Logistics Will Be the True Engine of Growth in Latin America
- Editorial
- Apr 22
- 4 min read
Latin America is not losing competitiveness because of a lack of investment. It is losing it because it does not know how to move that investment. That is the uncomfortable paradox few want to acknowledge: growth exists, capital is arriving, yet logistics—the invisible infrastructure that connects everything—remains the weakest link.
For years, the region’s economic narrative revolved around manufacturing, natural resources, and macroeconomic stability. Today, that conversation has shifted. According to the Inter-American Development Bank, logistics costs in Latin America account for between 18% and 35% of product value—nearly double that of OECD economies. This is not a technical issue. It is a structural disadvantage.
Mexico sits at the center of this tension. As nearshoring reshapes global supply chains and accelerates the relocation of production from Asia to North America, the country is not only competing to attract investment—it is competing to move it better than anyone else. But here lies the core problem, Mexico is attracting investment… without having solved its logistics system.
“The logistics sector no longer supports growth. It defines it.”
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Broken Infrastructure, Growth Mexico Cannot Move
Global trade grew by more than 3.2% in 2025, driven by the reconfiguration of supply chains, according to the World Trade Organization. Yet in Latin America, that growth hits a clear limit: infrastructure.
Ports like Manzanillo are operating at full capacity. Lázaro Cárdenas holds strategic potential but has yet to achieve full integration. Along the northern border, crossings such as Nuevo Laredo handle the largest volume of land trade, yet face operational bottlenecks that increase costs and delays.
In Mexico, nearly 80% of cargo is transported by road. This not only raises logistics costs but also exposes the system to security risks, congestion, and inefficiencies compared to global standards.
While Asia optimizes speed and Europe consolidates multimodal corridors, Latin America continues to operate with a fragmented logic.
“A country that does not control its logistics does not control its economy.”
The issue is not that Mexico lacks assets. It has two oceans, a strategic border with the United States, and expanding industrial clusters in the Bajío and northern regions. The problem is that these assets are not connected as a system.
Nearshoring Without Logistics Is Just a Promise
Nearshoring has placed Mexico firmly on the global radar. In 2025, foreign direct investment grew by more than 12%, driven by sectors such as automotive, electronics, and advanced manufacturing. Companies from Asia, Europe, and the United States are redesigning their supply chains to move closer to the North American market.
But attracting investment is only the beginning. The real challenge is sustaining it. Companies are no longer looking solely for competitive costs. They are looking for operational efficiency. Delivery times, transportation reliability, customs digitalization, and logistics capacity determine where a plant is built—and where it is not.
In Mexico, customs processes can take up to 2.5 times longer than in OECD economies. Every hour lost at the border is a warning signal for investors.
“Nearshoring without logistics is just a promise.”
According to the World Bank, improving logistics efficiency can reduce trade costs by up to 15% in emerging economies. In an environment where every day matters, logistics is no longer operational—it becomes public policy.
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The Global Race Is No Longer About Producing, but Connecting
Mexico is not competing with its neighbors. It is competing with Vietnam, Poland, and Morocco for control of the supply chains of the future.
Europe has consolidated logistics corridors that integrate ports, railways, and industrial hubs. Asia continues expanding its global reach through strategic infrastructure investments. Africa, supported by multilateral organizations, is accelerating its regional integration. The world is organizing itself around connectivity. Latin America, by contrast, remains fragmented.
“Logistics begins locally, but defines globally.”
Mexico has the opportunity to become the logistics hub of North and Latin America. But that requires more than investment—it requires vision. Multimodal integration, process digitalization, route security, and territorial coordination.
Because logistics does not fail at ports. It fails in the last mile: in poorly connected streets, in delayed permits, in cities that were never designed as economic nodes.
Logistics Governance, Real Power Lies at the Local Level
The region’s greatest deficit is not financial—it is institutional. In Mexico, logistics is not being managed as a cross-cutting state policy but as isolated projects. Coordination between municipalities, states, and the federal government remains limited, while investors evaluate entire ecosystems.
This is where local governments become critical actors. Urban planning, local connectivity, regulatory efficiency, and security directly impact the logistics chain.
“It’s not a lack of investment. It’s a lack of vision.”
The future of growth in Latin America will depend on its ability to build intelligent, resilient, and sustainable logistics systems. But before competing globally, Mexico must resolve its own internal integration. Because the problem is not that Mexico is not growing. It is that it is growing without moving efficiently.
At interAlcaldes, we have documented how territories that understand logistics as a strategy—not just an operation—are redefining their place in the global economy. Municipalities that connect infrastructure with vision are no longer just geographic points; they are becoming nodes of power.
Mexico is already on the global map. The more uncomfortable question is: is it ready to move within it… or will it remain a transit point?
Is your municipality prepared to compete in the global logistics economy?
Written by: Editorial
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