Growth and Development on the Southern Border: Mexico’s Port of Manzanillo Expansion

Image credit: Bloomberg

by Penny Arcos

With a new economic initiative, Mexico is taking steps forward to break the chains of imperial domination and transform the lives of Mexican working families.  “For the Good of All, But First the Poor” is the motto of the Fourth Transformation program initiated in 2018 by President Lopez Obrador.  The most impressive investment that will boost Mexico’s standing on the world stage is the expansion of the Port of Manzanillo in the Central Pacific Coast state of Colima, Mexico. This megaproject will position Mexico as a world leader in port infrastructure, capable of handling the increasing demand of international commerce and boosting the national economy. Americans should be asking ourselves how we can create similar developments in our own country.

Image credit: Retire Early Lifestyle

The president of Mexico, Claudia Sheinbaum, recently launched the expansion of this mega-port during the celebration of the Mexican Armed Forces Day in Colima, Mexico.  The expanded Port of Manzanillo will have a surface area of 1,816 hectares, four times the current size of the port. This revolutionary $3-billion dollar expansion will be funded by a mix of federal, naval and public funding, as well as private investments from firms such as Ferromex and the A Grupo Mexico Transportes railroad subsidiary, positioning Mexico to be among the elite of growing international maritime trade. The Mexican Naval Ministry (SEMAR) will preside over the construction of this megaproject.

President of Mexico, Claudia Sheinbaum. Image credit: Presidency of Mexico

"They [The Mexican Navy and Armed Forces]  support us today in the construction of the Mayan Train, in the construction of airports, in the construction of roads, in the development of the Interoceanic Train, in the Wellbeing Poles and in six other ports, in addition to Salina Cruz and Coatzacoalcos, which are one of the great objectives of the country's development for the next six years," said Sheinbaum.

The Port of Manzanillo handles 70% of all Asian imports into Mexico. Ships as long as 400 meters are now a part of everyday life. It will include six electric cranes able to carry 65 tons. These cranes, manufactured by the Chinese company ZPMC, not only increase the volume of goods flowing through the port but also facilitate the unloading of containers with Chinese vehicles, whereas in other Mexican ports such as Mazatlán vehicles are unloaded manually one by one. The Port will also include petroleum handling piers, two new container terminals, and 1,500 meter docks, equipped to receive up to three megaships simultaneously. Even Panamax ships, longer than the Empire State Building is tall, will be able to dock at the Port of Manzanillo.

Manzanillo is the nation’s premier Pacific gateway for trade from over 140 countries, including China, Japan, South Korea, Latin American nations and the United States. The new port will more than double its storage capacity from 3.5 million teu (containers), which is 67% of Mexico’s GDP, to 10 million teu by the year 2030. It will be the largest container port in Latin America.

Indira Vizcaíno, governor of Colima, praised the importance of the project to modernize Mexico's logistical connection with the rest of the world. "This project is an opportunity to translate development into well-being for the majority of our population," she said.

As Mexico’s industrial sector increases production due to nearshoring of 18 automobile plants, carriers at the port have experienced delays of up to five days.   The port of Manzanillo handles general cargo, automobile parts, steel as well as agricultural, mineral and petroleum bulk products. Road and rail capacities will also be modernized to accommodate for the increase in trade coming through the port. This project is expected to create 11,132 direct jobs and 28,626 indirect jobs, which will impact the local and national economy.

Instead of investing in endless wars, Mexico is addressing the root causes of massive immigration and drug trafficking, which are poverty, breakdown of the family and environmental degradation. They are strengthening their economy and investing in the social wellbeing of its citizens through projects such as Sowing Life, Youths Constructing The Future and wellness programs.  Mexico also collaborates with its neighboring countries such as Honduras and El Salvador to invest in reforestation and agricultural cultivation.

Graphic for the Sowing Life project. Image credit: El Universal: De Dinero

Security at the Port of Manzanillo is a growing concern as three cartels (often criticized as pawns of imperialist governments in works such as Oswaldo Zavala’s book Drug Cartels Do Not Exist) are claimed to be fighting for control of the New Port of Manzanillo. This port is Mexico’s only Pacific port that authorizes the import of substances and chemical ingredients used to produce synthetic drugs such as fentanyl. In response, Mexico will increase the presence of Armed Forces at the port and will use greater digitalization and artificial intelligence to enhance efficiency and to improve safety for workers. 

Sheinbuam has urged President Trump to collaborate with Mexico in addressing the increase in cartel violence by attending to the public health crisis of drug consumption in the United States and by curbing the illegal flow of weapons from the United States into Mexico. Sheinbaum recently stated:

“70% of the illegal weapons seized from criminals in Mexico come from your country. We do not produce the weapons, we do not consume synthetic drugs. Unfortunately, we are the ones who die from crime to meet the demand for drugs in your country. President Trump, it is not with threats or tariffs that we will address the migration phenomenon or drug use in the United States. Cooperation and mutual understanding are required to address these great challenges.”
(Original in Spanish, English via Google Translate)

The port will connect with the ports of Lázaro Cárdenas, Veracruz, Progreso, Acapulco and Ensenada  and will be linked to the Interoceanic Corridor of the Isthmus of Tehuantepec,  colloquially known as The New Panama Canal, which is intended to attract private investment and fund the development of the 12 Development Poles for Wellbeing in Mexico.

Some environmental groups and local fisheries have criticized this development, stating that the local fishing industry, the coral reef system, its natural beauty, protection against hurricanes and the tourism the reef attracts, will be decimated. Critics have also railed against mining of volcanic basalt from Veracruz jungle towns to form the base of the mega-port’s jetty. The Supreme Court ruled against the expansion of the port in 2022, but the project was quickly reauthorized. Mexican authorities said they plan to develop the port sustainably and will take measures to reduce the environmental impact. It will include its own thermal power plant and six electric cranes with a capacity of 65 tons, which will be key in protecting the environment.

Currently, Mexico appears to be surging ahead in the anti-imperialist struggle for development and prosperity. Previous president AMLO shifted the consciousness of the population into supporting his revolutionary model of infrastructure and social investments. Now, under the banner of “For the Good of All, But First the Poor,” Sheinbaum is leading the way in the second level of this transformation.

Americans should learn from Mexico’s example and focus on transforming our government: from a system of profit-centered, winner-takes all monopolies, to a pro-growth, pro-development government of action that fights for working families. Let us set aside our differences and work together to build a brighter future for America and for the world.