~~By InsightAnalytical–GRL
Breaking News…as I finish up this post Wednesday night (3/22) , I’ve just watched Dennis Kucinich with Greta on On the Record discussing the revelation that Citicgroup took part of its TARP bailout money and made deals with Chinese and Dubai companies, in effect, sending our money overseas. The links are not up as of now, but I’ll post what I find tomorrow. In the meantime…read what follows and see if you don’t ask the questions we’ve been asking here at IA over the last few days…
***
Yesterday I mused about what’s going on in Canada and its ties to the U.S. financial crisis and a couple of days ago, American Lassie wrote about the North American Community. Earlier, IA took a look at a possible U.S. role Mexico and today, I’m looking at Mexico again, specifically about a certain plan that has been brewing for quite awhile and which seems about to take off.
About a week ago I opened the Albuquerque Journal’s Business Outlook section and found a full page story entitled “Planned Seaport to be the third largest in the world”. (The link is working as I write this, but because the ABQ Journal is behind a wall and available to subscribers-only, I don’t know for how long. http://www.abqjournal.com/biz/0294376619biz03-02-09.htm)
The seaport, called Punta Colonet, will be built here:

Punta Colonet (Photo courtesy RE/MAX)
(More information on the location, including maps, at the end of this post)
A word about the columnist. Back in 2003, Jerry Pacheco was running Gov. Bill Richardson’s newly-formed office dealing with Mexican trade (see press release at the end of this post). And here’s a bit more detail:
Pacheco is a recognized expert in Mexican affairs and has extensive business experience throughout Mexico. He established and ran the state’s first foreign trade office in Mexico City during the early 1990s, and is a syndicated columnist with regular international columns appearing in El Paso Inc., Ser Empresario magazine and most recently in the Albuquerque Journal.
Which brings us back to the ABQ Journal article in question…written by the guy in the know…
Monday, March 02, 2009
Planned seaport to be third largest in world
Albuquerque Journal–>
NEW YORK/WASHINGTON (Reuters) – The U.S. government will boost its equity stake in Citigroup Inc to as much as 36 percent, bolstering the bank’s capital base in the latest emergency effort to save the banking giant.
SNIP
While the latest rescue does not inject more money into Citigroup, it gives the government more of a voting stake and far greater influence over the bank’s operations, short of outright nationalization. The White House said a higher U.S. stake will help achieve a “better outcome” for the bank.
“The government is the new boss,” said Mike Holland, the founder of money manager Holland & Co in New York. “Every major decision is something that is not going to come out of Park Avenue, but is going to come from Washington, D.C.”
New York-based Citigroup in October and November received $45 billion of taxpayer money, as well as a government backstop to cap losses on $300.8 billion of toxic assets. More than two-thirds of these assets related to mortgages and commercial real estate.
SNIP
Pandit has split Citigroup into two: Citicorp, which has retail banking and other businesses that Citigroup wants to keep, and Citi Holdings, which includes troubled or underperforming assets it wants to sell or wind down.
A higher government stake could complicate Citigroup’s ability to operate in some of the more than 100 countries where it has businesses. Bank executives downplayed speculation that Citigroup might shed all or part of its ownership of Grupo Financiero Banamex, Mexico’s second-largest bank.
“We’re not open to the idea of offloading assets that we really want to keep,” Edward “Ned” Kelly, head of global banking and Citi Alternative Investments, said in an interview. “Banamex is a very important property to us, and we are intent on retaining it and maximizing its value.”
MORE
(Here’s more analysis of the situation at Citigroup from John Batchelor at The Real Barack Obama blog.)
And here’s more background on Asian investors
A Deck of Chinese Cards
Mexican and US officials and businessmen are stepping up contacts with China and other Asian nations in high-stakes bids to expand economic relations. Trade missions from Baja California, Chihuahua, Michoacan and Texas all have recently flown to meetings and tours in the emerging global economic powerhouses of the Far East.
SNIP
Their eyes fixated on the expanding Chinese star, Mexican officials are now considering opening an eastern-oriented Pacific port in Baja California to help handle the burgeoning trade volume. Located about 150 miles south of the US-Mexico border, Punta Colonet is emerging as a possible super port. Carlos Jauregui, the executive director of the port of Ensenada said construction of the port could begin in 2008 and be completed by 2012. Jauregui estimated the facility could cost about $5 billion dollars to build, including a rail link to the United States.
And what about the implications for U.S. ports?
The Cunningham Report, which describes itself as “an information source for the trade and transportation industry” commented on 89/31/08:
Although folks at both the Port of Los Angeles and the Port of Long Beach have downplayed the impact of the Punta Colonet project and noted that completion of the port would be years away, if it is developed, the Mexican port could at some point pose significant competition.
Also, from The Puget Sound Business Journal, August 29, 2008:
While Mexican planners hope the Mexican port will attract cargo from congested Southern California ports, that could have a domino effect in the Pacific Northwest.
The ports of Seattle and Tacoma are launching a joint marketing agreement to convince cargo owners to shift cargo from Southern California to Puget Sound, but that effort might have less success if Southern California congestion eases because of the Mexican port.
Otherwise the proposed Mexican port probably won’t take away too much cargo from Puget Sound ports, except for import cargo destined for Mid-Atlantic states, said Doug Coates, principal for TransSystems Corp. in San Francisco.
