Due to measures taken during the Salinas administration, dramatic improvements in port

operations can be anticipated. Political corruption has been largely curtailed, at least at the

major ports, and the unions have been effectively disbanded. Moreover, the new Law of Ports

(described under Privatization) encourages private management and investment. Indeed, the

Mexican Government's intent is for the pace and extent of development at each port to be

determined primarily by the private sector.

 The importance of a private sector approach to port investment can hardly be

overstressed. It will ensure that investments are both technically efficient and economically

justifiable, rather than based upon national or local pride or pressures to artificially create jobs.

This is particularly important in Mexico due to: (1.) the extent of investments needed at most

ports to make them technically efficient, (2.) the wide range of possible investments due to

changes in ship types and the advent of containerization, and (3.) the need to assess rationally

the extent to which ports should be developed given the small size of the domestic economy and

the proximity of U.S. ports.

 While the future may be bright for Mexico's ports, realized improvements to date have

been modest and spotty. For example, between 1980 and 1991 the average time in port for

ships carrying general freight declined by 8 percent for Gulf ports, but increased by 10 percent

for Pacific Ports (Mexican Investment Board). For ships carrying bulk agricultural freight, over

this period average time in port decreased 17 percent for Gulf ports but was essentially

unchanged along the Pacific. On the other hand, ships hauling fluids enjoyed a 20 percent

reduction in average time in port when using Pacific ports, but a 24 percent increase for Gulf

ports.