Truck drivers in central Mexico halted traffic on major highways to protest unpaid compensations for their work on the Maya Train project.
On Tuesday, truck drivers in Mexico launched a protest against delayed payments, blocking significant highways in central Mexico. These highways, vital for connectivity north of Mexico City, were obstructed by drivers expressing frustration over unpaid dues for their contributions to the Maya Train project. This government-backed initiative aimed to enhance tourism and commerce by connecting areas around the Yucatan Peninsula.
President Claudia Sheinbaum addressed the situation, indicating that the subcontractor companies responsible for hiring these truck drivers had not received payments from the government. She announced that payments to these companies have commenced, enabling them to fulfill their financial obligations to the truck drivers. This move comes amidst a backdrop of financial difficulties faced by the federal government, which has been criticized for falling behind in payments to workers and businesses, particularly for large infrastructure projects.
These financial challenges are partly attributed to the government running substantial budget deficits, a result of ambitious projects and entitlement programs inherited from the previous administration under former President Andrés Manuel López Obrador. The government has directed significant funds towards state-run enterprises like Pemex and numerous construction projects, leading to a federal budget deficit reaching approximately 6% of Mexico’s GDP in 2024. Efforts are underway to reduce this deficit to 3.9% of GDP by 2025, although the feasibility of achieving this target remains uncertain.
Under López Obrador, many initiatives, including oil refinery endeavors and railway expansions, were started but not completed, resulting in lingering debts and unfinished projects. Sheinbaum, his political successor, has continued to expand social benefit programs, further straining the financial resources. In a report last November, Moody’s adjusted Mexico’s debt outlook from “stable” to “negative”, reaffirming a credit rating of Baa2, citing increased government debt as a significant risk.
The financial strain has prompted Sheinbaum to explore new means of revenue generation, including the imposition of additional taxes like the immigration fee charged to cruise ship passengers, with funds often redirected to the military. The military’s increased involvement in infrastructure projects, such as the Maya Train, is notable, despite these projects yielding fewer passengers and income than initially projected.
The Maya Train line began service in December 2023 but has not met expectations, serving only a fraction of the anticipated passengers. Originally projected to carry 3 million passengers annually, it has only accommodated just over 600,000 passengers in its first 51 weeks. This lower-than-expected ridership highlights the challenges facing the government in balancing ambitious infrastructure development with realistic financial backing.
The protest by truck drivers is a stark reminder of the financial imbalances currently challenging Mexico. With government projects struggling to meet expectations and payments delayed, there is mounting pressure to find sustainable solutions to fiscal shortcomings. The government’s efforts to address these issues will be closely monitored as they strive to maintain economic balance.
Source: Apnews
