Contecon Manzanillo Set to Reach 2.5 Million TEU Capacity

Q: In recent years Manzanillo has held a reputation for suffering bottlenecks caused by customs delays and truck congestion. How is Contecon addressing this problem?

A: There are two fundamental approaches. The first is increasing the internal capacity of the terminals. At Contecon Manzanillo, we have maintained an expansion program since 2022. We have already completed phases 3A and 3B, and we are now beginning Phase 4, which will be the terminal's final phase. This will increase our installed capacity by more than 40%, helping us absorb higher import and export volumes as well as improve clearance and evacuation rates.

On the other hand, this must be accompanied by an expansion of customs capacity. Between 2021 and 2026, Manzanillo experienced a sustained increase in import volume exceeding 70%. Unfortunately, external infrastructure and the capacity of customs authorities were not equipped for that level of activity. We have worked very closely with them. In 2024, daily customs operations were extended by two hours in both the north and south zones. Recently, customs announced 24/7 operations for Thursdays and Fridays. This allowed us to break our evacuation record last week, moving more than 2,000 containers out of the terminal in a single day.

Regarding road infrastructure, ASIPONA Manzanillo invested in the second access point to the Port of Manzanillo, dedicated to Contecon in the north zone. Likewise, the State of Colima is executing bridge and connector projects to enhance internal connectivity, alongside the expansion of the Manzanillo–Colima highway, which serves as our main link to the country's consumption and manufacturing centers. Although we are navigating a challenging period due to the surge in cargo, we made the right call by investing in yard capacity and equipment. We will transition from a capacity of 1.4 million TEUs to nearly 2.5 million TEUs by the second half of next year.

Q: Manzanillo handles about 45% of the nation’s commercial containerized cargo. What are the main factors still constraining Manzanillo's operations? 

A: It is necessary to complete all ongoing investments to optimize truck flows and eliminate bottlenecks during peak hours. As a terminal, we take on the responsibility of expanding our gate and equipment capacity to handle receiving and dispatching processes more efficiently.

With customs, we continue working to streamline procedures. The authority is increasing capacity in areas like the north zone to maintain this positive trajectory. Port planning requires a medium- to long-term vision; short-term decisions cannot be made because they involve significant capital investments and impacts on the surrounding environment. We are on the right track, but we must maintain continuity along this path.

Q: Who are Contecon’s major clients, and what is driving growth in the region?

A: Contecon Manzanillo’s major clients are retail companies, which represent a wholesale import segment from Asia. In second place is the automotive industry, playing a key role in spare parts and components aimed at both vehicle maintenance and manufacturing. A third significant sector is consumer electronics and home appliances, such as televisions and household devices.

Mexico offers a very promising growth outlook due to its geographic location and proximity to the world’s largest consumer market. Coupled with this, Manzanillo’s strategic position is unmatched; there is no other port on the Mexican Pacific with its location. It serves as the first port of call for liner services coming from Asia, such as Shanghai, and has consolidated its position as the most important port in the Latin American Pacific.

Q: What operational benefits has the port seen after the implementation of Ship-to-Shore (STS) cranes?

A: These are state-of-the-art pieces of equipment with advanced functionality, but what is crucial for us is their operational capability. The cranes incorporated since 2024 are the largest on the continent, capable of servicing vessels of up to 24,000 TEUs (400m in length overall by 62m in beam). Although ships of this scale have not yet arrived on the Pacific coast, we are already prepared for when they do. We have brought in equipment sized to meet the demands of the future.

Q: What measures are you implementing to avoid port congestion at Manzanillo?

A: Manzanillo is neither collapsed nor congested, and the figures prove it. Unlike other hubs such as Lazaro Cardenas, Veracruz, or Altamira, Manzanillo is the only major port in Mexico recording genuine growth in both imports and exports. 

Lazaro Cardenas shows overall percentage growth driven by transshipment, but its cumulative import and export figures through July reflect a drop exceeding 8%. In contrast, Manzanillo is growing by almost 4% in imports and 18% in exports. The cargo mix is key here: handling transshipment containers is completely different from managing import and export cargo, which requires complex customs processes. Importers continue to favor Manzanillo.

