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UPDATE 1-Mexico to auction new roads, Maya Riviera airport

Wed Oct 3, 2007 4:27pm EDT

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By Chris Aspin

MEXICO CITY, Oct 3 (Reuters) - Mexico will start an auction for a new package of roads this year and launch the bidding process to build a new airport in the Maya Riviera region in early 2008, Communications and Transport Minister Luis Tellez said on Wednesday.

Tellez told Reuters in an interview his ministry should also be ready to start an auction to build and run a new container port at Punta Colonet, close to the U.S. border, in the first quarter of 2008.

The new roads package to be sold off by the government comes after Mexico's ICA (ICA.N) (ICA.MX), the country's largest construction company and a fund of Goldman Sachs Group Inc (GS.N), in August won the rights to run four existing toll roads with a $4.1 billion bid.

The government of President Felipe Calderon plans to auction off more roads in coming months and years, with plans to use the cash to build more highways to beef up the country's poor infrastructure.

In July, President Felipe Calderon announced an ambitious $37 billion transportation face-lift that also includes the construction of three new airports serving beach resorts.

Tellez said a winner for the new road package, with the bases for bids to be presented in November or December, would be announced in May or June next year.

"We are preparing two packages, to launch one before the year ends," Tellez said. Three or four other packages of roads will be auctioned off in 2008, he said.

Tellez said the land for the site of the new Maya Riviera airport had been purchased and the ministry was working out with the Mexico's antitrust watchdog whether airport operator Asur (ASURB.MX) (ASR.N) could take part.

"I think the bases for the auction will be ready at the start of the first quarter of next year," he said.

Asur, which has expressed interest in bidding for the Maya Riviera project, already runs nine airports in southern Mexico, including one serving the Caribbean resort of Cancun.

The Maya Riviera is south of Cancun and people traveling there use Cancun's airport. A new airport would likely take traffic away from Cancun, meaning lost revenues for Asur.

Tellez said the container port auction for Punta Colonet, on the Baja California peninsula and a project that might need $6 billion in investment, would be won by the bidder who offers to build the most capacity.

"I also think we would be ready to start the auction of Punta Colonet at the start of next year, in the first quarter," Tellez said.

The project, which would be used mainly to ship goods between Asia and the United States, would also include the construction of a railroad to the United States or building a connection to existing Mexican rail tracks.

Ports in Los Angeles and Long Beach, the main shipping facilities in southern California, are straining to handle the explosive growth in trade with Asian nations, especially China.

(Additional reporting by Tomas Sarmiento)



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