2013 thunderbird corporate site selection winner - trex: bringing passenger rail service to the...
DESCRIPTION
Analyzed Mexico's economic environment and looked for high-growth industries to do business in. Decided to focus on infrastructure/transportation. Due to the lack of passenger rail service in Mexico City, developed a proposal for new rail service connecting Mexico City to Pachuca, Teotihuacán, and Puebla.TRANSCRIPT
ì Bringing commuter train service to Central Mexico Regional Business Environment: La4n America | Team Mexico | Summer 2013
Team Mexico
Dayvisson Da Silva Sean Foley Shinya Ishihara
Huiling Liu Sanjeev Raghuvanshi Greg Venegas-‐Estrada
Agenda
ì Introduc4on
ì Industry Analysis
ì Business Proposal
ì Bombardier Joint Venture
ì Country Stats & Poli4cal Analysis
ì Economic Analysis
ì Social Impact
ì Summary
ì Industry Analysis By Huiling Liu
Mexico: Transportation Industry
ì Current ì 30% popula4on: Private
Car ì 70% popula4on: Public
Transporta4on
ì Opportuni4es ì The last two presidents
allocated funds mainly towards roads and ports, telecommunica4ons
ì No compe44on in passenger train service.
ì Business Proposal By Greg Venegas-‐Estrada
Mexico City Metropolitan Area • Includes the Federal District, and
municipali4es in Mexico State and Hidalgo.
• 2010 Popula4on: 21.2 million • 9 million people live within the
Federal District. • Majority of people living in the metro
area commute to the Federal District or within Mexico State.
Source: Censo de Población y Vivienda 2010 – Estados Unidos Mexicanos – Resultados Preliminares
Current transportation options outside the Federal District
TRE line A !Mexico!City!–!Pachuca!
Benefits
• Popula4on within 5km radius : 5 million
• Daily commu4ng trips: 5.75 million • Distance: 110 kilometers. • Current commute 4me:
• By car: 2 ½-‐3 hours • By public transporta4on: 3+ hours
• Future commute 4me: 90 minutes
TRE line B !Mexico!City!–!Teotihuacán!
Benefits
• Popula4on within 5km radius : 4 million
• Distance: 65 kilometers. • Current commute 4me:
• By car: 1 ½-‐2 hours • By public transporta4on: 2 ½ + hours
• Future commute 4me: 1 hour. • Poten4al for tourist demand
connec4ng Mexico City to Teo4huacán archeological site and pyramids.
TRE line C !Mexico!City!–!Chalco!–!Puebla!
Benefits
• Link from Downtown Mexico City to Interna4onal Airport
• Popula4on within 5km radius: 9 million • Distance from Buenavista to Chalco: 46
kilometers. • Current commute 4me from Chalco to Buenavista
sta4on: • By car: 1 ½ -‐ 2 hours • By public transporta4on: 3 hours
• Future commute 4me: 1 hour.
• Distance from Buenavista to Puebla: 165 kms. • Travel 4me from Puebla to Mexico City:
• By car: 2 – 2½ hours • By public transporta4on: 3+ hours
• Future commute 4me: 1 hour 45 minutes.
Current transportation hubs outside Mexico City
• Retail space available. • Introduce Park-‐n-‐Rides to
Mexico. • Offer connec4vity to Metro
and Bus Rapid Transit. (Where available).
Station Proposal
• Child care services. • Cyber cafés. • Banks • Schools • Hotel (where feasible).
Retail
Partnership
ì Grupo Mexico owns railway rights.
ì Currently focused on freight train service.
ì Many railways siing idle, abandoned.
ì Provides more efficient use of exis4ng assets.
Source: Grupo Mexico corporate site
.
VERACRUZPUEBLA
OAXACA
MORELOS
D.F.
EDO.MEXICO
HIDALGO
TLAXCALA
MAPA DE CAPACIDADES DE VIA EN TERRITORIO FERROSUR
La Soledad HC-15 /HA-25
19 de Marzo HA-5
Emp. El Rey H-41/HA-0
Gra
l. Za
rago
za A
B-40
Rosa
l AB-
38
El G
orrió
n AB
-31
Vale
ntín
AB-
26
Tete
pang
o AB
-22
Tlax
coap
an A
B-15
Emp.
