Spotlight: The outlook for Mexico's port infrastructure in 2020

Port infrastructure will play a key role in the 2020 agenda of the Mexican government, as it will be essential to boost trade and develop one of President Andrés Manuel López Obrador’s (AMLO) priority projects, the Tehuantepec isthmus rail corridor.

At least 15 port projects will be launched with private investment this year, according to stage one of the country’s 2020-24 national infrastructure program (PNI). But that figure could increase to as many as 25 projects during the remainder of AMLO’s six-year term. 

Another 12 maritime terminal projects were included in the 2020 federal spending budget that the senate approved in November. The country’s public budget for port infrastructure this year is 19.8% higher than that for 2019. 

All port projects will be carried out by the port administrations (API) with the supervision and collaboration of the transport and communications ministry (SCT). 

Among the most important projects in the federal agenda are those related to Mexico’s busiest ports on the Pacific coast, Ensenada in Baja California state, Manzanillo in Colima state and Lázaro Cárdenas port in Michoacán, and those on the Gulf of Mexico, Altamira in Tamaulipas state and Veracruz in the state of the same name. 

While Lázaro Cárdenas port will receive the most upgrades in 2020, Veracruz state will receive the biggest investments for port construction. 

Although there are 16 major ports in the country, there are actually more than 100 port terminals in Mexico. 

BNamericas takes a look at the most important port projects coming up this year.  

VERACRUZ

Ports in the Gulf state of Veracruz will benefit the most from investments as they are a strategic point for trade on Mexico's east coast. 

One of these ports will be the link between the Pacific and the Atlantic oceans from Coatzacoalcos port in Veracruz to Salinas Cruz port in Oaxaca via a 300km rail line that the government has labeled the Tehuantepec isthmus rail corridor.

Coatzacoalcos and Salinas Cruz ports will be expanded with an investment of 2bn pesos (US$106mn) under stage one of the PNI, but more details on what projects the expansion will entail are yet to be revealed. 

On February 10, API Coatzacoalcos announced that it would invest 700mn pesos in several infrastructure projects for the port, including building a new dock, an access road and a rail bridge. 

Veracruz port, however, has been allocated 369mn pesos (US$19.6mn) in the 2020 federal spending budget and another 4.8bn pesos and 2.2bn pesos to build two new terminals. 

OAXACA

Salinas Cruz port on the Pacific coast of Oaxaca state has also been under the spotlight given its importance to the Tehuantepec isthmus rail corridor. So far, the port has launched two tenders for the supervision and construction of a seawall.

MICHOACÁN 

Michoacán state has attracted a good deal of attention from the private sector, as some six port infrastructure projects in the Pacific state were chosen to be part of the PNI’s first stage. 

Lázaro Cárdenas port, the biggest port in Michoacán, will receive 63.7mn pesos to expand a specialized automobile terminal (after the SCT authorized port operator SSA Mexico to expand this terminal, bumping up the sum from 41mn pesos), 692mn pesos for the expansion of fuel storage, 412mn pesos to upgrade fuel transportation facilities, 810mn pesos to upgrade the existing port’s fuel terminal and 2bn pesos for construction of the second stage of a container terminal. 

Works at the port include paving a 42,600m2 area, constructing an administrative building and operational offices.

TAMAULIPAS STATE

Under stage one of the PNI, Altamira port on the Gulf coast will receive a private sector investment of 383mn pesos (US$20mn) to expand its terminal. Also, with the 457mn pesos that it will receive from the federal government, the port plans to erect electricity substations and carry out transmission line works, as well as other upgrades.

In late January, port authority API Altamira announced that it would build an 81,600m2 parking area with an investment of 280mn pesos to increase vehicle transport capacity, according to news site Expresso.press. 

Earlier in the month, API Altamira unveiled the projects that the administration wants to carry out over the next five years. These include dredging works for navigation channels, improvements on the Puente Roto bridge, construction of a new dock called API III and other coastal security works, among others. 

This list shows all the port projects that are slated to begin in the next four years with investments from the private sector.