Interoceanic Corridor of the Isthmus of Tehuantepec

Coordinates: 17°18′00″N 94°59′24″W / 17.30000°N 94.99000°W / 17.30000; -94.99000
Source: Wikipedia, the free encyclopedia.
Interoceanic Corridor of the Isthmus of Tehuantepec
Corredor Interoceánico del Istmo de Tehuantepec
Map of the Isthmus of Tehuantepec showing the location of the ports of Salina Cruz and Coatzacoalcos, and the area's roads (as of September 2006), including railways
Coordinates17°18′00″N 94°59′24″W / 17.30000°N 94.99000°W / 17.30000; -94.99000
Specifications
Length303 km (188 miles)
StatusMain railway line open, two more lines planned for March and July 2024. Salina Cruz port still under construction
Navigation authoritySecretariat of the Navy
History
Date approved14 June 2019
Construction began7 June 2020
Date of first use28 August 2023 (freight)
17 September 2023 (passenger)
Date completed22 December 2023 (railway)
Geography
Start pointSalina Cruz, Oaxaca
End pointCoatzacoalcos, Veracruz
Connects toPacific Ocean from Atlantic Ocean and vice versa

The Interoceanic Corridor of the Isthmus of Tehuantepec (

private investors through the creation of 10 industrial parks in the Isthmus area, as well as two other parks in Chiapas. The project has the goal of developing the economy and industry of the Mexican South through encouraging economic investment, both national and international, and facilitate commerce and transportation of goods internationally.[1]

Initiated under the presidency of Andrés Manuel López Obrador, it has been widely regarded by analysts as his most important project, as it has the potential to offer a long-term boost to the Mexican economy and develop the industry and economy of the South, which has notoriously been one of the poorest regions of the country for decades. It has the potential to be an alternative "cheaper and faster than the Panama Canal."[2]

The project consists on the rehabilitation of the

industrial parks
will be built in the area surrounding the railway to encourage economic investment and industrial development in the region.

On 18 September 2023, the current director of the CIIT,

Line FA
) began that same month. Line Z was officially opened for passengers on December 22, but cargo operations have been delayed.

History

Further information: Tren Interoceánico § History of the Tehuantepec Railway
Mexico topographic map

Background

Plans to connect these two oceans through the

cargo ships attempting to reach the other side of the Americas.[4][5]

Spanish Americas where the two oceans could be connected, including the Isthmus of Panama (belonging to the Viceroyalty of New Granada), remarking the fact that Vasco Núñez de Balboa successfully crossed it as early as 1513 (several years before Mexico was conquered by Spain), but that since then, at the time of the work's publication, no survey of the region nor the determination of its exact geographic position had been made, despite propositions being made since 1528 suggesting cutting that Isthmus and joining the sources of local rivers.[6]

Indeed, he also remarked that

Real Audiencia de Quito) to Acapulco and, from there, to Vera Cruz to be sent to Europe, so as to avoid the dangers and difficulties of navigation to and through Cape Horn.[6] He remarked in the Essay the natural beauty and rich resources of the intendancy of Oaxaca, where Tehuantepec is located, and stated that the port "will become one day of great consequence when navigation in general, and especially the transport of the indigo of Guatimala, shall become more frequent by the Rio Guasacualco [sic]."[7]

In 1774, the Spanish authorities conducted geological research in the Isthmus and issued a decree allowing their colony to create a canal in 1814, but this would not occur until Mexico became an independent country in 1821. Shortly after the independence, the Mexican government conducted its own surveys in the region, which resulted in the survey teams proposing the idea of the construction of a railroad, though this wasn't done due to Mexico's economic crisis of this period.[8]

First attempts to connect the Pacific and Atlantic Oceans through the Isthmus of Tehuantepec

Antonio López de Santa Anna
Benito Juárez
During the period within the governments of López de Santa Anna and Juárez, various attempts were made to link the Pacific and Atlantic Oceans through the Isthmus of Tehuantepec, but none were successful

Mexico had seen the commercial opportunities brought by railway systems since the early years of this industry. Just 7 years after the Liverpool and Manchester Railway was opened in England, Mexican President Anastasio Bustamante, on 22 August 1837, offered a concession to a man from Veracruz named Francisco de Arrillaga with the purpose of building a railway line between Mexico City and Veracruz. Under this concession, the railway was to be finished in 12 years and no other entity was allowed to build a railway between the two cities in 30 years. Though nothing would come about this concession, the Mexican government would continue to try to connect the ports of Veracruz with the country's capital and the Pacific Ocean.[9]

The Garay concession and the New Orleans company

Map of the southern portion of the Isthmus of Tehuantepec based on the Garay survey, showing with three-parallel-line markers the proposed trenches to lead the waters of certain rivers to certain locations, dated to the year 1843 and included in the 1846 account

No serious attempts to construct the corridor would be made until 1842, during the provisional government of Antonio López de Santa Anna, when plans were made to build an interoceanic communication line in the Isthmus (though no such line would be built). The task to achieve this was given to a businessman named José de Garay on March 1 of that year, who would be entitled to collect tolls for its usage for 50 years, paying 1/4 of the profits to the Mexican treasury, and to own uncultivated land stretching 55.7 km (34.6 mi) toward either side of the route, on which he could establish worker colonies. Garay was to conduct, at his own expense, a survey of the region within 18 months at most and the construction of the communication line had to begin within the following 10.[5]

Though the idea of a railway was the one initially proposed and which would be ultimately executed, the lead engineer, the Italian-born Gaetano Moro, advocated for the creation of a ship canal with 150

US dollars), using the Caledonian Canal, in Scotland, as a model. The "Canal of Tehuantepec" proposal "differs in no extraordinary degree [...] from similar works already executed in Great Britain, France, Holland, or the United States," as an account of the project published in 1846 stated. The proposal was to join the waters of the Ostuta River with the Chicapa River nearby, which discharge into Laguna Inferior [es] and Laguna Superior [es] respectively, using trenches, then deliver the waters to the site of Tarifa, and from there create the canal using the nearby rivers, such as the Tarifa, Chichihua and Malatengo to the Gulf and the Chicapa to the Pacific.[10] Garay was officially given the land the concession granted him in March 1843 after delivering the results of the survey, being secured by the Minister of Foreign Affairs and Home Department José María Bocanegra. However, the concession would have expired in July 1844 since the project fell stagnant due to a lack of funds (despite getting access to free labor from three hundred convicts in October,[11] also secured by Bocanegra), but Garay asked for a two-year long renewal a few days before the deadline.[12][5]

