Background on Jesús Esteva and the Secretaría de Infraestructura, Comunicaciones y Transportes (SICT)
Jesús Esteva, the head of Mexico’s Secretaría de Infraestructura, Comunicaciones y Transportes (SICT), announced a new policy requiring the use of domestically produced steel in construction projects. This decision aims to support the Mexican steel industry amidst challenges posed by tariffs imposed by the United States government.
Steel Types and Their Applications
The steel in question includes reinforcing bars (rebar) and structural steel, which are essential for building bridges and potential passenger train stations with metallic structures, similar to older train stations.
It’s important to note that the steel for rail tracks purchased by the Mexican government for new passenger trains is different and not produced domestically.
Collaboration with the Construction Industry
Esteva’s announcement came after he met with the Cámara Mexicana de la Industria de la Construcción (CMIC) to sign a collaboration agreement. The purpose of this partnership is to strengthen ties between the SICT and CMIC, promote specialized worker training, and ensure high-quality public works nationwide.
Key Aspects of the Collaboration Agreement
- Establishing joint mechanisms to promote training, transparency in procurement processes, and constructor company participation in the country’s infrastructure development.
- Implementing a voluntary contribution scheme of 0.2% on the total amount of public works contracts to bolster the capabilities of companies involved in the sector.
- Luis Méndez, CMIC president, emphasized that the agreement is not merely symbolic but a tool to build trust between the government and industry, ensuring transparent public works and proactive industry involvement in transforming Mexico’s infrastructure.
Addressing Concerns on Project Costs
When asked if the steel industry can meet the new requirement, Esteva stated that they would evaluate this with the industry itself. If certain production limits are identified, they might allow contractors to choose their steel suppliers, but only after the industry demonstrates its production capacities.
Regarding potential cost increases in construction projects, Esteva clarified that there’s no reason for higher expenses. He explained that current bidding conditions don’t include such limitations, so domestic production should ideally result in lower costs.
Key Questions and Answers
- What is the main focus of the SICT’s new policy? The policy mandates using domestically produced steel in construction projects to support the Mexican steel industry facing challenges from U.S. tariffs.
- What types of steel are affected by this policy? The policy applies to reinforcing bars (rebar) and structural steel used in building bridges, train stations, and other infrastructure.
- Will this policy increase construction costs? According to Esteva, there’s no reason for cost increases, as domestic production should ideally result in lower expenses.
- What is the purpose of the collaboration agreement with CMIC? The agreement aims to strengthen ties between SICT and CMIC, promote specialized worker training, and ensure high-quality public works nationwide.
