International Container Terminal Services Inc. said Wednesday unit Contecon Manzanillo SA de CV is investing $230 million next year to expand its port facilities in Mexico.
It said the project, which would expand the capacity of the second specialized container terminal at the Port of Manzanillo in Colima, Mexico by 300,000 twenty-foot equivalent units, reaffirms its confidence in Mexico and the growth potential of the Manzanillo port.
“The investment is intended to expand the operating capacity of the terminal from 1.4 million TEUs to 1.7 million TEUs annually,” said José Antonio Contreras, chief executive of CMSA.
Contreras took the reins of CMSA in September, with a strategic vision of sustainable solutions for Manzanillo.
ICTSI chairman and president Enrique Razon Jr. said the injection of private capital into Manzanillo is an essential part of the ICTSI Group’s strategy that would benefit the supply chain in the region.
The additional capital will be used for the construction of berths and yards and acquisition of quay cranes, rubber tired gantries, port tractors and other equipment.
All these will complement the public project for the expansion and the adaptation of land access to the terminal, which the Federal Government announced for Manzanillo in November, according to ICTSI.
It said that in line with the objective of maintaining its position as the benchmark in the port industry for efficiency, profitability, human capital and innovation, Contecon and the ICTSI Group would start the facilities expansion in the second half of 2022.
ICTSI signed in June 2010 a 34-year concession for the development and operation of the Second Specialized Container Terminal at the Port of Manzanillo in Mexico. ICTSI established CMSA to operate the Port of Manzanillo.