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 Mexico: About City of Veracruz

POPULATION

The City of Veracruz, with a metropolitan area population of approximately 500,000, is the largest city in the state of the same name. The population of the state of Veracruz is 7,054,167, which represents 7.4 percent of the total population in the country.


STATE DESCRIPTION

The territory of the state borders with 7 states and with the Gulf of Mexico. The large coastal line of Veracruz is the longest among the many states of the Gulf of Mexico. It has an extension of 425 Mi. The climate varies drastically, offering humid warm zones and year round snow at the highest peaks. Yet, most of the territory is located in the tropics and it results in humid warm weather, with rain during the summer and an annual average temperature of 77F. The state is divided into 210 municipalities. More than 1,200 archaeological sites constitute the prehispanic heritage of the state. Approximately 35% of Mexican rivers flow across Veracruz.


LOCATION

The City of Veracruz is strategically located and has excellent highway connections to the local area and beyond via the modern federal and state highway network. Import and export freight coming to the city is moved over an extensive system of highways to Mexico City, and also the states of Puebla, Queretaro, Hidalgo, Chiapas, Tabasco, to name a few.


REGIONAL INFLUENCE

The port of Veracruz has a capacity of 12.0 million tons per year. It serves as the main gateway of Mexico to the Atlantic Ocean. The Port of Veracruz is linked by highway and railroad to the country’s capital, Mexico City. The Gulf Basin represents a potential market of 30.0 million people. Many trucking companies offer overnight delivery to and from the lucrative Mexico City market at competitive rates. There is also rail service with future on dock and double stack capability between the port, Mexico City and beyond.


PROXIMITY TO KEY CITIES

Direct commercial air service is now available to the United States, through Houston, Texas. The following are distances from Veracruz:


To:
 
Austin, Texas
miles 947
 
Corpus Christi, Texas
miles 783
 
Dallas, Texas
miles 1140
 
Houston, Texas
miles 977
 
San Antonio. Texas
miles 873
 
Tijuana, BCN
miles 2,084
 
Monterrey, Nuevo Leon
miles 643
 
Merida, Yucatan
miles 637
 
Guadalajara, Tabasco
miles 630
 
Queretaro, Queretaro
miles 402
 
Chihuahua, Chihuahua
miles 1,152
 
 

DEMOGRAPHIC IMPACT

Veracruz received USD$49.7 million from foreign investment between 1994 and 1997. Between 1996 and 1997, 22 foreign companies were established in Veracruz. The major sources of foreign investment are from the United States, Spain, Italy, Switzerland, Panama, and Germany. There are 129 companies with foreign capital based in the state.


AVAILABILITY of LABOR

Veracruz has an abundant, trainable and industrial-oriented labor force and an excellent labor climate. Veracruz is in third place regarding population. The state represents 7.4 percent of the total population of the country. The population density of the state is 99 habitants per square mile.
The open unemployment rate averages 2.6%, per year representative of its growing number of maquila jobs. (Source INEGI 1999)
The Mexican Government considers an employed individual, anyone who is 12 years of age or older and who has worked 1 hour or 1 day during the reference week.
During the second quarter of 1999, 2.6% of the economically active population either was out of work or earned less than the minimum wage of $55 pesos/day or $5.90 U.S. dollars per day, excluding mandatory benefits. (Source INEGI 1999)

SKILL RANKING

There are major facilities in the Industrial City for personnel training at all levels, available for use by incoming companies. These are in addition to the quality universities, technological institutes and vocational training schools located in the city of Veracruz.

TURNOVER RATES

No official numbers are available for turnover rates we estimate them to be low, between  per month, depending on the type of operation.
 
INFRASTRUCTURE

Excellent highway connections to the port and beyond via the modern federal and state highway network. Import/export freight arriving to the Port is shipped over an extensive system of highways to Mexico City and other states including Puebla, Queretaro, Hidalgo, Chiapas, and Tabasco among others
Veracruz is connected to Mexico City through two railroad lines, via Xalapa and via Cordoba.
The Heriberto Jara International Airport of Veracruz offers domestic and connecting international service with frequent arrivals and departures to Mexico City, Tampico, Merida, Cancun and others.
A railroad road spur connects directly with the main Veracruz-Mexico City rail line.
There are four industrial parks in Veracruz. The industrial city Bruno Plagiai, located in Veraruz, the industrial park Ixtac, located in Cordoba-Orizaba area, the Cordoba-Amtlan park, located in Amatlan township, and the Morelos Petrochemical Park, which is located in Coatzacoalcos.

CUSTOMS

Each separate custom agent determines customs expenses in Veracruz and they adjust according to quantity, nature of, and destination of the goods. Mexican customs staffs an office at the port of Veracruz

LOCATIONS

Veracruz has four industrial parks, Bruno Plagiai, Ixtac, Cordoba-Amatlan, Morelos Petrochemical Park. Veracruz is also the most important producer of electric power in Mexico due to the nuclear plant of Laguna Verde. Veracruz has two neighboring port cities of great value, Coatzacoalcos and Tuxpan. All of these factors, combined with Veracruz’s close proximity to Mexico City and the surrounding area which represent approximately 30 million people, make it a very attractive city.
 

ADVANTAGES


The State of Veracruz is ideal for establishing strategic alliances with The United States of America, Canada and The European Continent, due to its important port.
More than adequate shipping services and suppliers.
An opportunity exists to reach 30 million people in the nearby Mexico City area.


DISADVANTAGES

Specialized service support infrastructure.
There is no American Consulate Office in Veracruz.
The industrial parks of Veracruz offer no shelter programs, fire station or water treatment plant.

Veracruz has great potential for industry, especially any operation that relies on shipping of goods. The state of Veracruz is trying to attract new industry along with the majority of cities in Mexico also the state government offers substantial advantages to those companies interested in investing here.