Puget Sound ports already are losing some cargo to the new Prince Rupert Port Authority in British Columbia, as well as to expanded East Coast ports including the Port of Savannah, Georgia. In July the Port of Savannah announced its volumes had increased 15 percent over the last year, while the Port of Seattle’s volume dropped 8 percent in the first half of this year.
The Portland Business Journal reports that Port of Portland officials “aren’t particularly worried about heightened competition,” but their article includes this tidbit:
Doug Coates, principal for TranSystems Corp. in San Francisco, said one attraction of the Punta Colonet port might be the promise of lower longshore labor rates, and the possibility that the Mexican port would be buffered from any labor issues with the International Longshore and Warehouse Union. While that union recently signed a new contract, owners of cargo plan far ahead to avoid the effects of union disturbances.
“The shippers are still worried about longshore unrest on the U.S. West Coast and what happens with agreements,” Coates said. “The carriers like the fact that it’s lower cost and more flexible labor.”
Do you hear the sound of American jobs going down the tubes as the new “community” here in North America takes shape?
By the way, RE/MAX Baja Realty is gearing up to sell property with the proposed port as a selling point and their contact form is already up and working:
Welcome to Baja California’s Official website for the largest Mexican public works project ever.
The purpose of Colonet Real Estate website is to bring information about the new project developing in Baja California, prices of all the possible property’s for sale and questions referring to Punta Colonet.
***
MAPS and More Information on Punta Colonet
Maps, Major Ports – US/Mexico Border Transportation Planning – FHWA.
Wikipedia Article on the Punta Colonet Area, port, and detailed map
More Background Information on Border Ties
Frontera Norte Sur, published by New Mexico State University (2006 edition) Section of interest:
Banks Leap Across Borders
Given the green light by the Federal Reserve Board, a Mexican bank has finalized its majority-ownership purchase of the Texas-based Inter National Bank (INB). Luis Pena Kegel, director general of the Banorte Financial Group, said the INB will use its base from the city of McAllen on the Texas-Mexico border to expand into other regions of the United States.
“With this operation, Banorte has the intention of getting closer to families and businesses on both sides of the border with innovative financial products that nobody else is offering,” Pena said in an interview with the Mexico City daily La Jornada.
MORE
***
UPDATE 3/13/09
Thanks to America Lassie for this link which has the video of the hearing mentioned by Kucinich on Greta:
http://www.businessandmedia.org/articles/2009/20090312104802.aspx
***
BACKGROUND on Jerry Pacheco, ABQ Journal columnist
Press Release from the State of New Mexico re: Jerry Pacheco
http://www.nmpartnership.com/press-releases/article.php?id=970&title=Pacheco+Heads+New+Mexican+Affairs+and+Trade+Division
Return to press release archive
Friday Jun 13, 2003
Pacheco Heads New Mexican Affairs and Trade Division
Contact: Cathy Ann Connelly: 










505-476-3747
Santa Teresa, New Mexico – As part of Governor Bill Richardson’s efforts to improve commercial trade with Mexico, Jerry Pacheco, formerly deputy secretary for New Mexico Economic Development Department, is now director of the new Mexican Affairs and Trade Division. This office was created by the State Legislature to better oversee and coordinate the activities of the New Mexico Border Authority, New Mexico Economic Development Department, and the New Mexico-Chihuahua Commission.
Based in Santa Teresa, Pacheco believes the new office is a major, positive step toward increasing the trade and infrastructure interface with all Mexican states.
“State Senator Mary Kay Papen carried the bill that created this new entity, and it is one that will further our agenda of improving productive trade with Mexico,” said Pacheco.
New Mexico’s trade with Mexico is already a mainstay of the state’s existing economy to the tune of $106 million annually — particularly important in the southern part of the state. But although New Mexico shares a border with Mexico, the state is still ranked 39th out of all the states in the U.S. when it comes to its amount of business over the border.
MORE
***
RELATED POSTS:
Filed under: Current Politics | Tagged: "On the Record", Albuquerque Journal's Business Outlook, Banorte Financial Group - Mexico, Bill Richardson, Canada, Carlos Jauregui, China, Citi Alternative Investments, Citi Holdings, Citicorp, Citigroup, Citigroup retail business, Dennis Kucinich, Edward "Ned" Kelly, Frontera Norte Sur, Greta Van Susteren, Grupo Financiero Banamex, Inter National Bank (INB), International Longshore and Warehouse Union, Jerry Pacheco, John Batchelor, longhsore labor issues, Mexico, Mexico Secretary of Communications & Transportation Luis Tellez, New Mexico Border Authority, New Mexico Economic Development Department, New Mexico Mexican Affairs and Trade Division, New Mexico State University, New Mexico-Chihuahua Commissioin, North American Community, ocean cargo business, Paso del Norte (New Mexico-west Texas region), port of, port of Ensenada, port of Hong Kong, port of Long Beach, port of Los Angeles, port of Savannah Georgia, port of Seattle, port of Singapore, Portland Business Journal, Prince Rupert Port Authority - British Columbia, Punta Colonet, RBO, RE/MAX Baja Realty, Santa Teresa NM, shipping between North American & Asia, T.A.R.P. bailout, The Cunningham Report, The Free Trade Alliance - San Antonio Texas, The Puget Sound Business Journal, The Real Barack Obama blog, U.S. economy, U.S. financial crisis, US/Mexico Border Transportatioin Planning - FHWA | 14 Comments »