Cen
tral A
B-9
Tula A-80/AB-0Tolteca A-77Cruz Azul A-71
Dorantes A-67El Salto A-63
Huehuetoca C.M.A-47/B-47(Límite territorial)
Temascalapa H-39Paula H-34
Xolox H-28
Teocalco
Lecheria A-21
Buenavista
Axochiapan VC-114.3(Límite territorial)
Valle de México
Apiza
co S
-139
/ SA
-0Tetlapayac S-104
Apan S-93copi S-84A nalco
C . Sah gú B 24d a n H -
Tlanalapa HB-15
Sta. Inés HB-11
San Agustín H-61 / HB-0
Tepa HC-0 /H-67
La Trinidad HC-5Xochihucán HC-9
Téllez HA-19
Relin
asH-
54
Tezo
ntep
ec
H-50
Las Colonias HC-18Cadena HC-19
Pachuca HC-26/AB-69
Emp.
Dtto
. AB-
65
Conc
epció
n AB
-63
Teca
mat
l AB-
55
Beni
to J
uáre
z AB-
42
La P
alm
a S-
62
Otu
mba
S-5
6
Om
etus
co S
-68
Los Reyes VK-27(Límite territorial)
Amecameca VK-63 / VL-0
San Sebastián VK-94
Cuautla VK-123/VC-160
Atlixco VC-39
Izúcar de Matamoros VC-77
Irolo S-78 / HB-28
Moyotzingo VB-75
San Martín VB-70
Mezquite SC-296Acultzingo SC-289
Vaquería SC-276Puente Colorado SC-267
San A. SoledadSC-250 / EA-40
Cañada EA-34
La Defensa EA-31Llano Grande EA-24Cabras EA-19Carmen EA-16Miahuatlan EA-11
Espe
ranz
a S-
245
/ EA-
51
Los
Reye
s S-
238
Jesús de Nazareno S-234/SC-234
Sta. Ma. Techicalco S-232San Pedro S-226
San Andrés S-221
San Juan Atenco S-217
Aljibes S-210
Rinconada S-201
Moctezuma S-189
San
Mar
cos
S-18
2Ch
iapa
VB-
167
Sesma VB-170Manantiales VB-175
Vicencio VB-179
Carmela VB-184
Oriental VB-189 (Límite territorial)
Tam
ariz
S-17
6
Huam
antla
S-1
65
Acoc
otla
S-1
53
Santa Cruz SA-11
Santa Ana SA-17
Teolocholco SA-26
Zacatelco SA-29
Panzacola SA-35
Grajales VB-163Jara VB-158
Ixtenco VB-153Citlaltepec VB-149
Los Pinales VB-146Acajete VB-139
Tepatlaxco VB-136Amozoc VB-128 / E-17
Tres Jagueyes E-29Cártago E-32
Tepeaca E-38Ajajalpan E-43
Buenaventura E-46San Simón E-49
Zoyapetlayoca E-51 Porrero Rubín E-53Rosendo Márquez E-55
Huixcolotla E-61Tecamachalco E-66
Alseseca E-70
Las Animas E-78Rancho Chico E-83
Tlacotepec E-88Tlacoyalco E-94
Libertad E-96Pazoltepec E-98
Temalacayuca E-102Tepanco E-105
Cuayucatepec E-113Carnero E-119
Tehuacán E-128
La Huerta E-142Sánchez E-149
Puebla VB-110 / SA-45
Muñoz S-129
Calderón S-116Cerrito S-114
Soltepec S-110
Altepexi E-160
San Sebastián E-167
Nopala E-174
-
La Patrona G-10Los Angeles G-13Cerro Blanco G-14
Cuichapa G-17
Xuchiles G-24Omelaca G-28
La Zafra G-30Pocitos G-33
Presidio G-35El Paraiso G-38Motzorongo G-42
Tezonapa G-48
Refu
gio
G-5
2Ra
ncho
Tab
las
G-5
4La
Est
rella
G-5
6
Acat
lán
G-6
1
La M
arga
rita
G-6
