Progreso: Mexico’s Million Dollar Opportunity

The city of Progreso, on the north of Mexico’s Yucatan Peninsula, might just be Mexico’s biggest missed opportunity. Yes, that is right. It is not a border town close to the country’s large factories, nor a trade route at the heart of the Bajio Region in Mexico’s industrial heartland. The true missed opportunity might be a beach town less than an hour drive from Mérida.

Why? It's all about location.

The port is located right along the Yucatan Channel between Mexico and Cuba, one of the most heavily trafficked maritime routes globally, with an estimated 16,132 transit calls annually. For comparison, the Suez Canal sees about 22,217 calls per year, while the Panama Canal has just 12,899.

We simply can’t stress enough how important this trade route really is to global trade. According to IMF data, across 2024, it was estimated that 44.6 vessels crossed the Strait of Yucatan every seven days. During that same period, the seven day average for the entire country of Mexico was just 38.1 vessels a week. Meaning that, in all, there are more vessels crossing through the Yucatan Strait every year than those that dock in Mexican ports. Even with recent increases in use at Mexican ports, data still suggests that, at least for most days since 2019, Yucatan has far surpassed Mexico in vessel traffic.

So, needless to say, Progreso is a golden opportunity for Mexico.

Now, you might wonder, how important could a location actually be?

Well, just take a look at Singapore, a small island nation with little natural resources but one strategic advantage: a proximity with the Strait of Malacca, which sees 26,792 transit calls per year. When Singapore gained independence in 1965, its GDP was around $970 million. However, by taking advantage of its strategic location, the country transformed itself into a global transshipment hub and now boasts a GDP of $501.4 billion, making it one of the richest countries per capita in the world.

While Progreso is not Singapore, its location on the Yucatan Channel offers similar potential for economic growth. The Yucatan Channel is a crucial artery for global tarde—one that is rival to the entire maritime traffic in Mexico alone.

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