Port Redevelopment in Mexico under Private Control

After decades of centralization and government control, port infrastructure development and provision of services in Mexico are being transferred to the private sector. As the country prepares to enter the 21st century, port infrastructure will play a key role in strengthening and diversifying Mexico's international trade. The commitment to port improvement should remain strong despite currently weak economic conditions: construction, management, financial, political, institutional and legal issues should be adeptly addressed to improve port performance. The process of privatization of the Mexican port system is considered from these several perspectives. Since this process is of national and international significance, the experience of other countries in port infrastructure and privatization is used as a base for international comparisons. Worldwide, ports are quickly strengthening their role as strategic gateways for foreign trade. Ports continue to evolve as technology transfer facilitators, and can play an extremely important role supporting countries' economic development and reaching equitable distribution of growth. Those countries not able to trade effectively in today global economy endanger their economic prospects and are likely to suffer reductions in their range of industrial activities. In the coming era, abundance of natural resources is no longer a determinant factor for competitiveness. Advancing technology in ports and in shipping, along with increasing operational and modal integration, are introducing radical changes in port industry. The private sector faces a tremendous challenge to improve the Mexican port system's competitiveness, given the context of increasing maritime internationalization and technological change. The complexity of the needed transformation is notable. The goal of this thesis is to consider how the variables involved in the privatization process and trends of port international activity can affect its success. Port privatization goals in Mexico must be extended beyond the system's economic, financial and management consolidation. The approach should be strategic if the Mexican port system is to be competitively positioned for the future. Infrastructure redevelopment strategic actions are proposed to achieve this goal. Thesis supervisor: John B. Miller Title: Assistant Professor of Civil and Environmental Engineering