The United States and Guatemala are investing $125 million to expand Puerto Quetzal to address China’s growing influence. The project includes extending the port, adding new berths, and constructing facilities for larger vessels. The US Army Corps of Engineers will manage the expansion with a total project budget of $600 million, aiming to position Puerto Quetzal as a key logistics hub in Central America.
Guatemala has partnered with the United States to launch a $125 million initiative aimed at expanding Puerto Quetzal, the largest Pacific port in Central America. This project aims to counteract China’s growing influence through its activities in the Panama Canal and the development of the Nicaragua interoceanic crossing.
The expansion plan for Puerto Quetzal includes extending the terminal by 800 meters, adding four new berths, and enhancing capacity for larger vessels. Overseen by the US Army Corps of Engineers (USACE), construction is set to begin in 2027 following a formal agreement in May.
The overall project costs are estimated at $600 million and are part of efforts to enhance trade capacity and position Puerto Quetzal as a logistics hub for the region. This initiative follows discussions held during Secretary of State Marco Rubio’s recent meeting in Guatemala with President Bernardo Arévalo de León.
Since its opening in 1980, Puerto Quetzal has managed up to 700 million kilograms of cargo annually but lacks significant modernization. Its strategic location, around 100 kilometers south of Guatemala City, makes it vital for exports like sugar, coffee, and textiles, especially in relation to the Panama Canal.
The expansion also ties into broader geopolitical activities, particularly following the inauguration of the Chancay Port in Peru, which is part of China’s Belt and Road Initiative. Furthermore, Puerto Quetzal has the nearby Quetzal Duty-Free Zone, located just four kilometers away, enhancing its appeal for trade activities.
The US-backed initiative to modernize Puerto Quetzal seeks to bolster Guatemala’s trade capabilities amid increasing Chinese influence in the region. By expanding the port, the US and Guatemala aim to create a competitive alternative for global shipping while enhancing local economic opportunities. This project underscores significant geopolitical strategies and a commitment to improving regional logistics infrastructure.
Original Source: en.mercopress.com
