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Mexico: COFECE recommends modifications to Port Law

By  |  December 2, 2019
COFECE
  1. The Federal Economic Competition Commission (COFECE or Commission) issued the Ministry of Communications and Transports (SCT for its initials in Spanish) and the respective commissions at the Senate and Chamber of Deputies, an opinion (OPN-008-2019) with recommendations to, among other actions, incorporate in thePorts Law, measures that favor the adoption of competition and free market access principles in tenders for contracts for the partial assignment of rights (assignment of rights contracts or contracts) for the provision of port maneuver services.
  3. The proposed measures have the purpose of avoiding conditions that cause inefficiencies and distortions in the country’s productive and logistics chain, such as those for agri-food or oil, which are priority for the economy and Mexican families.Mexican ports are logistic nodes where maritime transport converges with railway and highway transport to connect production centers or import of inputs and diverse products with consumption points within the national territory. 31.6% of international trade from Mexico is moved via maritime transport.The movement of goods at Mexican ports is carried out through maneuvering services – loading and unloading, storage and handling, as well as delivery or reception-, which are provided by a third party (assignees) whom, in accordance with the Port Law, should obtain an assignment of rights contract of the respective Port Authority (Administración Portuaria Integral, API for its initials in Spanish). As a general rule, these are tendered.

The Federal Economic Competition Commission (COFECE or Commission) issued the Ministry of Communications and Transports (SCT for its initials in Spanish) and the respective commissions at the Senate and Chamber of Deputies, an opinion (OPN-008-2019) with recommendations to, among other actions, incorporate in thePorts Law, measures that favor the adoption of competition and free market access principles in tenders for contracts for the partial assignment of rights (assignment of rights contracts or contracts) for the provision of port maneuver services.

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    The proposed measures have the purpose of avoiding conditions that cause inefficiencies and distortions in the country’s productive and logistics chain, such as those for agri-food or oil, which are priority for the economy and Mexican families.Mexican ports are logistic nodes where maritime transport converges with railway and highway transport to connect production centers or import of inputs and diverse products with consumption points within the national territory. 31.6% of international trade from Mexico is moved via maritime transport.
    The movement of goods at Mexican ports is carried out through maneuvering services – loading and unloading, storage and handling, as well as delivery or reception-, which are provided by a third party (assignees) whom, in accordance with the Port Law, should obtain an assignment of rights contract of the respective Port Authority (Administración Portuaria Integral, API for its initials in Spanish). As a general rule, these are tendered.