Spotlight: The investments flowing into Mexico's Tuxpan port

Mexican authorities have confirmed that there will be an additional 22.6bn-peso (US$930mn) invested by the private sector to quintuple hydrocarbon storage capacity at Tuxpan port in Veracruz state, starting this year.

The port already had some 17bn pesos from the private sector earmarked to spend in 2020 and 2023 last November when authorities presented the first stage of the 2020-24 national infrastructure program (PNI).

This new investments, however, come from seven private companies holding existing concessions to operate terminals at the port, and the announcement has come despite the spread of COVID-19 and a recent corruption scandal involving the port’s customs operations.

While these expansion projects are intended to increase the terminal’s storage capacity from 2.7Mb (million barrels) to 10.1Mb, other previously announced projects focus on the expansion of the port in general. 

At least one of the seven projects will be completed in 2020, while the remaining six will take longer, according to the transport and communications ministry (SCT)

The SCT said these projects are part of its port development program, but the ministry has not yet released a public version of the plans, which probably include all other major ports in Mexico.

Port operations have not been suspended in Mexico, as the government considers them essential activities. However, the SCT said on April 30 that a drop in maritime transport had been observed. 

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THE PROJECTS 

According to the ministry, the first project is due to be completed before the end of June by Compañía Terminal de Tuxpan (CTT), a subsidiary of Grupo Delmex. And of the seven companies carrying out works, CTT has allocated the largest investment to the port this year, at around 9bn pesos. 

While neither SCT nor Grupo Delmex has revealed specific details of what this project entails, the ministry said in a statement that the port company is expanding its existing terminal to attain storing capacity of 1.3Mb and in order to begin operations to handle solids, liquids, fuels and bulk goods once the works are finished.

The second project involves Tuxpan Port Terminal, which will build 13 storage tanks to store 3.2Mb of hydrocarbons at a cost of 280mn pesos. 

Another three of the projects include modernization works to adapt terminals to manage hydrocarbons. 

Services and Solutions Optimus will build a 263mn-peso maritime terminal to handle hydrocarbons, Catan Energía Terminal will build a 128mn-peso docking position for ships carrying fuels and MTR Terminal will invest 847mn pesos in an expansion project to handle asphalt, bulk agricultural and mineral goods, bulk liquids, fertilizers and other hydrocarbons.

The last two projects involve a 935mn-peso pier modification by Terminales Marítimas Transunisa to enable it to handle hydrocarbons at its terminal and a 7mn-peso terminal expansion project that company Antonio Terminales México will start this year.

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OTHER PROJECTS

There are also two other expansion projects for the port that were included in the first stage of the PNI which are also being financed by the private sector.

One of them is the 81mn construction of a new terminal to handle cargo and hydrocarbons, which was scheduled to begin in 2020. 

The second project is set to begin in 2023 and it involves constructing a new terminal system for import, storage and distribution of fuels between Veracruz and Hidalgo state. The estimated investment for these ambitious projects was set at 16.5bn pesos. 

Unlike the seven new projects for the port, the PNI did not disclose the names of the investors or companies that are financing them. 

The SCT also said it is currently working on four “essential” projects with public funds from the Tuxpan port authority (API Tuxpan) to modernize and improve port infrastructure. 

CORRUPTION SCANDAL

Financial intelligence unit UIF, part of the finance ministry (SHCP), has filed at least three legal complaints against six different Mexican port authorities for crimes related to money laundering at customs facilities, independent news outlet Animal Político reported on Monday. 

One of these complaints was filed against Tuxpan port.

News site Vanguardía reported on April 24 that the navy and UIF dismantled a fuel theft scheme with links to Tuxpan customs in March.

Former customs chief Ricardo Ahued, who President Andrés Manuel López Obrador (AMLO) trusted with the mission of fighting corruption at the nation’s customs facilities, subsequently resigned from his position, sparking rumors about the ingrained nature of corruption in customs. 

Although the Mexican government has appointed a new head of customs, allegations of fuel theft and other crimes are still being investigated at Tuxpan and other ports.  

Photo credit: API Tuxpan