PMDP (Port Master Development Program)

Mission

To provide infrastructure and port services with world class qualities, under free trade conditions meeting needs efficiently and fully, in order to satisfy user's needs. Providing modern connections to various modes of transportation and fomenting private investment in the construction of new terminals and installations with the highest technology to attract larger volumes of cargo and promote the incorporation and necessary training for human resources.

Vision

The main Hub and Multipurpose port of the Mexican Pacific, with a sustained development that responds to the demands of clients, growing in harmony with the community and the environment.
Port Current Situation

In 1994, and upon obtaining the title to the concession of the integrated port authority of Manzanillo and its jurisdiction, the port infrastructure was received in working order. Unfortunately, in the month of October 1995, a 8.0 magnitude earthquake shook the port and caused serious structural damage. Damaged areas included the North and South breakwaters, Band "A" and "C" docks, and the docks, patios, warehouses and offices of the Specialized Terminal for Container Handling, the Fiscal dock and warehouse, warehouses 1 and 2, and Multipurpose Installations I and II. The port infrastructure was immediately repaired with the necessary resources channeled to repair these areas and 2001's budget was dedicated to repairing the breakwaters. After repairs were completed, the growth process began towards new projects, two and four lane roadways, docks, patio, lighting, rail tracks and modernization of common use areas.

The total amount of resources dedicated by this Port Authority in the 1995-2000 period ad up to $401'117,000.00 (176'000,000.00 in the year 2000).

Investment in Public Projects 1995-2000
(thousands of pesos)

1995	1996	1997	1998	1999	2000
25'799	10'504	28'737	50'106	109'971	176'000

Table 1 Source: APIMAN- Public Account Figures

The benefits of the projects realized have been reflected in the port's capacity as detailed in annex 16. Additionally, investments with self-generated funds are programmed for the 2000-2010 period in accordance to cargo projections presented in this Program. Dredging situation in the Port of Manzanillo
In Polygon No.1 (PEMEX area, Navy and Former Fiscal Pier) it has not been necessary to dredge since 1994 to date, it is a very stable area and the breakwater has reinforced concrete vertical walls that are not affected by the runoff in the area. In Polygon No. 2, the Interior Port of San Pedrito, the runoff is insignificant given that it is a protected interior port. Its construction dredging began in 1968, given that growth occurred in sections by widening navigation areas and increasing depths as ships evolved. In 1993 the access channel and turning basin for the Specialized Container Terminal were completed to a depth of 14.00 meters below sea level.

It is estimated that to complete the remaining water areas for stevedoring and operative zones approximately 8 million, 427 thousand cubic meters will be removed from the ocean floor. Approximately 70% of which will not be used for refill given its consistency, meaning that it will have to be deposited in open ocean. Next year 1'250,000 m3 will be dredged. Port Services
There are 8 stevedoring companies authorized to provide stevedoring services in the Port, including loading, unloading and handling merchandise:

• Operadora de la Cuenca del Pacífico, S.A. de C.V. (OCUPA)
• Operadora Portuaria de Manzanillo, S.A de C.V. (OPM)
• Compañía Terminal de Manzanillo, S.A. de C.V. (CTM)
• Maniobras Portuarias de Manzanillo, S.A. de C.V. (MPM)
• Operadora del Puerto de Manzanillo, S.A. de C.V. (OPUMA)
• Marítima Portuaria, S.A. de C.V.
• Terminal Internacional de Manzanillo, S.A. de C.V. (TIMSA)
• Services Integrales de Manzanillo, S.A. de C.V. (SIM)

Partial Rights Cessions
Authorized cessionaries in the Porto f Manzanillo
(to the month of May 2000)

