Progreso Infrastructure Investment: Driving Growth and Opportunity

3.2K

Progreso is a dynamic, growing town on the coast of the Gulf of Mexico in Yucatan state. Over the past decade, the town has seen significant Progreso infrastructure investment including upgrades and renovations to the pier, the port, the Malecon and surrounding streets and other essential services like water treatment plants. Claudia Scheinbaum, Mexico’s new president, says continued Progreso infrastructure investment is a top priority for her administration.

At the same time, Progreso’s real estate market is thriving and offers a range of investment opportunities. The town has seen a steady increase in tourism and port activity over the past decade, which has helped to drive growth in the local economy. The development of new roads, bridges, and public transportation systems has helped to make the town more accessible to residents and attractive to investors.

 

An Historic Shipping Hub and Resort Destination

Progreso has undergone a tremendous transformation over the years. As a small fishing village, Progreso came to the forefront of the shipping industry in the mid 1800s and then became a seaside resort destination for wealthy tourists escaping the heat from the city. Hotels and vacation homes were built. Progreso became well-known for its emerald waters and beautiful beaches.

 

Progreso Infrastructure Investment: Government and Private Initiatives  

Government and private Progreso infrastructure investment has played a significant role in the growth and development of the town. Over the years, the government has invested in various projects and initiatives aimed at improving the town’s infrastructure, promoting economic development, and enhancing the quality of life for its residents.

 

History of Progreso’s Port

The economic base of Progreso is fishing and maritime commerce.  Historically, Progreso shipped henequen products, mainly rope and twine made from the agave plant. In the 1960s and 70s, Yucatan’s products began being shipped more by land, drastically reducing Progreso’s port activities. But the port expanded its activity and began shipping honey, henequen artifacts, chewing gum, fish and other articles. In 1999, work began on the fourth stage of the port’s expansion, one of the most important investments in the maritime port sector. This renovation allowed access to larger vessels.

 

Ambitious Expansion Plans for Progreso’s Deepwater Port

In a significant development for Yucatán’s maritime infrastructure, the Port of Progreso is undergoing a massive expansion that promises to boost the region’s economic prospects and solidify its position as a key player in international trade and tourism.

 

Doubling the Land Platform

Governor-elect Joaquín Díaz Mena has announced a game-changing modification to the port’s expansion project. Initially planned for 40 hectares, the land platform will now be doubled to 80 or even 90 hectares. This ambitious plan has been met with enthusiasm from the export sector, with Alejandro Guerrero Lozano, president of the Association of Export Maquiladoras of Yucatán (Index), describing it as “excellent news.”

The expanded project is made possible by the new political landscape in Yucatán, where both the state government and the presidency will be under the same party. This alignment is expected to facilitate smoother implementation of the expansion plans.

Key Improvements and Benefits

The expansion project includes several crucial enhancements:

1. Increased Cargo Capacity: Currently, the port can accommodate ships with 36,000 to 40,000 tons of cargo. Post-expansion, it will be able to handle ships moving up to 100 tons.
2. Deeper Draft: The project involves dredging to create a wider navigation channel and a deeper draft in the deepwater port.
3. Enhanced Tourism Infrastructure: The port’s capacity for cruise ships will significantly increase. While current ships can carry up to 2,500 passengers, the expanded port will be able to accommodate cruise ships with up to 8,000 passengers.
4. Rail Network: Plans are in place to construct the Mayan Cargo Train to Progreso within two years, further enhancing the port’s connectivity and cargo handling capabilities.

 

Economic Impact

The port expansion is expected to have substantial economic impact:

– In 2022, Yucatán registered a movement of 8,427,275 tons of cargo, the highest figure to date, representing a 21.9% increase from 2021.

– The expansion will allow more companies dedicated to foreign trade to establish operations in the area.

– Two new industrial parks are planned in conjunction with the port expansion, potentially attracting more international companies to the region.

 

The Fincantieri Shipyard

As part of the broader development, Italian shipping giant Fincantieri will create and operate what is set to become the largest shipyard in America in Progreso. The initial investment is $150 million, with potential to reach $500 million, promising to generate thousands of direct and indirect jobs in the area.

 

Looking Ahead

With these expansive plans in motion, Yucatán is poised for continued economic growth. The improved port infrastructure, coupled with the state’s favorable security conditions, is expected to attract more international companies, further bolstering the region’s economic prospects. As Guerrero Lozano aptly puts it, “Yucatán will continue with its good moment of economic development. I believe that better times are coming.”