Garay understood that solely with Mexican capital the project could not be fully funded, thus he traveled to London, England, in 1844 (where he also published the results of his survey) in hopes of finding investors. Though initially unsuccessful due to hostilities breaking out in May 1846 between Mexico and its northern neighbor, the United States, he managed to renew his grant for two years in November 1846, during the administration of José Mariano Salas, after ceding the lands and privilege to build the communication line in August to the Mexico City-based firm of Manning and Mackintosh; owned by Robert Manning and Ewing C. Mackintosh, representatives of British bondholder committees in Mexico;[13] and to the London-based Schneider & Co., Schneider being an English consul involved in the exploitation of mahogany in the Isthmus. This agreement was ratified in 1847. Throughout the year of 1848, however, Manning and Mackintosh, along with Garay, attempted to sell the concession to the British and United States governments, and then to private U.S. citizens after failing to do so. 18 months would pass without any notable advancements in the project, despite Manning insisting the contrary in an exposition before the government in January 1849.[5]

As these firms disputed with the Mexican government over the validy of this agreement throughout the months following the purchase, they started to look for investors from the United States, as, upon the aftermath of the

American East Coast and the South, and, collaborating with Garay, through a general railroad convention held in October in Memphis, Tennessee. Through these efforts, they managed to attract the attention of wealthy businessmen from New Orleans, Louisiana, at the time the most important city in the South of the U.S., who proceeded to publish an article in The Daily Picayune addressing the Tehuantepec route, offering attractive, albeit exaggerated and at times inaccurate, descriptions of the site, immediately attracting the attention of the city's business elite.[15]

View of Tehuantepec from the Barnard survey, in the early 1850s
Minatitlán, where the Coatzacoalcos river and village used to be, as viewed from the Barnard survey
The city of Veracruz in the 1850s and 60s

In 1850, Hargous approached Judah P. Benjamin, a member of the Louisiana House of Representatives, to negotiate the purchase of the Garay grant with the New Orleans businessmen. Benjamin and the businessmen formed The Tehuantepec Railroad Company of New Orleans (TRCNO), of which Benjamin became chairman,[15] which would later become known as the Louisiana Tehuantepec Company. Hargous gave the company a $500 thousand dollar loan and the company sought to raise $9 million in capital. The Mexican government became aware of the deal with the New Orleans company on December 30, five days after Major John G. Barnard, lead engineer of the U.S. survey team composed of 54 engineers, arrived at the river mouth of Coatzacoalcos, Minatitlán.[16] However, the Mexican government had doubted the validity of Garay's concession for some time: in March 1849, after Manning's futile attempt to demonstrate that works for the construction of the interoceanic line had been active, the government declared that Garay's concession had expired in November of the previous year, a declaration which the British firms protested against since March until they handed the issue over to Hargous in July, when they informed the government that the business had permanently established itself in the U.S.[5]

The situation would get more complicated henceforth. Hargous, soon after purchasing the Garay grant, promoted the advantages of the Tehuantepec route to the

American West Coast from New Orleans, New York or England, the report claims that it "is therefore plain that the superiority of Tehuantepec over all other routes is immeasurably great."[16]

However, the aggresivity of the U.S. Secretary of State

Mexican Senate came to the conclusion that the Garay concession was illegal because it was given under a provisional government and wasn't submitted for approval to Congress before April 1845, thus the New Orleans company had to obtain a concession of its own if it wished to continue the project. As Hargous responded to this with hostility, on 15 May 1851, Benito Juárez, then governor of Oaxaca and future president of Mexico, commanded for all United States citizens in the state to be detained under orders of President Arista, who then proceeded against the engineers of the Barnard survey, ordering them to leave the country immediately. The project had been terminated.[19]

Further attempts from Louisiana (1853-1861)

1850 map of Mexico and Central America, featuring the proposed interoceanic route for the Isthmus of Tehuantepec at the top-left

Despite the termination of the TRCNO project and the tensions with the U.S. government, the Arista administration still sought to create the interoceanic line of the Isthmus of Tehuantepec. Thus, Congress passed a legislation two weeks after dismissing the Garay grant, in May 1852, for the president to "find and promote a Mexican-based company to develop transportation on the isthmus." He, therefore, called for companies to submit proposals, and he would then offer a concession to the company with the most suitable project proposed.

postal service through the Isthmus of Panama), obtaining it on 5 February 1853 after some initial trouble which was solved after the incorporation of Sloo and a group of Mexican investors, forming the Mixed Company.[21]

Bond issued on 1 August 1858 by the Louisiana Tehuantepec Company

During the course of the

Second Franco-Mexican War
in the following decade.

The Liberals suffered a series of significant losses during the period of negotiations, including

pirates, and were intercepted by two U.S. ships on March 6, acting as ordered by their government. The Conservative naval force was defeated in the subsequent battle and the prisoners were taken to New Orleans. Miramón was thus forced to return to the capital now that his troops had no naval support, and the Conservatives started to suffer a military decline which eventually led to their defeat.[22][24]

The terms of the treaty have remained controversial in Mexican society, over a century after it was signed. Mexicans continue to believe it almost led to key territories of their country being given away to the U.S. When Mexico started debating in the 1990s, during the presidency of Ernesto Zedillo, on turning the Isthmus of Tehuantepec into a major trade route once more, the controversy would resurface since Mexicans feared the project would be largely dependent on the U.S. and would fall into the control of foreign companies, which for some meant "a part of our national territory would fall into private hands." While discussing the new project, politicians directly compared the government's plan with the treaty.[26]

