Sustainability and competitiveness of the Inter-Oceanic Corridor of the Isthmus of Tehuantepec

Abstract

The project entitled “Corredor Interoceánico del Istmo de Tehuantepec” (Tehuantepec Isthmus Interocean Corridor), aims to take advantage of Mexico's strategic geolocation to serve as another link for international business between Asia and the America East Coast. This is a Mexican government project focused on increasing Mexico’s competitiveness in international trade by reducing the transit time between vessels coming from Asia to the United States East Coast and vice versa. The project explores connecting the Pacific Ocean with the Gulf of Mexico, through the Tehuantepec Isthmus, using the current railway infrastructure that links the ports of Coatzacoalcos (Veracruz state) and Salina Cruz (Oaxaca state). This paper analyzes the sustainability and competitiveness of the project in terms of its economic, social and environmental impact. Variables (time and cost) will be compared against other major commercial links, such as the Panama Canal (ports of Balboa to Colón), and various ports on the east and west side of the United States. This proposal considers the logistics and capacities/limitations of both maritime and land transportation, since it would connect both Mexican ports with other ports from the United States or other countries bordering Mexico. However, this research paper does not take into consideration the costs or initial investment and capacities of infrastructure for the remodeling of the railways and the ports, or any other investments that may be required to carry out the project