9Vi
cent
e G
-70
Cam
alot
e G
-71
El C
añav
eral
G-7
6
Las
Prie
tas
G-8
5
TIERRA BLANCA G-95 / GA-101
El Cien G-99Amapa G-104
La Granja G-110Las Yaguas G-113
Tres Valles G-134
Tuxt
epec
GF-
13G
ela
GF-
6
Papaloapan G-145
Las
Piña
s G
-152
B. J
uáre
z G
-159
Gua
daví
ctor
G-1
61
Obi
spo
G-1
67
Lom
a Bo
nita
G-1
73
Dobl
ader
o G
-189
Bana
no G
F-1Pdte. Juárez GF-20
Azue
ta G
-201
Mas
oco
G-2
09G
arza
Bla
nca
G-2
10
Isla
G-2
21
Angostura G-262
Coat
zaco
alco
s Z-
5 / Z
T-5
/ FA-
0
Amatlan G-6
Córdoba G-0 / S-318
VERACRUZ S-417 / V-470 / GA-0Santa Fe V-461
Espartal GA-14
El Tejar GA-20
Paso del Toro GA-25
Los Robles GA-33
Guayabo GA-42El Rodeo GA-46
Tlalixcoyan GA-51
Piedras Negras GA-56
Madereros GA-60
Cospalapam GA-68
Joachin GA-72
Moreno Sur GA-79Jicaro GA-83
Estanzuela GA-89
Fulgencio D. Vázquez GA-95
El L
aure
lal S
-413
Teje
ría S
-409
Sant
a Ri
ta S
-405
Mat
a Lo
ma
S-39
9M
.F. A
ltam
irano
S-3
94
Sole
dad
S-38
2
Cam
arón
S-3
61
Paso
de
Mac
ho S
-348
Peñu
ela
S-32
3
Fortí
n S-
310
/ SC-
336
Para
je N
uevo
S-3
27
Potre
ro S
-334 M
ata
de A
gua
S-37
3
Met
lac
S-30
7
Sum
ider
o S-
304
Mol
ino
S-29
8O
RIZA
BA S
-292
Río
Blan
co S
-287
Noga
les
S-28
5Sa
nta
Rosa
S-2
83
Encinar SC-311 / S-281
Tecamalucan SC-303
Venta Salada E-181
Aldama E-193
San Antonio E-196
Ignacio Mejía E-200
Mejía Viejo E-205
Los Cues E-217
Tecomavaca E-225
Quiotepec E-235
Los Obos E-245
La Venta E-251Cuicatlán E-253
San Pedrito E-256Tomellín E-258
Organal E-266
Almoloyas E-276
Venado E-284
Santa Catarina E-293
Anonas E-303
Parían E-309
Escondida E-315
Las Sedas E-323
Telixtlahuaca E-332Suchilquitongo E-339
Mixteca E-341Lachixolana E-342
Don Benito E-343Magdalena E-345
Etla E-349Mogotle E-354
Hacienda Blanca E-358OAXACA E-367
San Cristobal GB-48+500
Km. GB-1+500
Rodríguez Clara G-237
Jimba G-247
Los Tigres G-255
Juanita G-272Bellaco G-276
Campo Nuevo G-295
Azufrera Z-46Jáltipan Z-43
Chinameca Z-37 Guanomex ZA-8
Minatitlan ZA-12
Hibueras Z-30/ZA-0Guasuntlán Z-25
H.P.Sánchez Z-20
Berta
Z-1
0
Agustín Lira A.
Cangrejera
El Chapo
Cuichapa
Achotal G-286
Medias Aguas Z-97/G-300
Juile Z-86Miguel Alemán Z-83
Almagres Z-76
Correa Z-69
Ojapa Z-64Mina Mana Z-61
Texistepec Z-57
Adolfo Ruiz Cortines Z-103
Macaya Z-106
Adalapa
FERR
OCAR
RIL DE
L IST
MO DE
TEHU
ANTE
PEC
Las Tres Gardenias Z-110
Súchil Z-116
Jesús Carranza Z-126
Adriánbs *2011
GOLFO DE MEXICOSan LorenzoVB-0 / HB-37
Calpulalpan VB-9.4
Teot
ihua
cán
S-45
(Lím
ite te
rrito
rial S
-47.