Cessionary	Use	Area given m2	Date of Contract	Duration of Contract	Registration at S.C.T.
Cemento Apasco, S.A. de C.V.	Handling and Storing Cement	17,333.98	Dec 14, 1994	Aug 14, 2013	APIMAN01-003/95
Services Alimenticios Mejorados, S.A. de C.V.	General, Bulk, and Refrigerated Cargo	7,429.29	Feb 27, 1995	Aug 12, 2013	APIMAN01-006/95
Cemex México, S.A. de C.V.	Handling and Storing Cement	10,454.32	Jun 23, 1995	Aug 14, 2013	APIMAN01-005/96
Comercializadora la Junta, S.A. de C.V.	Bulk, General Cargo and Oils	35,090.88	Dec 8, 1995	Aug 14, 2013	APIMAN01-007/96
Frigorifico de Manzanillo, S.A. de C.V.	General, Bulk, and Refrigerated Cargo	9,775.00 4,696.00 Adjudicated in bid 14,471.00 TOTAL	July 26, 1995 May 14, 1997	Aug 14, 2013 May 14, 2016	APIMAN01-004/95 APIMAN01-009/98
Van Ommeren-Tmn Terminals (Compañia Mexicana de Terminales, S.A. de C.V.)	Liquid Products	17,776.35	Feb 23, 1995	Oct 17, 2008	APIMAN01-008/96
Marfrigo, S.A. de C.V.	Area given to use, and exploit surface	2,200	Mar 1, 1998	Mar 1, 2018	APIMAN01-011/98
Manjalba, S.A. de C.V.	Fertilizers and Agricultural Bulk	16,615.00	May 2, 1994	May 2, 2014	APIMAN01-013/95-M2
Operadora Portuaria de Manzanillo, S.A. de C.V.	Container Terminal	133,230.00	Jun 28, 1995	20 years	APIMAN01-001/95
Operadora de la Cuenca del Pacífico, S.A. de C.V.	Multi Purpose Installation I	31,635.06 10,934.25 Adjudicated in bid 42,569.31 TOTAL	Aug 25, 1995 Aug 6, 1998.	15 years 15 years	APIMAN01-002/95 APIMAN01-010/98
Terminal Internacional de Manzanillo, S.A. de C.V.	Multi Purpose Installation II	35,756.27	Aug 7, 1998	15 years	APIMAN01-012/98
Exploración de Yeso, S.A. de C.V.	Bulk Mineral Products, Preferably Gypsum	25,051.20	Sep 20, 1999	20 years	APIMAN01-015/99
Granelera de Manzanillo, S.A. de C.V.	Agricultural Bulk	10,844.06	Sep 20, 1999	15 years	APIMAN01-016/99
Pemex Refinación	Fuel Supply and Storage	118,157.28	8 de Oct., 1999	20 years	APIMAN01-014/99

Table 11 Source: APIMAN
Strengths

• More than 130 hectares of surface reserved for future development of installations and terminals.
• Depth of 14 meters in water areas, which facilitates the arrival of ships requiring great depth and an increased cargo volume.
• Infrastructure availability to handle current maritime traffic.
• Maintenance dredging programs requiring little investment, given the port's configuration which does not allow for the build up of silt.
• Specialized container handling terminal, that has the infrastructure and equipment necessary to reach international productivity standards consisting of three docking positions and tour RTG (two of them Post Panamax)
• Specialized installation for handling bulk cargo, with World class throughput, compared to other hub ports in Asia, North and South America.
• There are captive cargos due to the Port's location near mineral bulk production centers, especially in the State of Colima.
• The Port's geographic location allows for the transference of merchandise that supply the main commercial and industrial centers in the western, central and lowland areas of the country, which represent more than 60% of the GDP and 47% of the national population.
• The investment in highway and railway infrastructure, public services and other port projects, anticipating investors needs, which allows for a speedy attention to their needs.
• Highways and railways in excellent conditions connect the Port to the main cities in the country for the efficient transportation of import and export merchandise.
• Double stack rail service on a fixed route, unique in Mexico, offers a greater security for handling containerized merchandize, allowing for a more efficient use of and productivity of the Port's railways for handling trains.
• The sustained growth of merchandise is reflected in the income received and the continuity of the port business which eliminates credit risks.
• Generating their own income has allowed the Port to meet its goals and objectives associated with prioritized and strategic programs set forth in the Annual Operational Program.
• Favorable weather conditions that allow for operations 24 hours a day, 365 days a year.

Opportunities

• Attracting cargo that Mexican companies handle through US west coast ports, as well as agricultural bulk cargo handled by rail.
• Take advantage of technological instruments in the specialized terminal for handling containers to capture the transfer market to and from Pacific markets in order to make Manzanillo a Hub Port for containerized cargo.
• Establish a Dry Port together with other ports that share the same national markets with the location to be determined by a feasibility study that considers market niches the center, north and northeast of the Country.
• Develop the area's tourist vocation promoting the use of the fiscal pier located in Polygon No. 1 and offering combined destinations with other ports on the Mexican Pacific.
• Take advantage of the growth trends in international maritime commerce that reflects 7% annual growth rates in containerized cargo, 3% in bulk cargo and 2% in general cargo, in order to design service scenarios that meet this tendency. (Source: Policy Research Corporation, NV)
• Attract larger ships, both in length and width, created by economies of scale that shipping lines are searching for.

There are 5 Potential Development Areas (PDA) within the Port, which represent 143.33 hectares that could be developed as vehicle storage patios, widening the specialized container terminal, developing tourist activities and establishing new terminals and installations.

