Ports Sign International Sister Port Agreement

Ports Sign International Sister Port Agreement

New Bedford and Tuxpan set the course for a profitable relationship

The Port of New Bedford signed an International Sister Port agreement with the Port of Tuxpan, in Veracruz, Mexico. This is a first for the Port of New Bedford and marks the beginning of a public/private partnership that will position the Port of New Bedford as a significant import/export hub. Officials from the United States and Mexico spoke about their expectations of this joint port collaboration.

“Today’s agreement is yet another reminder of what a remarkable economic asset New Bedford has in its Port,” said New Bedford Mayor Jonathan F. Mitchell, who signed the agreement as Chair of the Port of New Bedford Harbor Development Commission. “Today we celebrate an exciting new trade opportunity with Mexico. Someday soon we will be celebrating the nation’s first offshore wind energy project, launched from right here on this waterfront. And of course, our port continues to provide a home to the most successful fishing fleet in the nation. How many ports can boast the infrastructure and flexibility necessary to accommodate all these activities? The answer is-not many. We are very fortunate.”

Building on those expectations, the Consul General of Mexico in Boston, Daniel Hernández Joseph, added, “One of the main goals of this International Sister Port Agreement is to increase the commercial links between Mexico and New England. I firmly believe this agreement is the first step towards a long-term relationship that will create new jobs, strengthen ties and promote understanding between our two nations.”

The opportunity seems ripe: The Port of Tuxpan is the closest port to Mexico City and its 50 million inhabitants will be connected by a modern highway that will be completed by the end of 2012. The opportunity for trade both to and from Mexico has never been more cost effective. “Overseas shipping saves about $1,500 per truckload,” according to Pierre Bernier, Stevedoring Manager at Maritime International and one of the key architects of the agreement. “A refrigerated break-bulk ship carries about 200 truckloads of cargo, so the saving in freight expenses is about $300,000 per shipload. Once you understand the economics, it’s a very compelling scenario.”

Because of New Bedford’s role as the nation’s #1 fishing port and the related cold storage industries, which are located in the city, fresh produce is an ideal cargo to import using existing terminals and cold storage infrastructure. “This agreement sets the stage for New Bedford to become a hub for international produce destined for New England and Eastern Canada,” according to Ed Anthes-Washburn, Acting Port Director, Port of New Bedford. “Additionally, the backhaul to Mexico represents a fast and inexpensive way for companies in the area that currently export or are interested in exporting to the Mexican market. This is a huge opportunity for both the ports and the businesses nearby.”

The ports and private companies, like Maritime International, are working to create a new refrigerated international coastal shipping service between the Port of Tuxpan and the Port of New Bedford that will focus on importing fresh produce. “We know an all-water route from the Veracruz region through the Port of Tuxpan offers cheaper service in a similar timeframe as trucking the cargo would. We’re trying to get the right companies in the same room so that the deals can be made. This is the role I see the Port of New Bedford playing,” said Anthes-Washburn.

The opportunities are not limited to produce, however. Existing importers and exporters in the seafood industry also expect to reap benefits from the anticipated shipping service. “Northern Wind is a global company.  We are one of the world’s largest suppliers of fresh and frozen scallops from our local waters and from around the world, including Mexico. In addition we import mussels and salmon, and export lobster, monkfish, and skate,” said Michael Fernandes, President of Northern Wind, a New Bedford-based processor and supplier of fish and shellfish.  “This service that this agreement should develop will provide for more competitive freight rates into the Mexico City area and its 50 million consumers. This is a tremendous opportunity for the South Coast and for all of New England.”

The agreement took months of planning and involved private companies and public officials who were committed to bringing the concept to fruition. Right now, the Port of New Bedford is working with government agencies on both sides of the border to identify producers and buyers to take advantage of such a service. The US Department of Commerce’s National Export Initiative and its counterpart agency in Mexico, ProMexico, have been instrumental in making this agreement a reality.

Over the next few months, Anthes-Washburn and his equivalent at the Port of Tuxpan, Alfredo L. Sanchez Hevia, will be connecting the producers and buyers in both countries to make the service viable. The Port of New Bedford has already scheduled a second Trade Development Summit for October 30-31, 2012 to be held at the Waypoint Event Center in New Bedford. “The Port of Tuxpan views the execution of this agreement with the Port of New Bedford as a strategic development in promoting trade by sea between Mexico and the U.S. We are extremely pleased to have the opportunity to work with Edward Anthes-Washburn and the Port of New Bedford,” said Ing. Alfredo l. Sanchez Hevia, the Port Director of the Port of Tuxpan.

The environmental benefits make the all-water service an even sweeter deal: shipping cargo by sea is vastly more efficient than trucking the same cargo across the border. Additionally, taking more trucks off the highways will bring huge savings in highway maintenance. Based on conservative estimates of 14 sailings during the initial shipping season, the service will remove approximately 20 million truck miles from the congested I-95 highway system.

Attending today’s auspicious signing were the Consul General of Mexico, Daniel Hernandez; Mayor of New Bedford, Jonathan F. Mitchell; Director General, Ing. Alfredo L. Sanchez Hevia from the Administración Portuaria Integral de Tuxpan, S.A. de C.V. (Port of Tuxpan); Acting Port Director, Port of New Bedford, Edward Anthes-Washburn and Regional Director, Gerardo Patino Fernandez, ProMexico.

The ceremony took place at the Waterfront Grille, overlooking the scenic working waterfront of New Bedford’s fishing fleet and was followed by a reception.

The Port of New Bedford Harbor Development Commission (HDC) is the governing body for the Port of New Bedford and city-owned waterfront properties. It is chaired by the Mayor of New Bedford with six appointed members. The role of the HDC is to support the Port of New Bedford by continually upgrading port resources, preserving its spot as the #1 U.S. fishing port and expanding the New Bedford economy.

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