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Development Plan in Oaxaca Includes Major Transportation Corridor

LADB Article ID: 80250
Category/Department: Mexico
Date: 2017-03-29
By: Carlos Navarro

The state of Oaxaca has announced plans to construct a new highway and upgrade rail infrastructure to create a more direct connection between its port of Salina Cruz and the port of Coatzacoalcos in Veracruz. Oaxaca Gov. Alejandro Murat, who announced the initiative in early March, said the project would provide shippers an efficient way to send their cargo between the Pacific and Atlantic oceans via the Isthmus of Tehuantepec, thus providing an alternative to the Panama Canal. Panama took steps to increase the handling capacity of its canal via an expansion project completed in 2016. Mexico’s proposal would potentially also compete with a plan contemplated by Nicaragua to build its own canal. The plan, put forth by President Daniel Ortega’s administration, has run into significant opposition.The 337-km highway and the rail line for the Ferrocarril del Sureste in the Isthmus of Tehuantepec are part of the Mexican government’s grand plan to improve the country’s transportation infrastructure, including port facilities. Earlier this year, the upgraded port of Tuxpan in Veracruz was inaugurated. Four other ports in Mexico are receiving upgrades, including Matamoros in Tamaulipas state, Seybaplaya and Ciudad del Carmen in Campeche state, and the city of Veracruz.

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