More Movement or...?

It is time once again to update you on information that may indeed see the Punta Colonet Mega-Port continue to hang on to life, In spite of economic conditions.

Mexico's transport and communications ministry (SCT) has published revised bidding rules for the Punta Colonet port project with concessions relating to construction of and providing rail transportation and supporting facilities as well as related services. This seems to be a logical step as any port of scale does indeed need the appropriate infrastructure in place to facilitate incoming cargo.

New bidding rules now include and allow for the participation of "potential bidders" who are not yet officially part of the process however can be used for consulting during the process and therefore contribute to the mega-port's development; Interested companies had until November 3 to register as such.

Recently the SCT announced rescaling the Punta Colonet project, initially budgeted at approximately $3.8 billion U.S., to better fit the current economic climate. Under new guidelines, the port is planned to have an initial capacity of 1mn TEUs down from the original 2mn TEUs.

Four key players have already expressed interest in the Punta Colonet mega-port and include conglomerates Hutchison Port Holdings (HPH) and Frances CMA-CGM respectively.

Though can argue that a corner has or is about to be turned towards economic recovery, one would be hard pressed yet to fully justify the viability of the Punta Colonet Mega-Port. However, there are some indicators that clearly give this argument a run for its money.

In the end, I do believe this port will be built and it will change the face of Baja California forever.

More new as events warrant!

Jaime

As per my previous post, I needed to verify that the Punta Colonet mega-port development was showing signs of movement and indeed there is more to report. According to the Mexican newspaper, La Voz de la Frontera, Mexican officials appear to be unwavering in their commitment to developing Punta Colonet and are claiming the project is indeed alive and moving forward.

Reports indicate BANOBRAS Director’s, Alfonso Garcia Tamez, claims of unfeasibility in developing the port caused a bit of a stir, prompting Baja Governor Jose Guadalupe Osuna Millan and Secretary of Transportation, Juan Molinar Horcasitas, to seek clarification from the Director. Director Tamez suggested he had been misquoted by the Mexican media.




Banco Nacional de Obras y Servicios Públicos, SNC (BANOBRAS) is a state owned “National Works and Public Services” development bank in Mexico whose core competency is public works financing and banking services. Needless to say, their participation in such a high profile project would be a foregone conclusion.

That being said and in spite of the BANOBRAS director’s position, whatever that may be, comments from Punta Colonet’s port project Director, José Rubio Soto, further stymied any negatives in stating that the opinions of the BANOBRAS director to be personal ones and nothing more and that Mexico’s government is clearly committed to the project. Also noting that monies for the project are by and large going to be drawn from the private sector and that long term benefits of the port will certainly outweigh current economic issues. He further supported this position by stating that there are currently four bidders registered for the project with two more bidders coming to the table vying for a shot at developing the mega port.

There is also the support from Mexico’s Ministry of Communications and Transport’s (SCT) Baja California sector noting the December, 2009 timeline for bids has not changed and there appears to be indication that will change. The SCT issued a press release stating that the mega-port’s transportation impact will be significant and continues to remain of the highest priority for the SCT and the Mexican government, respectfully.


This is all interesting and at the very least something that cannot and should not be ignored. There is a tremendous amount at stake here and more than the environmental and economic issues that immediately come to mind. There are also social, logistic and security issues that come with such a project and allow me to remind you that the project will not only be about the development of a facility but also that of a virtually new city, one that will forever change the landscape and fabric of the region and beyond.

Pass it on!

Jaime

Build it, But Will They Come??

This is a question that indeed is one to ponder however; try as I might there seems to be little in the way of current public information on the status of the Mega-port; something less than 90-days old and certainly nothing more than six-months old.

Photo: courtesy of Alan Harper

What cannot be denied is the delay in the manner of developing the Mega-port and, to the best of my knowledge, even before the bid-process has been completed. Economic forces not withstanding a point of view just shared with me brings to light the good old fashion rule of “supply and demand” and how it may loosely apply to Punta Colonet.

That is to say, if the demand comes from anything west of the Rockies; then why not just stay with the proven, albeit crowded at times, Port of Los Angeles? Sure, “west of the Rockies” geographically represents only one-third of the country but let us not forget that California is indeed one the largest economies in the world and thus commands the appropriate demand, respectfully.

