac4veness:
ì Posi4ve
poli4cal
and
economic
outlook.
ì Government
involvement
and
support.
ì Partnership
opportunity
with
key
players.
ì No
compe44on
in
passenger
train
service.
ì Azrac4ve
investment
with
a
posi4ve
social
impact.
ì High
demand
for
public
transporta4on
use.
ì Free
Trade
Agreements
advantages
–
Bombardier
(NAFTA),
DB
Bahn
(EU-­‐Mexico
FTA).

43. ¡Gracias!
Thank
you!
Obrigado!
ध"यवाद!
!‫לך‬ ‫תודה‬
！谢谢你
!‫ﺷﻜﺮا‬
Ви
благодариме!
ありがとうございました！

44. Sources
ì Bombardier
company
site
ì hzp://www.bombardier.com/en/transporta4on/
products-­‐services/transporta4on-­‐systems.html
ì Censo
de
Población
y
Vivienda
2010
–
Estados
Unidos
Mexicanos
resultados
preliminares
ì hzp://www.censo2010.org.mx/doc/
cpv10p_pres.pdf
ì Deutsche
Bahn
AG
company
site
ì hzp://www.deutschebahn.com/en/group/
business_units/dbbahn_long_distance/2200504/
business__unit__db__long__distance.html
ì Economist
Intelligence
Unit
–
Mexico
2013
ì hzp://country.eiu.com/Mexico
ì Encuesta
Origen-­‐Des4no
2007
ì hzp://igecem.edomex.gob.mx/descargas/
estadis4ca/ENCUESTADEORIGEN/EOD2007.pdf
ì Ins4tute
for
Transporta4on
&
Development
Policy
ì www.itdp.com
ì Lizbeth
Diaz,
Reuters.
“Mexico
sees
$300
billion
in
infrastructure
spending.”
Kingston
Whig
Standard.
16
July
2013,
12
n.
pag.
Print.
ì Merrill
Douglas,
“In
Mexico,
rail
is
on
a
roll”,
Jan
2012
ì www.inboundlogis4cs.com
ì Mexico’s
Infrastructure
opportuni4es
2013-­‐208
ì hzp://export.gov/mexico/
mexicoinfrastructureopportuni4es/index.asp
ì OECD
Economic
Survey
of
Mexico
2013
ì hzp://www.oecd.org/eco/surveys/mexico-­‐2013.htm
ì “Top
ten
largest
ci4es
in
the
world”
Maps
of
the
World
25
March
2013,
:
Web,
29
July
2013.
ì hzp://www.mapsofworld.com/world-­‐top-­‐ten/
world-­‐top-­‐ten-­‐largest-­‐ci4es-­‐map.html