Mexico has been outlining its plans to build one of the America’s largest container ports. Last week, the Mexican president, Claudia Sheinbaum, announced the start of a project to double the size of the port of Manzanillo from its present volume of 4.5m TEU to a capacity of 10m TEU. The project is estimated to require 55billion pesos (US$2.7bn) in investment and is scheduled to be completed by 2030. The primary aspect of the development is the construction of two new container terminals next to the present port infrastructure. A port handling 10m TEU would make Manzanillo the largest port in the Americas outside the US.
One key aspect of the development is the landside infrastructure. The new development project includes the creation of a new rail terminal serving the new container terminals, however the port has been working on the expansion of the road network as well, with new road construction at least in the locality around the port.
Manzanillo has been experiencing growth over the past several years, much of it generated by sectors such as mining in the region. However, the activity that is attracting the most publicity at present is Mexico’s trade with China and its positioning on supply chains between China and the US. This has led to an increase in a variety of assembly activities producing finished products for the US market but utilising Chinese components. Such trade has put considerable pressure on Mexico’s logistics infrastructure, both that around ports, to the rest of the Mexican economy but also across the border with the US. Developing these will be essential to Manzanillo’s success.
Although attention at present is being given to the implications for Mexico of the incoming US administration’s tariff policy, the development of large ports in Mexico with good access to the US market would be of considerable importance for the North American sea freight sector generally. Over the past two years, shippers have had to cope with threats of strikes in both West and East Coast ports in the US and the restriction of the capacity of the Panama Canal. A large, capable port on the Mexican coast could be an alternative to these routes if it can deliver the required landside capabilities.
Author: Thomas Cullen
Source: Ti Insight
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