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The Mayan Train: A Catalyst for Nearshoring in Mexico?

The Mayan Train project is a 1,525-kilometer intercity railway in Mexico that will traverse the Yucatan Peninsula, connecting beach resorts with ancient Mayan sites. The project is expected to be completed in December 2023, and the first section of the train will start operating in the same month, transporting both local residents and tourists.


nearshoring

Why is the Maya train important for the local economy?

The Mayan Train will bring tourists from Cancun and Riviera Maya to Yucatan, boosting the economy and jobs.


It will also function as a freight train, connected to the Interoceanic Train project, improving logistics and competitiveness in Yucatan and the southeast.


Industries in the peninsula will have direct access to Salina Cruz port, Progreso port, and the US east coast. Progreso port could become a new border for US exports, currently underrepresented on the east coast.


Therefore Yucatan governor Mauricio Vila Dosal believes that the Mayan Train will allow Yucatan to take advantage of the current nearshoring boom and compete with other regions like Bajio and northern Mexico. He explained that his administration supports the project because it will benefit tourism but also industry in the state.



What is nearshoring?

Nearshoring is the relocation of manufacturing and other operations to a country that is geographically closer to the company's main market. This can be done for a variety of reasons, such as to reduce transportation costs, improve communication and coordination, or to avoid tariffs and other trade barriers.



To sum up, the Mayan Train project is projected to bring significant economic advantages to the Yucatan Peninsula, including increased tourism, improved logistics, and increased competitiveness for businesses in the region, likely allowing the Riviera Maya to ride Mexico's nearshoring boom.


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