Friday, January 16, 2009

Plans for Punta Colonet Port put on hold

Back in September 2008, I wrote about a new proposed Mexican port, Punta Colonet. It was a great time for this idea.

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.


As was expected, this project has now been put on ice.

The Mexican government on Tuesday said it might have to postpone construction of the Punta Colonet megaport in Baja California due to financing issues related to the global economic downturn.
Mexico’s Transportation Secretary Luis Tellez said two U.S. banks are working with Mexican federal officials to determine if financing of the estimated $5 billion port project is still possible in the current financial environment.
Tellez also said the Jan. 26 deadline for firms bidding on the project is likely to be extended, though he did not offer more specifics. Bidding opened in August 2008

click here for complete article in American Shipper.

The original plans were a bit over ambitious (in my opinion). I hope the officials can come up with a scaled down version and put it out again for bids. I think it is a great idea, and would help Mexico immensely in the long run.

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