Manzanillo TEC II (Phase II)

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In November 2009, ICTSI was awarded a 34-year concession for the development and operation of the second Specialized Container Terminal (TEC-II) at the Port of Manzanillo by Administracion Portuaria Integral de Manzanillo, S.A., de C.V. (API) . In June 2010, ICTSI signed a 34-year concession agreement and established Contecon Manzanillo S.A. (CMSA) as the project company. CMSA paid upfront fees of MXN50.0 million (US$4.1 million) to API in two installments: MXN25.0 million (US$2.0 million) on June 3, 2010, the date of signing of the contract; and another MXN25.0 million (US$2.0 million) on September 17, 2010. For the first phase, CMSA was to pay fixed fees of MXN163.0 million (US$13.2 million) divided into 12 monthly payments, payable in advance. When CMSA has received the second and third phases of the ceded area, CMSA was to pay additional annual fixed fees of US$5.9 million (MXN72.3 million) and US$6.8 million (MXN83.8 million), respectively. Furthermore, CMSA was to pay monthly variable fees of US$16.2 (MXN200) per TEU, for a maximum of 1,500,000 TEUs per year. The container terminal was to be built in three phases. The first phase was to involve 42 hectares with 720 meters of quay length (ID# 7508). The total investment for the first phase was estimated at US $ 222 million. Mexico's government authorised the operation of TEC II in July 2013, but operation by Contecon actually started in August 2013. The second phase involved an investment of US$ 345 million. Financial closure for this second phase was achieved in October 2015, when Contecon was granted a US$ 260 million financing deal. The IADB provided US$ 117.5 million, while the IFC provided US$ 65 million and KfW IPEX-Bank provided US$ 52.5 million. The IADB financing package included an additional funding of US$ 25 million from the China Fund for LAC. Phase two, which was set be completed by 2020, will increase the terminal’s capacity to 1.4m TEUs.