Skip to main content

Asphalt shortage in Mexico delaying road building?

Mexico’s road building programme could be hit hard by insufficient asphalt supplies. Both construction companies and asphalt distributors have warned that the country is suffering a 20% shortage of the material. The shortage began to bite in November 2013 and is due in part to insufficient supplies from state-run oil company Petroleos Mexicanos (Pemex). This could delay road maintenance projects by up to 30%. Asphalt represents up to 60% of the value of such projects, according to national asphalt associati
March 28, 2014 Read time: 2 mins
Mexico’s road building programme could be hit hard by insufficient asphalt supplies. Both construction companies and asphalt distributors have warned that the country is suffering a 20% shortage of the material. The shortage began to bite in November 2013 and is due in part to insufficient supplies from state-run oil company Petroleos Mexicanos (Pemex). This could delay road maintenance projects by up to 30%. Asphalt represents up to 60% of the value of such projects, according to national asphalt association AMAAC and construction sector chamber CMIC, so the shortage is a significant issue.

Both organisations have warned that the 2014 road project agenda, 27% larger than the 2013 programme, will be affected by the asphalt shortage. However Pemex has justified the shortage saying it is producing a higher quality product, and has assured AMAAC that supplies will be back to 100% in a couple of months to satisfy Mexico's 2 million tonne/year demand. In the mean-time, CMIC has asked Pemex to increase its asphalt production in response to the problem. Another reason for the shortage is down to higher demand than usual, because production at the Salamanca refinery in Guanajuato is 40% higher than projected. In February 2014, daily asphalt sales were 104% higher than in the year-ago period. Several major road projects have started recently, which has been a factor in the current situation. The Secretariat of Communications and Transportation (SCT) alone has a budget for road projects in 2014 which is 27% larger than in 2013.

Related Content

  • Mexico: OHL to bid for La Raza-Indios Verdes-Santa Clara contract
    June 22, 2015
    OHL Mexico, a subsidiary of Spanish construction firm OHL, has confirmed it will bid for the construction and operation contract for Mexico’s La Raza-Indios Verdes-Santa Clara motorway. The 9.5km road worth around US$364 million will be let as a public-private partnership under the federal government’s National Infrastructure Programme, Mexico’s El Economista newspaper reported. A total of 14 companies are interested in the project, including Pinfra, Ideal, Prodemex, China Harbour Engineering Mexico
  • Transforming bitumen for the future
    January 30, 2023
    It is easy to say that the road sector never changes, but the latest E&E Event, held last month suggests this is not true - Kristina Smith reports from Vienna
  • Colombian construction confusion considers concrete against asphalt
    January 29, 2014
    In Colombia a big debate is in hand between producers of asphalt and concrete as to which is best for building roads. Colombia has a major programme for road construction with some US$23.54 billion planned to be invested over the next 10 years. Large producers such as Holcim, Cemex and Argos, which sell most of the 11 million tonnes/year of cement consumed in Colombia are involved actively in the debate. Cement firms have estimated that the 15 road projects that are most advanced will need some 8 million to
  • Demand diversity in the construction equipment sector
    June 1, 2015
    Demand within the global construction equipment manufacturing industry is anything but homogenous, with certain countries and sales regions significantly outperforming others, with a whole host of factors fuelling and suppressing each key market - Guy Woodford reports