Other projects

Advertisement from 1850 for the Veracruz–San Juan line, Mexico's first railway, which would later be used to connect Mexico City with the port

On 31 May 1842, nearly 2 months after Garay received his concession, López de Santa Anna authorized the committee of creditors in charge of maintaining the road between Perote, Veracruz, and the port to build a railway to connect the port with the river of San Juan. This railway, 11.5 km (7.1 mi) long, built with the assistance of Belgian personnel and using English materials, was inaugurated on 16 September 1850, making it Mexico's first ever completed railway. In 1853, the government would offer another concession to British subject John Laurie Rickards to build a railway between Mexico City and Veracruz, though the concession was invalidated about two years later and a concession was given to the Masso brothers, on 2 August 1855, to build a railway from Acapulco to San Juan, passing through Mexico City. On 4 July 1857, under President Ignacio Comonfort, the line from Mexico City to Villa de Guadalupe was inaugurated, which would form part of the Mexico City–Veracruz line the government had been attempting to create for nearly two decades by this point. Works were suspended shortly thereafter and the concession was given on August 31 to a businessman from Orizaba named Antonio Escandón, who also purchased the Veracruz–San Juan line.

Works to build the Mexico City to Veracruz line officially began late in that year. In spite of facing great difficulties over the following years, due to the

Second Franco-Mexican War, the Mexico City–Veracruz line was finally inaugurated in January 1873, under President Sebastián Lerdo de Tejada, who assisted the ceremony, concluding nearly 36 years of work to finish the line that would connect the capital with the most important port in the country for international commerce. This railway became known as Ferrocarril Mexicano, the predecessor to the Tehuantepec Railway built under President Porfirio Díaz, which would lay the foundation for the Interoceanic Corridor.[9][27]

The Tehuantepec Railway and later projects

New-York Tribune report on the soon-to-be inaugurated Tehuantepec Railway

Despite the failure of the previous attempts and controversial events surrounding the usage of the site, businesses and the government continued to show their interest in the creation of a communication line between the two oceans through the narrow Isthmus, and so, during the presidency of Porfirio Díaz, himself a man from Oaxaca, the project of a railway in the Isthmus of Tehuantepec would start to get shape, this time insuring the neutrality of the passage and that the Mexican nation would preserve its sovereignty, now that it enjoyed political stability and had a strong standing army, which was respected internationally due to its victories during the country's wars against Spain and France.[4] Under previous administrations, the construction of Mexican railways had been largely inefficient, as nearly all Mexican railways, with the exception of the Ferrocarril Mexicano, were limited to small lines, as many concessions expired due to results remaining undelivered. Díaz sought to combat this issue through "very liberal" concessions which resulted in most of Mexico's current railway lines being built.[9]

In 1878, an American company formed by a man named Edward Learned proposed being in charge of the construction of the railway, starting it in the year 1880, but due to considerable delays in its construction—just building 35 km (22 mi) in about two years, less than the agreed amount—the contract expired in August 1882. The task was then given to a man named Deflín Sánchez, who managed to build 76 km (47 mi) by April 1888, but there were still two thirds yet to be built. A contract was then given to Edward McLurdo, but he died before the contract could be carried out. The agreement, however, was taken by his widow in January 1892. In February, the government made an agreement with a firm of three contractors, Hampson, Chandos S. Stanhope and Corthell. It was originally planned for them to finish the railway by September 1893, but due to a lack of funds they were unable to do so. However, in December a new contract with Stanhope was signed to finish the work in nine months.

The Railway was completed in 1894, its first train passing through it in September of that year in a ten-hour long trip, starting at Coatzacoalcos at 6 in the morning and finishing at Salina Cruz at 4 in the afternoon. It officially opened in 1895. However, its quality was not sufficient enough for interoceanic traffic, so the Railway couldn't be used to link the oceans yet. In 1896, a private English company was authorized to be contracted to finish the construction of the Railway, S. Pearson & Son, Ltd., (today known as

telegraph system, two new ports; Salina Cruz, Oaxaca, to open up to the Pacific Ocean, and Coatzacoalcos, Veracruz, to the Atlantic; and of maintenance and administration.[3][4]

Films by Salvador Toscano [es] showing the inauguration of the Tehuantepec Railway and views of the Isthmus and its people
Ships at the newly inaugurated port of Coatzacoalcos, 1907

Finally, on 23 January 1907 the Railway, along with the ports of Salina Cruz and Coatzacoalcos, were inaugurated by President Díaz, the inauguration being celebrated with the transportation of 11,500 tons of sugar from

USS Arizona (BB-39)), followed by two Japanese ships. Up until that point, the American-Hawaiian Steamship Company had been using the Strait of Magellan to transport cargo from New York City to Honolulu and other ports in the Pacific. It then had signed a contract ensuring 500,000 tons of sugar to be transported through the Tehuantepec Railway.[3] For the first six years, the Railway seemed to be highly successful, and provided a significant economic boost to Mexico. Throughout that period, it transported over 850 thousand tons of cargo across the two oceans. Throughout the construction of the railway the towns in the Isthmus area enjoyed considerable economic growth, to the point that the cities of Tehuantepec and Juchitán de Zaragoza had a larger economically active population in 1890 than the national average, only surpassed by the Distrito Federal (today known as Mexico City). In addition, Coatzacoalcos transitioned from a small village of fishermen within Minatitlán to its own municipality
in 1881.

