Mexico Poised to Become One of the World’s Most Important Logistics Areas

Companies are increasingly focused on consolidating and streamlining logistics after global disruptions and simultaneous spikes in demand for all types of products in recent months and years. Manufacturers need to get products into the hands of consumers more quickly than ever before, and Mexico is becoming increasingly attractive to international investors as the neighbor to one of the world’s largest consumer markets. In this article, we will talk about Mexico’s current and developing logistics hubs and why the country is poised to become one of the world’s most important logistics areas.

What is a logistics hub?

As we know, logistics hubs are areas dedicated to the transport, organization, coordination, and distribution of goods for delivery from various manufacturers in different industries by multiple stakeholders. They house both traditional warehousing and administrative activities and serve as a point where a broad distribution network converges in which various operators, companies, and personnel communicate to guarantee the timely and correct delivery of products. Increasingly, these hubs combine logistics and industrial activities, providing additional value-added services such as labeling, assembly, semi-manufacturing, and customizing.

Where are the most important logistics hubs in Mexico located?

Though Mexico has several regional logistics hubs, four main areas currently have the infrastructure for warehousing and distributing products from various industries on a mass scale. These are found in Guanajuato, Ciudad Juarez, Tijuana and Queretaro. These hubs have been developed over decades to handle merchandise for Mexico’s main industries, such as the automotive, medical devices, and electronic manufacturing in Mexico.

One of the largest and more recent logistics hubs is the Cuautitlan-Tultitlan-Tepotzotlan (CTT) logistics corridor located in the Valley of Mexico in Mexico State. It serves a variety of industries in the region, and the approximately 20% of the country’s population residing in the surrounding metropolitan area and become the most important in the country by allowing rapid delivery to end consumers from clients such as Amazon, Mercado Libre, DHL, and Estafeta.

In addition to these existing facilities, new investments are being made in other areas across the country to leverage Mexico’s strategic location to establish multimodal hubs and logistics areas. In Mazatlan, Sinaloa, on Mexico’s Pacific coast, over US 150 million is being invested in a logistics park and surrounding infrastructure, including roads and the construction of a Free Trade Zone (Recinto Fiscalizado Estratégico or RFE). In addition, in 2022, construction began on the Logistics Hub T-MEXPARK in Nexlalpan, Mexico State. This four million square meters industrial complex will improve multimodal connectivity, integrating rail, airport, and land transport. Additional investments are also planned in the states of Veracruz, Oaxaca, and Yucatan to improve Mexico’s transport infrastructure and logistics facilities.

Why is Mexico poised to become one of the world’s most important logistics areas?

Its large domestic market, infrastructure, strategic location in Latin America, affordable labor rates in Mexico, and growth of logistics companies give it the potential to become one of the world’s most important areas for logistics and distribution. By focusing on further developing its land infrastructure, lowering seaport fees, and further investing in the technology for Industry 4.0 and the Internet of Things, Mexico will continue to play an increasingly essential role in global logistics.

This ultimately provides more certainty to international and US companies looking to manufacture in Mexico by ensuring that they can transport products efficiently and reliably with a consolidated network of suppliers and logistics infrastructure.