Perspectives on the transport infrastructure sector

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.

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