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From all the news and such I've seen about this is missing the longer-term impact of the system. Yes, in the near-term it will take up the needed capacity that
by wcfields 2y ago
From all the news and such I've seen about this is missing the longer-term impact of the system. Yes, in the near-term it will take up the needed capacity that the Panama canal cannot meet currently due to bottlenecks and price increases, but I believe the longer term is to exploit NAFTA/USMCA by building a manufacturing sector in Oaxaca and Veracruz that uses imported high-technology parts and builds the items there for export to US.
It's already a tried system in Baja California: import the LED/LCD panels from China, assemble in Mex, export to US.
The issue being that Mexico for a country with massive coastlines only has a handful of good deep water ports, especially on the west coast with Lazaro Cardenas, the busiest port in all of Mexico [1], only takes as much tonnage as Port of St. Louis, the 21st US busiest port [2].
[1] https://en.wikipedia.org/wiki/List_of_seaports_in_Mexico https://en.wikipedia.org/wiki/List_of_seaports_in_Mexico
[2] https://en.wikipedia.org/wiki/List_of_ports_in_the_United_States https://en.wikipedia.org/wiki/List_of_ports_in_the_United_St...