In an interview with Real Estate Market & Lifestyle, Captain Julio César Cabrera Alonso, Director General of ASIPONA Salina Cruz, shared that the Interoceanic Multimodal Corridor of the Isthmus of Tehuantepec is a priority project of the Federal Government, with its backbone being the infrastructure and services offered by the Multimodal Logistics Platform between the ports of Salina Cruz and Coatzacoalcos for interoceanic cargo crossing.
Additionally, with the inclusion of the ports of Dos Bocas and Puerto Chiapas, an efficient logistics system will be established, promoting the development of the South-Southeast of Mexico, fostering direct private investment, competitiveness, and generating higher welfare indices in the region.
Captain of the Navy Julio César Cabrera Alonso, Director General of ASIPONA Salina Cruz.
REM: What is the commercial importance of the Port of Salina Cruz for Mexico?
Julio César Cabrera Alonso (JSCA): The Port of Salina Cruz is of strategic importance for the local and regional economies of the Mexican Pacific Ocean coastline and for the South-Southeast region, as it connects them by sea with international markets and the rest of the country. Located at the narrowest part of our country, it has a natural strategic advantage for merchandise traffic between the Pacific and Atlantic oceans, which has historically been sought to be consolidated.
It is a multipurpose port with high oil potential and is developing as a logistics and commercial port for containerized cargo, considering the ongoing projects promoted by the Government of the Republic in the Isthmus of Tehuantepec region and the expected start of operations for cargo services of the Multimodal Logistics Platform implemented by the Interoceanic Corridor of the Isthmus of Tehuantepec organization.
Port of Salina Cruz, Oaxaca.
General Cargo Vessel.
REM: What importance will the port gain with the operation of the CIIT?
JSCA: The ongoing priority project, called the Program for the Development of the Isthmus of Tehuantepec, in its broadest expression, stands as one of the most ambitious and socially impactful endeavors undertaken by the current federal administration. It involves the establishment of Development Poles along the narrowest land strip in the country, offering a highly attractive option for attracting investments dedicated to the development of various industries in the region. This includes the safe and efficient transportation of goods from the Gulf of Mexico to the Pacific Ocean, and vice versa, while also contributing to the connectivity and economic development of the South-Southeast of Mexico.
The investment attraction expected to be achieved in the medium and long term in the Wellbeing Development Poles, known as PODEBIS, will make these economic units important generators of cargo movement between the ports of Salina Cruz and Coatzacoalcos. Initially, the ports will receive equipment and machinery for the industries established in the PODEBIS, followed by inputs for the manufacturing of finished or semi-processed products that will then be shipped to their consumer markets through the ports. This means that we will not only become an efficient complementary option to operations currently carried out in the Panama Canal but also a facilitator of development and well-being in the region.
Transfer of goods from the Gulf of Mexico to the Pacific Ocean and vice versa.
REM: What is the current infrastructure of the Port of Salina Cruz and its cargo capacity?
JSCA: Currently, there is only one berthing position for vessel operations, capable of accommodating container ships with a capacity of up to 1,200 TEUs and bulk carriers of up to 35,000 tons of cargo. The official draught is 10 meters, and cargo handling must be done using ship cranes, with vessel arrivals and departures limited to daytime hours. The storage yard covers an area of 6.5 hectares, with a static capacity of 3,100 TEUs, and there are 11,000 square meters of indoor storage space.
Breakwater at Salinas de Marqués, Oaxaca.
REM: The Port of Salina Cruz had a movement of 8,397,318 tons in 2022. What were the results in 2023, and how is the year-on-year increase projected in the future?
