PORT INVESTMENT FUNDAMENTAL TO MEXICO’S CIIT PLANS

CIIT is to invest US$50 million in the renovation of existing equipment at both the ports of Salina Cruz & Coatzacoalcos – the two marine facilities at either side of the country, in the Pacific and Atlantic oceans, respectively.

The Isthmus of Tehuantepec Inter-Oceanic Corridor is one of the flagship megaprojects of President Andrés Manuel López Obrador’s administration. It includes infrastructure for energy projects and industrial development areas and represents an interoceanic dry trade corridor running along 251km of the isthmus of Tehuantepec in southern Mexico.

To help attract investment in the project, the Mexican government will give the corridor special economic zone status offering tax incentives.

Consequently, the role of the two ports at either end of this routing are of crucial importance to help support cargo opportunities.

Rafael Marín Mollinedo, Manager of the Program for the Development of the Isthmus of Tehuantepec, has confirmed that crossing Mexico and linking the Atlantic and the Pacific coasts takes longer and is more expensive than using the Panama Canal. The additional time is between 13 per cent and 44 per cent longer and between seven per cent and 44 per cent more expensive.

“This is why it is necessary to modernise the infrastructure. Even with an expansion to the Panama Canal, an additional inter-oceanic crossing is required. The Tehuantepec Corridor can be competitive with the necessary infrastructure,” he explained.

The Coatzacoalcos and Salina Cruz Integral Port Administrations (API) will invest in new cranes as well as supporting cargohandling equipment and a new delivery-reception area to support truck and railroad activity.

Currently, Coatzacoalcos does not provide specific containerhandling capabilities and handles less than 1000 TEU per annum. Salina Cruz box activity is around 15,000 TEU annually. The new investment is designed to improve the competitiveness of each port.