Roads, trains and port

Mexico’s “March to the South” program that encourages low cost assembly operations to migrate to the poorer southern half of the country is good public policy and the entire NAFTA region would benefit from its successful implementation. [...] Mexico has the opportunity to use the creation of a secure transportation system as a comparative advantage in the global search for investment. [...] Instead of structuring concessions to provide the best service at the lowest price for the end user, there is a disturbing trend to increase short-term receipts for the government or the concessionaire. [...] While its mandate is to improve the country’s transportation system, the central challenge is the confusing mix of roles the SCT plays. [...] The resulting confusion of roles has led to the perception of high risk for private entrants into the industry, ineffective regulation, and poor sector performance.