Manzanillo win for ICTSI

Located in the busiest port of Mexico, the 34 year concession for the development and operation of this second specialised container terminal (ECT) covers an area of 77 hectares with 1,080 metres of sea front.

The development of the container terminal will be done in three phases. The first phase, expected to be completed in three years time, will involve the development of 42 hectares of land and 720 metres of quay.

This outcome follows Manzanillo Port Authority disqualifying Ocupa, TMM Group and SSA Mexico, who in the light of falling volumes failed to meet agreed deadlines. SSA said at the time they believed the terminal was not economically viable in the present climate.

However, ICTSI has been suffering from the global container drop, posting a net income fall of 29% for the first nine months of this year. While the company blamed lower volumes compounded by higher interest expenses and currency depreciation against the US dollar, president Enrique Razon Jr struck an overall optimistic note, saying that although global economic conditions continue to be more challenging than in recent years. “Third quarter throughput volumes were stronger than the first two quarters, and the benefits of our cost containment efforts also contributed to ICTSI’s improving financial results.”

The concession agreement will be signed on January 15, 2010, with take over scheduled for July 1, 2010.