The port of Veracruz in 1909

However, this success was only temporary, as the usage of the Railway began to plummet in 1914, when the Panama Canal was officially opened. Due to the profits made out of the shipment of products from New York to Honolulu or any other port in the Pacific, American businesses found it much more convenient to not let that business fall into the hands of the English or the Mexican government, thus they quickly started to go through Panama instead, driving away the Railway's main source of profit. In that year, the cargo of the Railway fell by a third, and in the following year by 77%. In addition, a few years earlier, in 1910, Mexico became engulfed in its largest civil war in history, the Mexican Revolution. Railways across the country started to be used almost exclusively for war, the Tehuantepec being used, as its usage plummeted, to transport Carrancista revolutionary troops and oil for ships.[4]

During the presidency of

Special Economic Zones (Zonas Económicas Especiales, "ZEE" by its initials in Spanish and "SEZ" in English), but, as the project kept being postponed until 2017, the penultimate year of his presidency, little could be done regarding this. This project also came under criticism for a lack of budget for the infrastructure, for being "too ambicious" (though the current Corridor project has been found to be equally as ambitious), for its Zones being vulnerable to dispersion, among other reasons, though it did attract a certain degree of investment which would've produced several thousands of jobs.[29] Though many Mexican Presidents have had plans to start building the Corridor again, this would not occur until the beginning of the presidency of Andrés Manuel López Obrador in 2018, who, as a man from the southern state of Tabasco, made the development of the Mexican South a priority of his government.[30][31] In March 1995, the private sector became allowed through a constitutional amendment to participate in the provision of railroad services. In 1999, the state-owned company Ferrocarril del Istmo de Tehuantepec, S.A. de C.V., (FIT) was founded to operate the railway that connects Salina Cruz with the locality of Medias Aguas [es], Veracruz. Through this company, the construction of the modern Corridor would be made.[32]

The modern Corridor

A project was presented on December 23, 2018, called "Program for the Development of the Isthmus of Tehuantepec," with the purpose of "developing the economy of the region respecting its history, culture and traditions," with Rafael Marín Mollinedo, who would later be assigned as the first director of the Corridor, being in charge of the project, proposing the creation of the Corridor, then known as the Interoceanic Multimodal Corridor (Corredor Multimodal Interoceánico).[33]

The Corridor project started development in the year of 2019, with the purpose of developing the economy and infrastructure of the area of the Isthmus of Tehuantepec in the Mexican South, which had faced social and economic stagnation for decades due to "inadequate public policies, official disinterest and decades-long exclusion of the public investment budgets, which lead to disinterest from private investment to the development of the region and its subsequent stagnation and deterioration," as the first official report of the project stated, on September 17 of that year.[34] The Corridor project was officially created on 14 June 2019, according to the decree published in the Official Journal of the Federation on that day, as a decentralized public organization.[35] Ten days after its official creation, López Obrador assigned Rafael Marín Mollinedo as the first general director of the project.[36]

In that same year, in April, López Obrador officially cancelled the project of the Special Economic Zones, under the statement that it failed to fulfill its promised benefits, despite that it had a relatively promising development in 2018.[29] However, as Baker Institute researcher Adrian Duhalt stated, the Corridor project has a wider range of impact than its predecessor, since it will cover an area of 79 municipalities in Veracruz and Oaxaca, while the SEZ only covered a handful of municipalities near Salina Cruz and Coatzacoalcos.[31]

External videos
video icon Ceremony for the beginning of the rehabilitation of the Tehuantepec Railway held on 7 June 2020 at Sayula de Alemán, Veracruz, livestreamed on Andrés Manuel López Obrador's YouTube channel (in Spanish). Present at the ceremony were President López Obrador, Veracruz Governor Cuitláhuac García Jiménez, former CIIT director Rafael Marín Mollinedo, then Oaxaca Governor Alejandro Murat Hinojosa, FIT director José Sánchez Pérez, chief of the CIIT's Unit of Infrastructure and Transportation Herman Deutsch Espino and Sayula's Mayor Fredy Ayala González. Of these, García Jiménez, Murat Hinojosa, Marín Mollinedo and lastly López Obrador delivered a speech just prior to the beginning of the rehabilitation works.

Works for the rehabilitation of the Tehuantepec railway started in June 2020. It was reportedly expected that a cargo train would be able to move at a speed of 70 km/h (43 mph), increasing their speed from the prior 20 km/h (12 mph), and that passenger trains would be able to move at a speed of up to 100 km/h (62 mph).[37] López Obrador later stated that passenger trains will actually move at a speed of up to 80 km/h (50 mph).[38] According to the Fifth Government Report of the presidency of López Obrador, works for the modernization and expansion at the port of Salina Cruz through the construction of a breakwater started in January 2022.[39]

According to the advancement report published on 14 February 2022 by the FIT on

wooden sleepers and the application of exothermic welding to fix the tracks.[40] In a controversial instance, in July 2023, it was announced that 200 trees would be cut down in the municipality of Salina Cruz for the construction of the Corridor, without offering much other information, at that time, about the business involved in the operation (later identified as ABCD ARQUITECTURA S.A. DE C.V., which is also responsible for the construction of the Coatzacoalcos railway station)[41] or its environmental impact despite the requests of local communities,[42] though the municipal council did agree to requests to spare some of the trees depending on their age, size and location, and to form a strategy to avoid massive deforestation.[43] The process to cut these trees began on August 8, though reportedly the business involved "has made the environmental compensation, in accordance to the income law."[44] The environmental impact of the Corridor has continued to be a source of concern
for various communities in the Isthmus region.

In late November 2022, Marín Mollinedo announced his intention to step down from his position as director of the CIIT, to become the head of the

naval engineering in 1989, aside from decades of studies in both national and international institutions.[45] By decree, the CIIT has been under the control of the Mexican Secretariat of the Navy since March 2023.[46]

On the early morning of 19 May 2023, with the permission of a presidential decree, the Mexican Armed Forces took control of 127 km (79 mi) of the railways belonging to Ferrosur, a company owned by the conglomerate Grupo México, in Veracruz, sparking controversy. This portion is vital for the creation of the Corridor, since it connects the locality of Medias Aguas [es] with the port of Coatzacoalcos, completing the connection between the Pacific and Atlantic Oceans which the projects seeks to achieve. This event initially caused a dispute between Grupo México and the Mexican government. A few days after the event, various newspapers erroneously reported that the government accepted paying Grupo México 7 billion pesos in compensation, less than the 9.5 billion which the owner of Grupo México Germán Larrea Mota-Velasco had asked for, but this was denied by López Obrador on a morning press conference on May 24, stating that negotiations were continuing.[47] On the night of May 31, this issue was resolved when the two parties reached an agreement. Under the agreement, instead of financially compensating the occupation, the concession of the railway, which possesses the occupied sections, in favor of Ferrosur granted by the government on 14 December 1998 will be extended by eight years so that it remains in force until the year 2056. According to Ferrosur, the FIT will be solely responsible for "the optimal safety conditions and the costs and expenses derived from the operation and maintenance of the track, slopes and yards in the aforementioned sections. We will only have to cover the fee corresponding to the right of way."[48][49]

