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Paulclark
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Port Colonet on again
It was announced by SCT that bidding for the construction of Port Colonet will happen in September.
"The construction of a giant deep-sea port on the shores of Baja California was greenlighted on Monday by secretary of Communications and Transport
(SCT) Juan Molinar Horcasitas who foresees auctioning the construction contract next month."
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BajaGringo
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The project was always on - the submission date for submitting their projects was set back to give the different groups additional time to line up
funding after the economic meltdown last fall.
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astrobaja
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Theres so many potential stumbling blocks for a megaproject of this type.
All kinds of infrastructure, transport wise have to be in place before the port even gets built! I'm hoping that it will eventualy falter.
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woody with a view
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the dollars are changing hands all along the coast. the governor put on a show awhile back. it'll happen....
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Bajahowodd
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It remains to be seen if, and when this actually comes to fruition. The original plan involved private investment that would be granted a 45 year
concession to operate the facility. Obviously, much has been written lately about how slow traffic is at the LA-Long Beach port, due to the worldwide
recession. Another ingredient in the mix, is that according to the original plan, the initial phases of the Punta Colonet project would be operational
in 2014. That is a long time away. But it will also coincide with the opening of the expanded Panama Canal, which will allow "post-panamax" ships
(that currently do not fit) which will represent almost 40% of the world's shipping fleet by then. Over-capacity?
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Curt63
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With Obama in office, I'm betting this project won't happen.
No worries
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Bajahowodd
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BajaGringo
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The four groups that have signed up to bid for the project have each deposited 250 million pesos to be able to participate in the licitacion. I met
with Dr. Rubio who is the project director in his office in Tijuana not long ago and he assured me that all the groups are actively moving forward
with their project bids.
We should know if that is true very soon as time will tell...
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mtgoat666
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| Quote: | Originally posted by Curt63
With Obama in office, I'm betting this project won't happen. |
why?
I do commend any US politician that would like to expand US ports and rail in LA, San D, San Fran, Portland and Seattle so we don't lose port business
to Mexico.
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DENNIS
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| Quote: | Originally posted by mtgoat666
I do commend any US politician that would like to expand US ports and rail in LA, San D, San Fran, Portland and Seattle so we don't lose port business
to Mexico. |
Bigger US ports...more freight...more drugs. Why not? The war is lost anyway.
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BajaGringo
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| Quote: | Originally posted by DENNIS
| Quote: | Originally posted by mtgoat666
I do commend any US politician that would like to expand US ports and rail in LA, San D, San Fran, Portland and Seattle so we don't lose port business
to Mexico. |
Bigger US ports...more freight...more drugs. Why not? The war is lost anyway. |
Do you actually believe we were ever trying to really win that war??? (Sorry for the hijack!)
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Bajahowodd
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Because the Mexican port will have a lower overhead, mainly due to labor costs? Where were you when the fleet of cargo vessels carrying goods around
the world became mostly foreign-flagged and operated by foreign crews. Right now roughly 5% of merchant vessels plying the seas are flagged with the
stars and stripes. And basically those ships do not compete with world trade, but are used to carry US aid and assistance to foreign countries. If the
Mexican project can do it cheaper, it will be a success.
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mtgoat666
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US ports can compete with mex ports quite well. first, port work is not labor intensive (it's all machines, cranes these days). second, our
expansion costs can be much lower relative to building new port from scratch. third, a port in mexico to serve US imports will not get built if US
says no.
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Bajahowodd
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Land costs, environmental laws and taxes will figure into the equation, as well. My understanding is that some big time Wall Street money is lined up
along with Sr. Slim. So, who in the US is going to be able to veto it?
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BajaGringo
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I really think that the bulk of the Colonet port traffic will be from China. Panama cannot do much to put a big dent in that and I agree that Long
Beach is pricing itself out of the market with port fees, increased regulation and very expensive storage/trasport fees. With the streamlined import
process already approved under the Bush administration, Colonet can store cargo, move imported parts to assembly plants in Valle de Trinidad and then
whisk them across the border without even making a customs stop. Import duties will be charged by cargo transponders installed by treasury agents
working at the distribution centers in Mexico.
Maybe Obama is thinking about undoing that agreement???
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Bajahowodd
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I do think the Colonet project is aiming at the US heartland. However, East coast destinations and non-US destination goods will be going through
Panama. IMHO.
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Curt63
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Goat, My point exactly. Big labor owns Obama and it's payback time. Obama would love to get credit for putting Americans in these jobs and get
re-elected.
No worries
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BajaGringo
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| Quote: | Originally posted by Bajahowodd
I do think the Colonet project is aiming at the US heartland. However, East coast destinations and non-US destination goods will be going through
Panama. IMHO. |
Yes, but then the goods will have to be assembled in China and shipped at a higher cost due to larger shipping volumes. That is a big advantage
Colonet offers. By shipping only manufactured parts from China they can take advantage of lower shipping costs to produce parts for TV's, dishwashers,
microwaves and even cars to be assembled in Mexico. The rail access through Arizona can hub to all of the midwest / east coast markets with quicker
shipping times and lower net cost of goods.
That is what this global economy is all about...
[Edited on 8-18-2009 by BajaGringo]
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Bajahowodd
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I understand that one can ship more goods unassembled. And frankly, international trade is not right there in my wheelhouse. But, when you consider
that labor costs remain much lower in China, and the post-panamax ships will carry that much more cargo, it seems to me there is a wash. As far as TVs
go, don't they already call Tijuana the television capital of the world? As an aside, a few years back, riffing on your globalization thing, we
bought a refrigerator that was ostensibly marketed by LG-Canada, LG being a Korean company, and assembled in Mexico. Three countries for the price of
one!
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BajaGringo
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Yes, the lower assembly costs / higher shipping costs probably will be a wash. What may tip the scales though is that the port fees and transportation
costs out of the port will probably be lower via Colonet and as the bean counters are driving most of the corporate decisions today, I think Colonet
will win out.
Under the emerging global economy I suspect most assembled goods will carry manufactured parts from a number of locations. Tech support will probably
get even more complicated...
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