Philippine port operator International Container Terminal Services' (ICTSI) Mexican unit has started construction on a $250m container terminal in Mexico's Port of Manzanillo.
The terminal being built by Contecon Manzanillo, ICTSI's Mexican subsidiary, is located on Mexico's Pacific coast and is expected to be completed in 18 to 24 months.
The company said that of the total investment, 75% will be allocated for the civil works and dredging, 22% for equipment and 3% for IT and others.
The development of the port will be carried out in three phases, with the first phase designed to have an estimated annual capacity of 450,000 teu with two berth positions.
Previously, the company had secured a 34 year concession contract worth $771m in 2009 to develop and operate the second terminal at Port Manzanillo.
Construction of the terminal was estimated to cost MXN10bn ($751m) which will be jointly funded by the Mexican Government and the concessionaire.
The terminal will have 74ha area and 5.4ha of maritime surface, as well as three docks and a 1.08km-long waterfront.
The project was planned to be carried out in three phases and after completion of all the phases the terminal will be able handle 2 million teu cargo.
As part of the expansion, Contecon Manzanillo had recently ordered four ship-to-shore (STS) cranes and ten rubber tired gantries (RTG) cranes from Finnish equipment maker Cargotec.
Four Kalmar Super Post Panamax STS cranes and ten Kalmar E-One² RTGs will be delivered in the first half of 2013. ICTSI is involved in the operations and development of 22 marine terminals and port projects in 17 countries.
It is planning to acquire new terminal concessions in Asia, Australia, the Indian subcontinent, the Middle East, Africa, Europe and North and South America as part of its expansion plan.