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New container port in Mexico

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New container port in Mexico
Posted by chad thomas on Wednesday, April 13, 2005 2:19 PM
Interesting news article:


New container port planned for Mexico to take overflow from L.A.

Plans for a $1bn container port to be built at Punta Colonet on Mexico's west coast have been unveiled by Marine Terminals Corp, a California holding company owned by Evergreen, Yang Ming, Hanjin and China Shipping.

The aim is to create an alternative to the congested southern California ports of Los Angeles and Long Beach.

Walter Romanowski, Marine Terminals' executive vice-president for container operations, said the firm wanted to build a complex of berths, warehouses and cranes at Punta Colonet to handle some 1m teu by 2012 - about one-seventh of LA's current volume.

Marine Terminals also hopes to construct a new rail line to carry containers from the proposed Mexican port to California's Imperial Valley.

Container traffic from China is growing at 15% per year with Los Angeles and Long Beach becoming the main point of entry into the US, with some 11.3m teu arriving last year.

Congestion has mounted at the ports due to a variety of problems, not least the fact that the ports' gates are open only eight hours per day, five days per week due to the financial constraints of manning them around the clock, seven days a week.

Problems at Los Angeles and Long Beach were compounded by the lack of rail and trucking facilities, as well as insufficient gangs of longshoremen to unload the containers from the ships and move them through the terminals.

With the approach of peak season, as many as 100 containerships were forced to anchor outside, while scores of others were diverted to other ports, including Oakland, Seattle and Tacoma to the north, as well as Mexico's Manzanillo to the south.

With January container traffic in Long Beach already up 35% over last year, the shippers fear another season of blockages could eventually become an annual problem.
As a result, they are looking for alternative ports and transport corridors.

One recently established alternative is a new US-Asia corridor made possible by rail and trade connections established between Kansas City, Missouri, and Mexico's West Coast ports of Manzanillo and Lazaro Cardenas.

That trade corridor acquired substance earlier this month when the Kansas City Southern Railroad acquired Mexico's busiest rail carrier, Transportacion Ferroviaria Mexicana (TFM), which handles 60% of all rail traffic flowing across the US-Mexican border.

The KCS acquisition of TFM was considerably sweetened by recent legislation of the Mexican government which allows free transit of containers from Pacific Rim nations to the US. - Lloyds List via NewsEdge Corporation, securityinfowatch.com, courtesy Larry W. Grant
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Posted by spbed on Wednesday, April 13, 2005 2:35 PM
Those 4 steamship lines mentioned in the article are big enough hitters & could possibility make this happen. So long as they can overcome the problem of getting containers as quickly to Chicago that they now do via LAX it has a chance. One question I have on the other side is how would they handle containers bound just for LA/LA? There are many, many containers whose final destination is LAX. [:o)][:I]

Originally posted by chad thomas
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Posted by mudchicken on Wednesday, April 13, 2005 2:45 PM
Swap Topolobampo for Punta Colonet and Arthur Stillwell's KCM&O sounds like it was 100 years too early.

Lack of capital will kill this too. (same country, same story, different century)

Mudchicken Nothing is worth taking the risk of losing a life over. Come home tonight in the same condition that you left home this morning in. Safety begins with ME.... cinscocom-west
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Posted by MP57313 on Wednesday, April 13, 2005 3:10 PM
QUOTE: Originally posted by chad thomas
the ports' gates are open only eight hours per day, five days per week due to the financial constraints of manning them around the clock, seven days a week.

Actually I thought it was the longshoreman's clerks' union that fought to keep this limitation in work hours. Would it really cost more to have them work more hours, when compared to the cost of having ships sit out in the harbor for a week or more, waiting for a slot to unload?
QUOTE: insufficient gangs of longshoremen

I hope that's a figure of speech

A similar proposal for a terminal near Ensenada + a new (electrified?) rail line was proposed some years back but I don't think it went beyond the proposal stage.

Even if this new terminal does get built, what kind of delays would be in place at the border for customs inspections?
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Posted by spbed on Thursday, April 14, 2005 9:19 AM
I've given this much thought & have decided that this is just a "wedge" play to get improvements from the LAX port commissioners to improve the situation at the LAX [:o)][:D][:p]

Originally posted by chad thomas

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Posted by ChuckCobleigh on Thursday, April 14, 2005 11:46 AM
I can hear the whining in Calexico already if long stackers start coming through several times a day to/from Mexicali. I wonder if UP would do the east-west sort in the Imperial Valley or just take everything to Colton or Berdoo first.

Or, likely this won't happen at all. (The smart money bet.)
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Posted by chad thomas on Thursday, April 14, 2005 11:55 AM
I don't see this happening either. Just thought I'd throw it out there for debate.
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Posted by spbed on Thursday, April 14, 2005 12:55 PM
[:p]Thanks I found it interesting especially since 4 pretty "major" steamship lines are involved. COSCO being a socialist state run line makes me also wonder if it will ever happen. For info Evergreen is a Taiwan company so I do not know how well that would mesh with the mainland Chinese goverment.
[:o)][:D]
Originally posted by chad thomas
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Posted by K. P. Harrier on Thursday, April 14, 2005 1:34 PM
Labor is cheaper in Mexico. Need I say more?

----------------------------------------------------------------------------------------------------------------------------------- K.P.’s absolute “theorem” from early, early childhood that he has seen over and over and over again: Those that CAUSE a problem in the first place will act the most violently if questioned or exposed.

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Posted by mudchicken on Thursday, April 14, 2005 1:36 PM
Yeah, but the containers will all be looted before they get out of the port, too!
Mudchicken Nothing is worth taking the risk of losing a life over. Come home tonight in the same condition that you left home this morning in. Safety begins with ME.... cinscocom-west
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Posted by K. P. Harrier on Thursday, April 14, 2005 1:46 PM
QUOTE: Originally posted by mudchicken

Yeah, but the containers will all be looted before they get out of the port, too!


QUITE! QUITE. I question whether "looted" is even in the 'south of the boarder' lingo.

----------------------------------------------------------------------------------------------------------------------------------- K.P.’s absolute “theorem” from early, early childhood that he has seen over and over and over again: Those that CAUSE a problem in the first place will act the most violently if questioned or exposed.

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