616)
A QueretarioFXE
z
Lí ea Juáre
n
A QueretaroKCSM
a e
sFu
erd
er
vicio
La Unión VB-103
Xalostoc VK-2/S-15
Fuera de servicio
Guadalupe S-124
Tenango VK-54 San Rafael VL-12
Nuevo Carnero EA-5
Fuera de servicio
Límite Territorial E-150
Límite Territorial FA-18
Productora Nacional VC-142
Jaltocan H-19(Límite territorial
H-18+800)
Santa Clara VB-94
Xalapa
Atencingo VC-97
1+
VB-
1100
0
V10
+255
B-7
SA-42+650Límite
de Patio
Límitede Patio
S-292+220/SC-323.320
0S-
289+
50
0S-
320+
40
65
0 S
-31
+0 Límite
de Patio
60G-2+1
A-4 0G + 50
150
0 S
-4+
0
Límitede Patio
v-465+000
9+
G-
728
9
Límitede Patio
A-99 0 0G + 0
9+
5 G
-1
52
-4
00
G1
7+0
0 G
F-20
+00
Límitede Patio
Z- 2+809 0
28
G-
9+8
69
Límitede Patio
A6
0F
-+
00
8 Z
-5+
00
Límitede Patio
ZA1
+000
-2
ZA-
0+00
0
Límitede Patio
7S-
136+
00
0S-
141+
00
SA-2+000
Límitede PatioPantaco
Línea SB
Ecatepec S-22
Tepexpan S-33
Línea TSLínea SH
Cuatitlán C.M. A-29
Línea N
Línea C
Línea YB
Línea YH
Línea NA
MLínea
orelos
Línea B
Línea B
A TolucaKCSM Naucalpan N-11
Línea YL
Tultepec H-9
SIMBOLOGIAFERROSUR (FSRR)LINEA CORTA OAXACA (SCT)FERROVALLE (FVTM)KANSAS (KCSM)FERROMEX (FXE)FERROCARRIL DEL ISTMO (FIT)FERROCARRIL SUBURBANOOTRAS LINEASDIVISION ESTATALESTACION
Línea VK
Huehuetoca N.M. B-47
Fuera de servicio
Fuera de servicio
Línea V
Línea V
Línea V
.C
O
T
FF C DEL ISTM DET EHUAN EPEC
Tlalnepantla NA-9
Xoxtla VB-87
Tlaloc VB-57
Huitzilzingo VK-42
Tepetlixpa VK-73
Nepopualco VK-89
San Juan Texcalpa VK-105Atlatlahuacan VK-109
Km. VB-72+500
Km. VB-11+000
Fuera de servicio
Cuautitlán N.M. B-28
CerroJardín
Línea V
Fuera de servicio
Límitede Patio
E-119+000
E-11
4+50
0
Límitede Patio
E-13
0+00
0
E-12
6+00
0
EA-10+235
Límitede Patio
E-19+000VB-1
26+0
00
VB-127+900
CAPACIDAD 130 TON.
CAPACIDAD 120 TON.
CAPACIDAD 110 TON.
CAPACIDAD 100 TON.
Grupo Mexico’s Railway Network
Source: Grupo Mexico corporate site
ì Support by the federal government
Source: Financial Times
Future passenger train service in Central Mexico
ì Bombardier Joint Venture By Sanjeev Raghuvanshi
Bombardier Joint Venture
ì Bombardier Transporta4on: ì German Subsidiary of Bombardier Inc., Canada ì Industry leader in ground transporta4on ì 40 Years of worldwide experience in railways ì Successfully built train projects in the U.S. and Mexico
ì Advantages: ì Shorter implementa4on 4mes ì Cost control due to risk minimiza4on ì Low life-‐cycle costs ì Complete project financing ì Complete pornolio of products, services and latest
innova4ons Source: Bombardier corporate site
Source: Bombardier corporate site
What Bombardier can offer
ì Already an4cipa4ng bidding on all three of new Mexican passenger rail projects (Government-‐ini4ated routes).
ì One Stop Global Provider
ì Design, Build, Operate and Maintain Projects
ì Electrical and Mechanical Systems Supplier
ì Fully Comprehensive Service Provider
ì Credible Systems Integrator
ì Financing
Source: Bombardier corporate site
Alternative
ì Rated AA by S&P
ì EU-‐Mexico Free Trade Agreement
ì Can provide short term and long term financing (DB Finance) ì Over €15 billion in debt issuance
program
ì Also: knowledge, technology and logis4cs
ì Transport 5.6M/day
ì “Long Distance Business Unit”-‐ Cross Border Rail Services ì Ex: “DB Schenker” employees and
services: Embraer (Brazil)
Source: Deutsche Bahn AG company site
International Interest
ì Investors and developers have already begun eyeing Pena Nieto's plan to oversee a passenger rail renaissance in Mexico.
ì Markus Mildner, execu4ve vice president of Siemens Mexico , has said the German industrial conglomerate, which also manufactures trains, is interested in bidding.
ì He calls this project "viable."
