Mexicos government might face several challenges
regarding its planned road and railway projects because of a
lack of security in some parts of the country, local executives
said this week.
The government is
expected to soon launch Mexicos national infrastructure
program for 2013 through 2018, which will contain projects for
the construction and improvement of roads, railways, bridges,
ports and airports, among others.
But security may be an
issue, speakers at the 9th Annual Mexican Energy and
Infrastructure Finance Forum said June 25 in Mexico City.
projects become unviable because of insecurity," José
Enrique Silos Basurto, infrastructure director at Mexican
banking group Invex, told delegates.
"We are not used to
living with these factors of uncertainty. ... (C)ompanies are
starting to ask how they can solve these problems," he
Between 2007 and 2011,
around 19,000 kilometers (11,806 miles) of roads were built or
modernized in Mexico with investments of 245 billion Mexican
pesos ($19 billion), according to figures from
ProMéxico, a government agency aimed at promoting
international investment and business.
A second speaker
highlighted another serious problem in the region.
"Extortion is a very
difficult issue in Mexico and requires attention," Abelardo
Arroyo Rincón, director at Hermes Infraestructura, said
at the forum.
Over the past several
years, Mexico has been in the midst of a war against local drug
cartels that has cost at least 70,000 lives and resulted in the
disappearance of thousands of others.
The countrys president, Enrique Peña Nieto, who
took office in December, promised to create a new police force
to patrol the most dangerous parts of the country.
A version of this article was first published by AMM sister
publication Steel First.