Puerto Quetzal, one of Guatemala’s main economic hubs, is set to transform under an ambitious expansion project of the Guatemalan government with the support of the United States, as a testament of its commitment to the Central American nation’s economic development and regional security.
The expansion project, led by the U.S. Army Corps of Engineers (USACE), seeks to extend the port’s terminal by 800 meters, build four additional berths, bringing the total to eight, and modernize the operational infrastructure to accommodate larger commercial vessels. The upgrades will strengthen Guatemala’s trade capacity and position the port as a regional logistics hub. It’s location near the Panama Canal also gives it significant strategic value for global shipping.
“The U.S. support is for the design and construction of 800 meters of dock divided into two equal sectors, which will be an extension of the existing facilities,” Guatemalan Navy Vice Admiral José Antonio Lemus, president of the Quetzal Port Company, the institution that manages Puerto Quetzal, told Diálogo. “The expansion will allow the port to handle greater volumes of cargo and serve larger ships, thus responding to the growing demand for international trade at Puerto Quetzal.”
Global experience
The USACE has an outstanding track record in the planning, construction, and maintenance of sea and land infrastructure projects. Its participation in the Puerto Quetzal project guarantees a robust technical approach, including environmental, social, and feasibility assessments, the Guatemalan government news agency Agencia Guatemalteca de Noticias reported.
USACE has worked on countless projects throughout Central America, including the construction of drainage systems in Honduran and Salvadoran communities to mitigate flooding. In Honduras, for example, USACE implemented watershed management in 2020, following the impact of tropical storms Eta and Iota. In 2019, as part of exercise Beyond the Horizon in Guatemala, USACE personnel contributed to improving water infrastructure and building schools in rural areas such as Huehuetenango.
Beyond the Central American region, “their experience includes a technical agreement in Argentina, focused on the exchange of knowledge and experience in the field of waterways and ports,” Argentine magazine Escenario Mundial reported. “This agreement lays the foundation for closer collaboration between the General Ports Administration of Argentina and the U.S. Army Corps of Engineers.”
Economic watershed
The modernization of Puerto Quetzal will mark a turning point in Guatemala’s commercial capacity. “The agreement’s priority is to redesign and improve the operation of the port,” Guatemalan daily Prensa Libre reported. Less than two weeks after U.S. State Secretary Marco Rubio visited Guatemala, a USACE delegation was in the country, February 17-21, to conduct initial assessments of Puerto Quetzal’s capacity and to discuss future cooperation to strengthen the Central American country’s infrastructure.
In May, when the formal agreement will be signed, requests for three actions will also be presented to USACE engineers. “The first is the extension of the artificial dock by 800 meters. The second is a study for a further extension of 400 meters, for a total of 1,200 meters in the artificial dock. And the third is in the sea, because there are depths that allow, a short distance from the beach, more than 25 meters of draft,” said Vice Adm. Lemus said.
This development will not only boost Guatemalan exports but will also reduce operating costs and promote jobs during construction and operation, improving the local economy, daily LaHora reported.
“A large number of workers, both from the port company and from private companies, are inhabitants of the nearby communities,” Vice Adm. Lemus added. “However, the environmental impact that the expansion of Puerto Quetzal will generate is minimal, because it is located in an open area, not linked to the populations in the area.”
Regional benefit
The expansion of Puerto Quetzal will allow the port to handle larger commercial ships, significantly increasing its operational capacity. “It will help reduce the waiting time for ships to enter the port, because we have ships that spend more than 20 days waiting for a berth to unload,” Vice Adm. Lemus said. ‘Those 20 days increase user costs. We estimate that waiting in line can cost up to $20,000 a day in some cases.”
The benefits of the port’s upgrade will also be felt by the public. “Of its annual profits, Puerto Quetzal gives 20 percent to the federal government and 15 percent is distributed to the region’s municipality,” Vice Adm. Lemus added. “In addition, the expansion of Puerto Quetzal will strategically, economically, politically, and socially benefit Guatemala and the region.”
“Even in the military or naval field, these facilities will be available for our partner countries. The possibility to dock and resupply ships will not only contribute commercially but will allow us to offer this capability as part of our contribution to security in the region,” Vice Adm. Lemus concluded.
