Sunday, September 7, 2008

Proposed new West Coast Mexican Port

There was an interesting article in the American Shipper last week about a new port planned for Punta Colonet on the Pacific Coast of Mexico. This could be a really big deal considering the costs of discharging containers in the U.S. with Union Labor is probably 3 -5 times more than what can be done in Mexico, not to mention the new restrictions being imposed on the carriers with air quality emissions etc.

The article talks mainly about how it will compete with the Southern California ports as of course most of the cargo discharged in Southern California does not stay there. The big sticking point is getting the rail connections from Mexico to other points in the U.S.


"Regardless of who wins the contracts, any potential bidder will have to negotiate with U.S. rail giants Union Pacific or BNSF, which control the mainline tracks running through the U.S. Southwest. UP had originally been a potential bidder, but pulled out of a proposed partnership with Hutchison last May. On breaking the Hutchison partnership, UP indicated it was still open to bidding with another partner on the Colonet project. U.S. West Coast ports handle more than 60 percent of the Asia-to-Atlantic Coast cargo, with the all-water route through the Panama Canal capturing another 38 percent. Last year, the Canadian port of Prince Rupert also began operations, offering a direct rail connection for cargo from the Canadian Pacific Coast to Chicago in about 100 hours. In addition, the Panama Canal, set to open a new set of larger locks in 2014, expects to capture up to half of the Asia-to-Atlantic Coast traffic by 2025. "

This last comment got me to thinking. Would it be possible for Mexico to build a railroad across THEIR country, to compete with the Panama Canal?

I wonder if "Field of Dreams" was translated into Spanish.

1 comment:

Lisa Olga said...

MWC Port + "Clean Trucks" =

Bueller? Bueller?

IknowIknowIknow!

The death-knell for the LGB transportation community.

Bad day on logistics' dark side. Welcome to the blogosphere.