On 21 March 2023, director Morales Ángeles reported that the rehabilitation of the railway that connects Oaxaca and Veracruz had been 79% completed.[50] The Fifth Government Report stated that by June 2023 the railway had an accumulated physical progress of 90%, while the breakwater of the port of Salina Cruz was at 30%.[39] In late May 2023, the government declared that the Transisthmian Railway, one of the key elements of the project, has almost finished construction and estimated its inauguration at August or September 2023 and that will begin operating at full capacity in December,[51] by which point the government expects to inaugurate all other infrastructural projects of the Corridor, as the governor of Oaxaca Salomón Jara Cruz stated on a press conference in late June.[52]

First tests

On August 13, the third day of a supervision tour through the Corridor, López Obrador was presented with the first

Line FA) would be ready by the end of the year or, at its latest, in March 2024.[56]
Line FA's operations, however, have been delayed since then.

On Monday August 28, the Corridor started its first test on the rehabilitated tracks, transporting 10

Head of Government of Mexico City Claudia Sheinbaum and Governor Jara Cruz referred to the event as a historic moment.[63] López Obrador arrived at Coatzacoalcos after a nearly 9-hour-long trip, exiting the Salina Cruz station at 10:35 and arriving at Coatzacoalcos at 19:30. Reportedly hundreds of citizens waited for his arrival for hours to welcome him.[64]

On the morning press conference of the following day, general director Morales Ángeles offered details on the beginning of the Corridor's operations: according to the announcement, the

Yucatan Peninsula.[67]

On October 14, López Obrador made a second official trip through the Corridor, also accompanied by Ojeda Durán. He posted a video on X recorded during this trip in which he announced that the opening of the Corridor would take place on December 22, as a few technical details were yet to be polished. He also announced that the passenger train would move at a speed of up to 80 km/h (50 mph). The trip, from Coatzacoalcos to Salina Cruz, lasted 7 hours, about the same amount of time as a bus trip, though he stated in the video that the train would be faster.[38]

Inaugurations

External videos
video icon Line Z's inauguration ceremony held on 22 December 2023 at Salina Cruz, Oaxaca, livestreamed on President López Obrador's YouTube channel (in Spanish). The livestream included the signing of agreements with private investors and with the Portuguese government, Guelaguetza dances traditional to the indigenous peoples of the Isthmus of Tehuantepec, and the speeches delivered by Secretary of the Navy Ojeda Durán and President López Obrador.

On Friday December 22, passenger operations for Line Z were officially inaugurated. The inauguration ceremony in Salina Cruz—held shortly after the inauguration of the

U.S. Ambassador to Mexico Ken Salazar, Carlos Slim and the governors of Oaxaca, Veracruz, Tabasco and Chiapas boarded the passenger train. They arrived at Coatzacoalcos after 8 hours, at 20:13.[69][70]

However, the passenger line is not the main feature of the Corridor, since its primary objective is the transportation of cargo from ocean to ocean through the Isthmus of Tehuantepec. The Corridor is not yet completely ready for this purpose, since various works needed at the port of Salina Cruz are still under construction. The delays on the construction of the

American East Coast.[75]

The Corridor

According to the Institutional Program of the Interoceanic Corridor of the Isthmus of Tehuantepec, published by the Official Journal of the Federation on 3 July 2023, the area of the Isthmus of Tehuantepec is within 79 municipalities: 46 in Oaxaca and 33 in Veracruz, where a considerable portion of the population is Indigenous (57% self-identified and 30% Indigenous language speakers in the Oaxaca Isthmus, and 25% self-identified with 7% Indigenous language speakers in the Veracruz Isthmus). These municipalities were chosen for "their proximity to the Tehuantepec Isthmus Railway, cultural relevance, historical productive relations, their logistical relevance and productive potential to make the region competitive." According to the Program, 60% of the population of the Isthmus lives in poverty, and 15.5% live in extreme poverty.[76] In addition, in 2018, the six states with the highest poverty rates in Mexico were all in the South, including Veracruz and Oaxaca at spots 4 and 3 respectively, according to the CONEVAL. These poverty rates, in fact, worsened between 2008 and 2018, Veracruz's raising from 51.2% to 61.8% and Oaxaca's from 61.8% to 66.35%.[31] It is within this area where the infrastructure for Corridor will be built.

Tehuantepec Isthmus Railway and ports

See also: Tren Interoceánico § Redevelopment
Line Z
standard gauge
Route map
Legend
 Coatzacoalcos
Line FA to Palenque
branch line to Minatitlán Refinery
Jáltipan[77]
Medias Aguas
Jesús Carranza[78]
Coatzacoalcos River
 Oaxaca-Veracruz border
Donají[a]
Mogoñé[a]
Las Flores Stream
 Matías Romero
Chivela[a]
Line K to Ciudad Hidalgo
Los Perros River
 Ixtepec
Tehuantepec River
 Salina Cruz
This diagram:

One of the most vital operations for the Corridor project is the rehabilitation of various portions of the Tehuantepec Isthmus Railway built under President

Line K, which had a reported general progress of 5.5% in October 2023.[84] As mentioned above, the rehabilitation is reportedly expected to result in a speed increase for trains using the railway, from 20 kilometres per hour (12 mph) to 70 km/h (43 mph) for cargo trains, and of up to 80 km/h (50 mph) for passenger trains, according to President López Obrador.[37][38]

The Railway will have three lines, the most essential being Line Z, of 212 km (132 mi) in length, which connects the port of

Maya Train, in the Yucatán Peninsula, two of the most prominent megaprojects of López Obrador's presidency.[84][85] In general, the Corridor will cover a distance of 303 km (188 mi) between the two ports.[30]

