Mexico to open bidding for the $4 billion Punta Colonet deep-water port project
The Mexican government is poised to open bidding for the $4 billion Punta Colonet deep-water port project.
Mexico's Transportation Secretariat will release the request for proposals in June and "hopes to select a winner by the following summer," said Sub-secretary Manuel Rodriguez Arregui.
Development of the facility is slated to be privately funded and has reportedly attracted interest from major operators such as Hutchison Port Holdings (HPH), Carrix Inc-owned SSA Marine and DP World.
"All the major players...they'll be here," said Rodriguez Arregui.
Railroad giants Union Pacific and BNSF are also reportedly interested along with independent concerns such as Mexican billionaire Carlos Slim.
Slim's infrastructure company and Mexican mining and railroad giant Grupo Mexico have formed a consortium with California's MTC Holdings for an "aggressive run" at the project, said Miguel Flavela, general director of Mexican operations for cargo terminal operator MTC.
According to Flavela, a 45-year concession is on offer at Punta Colonet, which has been presented as a possible rival to the Los Angeles/Long Beach ports.
Reports last year had said that bidding for both port and rail developments were scheduled to begin this year, with construction to be completed in four years.
First phase development of the Punta Colonet project, aimed for completion by 2014, could become a gateway into American markets.
Asian cargo could drop off at the port, which is on Mexico's Baja California peninsula, and be moved over rail directly into the US.
Reports frequently highlight how shippers are already searching for alternative routes. Industry players have suggested Punta Colonet could become a strong option.
"It's close to the US and has a wide, natural harbour. And it's in a rural, lightly populated area with almost unlimited room for expansion," said Ta commentary in the Seattle Times.
Flavela believes that in the long term, Punta Colonet could reach the size of Los Angeles/Long Beach and calls the project "one of the biggest greenfield projects ever to be done."
Some analysts caution, however, that funding issues and environmental concerns have still to be resolved.
The harbour has to be dredged and protected with breakwaters while hundreds of miles of new track will have to be laid in order for the entire project to work.
Mexico's Transportation Secretariat estimates that the winning consortium would need to invest at least $4 billion to launch the project.
Some players say the rationale of the project is undermined by the expansion of the Panama Canal while Canada is already in the midst of major upgrades to grab a larger share of Americas-bound Asian cargo.
Ports along the west, east and Gulf of Mexico coasts of the U.S. have also begun their own upgrades, as has Mexico's Puerto Lázaro Cárdenas on the Pacific Coast of the state of Michoacán.
Lázaro Cárdenas was recently identified by Maersk Line as being at the heart of its strategy to expand its business in Central and South America.
The port's container throughput was up by more than 60% in the first seven months of this year.
Mexico's Transportation Secretariat will release the request for proposals in June and "hopes to select a winner by the following summer," said Sub-secretary Manuel Rodriguez Arregui.
Development of the facility is slated to be privately funded and has reportedly attracted interest from major operators such as Hutchison Port Holdings (HPH), Carrix Inc-owned SSA Marine and DP World.
"All the major players...they'll be here," said Rodriguez Arregui.
Railroad giants Union Pacific and BNSF are also reportedly interested along with independent concerns such as Mexican billionaire Carlos Slim.
Slim's infrastructure company and Mexican mining and railroad giant Grupo Mexico have formed a consortium with California's MTC Holdings for an "aggressive run" at the project, said Miguel Flavela, general director of Mexican operations for cargo terminal operator MTC.
According to Flavela, a 45-year concession is on offer at Punta Colonet, which has been presented as a possible rival to the Los Angeles/Long Beach ports.
Reports last year had said that bidding for both port and rail developments were scheduled to begin this year, with construction to be completed in four years.
First phase development of the Punta Colonet project, aimed for completion by 2014, could become a gateway into American markets.
Asian cargo could drop off at the port, which is on Mexico's Baja California peninsula, and be moved over rail directly into the US.
Reports frequently highlight how shippers are already searching for alternative routes. Industry players have suggested Punta Colonet could become a strong option.
"It's close to the US and has a wide, natural harbour. And it's in a rural, lightly populated area with almost unlimited room for expansion," said Ta commentary in the Seattle Times.
Flavela believes that in the long term, Punta Colonet could reach the size of Los Angeles/Long Beach and calls the project "one of the biggest greenfield projects ever to be done."
Some analysts caution, however, that funding issues and environmental concerns have still to be resolved.
The harbour has to be dredged and protected with breakwaters while hundreds of miles of new track will have to be laid in order for the entire project to work.
Mexico's Transportation Secretariat estimates that the winning consortium would need to invest at least $4 billion to launch the project.
Some players say the rationale of the project is undermined by the expansion of the Panama Canal while Canada is already in the midst of major upgrades to grab a larger share of Americas-bound Asian cargo.
Ports along the west, east and Gulf of Mexico coasts of the U.S. have also begun their own upgrades, as has Mexico's Puerto Lázaro Cárdenas on the Pacific Coast of the state of Michoacán.
Lázaro Cárdenas was recently identified by Maersk Line as being at the heart of its strategy to expand its business in Central and South America.
The port's container throughput was up by more than 60% in the first seven months of this year.