Mexico has launched a $3 billion expansion of the Port of Manzanillo in Colima, which will more than double its capacity by 2030. This project will increase the port’s area from 450 hectares to 1,800 hectares and its capacity from 3.5 million TEUs (twenty-foot equivalent units) to 10 million TEUs annually, making it the largest container port in Latin America and positioning it among the top 15 container ports worldwide.

The project, managed by Mexico’s Naval Ministry (SEMAR), includes the construction of four container terminals, petroleum handling piers, and enhanced road and rail infrastructure. Funding will come from a mix of public and private investments, with firms like Ferromex, a subsidiary of Grupo México Transportes, expressing interest. “Without doubt, we believe that it is a feasible project,” said Manuel Fernandez, CEO of SSA Marine Mexico, the operator of Manzanillo’s largest container terminal.

Manzanillo currently handles goods from over 140 countries, including automotive parts, steel, and agricultural productsChina is a key trading partner, but the port also serves Japan, South Korea, the United States, and various Latin American nations.

Mexican President Claudia Sheinbaum defended the country’s trade policies, saying the idea that China is using Mexico as a back door to the U.S. “is not correct.” She emphasized that automobiles manufactured in Mexico, whether exported to the United States or kept domestically, contain only 7% of components sourced from China.

Adding pressure to the port’s expansion are U.S. President-elect Donald Trump’s recently announced plans to impose a 25% tariff on all imports from Mexico. These tariffs could pose significant challenges to Mexico’s trade relations and raise costs for goods flowing into the U.S.

The expanded Port of Manzanillo, which is expected to be completed by 2030, aims to transform Mexico into a major international logistics hub, supporting its thriving manufacturing sector and solidifying its role in global trade.