The Tehuantepec Isthmus Railway forms one of the many railroad projects López Obrador has executed throughout his presidency. Under his administration, a large number of railroad projects have been made which he intends to finish before the end of his term in September 2024, with the goal of returning passenger trains to Mexico, which haven't been used in decades as Mexico's current railroads are used only for cargo (with the exception of

El Chepe), a fact which he views as "irresponsible" as passenger trains continue to be functional in Europe and Asia.[86]

As part of the project, a

oil refining process into useful fuel and petroleum coke.[89] Through this, it is projected to increase the refinery's daily gasoline production by 70 thousand barrels. It began construction in October 2022 and is projected to be inaugurated in October 2024, though its construction has undergone complications due to layoffs and delays due to funding issues. Reportedly, the government will invest 60 billion pesos on it.[90]

The ports of Coatzacoalcos and Salina Cruz will both be modernized and expanded: in Coatzacoalcos, a new highway access is being built, along a railway access by the port precinct of Laguna de Pajaritos, and

Secretary of Economy, claimed that, due to the Corridor, the ports of Salina Cruz and Coaztacoalcos will become the largest ones in the country. As of May 2023, the largest ports in Mexico are Manzanillo, Colima, and Lázaro Cárdenas, Michoacán.[91]

In an interview, on 30 October 2023, Morales Ángeles stated that the government had invested "a little over 70 billion pesos" on the Corridor's infrastructure, including the rehabilitation of the three railway lines, the improvement of the ports of Coatzacoalcos, Salina Cruz, Port Chiapas and Dos Bocas, investments in highways and the rehabilitation of the Salina Cruz oil refinery.[92]

Docking site of the port of Salina Cruz, Oaxaca, in 2021
A cargo ship loading up with trains at the port of Coatzacoalcos, Veracruz, in 2007

On 25 October 2023, the month following a meeting between President López Obrador and then

Mexican Secretary of Foreign Affairs, signed a memorandum of understanding to establish the maritime corridor. The corridor "is expected to profoundly impact relations between Latin America and Europe," according to a news report.[95][96]

Industrial parks

As part of the Corridor project, 10

production plant in the Corridor will not pay an income tax for the first three years and will enjoy an income tax reduction of at least 50% and of up to 90% for the following three if they meet "certain job creation goals."[97] They also will not pay a value-added tax throughout the four years following 6 June 2023, the day following the publication of the decree encouraging investment through these tax benefits.[98] In addition to this, they will be guaranteed services of water, electricity and natural gas, as López Obrador declared on a press conference in May 2023.[99]

The industrial parks have interested businesses both national and international, such as vehicle manufacturers (though these have expressed their desire for better infrastructure in the region),

Secretary of Economy, estimated that the first five Development Poles which were declared will sum a private investment of 7 billion US dollars; she stated that the businesses which have contacted the Secretariat offer, on average, 1 billion dollars in investment.[103]

On 11 May 2023, the government reported the details of six of the ten Development Poles for Welfare, officially declaring them the following day. On October 11, three more Poles were declared, and on October 16 the tenth Pole was declared.[104][105][106][107]

On June 20, the government published an invitation to tender to obtain a two-year long concession with possibility of purchase for five of the first six Poles (excluding San Blas Atempa). Registrations for the invitation were held between June 26 and 30,[108][109] and the decisions were officially made on November 17.[110][111] On October 30, the government published another invitation for the Poles declared throughout that month, and the decisions for it were programmed for 12 April 2024. The only Pole which has yet to be opened for bidding is San Blas Atempa.[112][113]

In the first weeks of October, the Secretary of Economy stated that over 100 businesses showed interest in the Corridor, and of these 12 reached the final phase of the bidding. By then, according to Enrique Nachón García, Secretary of Economic and Port Development (SEDECOP), these businesses were already enjoying the tax benefits offered at a state and federal level. Buenrostro added that there is contemplation for the construction of 2 industrial parks in the area of

Line K reaches Cuidad Hidalgo, at the south of the state.[110][114] On December 22, general director Morales Ángeles confirmed that there will be two additional Poles near Port Chiapas.[115]

On Wednesday November 22, the names of the companies which won the bidding of the first five Poles were revealed: Mota-Engil México S.A.P.I. de C.V., the Mexican subsidiary of the multinational construction group of Portuguese origin, won both of the Coatzacoalcos Poles and the Pole of Salina Cruz. This company was contracted in 2022 by the Secretariat of the Navy to rehabilitate 310 km (190 mi) of Line FA, and has also worked on the construction of several other railway works;[116] Grupo Constructor Urcedic S.A. de C.V., a Mexican construction company, won the Pole of San Juan Evangelista; and both Profharmax S.A. de C.V., a pharmaceutical and medical company, and Transportadora Comexsa S.A. de C.V., a Mexican industrial transportation company, won the Pole of Texistepec.[111] The concessions for these Poles were officially signed and offered during the Line Z's passenger train inauguration ceremony on 22 December 2023.[68] However, on 23 February 2024, without explaining many details, the Pole of San Juan Evangelista was declared deserted by the Corridor's general director Morales Ángeles, even though a representative of Urcedic was an honored guest during the inauguration of Line Z's passenger train. Three days later, a second tender was called for, whose winner will be announced on May 20.[117] Later, on April 15, the companies which won the Poles declared in October were announced: Santa María Mixtequilla was won by Profharmax in consortium with ABCD ARQUITECTURA S.A. DE C.V., and Matías Romero Avendaño was awarded to Sergio Mañón Pineda in consortium with ABCD ARQUITECTURA, but Asunción Ixtaltepec was declared deserted.[118]

On 14 December 2023, a private organization named ProIstmo was presented, which seeks to "revive the South-Southeast of the country," contemplating an investment of $14 billion pesos in the Pole of Texistepec.[119] This organization is in charge of the development and construction of the Pole of Texistepec through the consortium between Profharmax and Transportadora Comexsa. Construction for the Pole of Texistepec officially started on 28 February 2024, with a planned investment of $1.8 billion in urbanization.[120][121] ProIstmo is also involved in the Poles of Santa María Mixtequilla and Matías Romero. Sergio Mañón Pineda, who was awarded the Pole of Matías Romero, is a director of investment attraction in ProIstmo, and one of the directors of ABCD ARQUITECTURA is also a member of ProIstmo's board of directors.[122]

