Mexico Logistics and Express Outlook

Introduction

This report provides a comprehensive overview and analysis of the Mexican logistics and express sector. It contains historical and estimated size of the markets classified by different modes and analyses the trends, drivers and various policy reforms impacting the logistics market in Mexico.

Scope

• The report provides an overview and analysis of the logistics and express markets in Mexico
• Covers the logistics sector across key segments such as modes of transport, including road, rail, air and sea and contract logistics and warehousing
• The report addresses the economic performance and infrastructural development relevant to logistics and express markets
• Drivers and challenges in consumption sectors, such as automobile

Highlights

Due to the challenging economic scenario, the sector declined in 2009 by nearly 8%, from a high of $65.7bn in 2008 to $60.7bn in 2009. The sector is expected to see resumed growth in correlation with the anticipated rise in consumption in the neighboring country, the US.

In the current environment, an important growth driver for logistics providers can be investment in new technologies which bring value addition to their current service offerings.

The 3PL providers are highly nascent in the Mexican scenario with only a handful of players competing on an integrated scale. A lot needs to be achieved in order that the domestic players contribute in providing transportation and warehousing services on a national scale.

Reasons to Purchase

• Understand the size of the Mexican logistics market, detailing the various segments such as modes of transport and services
• Understand the modal split into different markets
• Benchmark key countries against Mexico

Table Of Contents

Overview 1
Catalyst 1
Summary 1
Executive Summary 2
Mexico Logistics: Sector Profile 2
Mexico Logistics: Market Performance 2
Mexico Logistics: Key Consumption Sectors 3
Mexico Logistics: Competitive Landscape 3
Mexico Logistics: Key Trends 3
Introduction 5
Global Logistics & Express Analyzer 5
Definitions 6
Methodology 7
Overview 7
Data consolidation and estimation of data gaps 8
Forecasting until 2014 8
Sanity Check and Data Validation 8
Report Structure 8
Table of Contents 9

List of Figures 10

List of Tables 11

Mexico Logistics: Sector Profile 12
Overview 12
An infrastructure generally lacking in quality: 12
Inefficient regulatory framework: 12
Other factors: 12
Logistics and the Mexican economy 14
Comparison with other economies 16
Modal Splits 19
Mexico Logistics: Market Performance 21
Mexican road freight 21
Mexican rail freight 24
Mexican sea freight 29
Mexico air freight 31
Mexican warehousing 34
Mexican contract logistics 36
Mexico Logistics: Key Consumption Sectors 39
Overview 39
One of the major sectors contributing towards logistics growth in Mexico is the automotive industry 40
Mexico Logistics: Competitive Landscape 43
Overview 43
Leading player profiles 45
Grupo TMM, S.A.B. 45
Zimag Logistics 45
Estafeta 45
Menlo Worldwide Logistics, LLC 45
Kuehne + Nagel 46
Penske Logistics Mexico 46
Ryder 46
Mergers and acquisitions activity in the Mexican logistics sector 47
Mexico Logistics: Key Trends 48
Government funding and initiatives are set to drive reform in the Mexican logistics sector 48
The need for nearshoring is driving logistics growth in Mexico 48
Security concerns and the varied customs laws of the US-Mexico border states dampen logistics expansion 49
Technology usage is increasing steadily 50

Appendix 52
Future reading 52
Feedback 52
Datamonitor consulting 52
Disclaimer 52

List of Tables

Table 1: Mexican logistics and express sector definitions 6
Table 2: Instances of M&A activity in the Mexican logistics sector, 2009-10 47

List of Figures

Figure 1: Comparison of real GDP, total trade and Mexican logistics sector, 2004-14e 15
Figure 2: Leading countries in the World Bank's LPI, 2010 16
Figure 3: Comparison of historical (2004-09) and estimated (2009-14e) growth across leading countries 17
Figure 4: Mexican attractiveness to new entrants compared to emerging nations, 2010 18
Figure 5: Mexican logistics sector value and market split, 2009 and 2014e 19
Figure 6: Road freight value and growth, 2004-14e 22
Figure 7: Road freight volume and growth, 2004-14e 23
Figure 8: Rail freight value and growth, 2004-14e 25
Figure 9: Rail freight volume and growth, 2004-14e 26
Figure 10: Total freight volume, split by road and rail, 2009 and 2014e 27
Figure 11: Sea freight value and growth, 2004-14e 29
Figure 12: Air freight value and growth, 2004--14e 31
Figure 13: Air freight volume and growth, 2004-14e 32
Figure 14: Main air freight companies in Mexico, 2009 33
Figure 15: Total warehousing spend and growth, 2004-14e 34
Figure 16: Total warehousing stock and growth, 2004-14e 35
Figure 17: Total contract logistics value and growth, 2004-14e 37
Figure 18: Total contract logistics value, split by category, 2009 and 2014e 38
Figure 19: Top 10 countries in light vehicle production (million units), 2009 40
Figure 20: Companies operating within the Mexican automobile sector 41
Figure 21: Mexico car and light truck domestic retail sales, exports, and total production (units), 2007-09 42