With this in mind there seems to be an underlying sense that perhaps the port may indeed be “dead in the water” (no pun intended) and that perhaps it will never see the light of day. At this point am I am not so sure where I would place my bet.

Let’s assume for moment that the mega-port is in fact dead. Do we take that and breathe a collective sigh of relief and assume that the worst is over or do we take this as a shot across the proverbial bow and take note of what I consider to be the to be the obvious, change is coming. Like or not, it is indeed going to come.

Change is in the air…..stay tuned for my input on Change.

JS

Getting The Word Out

I am in the midst of initiating contact with relevent associaitons, businesses, groups, chambers, etc., for their input, knowledge and solutions for the massive project.

Thus far I have been in contact with a few concerns and working to find more.

JS

First Look

New Mexico Border Authority officials this week got their first look inside the huge, new Foxconn assembly plant just south of Santa Teresa border crossing. Santa Teresa is a focus of New Mexico development due in some part to the anticipated growth in trade with Mexico including the impending and Punta Colonet Mega-Port. Representatives from New Mexico’s Economic Development Department and the Border Authority board of directors were among those participating in the tour.

Foxconn is the trade name for Taiwan-based Hon Hai Precision Industry who broke ground last July on what is to ne the largest maquiladora in Mexico. The first building on the 440-acre campus was completed in February and is the first commercial development in San Jeronimo, an area of desert stretching south into Mexico from New Mexico's Santa Teresa port of entry. Officials believe the plant will become the major driver of economic development on both sides of the border. The plant is currently employing approximately 200 workers however; when the facility is fully completed, the three million square feet of industrial space will to employ and support 20,000 workers.

On the surface this may seem as an innocuous event in an area where very little appears to be happening nevertheless, this is a solid indication of the anticipated potential of future trade prospects in the region.

Sister Blogs

As noted in my previous post, this blog will also work in concert with sister blogs each relating to each other in some capacity.
With this in mind, I have created the following:
1) http://ecotourismmexico.blogspot.com/ This will cover Eco-Tourism in Mexico
2) http://theseaofcortez.blogspot.com/ This blog will address Tourism specific to the Sea of Cortez and the surrounding region including all of Baja.
There are two others however, I want to begin my focus within the issues of the aforementioned blogs for the time being and suspect I will add one or two more blogs. Please feel free to offer any information or links in support of the topic(s) at hand; dialog is the key here.

More later.

Punta Colonet Mega Port

There is still no clear groundbreaking date for the Punta Colonet Mega Port project. The subject of developing such a project on the western Baja peninsula is broad and one that has and will continue to draw the opinions of industrial, ecological, social and political concerns throughout Mexico and the United States. Baja California remains for the most part a wide-open venue and as such subject to the benefits and pit-falls that come with that distinction. Baja California is home to Tijuana on the Mexican side and San Diego on the U.S. side of the busiest border in the world and a significant maquiladora industry.

Tijuana is said to be the largest manufacture of televisions in the world and contrasts Baja California Sur’s most southern cities of Los Cabos and Cabo San Lucas; one of Mexico’s tourism jewels and gateway to the Sea of Cortez, the body of water that separates the Baja California Peninsula from the Mexican mainland. Bordered by the states of Baja California, Baja California Sur, Sonora, and Sinaloa, the name "Gulf of California" predominates on most maps today. The narrow sea is home to a unique and rich ecosystem. In addition to a wide range of endemic creatures, it hosts many migratory species. In between, Baja California is also home to the largest solar Sea Salt operation in the world and a burgeoning wine industry.

This blog will serve to explore and bring to light the many facets of the Punta Colonet Mega Port and will be in concert with sister blogs, to be named very soon. These will include blogs on Mexico’s Eco-Tourism, The Sea of Cortez, Mexico and so forth. I will be contacting various sources for information as it relates to the broad range of industries including, commercial development, tourism, logistics, NAFTA, security, shipping, state agencies, chambers of commerce etc. I welcome all input and points of view in an effort to better understand the potential impact of such a development.