Railroads Benefiting From Auto Industry Growth In Mexico

June 17, 2013

Savvy investors everywhere are taking note of the expanding automotive industry in Mexico and the ripple effect of opportunities it represents. Thanks to NAFTA, what’s good for manufacturing in Mexico can be good for many other countries as well. This is not a temporary state of affairs, and all signs point at the same steady growth to continue in the coming years.

The facts don’t lie, and they are all saying the money is there to be made. North American Railroads are already feeling the benefits of increased shipments to Mexico. Mexico’s gross domestic product has been predicted to grow 3.4% in 2013 and 2014. Far ahead of the expected growth predicted for Canada and the U.S. It’s a good time to be an investor if you’re looking in the direction of Mexico.

The cost of transportation has increased to the point that Mexico is looking to be the best choice to operate any business servicing North America. The world is slowly climbing out of an economical slump, and all the manufacturing in Mexico is helping it happen. Transport by rail has been in use for well over a century, and it still figures as a large part of the future and economic recovery.

In order to compete, greater mobility is needed to deliver products, and one way for Canadian railways to do that would be to purchase the Kansas City Southern line in the United States or negotiate other access to it. The automotive industry isn’t the only one moving up fast in Mexico; the aerospace sector is growing right alongside it.

 

 

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