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Mexico to Continue with Port of Manzanillo Development

12/09/2024

Irrespective of the proposed imposition of tariffs on imports from Mexico to the U.S., authorities in that nation are committed to expanding the Port of Manzanillo on the Pacific Coast. The port will have a direct connection to the National Ferromex railroad system with has equity participation by Union Pacific Railroad.

 

The Port of Manzanillo should be completed by 2030 and will have a capacity of 10 million containers annually, equivalent to the current volume through the Port of Los Angeles.

 

CPKC formed through a merger between Canadian Pacific and Kansas City Railroads is expanding rail links to Mexico including erecting a new bridge across the Rio Grande at Laredo, TX.

 

Executives among freight operators including CPKC are optimistic over continued trade between Mexico and the U.S.  This is based on the interconnection of industrial production as a result of ‘nearshoring’ in Mexico and the success of the trilateral USMCA that succeeded NAFTA in 2022.

 

Establishing efficient Pacific Coast ports in Mexico tied to the tri-national rail link could relieve congestion on West-coast U.S. ports.