Baja California is Mexico’s most western state located just south of California. The Tijuana/San Diego border region is one of the largest in the world for both tourism and commercial trade. With the enactment of NAFTA, Mexico has invested significantly in infrastructure improvements to maintain existing roads and transportation corridors, as well as invest in new infrastructure in order attract new commercial trade to the region.
Highways & Transportation
Tijuana and the Otay Mesa Commercial border crossings are located just minutes south of San Diego, California, giving commercial transportation access to all major North American trade corridors and highways. Baja California has a strong network of well-maintained highways with Highway 1 as the major artery connecting the entire state to the US via San Diego. Running east from Tijuana, Highway 2 provides direct connection to eastern commercial land ports of entry like those in Nogales and El Paso.
Deep water Seaport
In addition to several thousand miles of highways and railways used to move raw materials and finished products throughout the region and to major North American markets, Baja California also has one deep water port located in Ensenada. A mere 63 miles south of Tijuana/San Diego, Ensenada’s Deep Water Port Port is directly linked to over 60 major international commercial ports, including the global hubs of Los Angeles, Long Beach and Hong Kong.
Tijuana’s International Airport is conveniently located just east of the city center taking only 10 minutes by car to reach most major industrial hubs. Executives also enjoy access to San Diego’s International located 20 minutes from the Tijuana and the US/Mexico border.
Utility costs include electricity and natural gas costs and represent up to 8 percent of total location-sensitive costs. Mexico has very low utility costs when compared to other major growth markets. For example, the capital of Baja California, Mexicali, lies just east of Tijuana, supplies most of its inhabitant’s electricity from hydroelectric power provided by the Colorado River.
Currently, utility costs are 4% less than in China. Within the last 2 years Mexico also made the electrical infrastructure for new facility sites easier to obtain by streamlining procedures, offering training opportunities to private contractors, using a geographic information system (GIS) to map the electricity distribution network and increasing the stock of materials.
A majority of the water supply for Tijuana is obtained from the Colorado River. The Baja California State Water Commission (CESPT) opened two new water treatment plants in Tijuana in 2010 for recycled water meant specifically for industrial use. These two new facilities were certified by the North American Bank.
Mexico has a solid access to internet, telephones and communications networks and is constantly adding to its holdings especially in manufacturing clusters throughout the country. Between 2013 and 2018, the Mexican federal government will invest $100 billion dollars as outlined in the Transport and Communications Infrastructure Investment Program 2013-2018. The investment will be focus on improvements and investments, of which 45% will be used to modernize and upgrade transport infrastructure and 55% will be used for telecommunications.
Facilities & Real Estate
The Tijuana industrial real estate market offers more than 57.3 million square feet of pre-owned and new buildings throughout the city. From Class A to Class C facilities, companies will find shell, semi-finished and built-to-suit options, as well as inexpensive land for new facility construction. Tijuana has over 60 industrial parks making it one of the top four industrial markets in Mexico in addition to being one of the most mature in the country. Lease rates throughout Baja California vary depending on term, averaging $0.36 USD to $0.44 USD, per square foot.
Not only does Mexico’s infrastructure feed right into major North American transportation routes and NAFTA corridors, but additionally both U.S. and Mexican customs are structured for expedited processing and logistics back to the United States. CPI works directly with customs brokers and logistics firms to provide its clients quick and effortless transportation back to the United States.
NEW, FASTER PROCESSING: Otay Mesa Commercial Crossing
Otay Mesa is located just 15 minutes east of Tijuana and 20 minutes south of San Diego, California. Designated as the only commercial crossing in all of Southern California, Otay Mesa sees more than 1.4 million commercial trucks crossings into the United States a year.
A new facility located at the Otay Mesa port of entry was recently completed in 2013 by the Mexican government and has customs officers from both the U.S. and Mexico. From laboratory rooms and cold storage, to state of the art inspection equipment, the purpose of joint operation is to speed processing of produce coming into the US. It’s these types of investments in infrastructure and import/export process improvement by the Mexican government that continue to prove the country’s dedication to increasing efficiency in trade and commerce for its region.
In the summer of 2013 US Customs and Border Protection began two new pilot programs at the Otay Mesa commercial crossing for empty trucks heading both north and southbound. These pilot programs are meant to help ease traffic and wait times. Now, the northbound import facility will open at 5am (instead of 6am) and the southbound export facility will open at 7am (instead of 8am). Investments by the US in these types of pilot programs also show the importance of the commercial trade relationship with Mexico.