Mexico's transport and communications authority SCT has awarded a 30-year concession for the construction and operation of a second terminal at Lázaro Cárdenas port on the Pacific coast to Mexican construction firm ICA (BMV, NYSE: ICA) and Denmark's Maersk.
The tender was awarded on December 15 to ICA and Maersk subsidiary APM Terminals; however, no details were made available at the time.
The concession involves developing an 850,000m2 area, which could be expanded by an additional 170,000m2 and construction of a specialized container terminal, expected to cost US$650mn.
Current terminal operator Hutchinson Port Holdings (HPH) contested the validity of the tender and an initial judgment in January found in its favor. SCT maintains it was not notified of any judgment that would affect the tender process.
HPH, which has been operating the port's first container terminal since 2007, argued that the port authority arbitrarily modified its master development plan to proceed with the tender for a second terminal.