The lack of a railroad in Baja except for one that runs near the USA border is probably the biggest reason. Mexican govt needs to step up and build a railroad to San Diego to link up w  the US railroad system. They have that 4 lane toll road from San Diego to Ensenada now and they are improving Bajas interstate Hwy 1,so now Mexico lets work on the railroad-no railroads in Baja proper-come on and show us you are not a 3rd world country.  As we've mentioned before, Wyoming and Montana want to ship coal to China via rail to Portland Oregon etc. Plus they would probably have to build a power plant- siphon some of that geothermal energy threatening Mexico city etc. Harness earth quake fault energy. Build a tidal station. Do something besides the Mex govt contemplating its naval. Mexico doesnt have that much iron production so Mexico should take advantage of CWRN's iron and put it to use.

As you said:

"Why send the ore over there and then turn around and ship steel back to North America.  Caterpillar builds a lot of their machinery in Mexico, Chevy builds cars and trucks down there now, and one of the big semi truck companies also has manufacturing plants in mexico. It would certainly kill two birds with one stone. The only reasons I could come up with for why not, was not enough coal locally, and maybe some other base ingredients were not available.. that and no frigging railroad from Ensenada to the US and mainland Mexico.. That may have been the whole key to why not.. To build the railroad North, would more than likely cost more than the steel mill.."