develop a $4.7 million refrigerated warehouse. Ensenada's location suggests that this facility

is intended to compete with Southern California ports.

 The near-total absence of such storage requires that perishables be transported in

refrigerated containers or that the ship be loaded more slowly, as product arrives at the port.

For example, at Coatzacoalcos, Del Monte has an unrefrigerated warehouse, utilized to inspect

bananas and, occasionally, to hold them for very brief periods (up to 36 hours). Banana boats

are loaded primarily from trucks as they arrive. To minimize losses due to heat, loading

normally occurs at night. Loading typically takes 3 days. Banana picking only occurs during

the days the ship is in port. With a refrigerated warehouse, capable of holding a large share

of the ship's capacity, loading could be completed in one day. In effect, the lack of a

refrigerated warehouse at the dock results in the ship being utilized as a floating warehouse.

Moreover, as picking and hauling only occurs when the ship is in port, more trucks and pickers

are required than would be true if picking could be continuous.


PRIVATIZATION

 The Mexican Government is aware of the need to modernize its port facilities and

improve management and has recently enacted a new Law of Ports which encourages private

investment and even provides for private management of the ports. Under the law, private firms

may bid for the right to be a port's 'Integral Port Administrator,' or IPA. IPA's are responsible

for a port's overall administration, including: terminal operations, dredging, construction,

planning, and promotion. IPA's may be granted concessions for up to 50 years. The IPA can

sublease all or parts of its concessions to third parties as it deems fit. Moreover, the

government can directly grant concessions to develop port facilities. At the current time there