At Contecon, thanks to our commercial alliances, we posted a 20% growth rate through July. For high-value cargo, our import growth exceeds 14%, compared to the port’s average of 3.6%. We operate more than 5,000 trucks daily at the port. Manzanillo has grown 70% in five years and maintains its upward trajectory.

Q: How are you leveraging data and AI for yard management and container flow automation?

A: The use of AI in daily yard operations is still in its early stages, though it is applied in data analytics, such as vessel arrival scheduling. Our priority for digital investment focuses on cargo traceability to simplify management for both importers and exporters. The goal is to provide end-to-end visibility of the container from before its arrival until its departure via rail or motor freight. We are executing a comprehensive redesign of our cargo management system with a major investment, targeting a go-live date in mid-2027. The terminal acts as a complex logistics node where multiple actors converge, including authorities, customs brokers, and drayage carriers. Integrating these processes and implementing AI will significantly facilitate operations.

Q: What is the port’s dwell time, and how has digitalization impacted this metric?

A: Terminals globally are designed for an average dwell time of seven days, the window during which discharge and customs clearance procedures take place. This indicator has improved in Manzanillo thanks to the optimization of inter-institutional processes involving customs, the terminal, and the users themselves. Digitalization will eliminate information gaps and streamline dispatch planning.

Q: Which areas of the terminal are moving fastest toward zero emissions, and what are the main obstacles?

A: Three years ago, we began hybridizing our Rubber-Tyred Gantry (RTG) cranes, which manage containers in the yard blocks. Across our fleet of over 40 units, we have reduced diesel consumption by more than 50%. Meanwhile, our quay cranes are 100% electric. We recently initiated the procurement of 28 electric terminal tractors, which will arrive in the coming months.

The main operational obstacle is the availability and reliability of the electrical power supply. There is a power grid capacity deficit at the Port of Manzanillo, an issue we have been addressing with the authorities for four years. For example, we submitted a project for shore power connection (cold ironing) so ships can shut down their auxiliary engines while berthed. Today, implementing this is unfeasible due to the power grid’s lack of capacity to support the load of a 400-meter vessel. Without a guaranteed power supply, equipment electrification grinds to a halt.

We are awaiting regulatory changes that would allow private entities to self-generate power. While our consumption level does not match that of a steel or cement mill, a port terminal has high electrical demand, which will increase as we transition our fleet to electric systems. Self-generation would allow us to bridge current supply deficiencies.

Q: How is the cargo mix in Manzanillo expected to evolve over the next five years in light of the USMCA renegotiations and trade tensions with Asia?

A: There is uncertainty regarding the final impact of the USMCA renegotiation, relations with China, and new tariffs. Although the initial impact was smaller than projected, we are observing a slowdown in Pacific trade dynamics, which also reflects the broader deceleration of the national economy. More than 80% of Manzanillo’s volume originates from China. If trade policies reduce reliance on Asia, the port will be directly impacted. We are closely monitoring the definition of the ground rules to adjust our forecasts accordingly.

The automotive and home appliance sectors are backbones for both the domestic market and exports. Meanwhile, retail is directly tied to domestic consumption and the performance of the Mexican economy. We do not foresee an emerging sector overtaking these industries in the short term; they will maintain their proportions within the cargo mix.

Q: What infrastructure investments are necessary to support international trade growth over the next decade?

A: The state must prioritize three key fronts: highway infrastructure, the rail network, and energy supply. Terminal growth requires a National Highway Plan, a National Rail Plan, and a guaranteed power supply supporting the entire industrial supply chain. Ports demand long-term investments that must follow logical, coordinated planning.

Q: What are Contecon's operational priorities for 2027, and what challenges is the company expecting?

A: The priority is to sustain our growth trend, consolidate client trust, and complete our expansions on schedule to bring them operational. The operational challenge lies in the agility of governmental approval processes from SEMAR and ANAM to commission the new operational areas.

Success will lie in the effective utilization of our installed capacity. Our goal is to support the country's economic development and consolidate our position as the cornerstone player in the national port system. As a benchmark, last year Contecon Manzanillo single-handedly moved more import cargo than the entire Port of Lazaro Cardenas combined.