There are several opportunities to incorporate private equity investments in the transport infrastructure sector, namely, unfolding current infrastructure, asset monetization, financial restructuring, multi-annual M&O contracts, and opportunities for investing in support technology such as payment devices.
Perspectives on the transport infrastructure sector
Current situation
Needs
Conservation and maintenance of current infrastructure
Satisfy growing demand
Incorporate technology for key processes (e.g., toll booths, mobility)
Improve road safety issues
Opportunities
- Extend and unfold existing infrastructure
- Exploit rights of way with revenue from adjacent businesses (gas stations, tourist look-out points)
- Achieving efficient connections between urban systems and suburban inter-modal systems
- New conservations schemes
- Generate value through the optimization of toll structures (e.g., price discrimination)
- Use of toll-booth and safety technologies
Perspectives on the water infrastructure sector
Lack of water supply, low levels of commercial and physical efficiency and budget restrictions of local governments create opportunities for investing private capital in the water infrastructure sector.
Current situation
Needs
Provide quality services and building a positive image for private concessions
Increase physical efficiency levels
Improve commercial efficiency through CRMs
Establish fee levels that correspond with the service
Recover groundwater reserves
Comply with environmental regulations
Opportunities
- Integral concessions aligned to private and public interests
- Implement advanced technologies to improve physical and commercial efficiency
- Implement solutions for efficient use of water to improve physical efficiency
- Create synergies with other service providers (ex CFE)
Perspectives on the upstream sector
Investment opportunities in the sector of exploration and production of oil & gas demand partnerships with operators that contribute with technology and best practices, in order to improve the knowledge of the reservoir, increase the recovery factor, decrease the decline rate and reduce the development and production costs all along the geological column.
Current situation
Needs
Increasing the recovery factor
Investments in new developments and production infrastructure
Potentiation of exploration activities
Investment in well maintenance and repair
Improving input supply and processes in productive wells
Opportunities
- Alliances with companies that have technological experience and apply international best practices
- Partnerships with private companies under the CSIEE scheme for exploitation of mature fields
- Capital increases to continue the development of fields that already have a CEE
- Strategic association with Pemex for field exploitations (farmouts)
- Strategic associations with operators to participate in future oil rounds
- Development and operation of port infrastructure to support offshore activities in deep and shallow waters
Perspectives on the midstream sector
Lack of infrastructure for hydrocarbon transportation and storage, together with competition of many brands selling to end users under the PEMEX franchise, create opportunities for private capital investment in storage and distribution terminals, and in port and pipeline infrastructure.
Current situation
Needs
Develop infrastructure in:
Ports that allow entry of oil tankers of greater tonnage
Support to railway transportations
Ducts and storage
Storage in areas with poor access
Oil, fuel and gas pipeline transportation
Opportunities
- Changes in downstream market shares
- Logistic optimization due to change from homogeneous prices to free market
- Lack of supply due to limited storage capabilities pushes private players into developing its own logistics
- Increase in generation of power with gas will require an extension of the pipeline network
- Transportation infrastructure for production in onshore fields
Perspectives on the electricity sector
Low reserve margins and energy prices for qualified users pose investment opportunities for generation projects located in attractive nodes without risks of transmission congestion.
Current situation
Needs
Satisfy the growing demand and increase reserve margins
More efficient projects that allow lower prices for end users
Reduce shortage risk
Improve the quality of energy
More transmission infrastructure and reduce of technical losses
Increasing the potency of the system
Opportunities
- Implement large scale self-supply or distributed generation
- Generate energy close to consumers or behind the meter
- Projects in regions with generation deficits and attractive merchant nodes
- Co-investments with CFE in the repowering of its plants
- Projects with medium size offtakers that are willing to sign attractive PPAs and are bankable at the same time
