Home Mexico Travel & Economy 5 Key Infrastructure Investment Projects Happening Now in Oaxaca

5 Key Infrastructure Investment Projects Happening Now in Oaxaca

by Brent May

Lopez Obrador, Mexico’s new president since December 2018, has spearheaded a number of development projects in southern Mexico. The goal of this plan called the “Proyecto Alternativo de Nación” or the Alternative Project for the Country, is to equalize the economy in the north and south of Mexico through impulsing direct economic investment and development in the south.

Obrador’s Economic Policy

Opposers argued that Obrador’s economic policies would damage Mexico’s economy however, their predictions are being generously refuted. Obrador has shown strong leadership in spite of obstacles.

Mexico’s economy remains strong. Obrador is focused on a redistribution of national income precisely to give more economic power to the middle and lower classes.  The peso has remained one of the strongest currencies since Obrador took office, not only compared to the USD but all world currencies. Interest rates were lowered.  Consumer trust index has increased over a percentage point in the same period.

Obrador Announces Good News for Oaxaca

Lopez Obrador, Mexico’s President, heavily invested in the economic development of southern Mexico, and Alejandro Murat, the Governor of Oaxaca state, presided over the reinitialization of the construction on the highways to the Coast and the Tehuantepec Isthmus in June 2019. Since, the highway to the coast is complete and the Tehuantepec highway is nearing completion.


Finishing Oaxaca’s Highway from the Capital to Puerto Escondido

The highway connecting Oaxaca City to Oaxaca Coast is now open with 11 bridges, 9 on and off ramps, 3 tunnels and a viaduct to connect 7 municipalities.  This 104.3-kilometer transformative infrastructure project, inaugurated by President Andrés Manuel López Obrador on February 4th, reduces travel time from more than six and a half hours to just two and a half hours.

Read more about that here: A How-To Guide for Traveling the Barranca Larga-Ventanilla Highway: Oaxaca City to the Oaxaca Coast

Completing Oaxaca’s Second Highway to the Coast, from Tehuantepec to Mitla

At the same time, Obrador and Murat pledged to finish the highway from Tehuantepec in the Isthmus south of Huatulco to Mitla, close to Oaxaca before Obrador finishes his presidential term.

To read more about the boom in Huatulco’s economy, see our article about Huatulco’s Economic Growth. 

What is the Interoceanic Corridor of the Tehuantepec Isthmus?

To that effect, the interoceanic corridor of the Tehuantepec Isthmus will receive an investment of 46 billion pesos over the next 3 years. The goal of the development of the interoceanic corridor over the Tehuantepec Isthmus, specifically between Salina Cruz, just south of Huatulco in Oaxaca state and the port of Coatzacoalcos, is to facilitate access between Asia and the East Coast of the United States. With an objective to eventually compete with the Panama Canal, the investment is in line with investments other national ports have received and even superior to the New Port of Veracruz.

Where is the Tehuantepec Isthmus?

A turbine for an industrial windmill arrives in the port of Salina Cruz.

The Isthmus of Tehuantepec is located directly south of Huatulco. At its shortest point, the Isthmus of Tehuantepec stretches a short 192 kilometers from the Gulf in the east to the Pacific in the west. The trade winds from the Gulf travel across this zone due to a break in the Sierra Madre del Sur mountain range. Once considered as a location for the Panama Canal and used as a land trade route linking the two bodies of water, the Isthmus is the headquarters of 25 industrial wind energy farms today. Oaxaca has a strong clean energy sector where private investment is also strong. As recently reported here,  the Spanish company, Iberdrola will spend 270 million dollars in the construction of a new wind energy center in Oaxaca State throughout 2019 and 2020.

What Does This Major Infrastructure Project Involve?

Salina Cruz Port

One of the major infrastructure projects of the present administration, investment is being dedicated to the container and freight industry in Salina Cruz and Coatzacoalcos, to the redevelopment of the freight train connection between the ports, to modernize the Salina Cruz port, reinforce its commercial and strategic position and develop the freight train access to the port as well as auto access to port facilities.

What does the Development of the Corridor Mean for Oaxaca?

The general coordinator of the Ports and Merchant Marine, Hector Lopez, emphasized that the interoceanic corridor does not just represent the economic activity of simply transporting merchandise from one port to another but rather benefiting from the economic investment as a general distribution center and taking advantage of the industrial and commercial products arriving to develop industry in Oaxaca as well.

Obrador continues focusing on the redistribution of the nation’s income and Oaxaca is profiting from government investment and its own local economy with a strong tourism and real estate sector. Huatulco is a favorite destination for investors and expats for many reasons including its climate and natural beauty but also its small-town feel and master-planned community conveniences and ecological mindset. To learn more about the Uniqueness of the Huatulco Real Estate Market, read our article here. If you’re ready to take the next step and learn about buying property in Huatulco, join me for a free webinar.

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