A group of financiers will provide loans to Contecon Manzanillo, SA de CV (CMSA), the firm that owns the specialized container terminal concession at the Port of Manzanillo in Colima, Mexico.
CMSA was incorporated in Mexico to execute the project. CMSA is fully owned by International Container Terminal Services, Inc. (ICTSI), a Philippines-based developer and operator of container terminals worldwide.
Specifically, the International Finance Corporation (IFC), the Inter-American Development Bank, Standard Chartered Bank and KfW Ipex Bank have provided US$260 million via loans to finance the container terminal concession. The financing package has a tenor of 12 years.
In January 2010, ICTSI signed a 34-year concession for the development and operation of the project. The terminal is expected to alleviate congestion and provide additional container cargo handling capacity at the Port of Manzanillo.
According to ICTSI, the terminal will have a total capacity of 2.2 million twenty-foot equivalent units (TEUs). The financing package will cover approximately the first two of three phases of the project. When the first phase is completed, the terminal will have a capacity of 750,000 TEUs, and it will be increased to 1.4 million TEUs when the second phase is operational.
The project is located on the Pacific Coast of Mexico in Colima state, about 800 kilometers from Mexico City and 300 kilometers from Guadalajara. The port development project covers about 77 hectares with 1,080 meters of seafront. The development of the container terminal will be done in three phases. First phase involves 42 hectares with 720 meters of quay length. CMSA began commercial operation in August 2013.