The Malecon: A Symbol of Progreso Infrastructure Investment

Progreso has dramatically changed in the past few years. Thanks to a dynamic mayor, town council and a dynamic community vibe, Progreso continues to undergo a transformation with an ongoing $250 Million Dollar Federal Investment to improve Progreso´s Urban Infrastructure. The government has provided funding for the development of new hotels, restaurants, and attractions, as well as for marketing campaigns aimed at promoting the town as a tourist destination. These investments have helped to attract more visitors to Progreso, which has provided a boost to the local economy.

The Malecon area and surrounding streets have been expanded and modernized. Remodeling of the traditional Malecon was completed in July 2022 along with repaving of 33 kilometers of roads. You’ll find a revitalized esplanade dotted with restaurants, sculptures and bikes for rent. Progreso boasts a mix of Caribbean, colonial and modern architectural styles. It has a beautiful French style City Council building and a curious inland lighthouse.

Interested in more Mexico Living Blog articles about Progreso and Yucatan State? Check out the Mexico Living blog here!

 

General Infrastructure

The government continues to invest in Progreso’s infrastructure. The government has provided funding for the construction of new roads and highways including the Merida- Progreso highway bypass estimated at $70 million dollars, streets and underground wiring, water and sewage systems and the local education system. Highway connections, particularly those linking Merida to other parts of the state and to neighboring states have helped to improve the quality of life and favored entrepreneurship in Progreso, which has had a positive impact on the town’s economy and overall well-being.

Yucatan State is investing in renewable energy infrastructure , including solar farms and wind energy projects. The Merida Airport Expansion project expanded and modernized the international airport to handle increased tourist traffic. Merida has been working on various “smart city” projects, including improved public transportation and digital infrastructure.

Progreso’s Viaduct

The elevated viaduct project in Progreso aims to revolutionize mobility in the port town, prioritizing efficiency, intelligence, and sustainability. Enhancements include optimizing entry and exit points, streamlining traffic flow, and reducing environmental impact. Additionally, green spaces, family parks, and a bike lane will be integrated to improve residents’ quality of life and promote a healthier lifestyle. The viaduct, with separate lanes for inbound and outbound traffic, facilitates cargo transport directly from the port to the federal highway, bypassing Progreso. The project also includes significant upgrades to drinking water infrastructure for comprehensive and sustainable community development.

 

Rail Extension

Other projects are planned like the 52km extension of the Mayan Train to Poxila-Progreso.  This connection aims to enhance shipping conditions from Salina Cruz to Veracruz and beyond. Connecting Port Progreso with the industrial zone of Poxila (Uman), Hunucma, and Teya, the railway seeks to significantly cut logistic transportation costs. The logistics hub’s strategic location, just 15km from the Port Progreso container terminal, adds to its appeal. In collaboration with the Ministry of National Defense (SEDENA), Yucatan’s government has donated over 100ha to establish a logistics park, reinforcing the state’s logistics development.

 

Tech Industry

In recent years, the government has also invested in Progreso’s technology industry. Yucatan is actively advancing technological innovation through the creation of a Well-being Technology Hub, mirroring the fiscal incentives of the CIIT project’s industrial parks. Spanning 223ha along the Merida-Progreso highway, the hub designates 110ha for the Mayan Train and 60ha for the Yucatan Science and Technology Park. The aim is to attract investments and businesses, particularly in information and communication technology. Proposed plans have been submitted for review to the Ministry of Economy and the Ministry of Finance and Public Credit (SHCP).

 

Tax Incentives Fuel Progreso’s Industrial Growth

In a significant move to boost economic development, the Mexican government has unveiled a new decree aimed at attracting investment to the industrial zones of Progreso I and Mérida I in Yucatan. Published on June 28, 2024, this initiative offers substantial tax benefits and administrative support to companies operating in key sectors such as electronics, automotive, medical devices, and agribusiness. The decree’s centerpiece is a tax credit that could potentially offset the entire income tax liability for qualifying businesses. To be eligible, companies must establish their tax residence within these designated industrial zones, marking a clear strategy to concentrate industrial growth and infrastructure development in the Progreso area. This policy is poised to transform Progreso into a hub for high-tech manufacturing and innovation, potentially reshaping the region’s economic landscape.

Progreso offers an excellent opportunity for those looking to invest in real estate in Mexico. One of the key reasons to invest in real estate in Progreso is the city’s stunning location. With its pristine beaches, emerald waters, and surrounding natural scenery, Progreso is a prime destination for a laid-back beach lifestyle or investing in the next real estate hotspot in Mexico. Popularity due to location, climate, community, activities and affordability are increasing demand for rental properties and vacation homes.

Progreso is an attractive option if you’re looking to maximize your return on investment. Get in touch with our agents in the Yucatan. They know how to understand your dreams and show you properties that meet your personal requirements.

Call: 999 418 4827