JSCA: In 2023, the total cargo movement through the Port of Salina Cruz reached 10,821,607 tons, marking an increase of 28.8% compared to the cargo handled in 2022. The growth potential of cargo and investments in logistics and industrial activities at the Port of Salina Cruz is based on the expansion of the economy in its influence region, increased attraction of foreign trade logistics chains, such as the petrochemical products produced in southern Veracruz, the development of container cargo transshipment services, and the realization of ongoing projects and programs for the development of the Interoceanic Corridor of the Isthmus of Tehuantepec. In a medium scenario, it is estimated that the Port of Salina Cruz will grow at an average annual growth rate of 6.9% over a period of 20 years, reaching a total cargo movement volume of 24.6 million tons by the year 2041. For containerized cargo, the medium scenario assumes handling 1,200,000 TEUs in 2041, driven by the operation of the Multimodal Logistics Platform and the expected increase in productive activities in its influence zone as a result of the development represented by the Interoceanic Corridor of the Isthmus of Tehuantepec, strengthening the region's foreign trade and port movement.
Salina Cruz, Oaxaca.
Specialized Container Terminal.
REM: In light of the start of the CIIT project, what are the major transformations projected for the Port?
JSCA: Before the implementation of the Interoceanic Corridor of the Isthmus of Tehuantepec project, the Port of Salina Cruz was destined to operate with conventional infrastructure and operations. It covered an area of 150.2 hectares and had limited road and rail connectivity, placing it considerably behind high-performance ports required by vessels and cargoes in international markets. The challenge was to improve its infrastructure, equipment, and connectivity to meet both current and anticipated service demands.
In this context, successful efforts were made to attract sufficient public and private investments to modernize and expand the infrastructure of the Port of Salina Cruz, ensuring the development of basic infrastructure and future terminals and facilities needed in the medium and long term.
Implementation of new Information and Communication Technologies.
REM: What investments have been made or will be made for its expansion and modernization?
JSCA: The expansion of the port area of Salina Cruz was managed, which now comprises a total territorial extension of 6,054.2 hectares, including its port reserve, compared to its previous extension of 150.2 hectares. Under the administration of the National Port System Administration Salina Cruz, S.A. de C.V., 4,070.25 hectares of concessioned land are operated, including a commercial oil port, a commercial port, and commercial fishing facilities.
In 1984, the container terminal in the commercial port began operations, initially serving feeder vessels with a productivity rate of 15 boxes per hour and a dynamic capacity of 75,600 TEUs per year. Forty years later, the commercial port is undergoing modernization with a public investment exceeding 1.37 billion pesos and committed private investment of approximately 455 million pesos, which will enable the handling of larger vessels. It will feature a 530-meter-long dock with two berthing positions, an official draught of 12 meters, and new port equipment that will double operational productivity. Additionally, it will be equipped with a modern non-intrusive cargo inspection system to streamline customs processes for goods handled at the Multimodal Logistics Platform.
REM: For the commercial-oil port, by mid-2024, approximately 5.536 billion pesos will have been invested in basic infrastructure, including the completion of construction work on the West Breakwater spanning 1.6 km. This investment will not only positively impact the productivity of oil loading operations but will also enable the establishment of a Specialized Container Terminal (TEC). The TEC will feature an 800-meter linear dock with a projected draught of 20 meters, capable of accommodating vessels carrying more than 18,000 TEUs. Additionally, the final stages of development for road and railway connectivity projects for the TEC are underway, with a proposed private investment of 14.735 billion pesos for its development and operation in the medium term. The TEC will occupy an area of 40 hectares, incorporating modern equipment and information technologies to handle a dynamic capacity of up to 1.3 million TEUs annually.
In collaboration with the Secretariat of the Navy and in coordination with our Port Community, we are in the final stages of implementing new Information and Communication Technologies that are gradually being integrated into our administrative, operational, and security processes through the operation of the Secure Smart Port Platform (PIS for its initials), which will positively impact its competitiveness. This impact will continue to increase until, by the last quarter of 2024, upon completion of the ongoing works, the planned target for this first phase of its modernization will be achieved. This modernization will be further enhanced by the upcoming commencement of regular cargo rail services by FIT.
Port works in Salina Cruz (2023).
REM: What are the capacity expansion objectives of the Port of Salina Cruz?
JSCA: The goal is to have maritime-port infrastructure that can compete globally, with the new design and operation of the Port of Salina Cruz aimed at meeting the needs of its customers and users with a focus on current trends in the formation of goods supply chains. Below are the most relevant ongoing projects that justify the public and private investment exercised and in progress by the current Federal Administration and will have a high impact on the operations of the Port of Salina Cruz.
