USTDA Expands Southern Mexico Transportation Portfolio

Arlington, VA – Today, the U.S. Trade and Development Agency awarded a grant to the Secretariat of the Economy and Labor of the State of Chiapas for a feasibility study to enhance the efficiency and safety of Southern Mexico’s freight transportation infrastructure. USTDA’s assistance will support the development of an intermodal rail terminal in Chiapas that will facilitate the shift of freight transportation from road to rail and strengthen local supply chains, while decarbonizing the sector.

“The Mexican government has prioritized freight rail infrastructure development in Southern Mexico to promote local economic growth and strengthen the region’s supply chains with Central America. This intermodal rail terminal will alleviate highway congestion and lower transportation costs, while attracting local value-added industries,” said Enoh T. Ebong, USTDA’s Director. “USTDA’s catalytic role will also help create partnerships between Mexico and U.S. companies that are eager to supply innovative technologies for this priority project.”

USTDA’s study will identify and select the site for the intermodal rail terminal, develop technical specifications, and conduct economic, financial and market analyses to demonstrate the effectiveness of integrated freight between road and rail carriers. The intermodal terminal will help reduce cargo handling, thereby improving security, reducing damage and loss, and allowing freight to be transported faster.

“Logistics infrastructure is a critical economic driver,” said Carlos Alberto Salazar, Secretary of the Secretariat of the Economy and Labor. “We are very excited to work with USTDA to advance our state’s economic and development goals through improving our supply chain infrastructure, thereby bolstering the economy for the State of Chiapas.”

This project aligns with federal government of Mexico priorities including the Interoceanic Corridor of the Isthmus of Tehuantepec project, which will enhance trade between the Pacific and Atlantic oceans through a series of logistics and industrial infrastructure projects across Southern Mexico. The Chiapas intermodal rail terminal will advance the development of the Interoceanic Corridor project by strengthening regional connectivity and competitiveness, while attracting new investment.

USTDA’s support for this project advances the goals of USTDA’s Global Partnership for Climate-Smart Infrastructure, which connects U.S. industry to major clean transportation and energy infrastructure projects in emerging markets, and the Partnership for Global Infrastructure and Investment, to close the infrastructure gap in emerging economies. It also advances the U.S. government’s engagement with Mexico to support economic development in southern Mexico.

U.S. businesses interested in submitting proposals for the USTDA-funded feasibility study should visit www.ustda.gov/work/bid-on-an-overseas-project.

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The U.S. Trade and Development Agency helps companies create U.S. jobs through the export of U.S. goods and services for priority infrastructure projects in emerging economies.  USTDA links U.S. businesses to export opportunities by funding project preparation and partnership building activities that develop sustainable infrastructure and foster economic growth in partner countries.

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