Interview with Ing. Alejandro Davila, General Director for Grupo Logistico Intermodal Portuario S.A. de C.V., Puerto Seco de Manzanillo on September 14, 2002 in Manzanillo, Colima Mexico.

Q.- Please describe for our readership the importance of international trade for your organization.

A.- The recovery of the economy of the Asian countries after the 1997 crisis, the free trade treaty with North America and Europe as well as the beginning economical growth in our country, has increased in a considerable way the cargo volumes in our ports in the last few years. This activity is greatly benefiting the growth in port activity of the Mexican Ports, including the port of Manzanillo as the main port.

Q.- What is the role of the ports and port services in the Colima state economy?

A.- The role that the port of Manzanillo plays is of principle gateway for the Center and Bajio zones of Mexico. This area is integrated by 16 states that represent more than 60 percent of the integral gross production and 47 percent of the national population, for the foreign exchange by maritime traffic. The geographic position both internationally as well as nationally counts with an extensive influential zone in Mexico.

Q.– What is the main threat posed by foreign competition in Mexico?

A.- We could say that the California Ports of Los Angeles, Long Beach, San Francisco and Oakland as well as others of the west cost, are important natural competitors for the port of Manzanillo. This is due to the fact that these ports receive imported and exported cargo from the same origin and destination, which represents potential clients for the port of Manzanillo as well.

Q.– What are the opportunities for trade and investment in Asia, Europe and Latin America?

A.- In Asia, Japan followed by China and Korea represent the principle commercial partners in the merchant interchange like steel sheeting, automobiles, automotive parts, electronics, equipment, machinery and wax as well as others. Concerning the commercial exchange with the U.S. and Canada, products like fruit, meat, canola oil, canola seed and minerals like sulfur stand out. In Latin America, countries like Guatemala, Chile, Panama, El Salvador, Nicaragua and Perú are oriented toward products like cereals, cornstarch, acrylic fibers, glass, cement, cotton, automobiles, and motorcycles. In general terms, the opportunities for investment are extensive and varied, even though there has been an economical crisis in the last few years, the commercial exchange has maintained constant growth.

Q.– What are the obstacles in Mexico toward economic development?

A.- The new politics for the modernization of the Mexican Ports, the invitation to the private investment in the port field and the development of generating activities of resources, dividends and employment, in recent years makes the Mexican ports the basis for the Mexican economy. Ports like Manzanillo have grown their infrastructure to be able to offer better services to the costumers with the increase of cargo volumes, but without a doubt it is important that the Mexican ports like Manzanillo maintain world standards in the inspection, revision and clearance process of the merchandise of the foreign exchange on behalf of the Mexican Authorities, in order to participate and compete at the top level.

Q.– Please describe the advantages/disadvantages of the proximity of the U.S. market.

A.- The great advantage that México has in the international market is being considered a commercial partner to the United States. The disadvantage is competing with American companies in different sectors like production and services but these disadvantages can be transferred into advantages when they are strategically formed alliances with the same Mexican and American companies that are dedicated to the same sector.