PDA 1: TAPEIXTLES LAGOON

	Total Extension:	19.68 hectares
	Location:	Northeast Interior Port, irregularly shaped.
	Use:	Increasing container handling areas. Increasing transportation roadways. Increasing operative railways for the train.
	Roadways:	There are already roadways and railways that can be connected to this development area.
	Common Areas:	Services and roadways for the Specialized Container Terminals I and II.
	Services:	Does not have urban services but may be provided form the northern or southern areas of the city.
	Observations:	Requires filling for its use and operation. Additionally environmental permits are required.

PDA 2: NORTHEAST AREA, TEC II, REPAIR DOCK AND INSTALLATIONS

	Total Extension:	91.55 hectares
	Location:	Northeast area of the Port, surrounded by the fishing dock Fondeport, Las Garzas Lagoon, Las Brisas neighborhood and the Naval area.
	Use:	Specialized terminal for handling containers No. II (TEC II), new Terminals and Installations and storage patios, with 7 docking positions 300 meters each.
	Roadways:	There are roadways until the Fondeport area and it is without railway connections.
	Common Areas:	There are no common areas.
	Services:	There are not any services, only drains connected to the Las Garzas Lagoon.
	Observations:	Projects must be undertaken for the railway connections and to solve drainage problems that will be generated by the development whose effects might be severe to the population.

PDA 3: DEVELOPMENT OF TOURIST ACTIVITIES

	Total Extension:	3.58 hectares
	Location:	Fiscal docks and patios in Polygon 1 of the Port, in the Southeast area of the Bay of Manzanillo.
	Use:	Developing tourist activities related to cruise ships.
	Roadways:	Access to Downtown Manzanillo.
	Common Areas:	Access to local and tourist services.
	Services:	There are not any services, for receiving tourists as well as a lack of urban services that could be provided by the city.
	Observations:	There must be a detailed coordination between municipal and state authorities, and the Port Authority.

PDA 4: TERMINAL AND INSTALLATION DEVELOPMENT

	Total Extension:	18.52 hectares
	Location:	Interior Port of San Pedrito, fuel installation in the Southeast area, patios in the southeast area for vehicle storage and northeast patios next to docking positions 13 and in the future, 14.
	Use:	Develop and operate the Fuel Installation, Development of specialized installation for storing and assembling vehicles in the southeast zone, and for Multipurpose Installation III and the Multipurpose Terminal I next to docking positions 13 and 14 and an area for truck scales in an area approximately 1,020 m2.
	Roadways:	Internal perimeter roadways and railways that can be connected to this area.
	Common Areas:	Has services and roadways.
	Services:	Is available for services such as electricity and water.
	Observations:	Development is subject to public bids and in the case of the fuel installation to receiving approval from PEMEX as well as the relevant environmental authorities.

PDA 5: CONTAINER STORAGE AREAS AND GENERAL CARGO

	Total Extension:	10.00 hectares
	Location:	Interior Port of San Pedrito, south of TEC I.
	Use:	Develop new areas for container storage, general cargo and patios.
	Roadways:	There are roadways and railways that can be connected to this area.
	Common Areas:	Does not have common areas.
	Services:	Does not have services, however than can easily be connected.
	Observations:	Storage areas to be administrated by API and subject to public bid for definitive assignment.

Keys to Success:

• Increase dredging in the access channel to 16 meters, increase depth to 14 meters on Band C and widen the north turning basin to 600 meters, to allow megacarrier ships to dock in the Port and work towards becoming the most important Hub Port for container and multipurpose cargo on the Mexican Pacific.
• Increase productivity and decrease ship's stays in the Port and the waiting times in the bay.
• Adjusting tariffs and payments to directly connect the development and characteristics of each business unit, especially in container handling, fishing and tug service.
• Incorporating the Port's development area with the overpass project north of polygon 2 towards the town of Jalipa, in order to increase transportation efficiency.
• The permanent coordination and communication between authorities, government entities and organizations that intervene in Port activities in order to establish industrial zones, fiscal corridors, fiscal patios, among others that will improve operations and ship services as well as promoting and selling the port.
• Increasing API's coverage of business markets, as a private entity by participating in other production and commercial sectors.
• Modernizing API's structural organization so that it can meet the quality and efficiency needs as a business center and a Port administrator.
• Establishing fiscal patios for train to help decongest the railways and improve maneuverability in the Port.
• Establishing a multi service patio for trucks outside of the Port with communication facilities that allow for the efficient entrance and exit of cargo vehicles from the Port.
• Widening to 4 or more lanes on the Manzanillo-Jalipa highway connecting the overpass located at the northern end of polygon 2 and relocating the toll booth. Also, widening to 4 or more lanes the Manzanillo-Guadalajara highway on the Colima - Cd. Guzman section, with collaboration from all three levels of government.
• Strengthening the Port-City relationship in order to improve the social, economic and cultural level of the maritime and port related areas.