On 24 November 2023, López Obrador claimed on a morning press conference that a

US President Joe Biden (not mentioning the size of the investment at the time), "that we are involved in a large-scale green hydrogen project in the Oaxaca region in Mexico. [...] We will provide further updates as the project progresses." Though the president lamented that he would not see the project completed before the end of his term, he guaranteed that "this will help the Isthmus [of Tehuantepec] very, very much."[123][124][125][126] During the Corridor's inauguration ceremony, the Mexican government, represented by the Secretary of the Navy José Rafael Ojeda Durán, and CIP, represented by its partner Ole Kjems Sørensen, signed a memorandum of understanding to start the operations of Helax Istmo, the company responsible for this objective, originally created in 2022.[127]

Reactions and economic impact

According to

Secretary of Economy Raquel Buenrostro Sánchez [es] claimed the Corridor would contribute to 3% to 5% of the GDP once it starts operating at full capacity.[128] It also has an advantage over the Panama Canal regarding its location, as American businesses seeking to transport cargo from one ocean to the other wouldn't have to travel all the way south to Panama, resulting in much faster transportation.[46]

Alfredo Oranges, ambassador of Panama in Mexico, stated in May 2023 that, rather than a competitor to the Panama Canal, the Corridor can actually be "complementary" to it, offering to the government of López Obrador the century-old experience in port infrastructure of Panama and the capacity to receive cargo ships with large drafts.[129] The former general director of the CIIT Rafael Marín Mollinedo agrees with this idea, since the Panama Canal "is saturated and cannot cope with all the demand," thus he states that "we don't call it an alternative, we prefer to refer to it as a complement."[30]

Economists have observed that, if done well, the Corridor has a strong opportunity to boost the Mexican economy, especially in the South, by facilitating trade between the

American East Coast and the Mexican South, as Mexican exports in this region are "very underrepresented," as Mexican economists Luis de la Calle and Adrián de la Garza pointed out. López Obrador has also expressed his expectation for the Corridor to improve trade with Asia, especially with China.[130] From these factors, they agree that it has the potential to become the most important infrastructure project of López Obrador's presidency. Economist and analyst of the energy sector Rosanety Barrios suggests that, through government investments in highways, ports, railways, and offering safety and energy services, the Mexican South can gradually achieve obtaining the conditions of the North, a region which has enjoyed economic growth for years.[28] Analysts have also concluded that the project will benefit various impoverished communities of Oaxaca by offering employment and access to services like health, water, sewer systems and education, along with various other improvements in infrastructure.[131] Even some of López Obrador's critics, like economist and researcher Jorge Basave Kunhardt, have recognized the potential of the project, deeming it as "a promising project, in my opinion the only one with long-term sustainable projection among the megaprojects executed in this sexenio," though he noted that it "is not a project with short-term results, and it will only be successful if it transcends sexenios and administrations from various parties."[29]

In September 2023, it was reported that the South and Southeast of Mexico, as a result of the various megaprojects López Obrador's administration has developed in the region, including the Corridor, has experienced unprecedented levels of economic growth after facing decades of stagnation. The reports found that the Mexican GDP on a nation-wide scale grew to an annual rate of 3.6% during the second quarter of the year, and that the eight states of the South and Southeast grew by 6%, twice the amount of the northern states.[132][133]

The Mexican Secretary of Navy José Rafael Ojeda Durán stated on 1 June 2023, during a conference in Ciudad Madero, Tamaulipas, during the National Navy Day, that with the Corridor Mexico will become "a world shipping power" in the near future.[134] Former Secretary of Government Adán Augusto López stated in a speech at Coatzacoalcos, prior to the 2024 Mexican general election, that the Corridor will not only be beneficial to Mexico, but to the rest of the world: "the Transisthmian [Corridor] is an old dream of the Mexicans and it's now a reality for all the inhabitants, from Salina Cruz to Coatzacoalcos; it's not just about connecting the country, it's about connecting the world."[135]

Challenges

Though many view the creation of the Corridor in a positive way, analysts have pointed out that in order for the Corridor to achieve its goals it will have to overcome some considerable challenges, especially regarding safety and infrastructure, as crime and lack of proper infrastructure in the Mexican South have been a persistent issue.[46]

In terms of infrastructure, the Corridor has the challenge of supplying the necessary amounts of

nearshoring has had in the country, as, despite the country's gas pipeline network's length having increased by over 50% between 2011 and 2022, it is still insufficient for the supply for the Mexican South and Southeast, where the Corridor is being built, a factor which has contributed to that region's lack of industrial development and economic competitiveness. As of 2023, nearly half of the demand for natural gas was concentrated in the six states bordering the United States, while only 16% was concentrated in the South and Southeast.[137]

Francisco N. González Díaz [es], president of the National Industry of Auto Parts (Industria Nacional de Autopartes), has stated that, though various national vehicle manufacturers have shown interest in the Corridor, not all of them could be functional in the region due to its highway infrastructure.[100] Carlos Corral Serrano, executive director of the Mexican Association of Urban Planners (Asociación Mexicana de Urbanistas), has found the existing infrastructure of the region insufficient and in need of improvement. A limited amount of qualified personnel in the region could also be a challenge, which thus makes an investment in education and training a priority for the Corridor.[138]

Another potential challenge the Corridor faces is the demand for an alternative route to the Panama Canal. The Mexican government has shown great enthusiasm for the project, as the Canal has suffered an intense drought which has reduced the number of ships that can cross it per day and has limited the weight each ship can carry, an issue which Mexico sees as an opportunity since such issues caused by climate change may increase the demand for a land-based alternative route, in addition to the fact that Mexico became a highly attractive country for investors in recent times.[139] However, former director of the Regulatory Agency of Railway Transportation in Mexico (Agencia Reguladora de Transporte Ferroviario en México), Benjamín Alemán, believes that the current infrastructure of the Corridor is not sufficient to attract ships with large drafts, thus it is probable that only smaller ships would be interested in using it, though the Corridor's closer proximity to Asia and the American East Coast, one of the busiest trade routes which cross through the Americas, could be a point in its favor.[140]