Source: Financial Times
ì Country Stats & Political Analysis By Shinya Ishihara
Mexico: Facts
ì Popula4on: 115 million
ì GDP: USD$1,177.1 billion
ì GDP/Capita: USD$10,238
ì GDP growth: 3.7% (Forecast avg. 2012-‐2017)
ì Capital City: Mexico City
Source: Economist Intelligence Unit
Mexico: Facts
Mexico: Political Analysis
ì Packenham Model – Enrique Peña Nieto (2012-‐2018) ì Poli4cal Party Systems:
Consolidated ì Par4do Revolucionario
Ins4tucional (PRI) ì PAN (Right) / PRD (Ley)
ì Poli4cal Creden4als of President: Good
ì Leadership Skills of President: Good ì Approval ra4ng is high
ì Poli4cal Consensus: Moderate. ì PRD opposes market-‐oriented
policies
ì Economic Analysis By Huiling Liu
Mexico: Economic Analysis
ì Hipskind Model ì Flexibility of Exchange Rate:
Flexible ì Size of Current Account Deficit:
ì Small (1.4% of GDP)
ì Size of Budget Deficit: ì Small (1.8% of GDP)
ì Amount of Foreign Reserves: ì Large (USD$170 billion)
ì Amount of Foreign Debt: ì Small (21% of GDP)
Source: Economist Intelligence Unit
ì Social Impact By Dayvisson Da Silva
Mexico City’s Chaotic Transport System Social Impact
ì Road traffic accidents cause 24,000 deaths per year
Source: Publica4on: BNA -‐ English News Provider: Business News Americas Date: August 27 2012
National government invests just 11% of budget in public transport. -‐ 12bn pesos (US$910mn) of national funds were spent in 2011 on highway infrastructure, public spaces, public transport, cycle and pedestrian infrastructure. -‐ 76% of that funding was spent on improvements to roads, thus favoring the individual car owner, rather than public transport. 6 Budget in public transport
Highway infrastructure, public spaces, public transport, cycle and pedestrian infrastructure
Roads -‐ favoring the individual car owner, rather than public transport
NaFonal Government Investments (2011)
US$910 mil
76%
11%
Source: Publica4on: BNA -‐ English News Provider: Business News Americas Date: August 27 2012
Money & Time Saving -‐ Quality of Life
Cars over public transport leads to more traffic -‐ It costs $ 15.8 Billion per year in terms of lost man hours
The average round-‐trip commute to work in Mexico City is 2 hours and 30 minutes
Source: Ins4tute for Transporta4on and Development Policy
Environment – Pollution
Cost of environmental degrada4on 5% of GDP in 2011
Source: Publica4on: BNA -‐ English News Provider: Business News Americas Date: August 27 2012
ì Summary By Greg Venegas-‐Estrada
Summary
ì Corporate Site Selec4on: Mexico City.
ì Investment azrac4veness: ì Posi4ve poli4cal and economic outlook. ì Government involvement and support. ì Partnership opportunity with key players. ì No compe44on in passenger train service. ì Azrac4ve investment with a posi4ve social impact. ì High demand for public transporta4on use. ì Free Trade Agreements advantages – Bombardier
(NAFTA), DB Bahn (EU-‐Mexico FTA).
¡Gracias!
Thank you! Obrigado! ध"यवाद! תודה לך! !谢谢你 شكرا!
Ви благодариме! ありがとうございました!
Sources
ì Bombardier company site ì hzp://www.bombardier.com/en/transporta4on/
products-‐services/transporta4on-‐systems.html
ì Censo de Población y Vivienda 2010 – Estados Unidos Mexicanos resultados preliminares ì hzp://www.censo2010.org.mx/doc/
cpv10p_pres.pdf
ì Deutsche Bahn AG company site ì hzp://www.deutschebahn.com/en/group/
business_units/dbbahn_long_distance/2200504/business__unit__db__long__distance.html
ì Economist Intelligence Unit – Mexico 2013 ì hzp://country.eiu.com/Mexico
ì Encuesta Origen-‐Des4no 2007 ì hzp://igecem.edomex.gob.mx/descargas/
estadis4ca/ENCUESTADEORIGEN/EOD2007.pdf
ì Ins4tute for Transporta4on & Development Policy ì www.itdp.com
ì Lizbeth Diaz, Reuters. “Mexico sees $300 billion in infrastructure spending.” Kingston Whig Standard. 16 July 2013, 12 n. pag. Print.
ì Merrill Douglas, “In Mexico, rail is on a roll”, Jan 2012 ì www.inboundlogis4cs.com
ì Mexico’s Infrastructure opportuni4es 2013-‐208 ì hzp://export.gov/mexico/
mexicoinfrastructureopportuni4es/index.asp
ì OECD Economic Survey of Mexico 2013 ì hzp://www.oecd.org/eco/surveys/mexico-‐2013.htm
ì “Top ten largest ci4es in the world” Maps of the World 25 March 2013, : Web, 29 July 2013. ì hzp://www.mapsofworld.com/world-‐top-‐ten/
world-‐top-‐ten-‐largest-‐ci4es-‐map.html