By Jeffrey A. Newman Esq. JeffNewmanLaw.com
Hutchison Whampoa through its subsidiary Hutchinson Port Holdings has been funding Mexico’s ports since the 1990’s and it operates Terminal Internacional de MAnzanillo , one of seven port concenssion it holds in Mexico including Ensenada, Veracruz, Lazaro Cardenas and Manzanillo. the Port of Manzanillo is now undergoing major expansion in a project valued at $2.7 billion USD.
Here are some additional facts:
Key Chinese Companies and Projects
- China Harbour Engineering Company (CHEC): CHEC has been a primary contractor for the expansion of the Port of Veracruz, which is set to become Mexico’s second-largest por.
- Hutchison Ports (CK Hutchison Holdings Ltd.): This Hong Kong-based company has established a significant presence in several major Mexican ports, including Manzanillo, Veracruz, Michoacán, and Ensenada. Hutchison operates four wholly-owned port facilities in Mexico, described as “strategic ports on both coasts”.
- Other Chinese Investments: Chinese companies are also involved in the expansion of the Port of Manzanillo, with a $2.7 billion project aiming to make it Latin America’s largest maritime gateway.
Strategic Purposes of Investments
- Enhance trade connectivity between China and Mexico.
- Facilitate China’s access to Latin American markets and resources.
- Strengthen China’s global maritime influence.
- Support China’s Belt and Road Initiative (BRI) in the region.
Financial Contributions and Government Involvement
Direct Company Investments
- Chinese company investment in Mexico: Direct investment from Chinese firms in Mexico has grown from $38 million in 2011 to $386 million in 2021, making China the fastest-growing source of foreign investment in Mexico. These investments are spread across manufacturing and infrastructure, including port construction.
Chinese Government Funding
- Contecon Manzanillo Project: The most specific figure for direct Chinese government funding is a $25 million loan from the People’s Bank of China via the China Co-Financing Fund for Latin America and the Caribbean. This loan, administered by the Inter-American Development Bank (IDB), was part of a broader financing package for the Contecon Manzanillo Container Port and Logistics Facility, which aimed to increase the port’s capacity by 1.35 million TEU annually by 2021.
- Broader Subsidies: Between 2010 and 2019, Chinese companies invested $11 billion in overseas ports globally, with the Chinese state subsidizing its shipping companies by over $130 billion in the same period. However, the specific amount of direct Chinese government funding for Mexican ports beyond the Contecon Manzanillo project is not detailed in the search results.
Jeffrey Newman is a whistleblower lawyer representing doctors, nurses and therapists who have become whistleblowers reporting Medicare and Medicaid fraud in False Claims Act (Qui Tam) cases. He also represents whistleblowers in tariff fraud cases and military contract fraud cases. also a frequent writer on issues relating to events affecting the world economy. Jeff can be reached at Jeff@JeffNewmanLaw.com or at 617-823-3217
