International Container Terminal Services Inc. said Thursday its subsidiary in Mexico is investing $230 million over three years to expand its capacity.
The port operator led by businessman Enrique Razon said Contecon Manzanillo’s investment plan for 2022 to 2025 would cost more than $230 million, which would mainly be utilized to upgrade shipping and terminal infrastructure, storage yards and equipment.
The capacity increase to two million TEUs or twenty-foot equivalent units will position Contecon as the largest terminal in Mexico’s Pacific coast, it said.
The third expansion phase will enable the Port of Manzanillo—a key port in the Pacific Coast of Mexico—to expand its operational capacity and cater to the country’s current and future foreign trade requirements.
“Manzanillo is the most important node of international logistics in the Pacific Coast of Mexico, and it will continue to be so. We are convinced that this expansion, as well as the construction of land access to the northern zone of the terminal and the acquisition of new inspection equipment for Customs, will consolidate and strengthen the port’s position among competitors,” CMSA chief executive José Antonio Contreras said.
“This port is designed to meet present and future needs, as well as handle 400-meter ships. If the port wins, we all win—from our clients to the families of our employees,” he said.
Colima Governor Indira Vizcaíno Silva said the expansion would serve the growing demand that persists in the Port of Manzanillo, which would undoubtedly reflect better employment opportunities and living conditions not only for the people of Manzanillo, but also for the people of Colima.
“The government of Colima is ready and willing to help the development and economic activity of businesses that yearn, like us, for the well-being of population,” she said.
CMSA’s expansion will create more than 600 new direct jobs, in addition to the existing 1,200, along with 11,600 indirect jobs, making the company one of the most committed employers in Colima.
The expansion and the goal of consolidating the Port of Manzanillo’s position as the most important and competitive in the country prompted CMSA to start the third phase of the new port expansion project and serve the country’s foreign trade needs in the coming years.
The company invested around $122 million in port equipment since it started operations, contributing more than $238 million in port considerations to Mexico’s port infrastructure and generating employment for more than 1,200 people.
CMSA reaffirmed its commitment to the development of the State of Colima and its people, and the Port of Manzanillo’s position as a strategic point for Mexico’s supply chain.
