The Port has been in operation for over 100 years and is the most important port in Mexico, located only 245 miles from Mexico City. It has the necessary infrastructure for efficient connections with main industrial and consumer areas in Mexico and the world, including highways, an airport, port facilities and modern telecommunication systems, and has supported the development of Veracruz into an important business centre in Mexico. Back in July 2007, President Calderon announced a strategy to implement the National Infrastructure Program. Part of this Program was a huge expansion project in the port of Veracruz including the construction of new port facilities in the Vergara Bay just next to the current port location. So, it is no surprise that funds are available to make the Program a success. The port is managed by a public institution called Integral Port Administration (API) that reports to the General Coordinator of Ports of the Secretariat of Communications and Transportation (SCT). The API is responsible for preparing the Port Master Plan, assuring that port development is in compliance with plans and regulations, and for supervising services offered and fees charged by the private port operators. Over the last 2-3 years, the port of Veracruz has invested in modifying the current facilities to expand general cargo and container capacity, and to increase efficiency in all port activities, including new facilities for customs and modern X-ray inspection and detection equipment, security and surveillance systems, expanding berths, building a 13km bypass for the City of Veracruz, improving railroad access, improving intra-port transit roads and remodeling the administration building. At the same time, private operators have invested in modern equipment and IT systems for their facilities. More recently, API Veracruz inaugurated an industrial and logistic area of 307 hectares, just 2.5km north of the port’s precinct. About 173 hectares will be dedicated to building nine logistics centres for containers, agricultural and bulk minerals, general cargo, intermodal transfer, an automotive logistics centre to increasing vehicle handling capacity, and related services. This facility had an estimated cost of USD600 million. Other projects in the port expansion drive include the construction of new container terminal for post-Panamx vessels, automotive and grain yards and numerous new wharfs including a wharf for tourist use. In 2010 alone, API allocated over USD50 million to dredge the basin, channels and wharves to maintain an adequate depth and increase the capacity and efficiency of the port itself through renovated drainage, electrical, and water systems. This also includes the construction of a 19km internal rail track that will be used by two rail-road companies servicing the port, Kansas City Southern Mexico and Ferromex. API expects to open a bid to grant a concession to operate the railway late 2010.
Private port operators
Port activities and services are granted by concession to private operators, who are responsible for building the infrastructure, purchasing the equipment and managing the implementation of efficient services. The private port operators also have their own projects for improving facilities and efficiency. Some are waiting for the port expansion to obtain new areas in which to expand their own facilities. Currently the port has 21 private concessionaires operating port facilities, including 18 specialised terminals for agricultural grain, bulk minerals, automobiles, containers, general cargo, non-oil liquids, and general bulk products. About 30 service providers and 41 auxiliary service providers cover the requirements of the port operators and users, and 32 shipping lines offer regular multi-purpose and specialised routes. The port also has 16 shipping agencies, 300 customs brokers, rail-road access with connection to Kansas City Southern and Ferrosur lines, and an important number of ground transportation providers.
Watch this space
The Port of Veracruz currently processes over 19 million tonnes of cargo per year, with an annual growth rate of 5.1% and is ranked first in Mexico for automotive transport and ranked second for container transport – after the Port of Manzanillo. After the impact of the global economic crisis, the port is recovering its growth dynamic and expects to continue increasing cargo throughput and continuing with its port expansion project. Several products and services are high on the agenda and are expected to be implemented shortly by both the port authority and private operators, which will create a diverse range of opportunities for companies supplying CCTV surveillance systems, corrosion detection/protection equipment, digital signature systems, corrosion protection systems for cars and machinery parked at the port, equipment for refrigerated warehouses, outdoor lighting systems, pollution control systems, software for inventory tracking and waste and toxic waste management systems.