- The commencement of operations of the Multimodal Logistics Platform with the improvement of the railway line between the ports of Salina Cruz and Coatzacoalcos.
- The operation of productive units in the Development Poles for Well-being in the Interoceanic Corridor of the Isthmus of Tehuantepec.
- The reconfiguration of the Salina Cruz Refinery is strategic for supplying petroleum products to the Pacific coast of Mexico.
REM: What progress has been made on the project and what stages are ahead?
JSCA: The project for the expansion and modernization of the Port of Salina Cruz is in its final stage. By the first quarter of 2024, the most complex stages will be completed, such as the conclusion of the western breakwater by 1.6 kilometers in the oil-commercial port, where the TEC will be built, and the access channel has already been widened with the removal of part of the western breakwater of the commercial port, where a new berthing position for commercial vessels is already in operation.
The challenge has been to maintain port operations continuity, given that the port, as a business unit in operation, during the implementation of the expansion and modernization project, has addressed the service needs of its customers and users, fulfilling its function under competitive conditions in the logistics chains in which it participates.
The next stage, in which progress has already been made, is the integration and commercialization of the services to be offered both in the Multimodal Logistics Platform hand in hand with the Interoceanic Isthmus Corridor of Tehuantepec, as well as jointly with the General Coordination of Ports and Merchant Marine the promotion of Cabotage and Short Sea Shipping.
Another stage that is already being considered is the installation of specialized terminals and facilities; although there is already the forecast that, at the latest in five years, significant investments will begin by the private sector in the development of infrastructure and equipment for the handling of containerized cargo as a result of the recently successfully concluded public tender, there are other sectors of cargo where interested companies have approached and that are related to the handling of mineral bulk, sustainable fuels, and the automotive market.
Multimodal Logistics Platform.
REM: In addition to the port's own works, what others are being carried out in its surroundings to make it a large-scale multimodal logistics platform?
JSCA: The imminent improvement of the port in terms of its infrastructure, services, and connectivity translates into an attractive service offer for maritime commerce traffic that transports cargo that is mobilized from and to our area of influence from other ports, but the port is not an isolated entity, and in that sense, we are in constant communication with entities such as the Ministry of Communications, which together with the State Government is working on the improvement of the La Ventosa-Acayucan highway and the conclusion of the Mitla-Tehuantepec highway, and of course with the Interoceanic Isthmus Corridor of Tehuantepec, which has been working on improving railway connectivity, laying fiber optic cables, and in terms of sustainability, approaching the communities along the corridor to socialize the program as a whole; I cannot forget the municipal government, with whom we maintain close communication to achieve a harmonious port-city linkage to become an excellent logistics destination.
REM: What relevance will the Port of Salina Cruz have for the state of Oaxaca when it reaches its intended potential?
JSCA: The relevance of its contribution to the state of Oaxaca will be determined by the degree of growth, competitiveness, and long-term sustainability that we achieve as a port, and it will be based on the following factors that represent the greatest challenge for us: promoting the industrial and commercial development of the state and maintaining environmentally responsible performance through cooperation between operators and service providers to achieve a collective commitment to sustainability that is comprehensive, measurable, and evaluable. On the other hand, we coexist with the population center of Salina Cruz; port works and operations can produce environmental impacts on the urban environment, but also in another sense, they generate significant advantages for the population. The relevance will be measured in the identity and national and international projection that we give to the city and the scope of our participation as a source for its economic development and employment. This combination of impacts represents the possibility of improving the quality of life through a harmonious port-city relationship, based on good neighborliness and an alliance that triggers initiatives to ensure its future, aiming to achieve sustainable regional-urban-port growth that fosters synergies and greater prospects for socio-economic growth, both for the city and the port, and that allows planning its development in the long term.
Tehuantepec Isthmus Project (2023).
Text:Real Estate Market & Lifestyle
Photo: ALEPH INGENIEROS CONSULTORES, S.A. DE C.V. / AMLO ORG / PUERTO SALINA CRUZ / KP PHOTOGRAPHY / 7SPACE