Announcement of Mexico to Complete Industrial Port on Pacific Coast on June 25, 1984

FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. BANK NEWS RELEASE NO. 84/103 Contact: Ciro Gamarra June 25, 1984 (202) 477-5320 MEXICO TO COMPLETE INDUSTRIAL PORT ON PACIFIC COAST Mexico is completing an industrial ports complex on its southwestern coast at a cost of about $113 million. The government is borrowing $76.3 million from The World Bank to finance the completion of the Lazaro Cardenas Industrial Port, while the balance of the cost will be paid by the government. The project is designed to increase the efficiency of the port terminal, improve its administration and financial operations, and provide savings on transport costs for industries using the facilities. The project will also help reduce environmental hazards in the port, and guard against flood damage. The Lazaro Cardenas port is ideally located for servicing the Mexico City area, as well as the northern region through coastal navigation. It is an important outlet for trade activities with the countries in the Pacific Basin. In 1980, the Lazaro Cardenas region had a population of about 60,000. Transport facilities will be improved by giving access to international maritime commerce. Mexico's dependence on port facilities in other countries will be reduced with the expansion of its own port facilities. The expansion is also expected to result in economic growth in the coastal regions of Mexico. The project includes the construction of a highway to connect the port terminal and a fertilizer plant to the area's road system. New rail lines will connect a grain terminal and a steel pipe plant to the rail network. The harbor will be deepened to give better access to industrial users, and cargo handling equipment and a tug boat will be provided. Infrastructure will be provided for some 125 small- and medium-sized industries expected to be established on about 40 hectares in the industrial complex. Flood protection works will be carried out. Environmental problems caused by industrial and municipal waste will be corrected with the provision of wastewater and solid waste management systems for the industrial park and the municipality. Technical assistance on engineering, construction and supervision, and management of the port will be provided. Besides the $76.3 million loan, World Bank assistance includes the introduction of a system of tariffs based on cost, identification of financial objectives, and training of port managers and operations staff. The World Bank loan is for 15 years including three years' grace, with a variable interest rate, currently 10.08 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.75 percent on undisbursed balances and a front-end fee of 0.25 percent on the amount of the loan. NOTE: Money figures are expressed in U.S. dollar equivalents.