Mexico Cancels Punta Colonet Multimodal Port and Rail Project in Baja California El Universal
go to original December 3, 2012

The Mexican Ministry of Communications and Transport (SCT) has decided to cancel the Punta Colonet multimodal project, in Ensenada, Baja California, considering it economically unfeasible.

In a decree published in the Official Gazette (Diario Oficial de la Federación), the agency stated that after three modifications amendments to the bid notice, the tender for the construction, operation and use of a general communication railroad is suspended.

It explained that because Colonet Bay lacks any kind of infrastructure, the project would have to be designed from the beginning by port and rail operators, and financed entirely with private funds.

Therefore, it is felt that success of the project would depend on an adequate profitability offer (that would) be attractive to potential investors.

However, it notes that there were several international events that modified the economic outlook (and) financing costs, and on global trade volumes.

The SCT says that after a study by KPMG Cardenas Dosal, to determine the economic and financial feasibility of the multimodal project, the conclusion was that the project is not economically viable.

It contends that "the container transport market participants consulted demonstrated no special interest, and in particular they did not seem to show an appetite for investing in a project the scale of Punta Colonet."

Edited translation by MexiData.info

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