Independently from these factors, the British newspaper

A.P. Møller-Mærsk (one of the world's largest container shipping groups), stated that the Corridor "could be very useful" if more manufacturing came to the Mexican South, but otherwise there would be "less demand." In addition to this factor, the report also found that the Corridor's initial phase will have the capicity to transport a maximum of 1.14 million twenty-foot equivalent units (TEUs) annually, and in September a projection was presented which indicated that 304 thousand would move through it by 2028 and 1.3 million by 2036, which is considerably less than the amount transported through the Panama Canal, which transported 10.9 million in 2022. The report states that the construction of sufficient infrastructure for the project could take years and large sums of money, which makes it a risky venture.[139]

Controversies

Indigenous and environmental activism

Though some observers have pointed out that the Corridor has the potential to boost the economy of Southern Mexico and benefit the local population and impoverished communities of Oaxaca, as is one of the goals of the project,[131] several incidents have occurred in which Indigenous and environmental activists have clashed with the interests of the government for the Corridor or have faced other related problems.

Several Indigenous communities in Oaxaca, for instance, have raised their concern regarding the environmental impact of the Corridor, with communities like that of the locality of Puente Madera, in the

EZLN and the National Indigenous Congress would refer to this event as an act of political repression, and demanded for the protesters to be liberated immediately.[143] They were all liberated two days later.[144]

Such conflicts with Indigenous environmental activists were already expected, as various Indigenous communities of the Isthmus region are heavily opposed to the exploitation of their lands' resources by industrial parks, having entered into conflicts for them for decades. This, the

UNAM academic Antionio Suárez suggests, could be one of the Corridor's greatest challenges, though he stated that, regardless, the Corridor is still "more positive than negative for the nation."[30] The Indigenous peoples desire, above all other services, better agricultural infrastructure which does not negatively interfere with the local biodiversity and their traditions, in addition to the depollution of the land and water, hence the environmental concerns due to the industrial parks.[136] Furthermore, the Isthmian population is concerned regarding a perceived surge in crime and violence which was not present prior to the project's creation, as locals claim that the Isthmus region was peaceful, but as the project progressed "unprecedented" acts of violence started to take place. This has also made Indigenous communities afraid of losing their identity. There have also been concerns over several activists, including elderly people, being criminally charged, allegedly over their opposition to the project.[145]

On 4 July 2023, a Zapotec activist from Santa María Mixtequilla, Noel López Gallegos, was found dead by the local police in the municipality 24 hours after being reported as missing. The cause of his death was apparently an inflicted head injury. Prior to his death, López Gallegos and his brother had questioned the payment of 130 million pesos which the community received in exchange for the land, both of them claiming that it should be distributed among all four thousand inhabitants of the municipality, to the discomfort of the local comuneros since, as he claimed, the payment only benefited them and their offspring. His death sparked outrage, with the Union of Communities of the Northern Zone of the Isthmus of Tehuantepec (Ucizoni) condemning the murder and blaming it as a result of "how the imposition of a megaproject breaks the community fabric" since he was a member of a peaceful civil resistance group which questioned the development of the Corridor.[146] As of July 12, little information is known regarding this case, other than that the police arrested a man in relation to his disappearance two days after the body was found. Acts of violence like such have worried various Indigenous communities in the Isthmus.[147]

In late July, 23

Mexican National Guard, in Santa María Mixtequilla, to members of the Community Assembly and people who showed resistance to the project, illegal occupation of lands, dispossessions and acts of physical aggression against comuneros and comuneras in the town of Santa Cruz Tagolaba, in Tehuantepec, among other violations in other sites committed by the National Guard, the Armed Forces, the state police and other authorities, businesses and armed groups.[148] The organizations reported at least 21 cases of intimidation and threats against community defenders or their families, 11 acts of physical and psychological violence, three homicides between October 2022 and July 2023, and other cases of human rights being violated in various parts of the Isthmus.[149] Additionally, farmers and local community members have reported how their property and land has been stolen, that they've been victims of extortion and that violence has increased in the Isthmus of Tehuantepec since the project became known, yet the authorities have done little to combat this issue: "It's already been two years and the Attorney General of the Republic, the Vice-Attorney of the Isthmus and the Attorney General of the State have done nothing, the situation is still the same. [...] These people [the alleged criminals] [...] are walking freely like any other citizen," a local comunero told reporters in October 2023.[150] Likewise, local communities have also claimed that the Corridor authorities have not fulfilled many of their promises. Some inhabitants of the municipality of Salina Cruz, for example, claim that during the works of the railway's rehabilitation some people were evicted, though new homes for them are being built, and promises to improve services of electricity and water have remained unfulfilled, just weeks before the Corridor's planned inauguration: "They [the Corridor authorities] used to beg us and offer us about everything, now they won't even acknowledge us," they claim.[151]

In general, reactions of Indigenous peoples and Isthmian communities to the project have been polarized: on one hand are the people who rejoice over the expected increase in investment, tourism and economic growth, as well as the expected improvements in infrastructure and services; these people believe this project is one of the greatest that have been executed in the region in decades. On the other hand are the people concerned and upset over the issues mentioned above, as concerns over allegedly flawed environmental studies, the perceived rise of organized crime,

forced relocations of Indigenous communities and other mentioned issues persist.[152]

Directors

Notes

  1. ^ a b c Although construction on the majority of these stations, with the exception of Salina Cruz, was incomplete,[79][80] eight of them still opened on December 22, 2023. The stations of Jesús Carranza and Jáltipan opened in February 2024.[81][82] On the day of the inauguration, the government of Oaxaca estimated that the rehabilitation of the historic Matías Romero station would conclude in June 2024.[83]

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Works cited

Further reading

External links

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