MercoPress. South Atlantic News Agency

US backs modernization of Guatemalan Pacific port to counterbalance China's expansion

The Guatemalan alternative also offers the nearby Quetzal Duty-Free Zone just four kilometers from the port

Guatemala and the United States have announced a US$ 125 million initiative to expand Puerto Quetzal, the largest Pacific port in the Central American country, in a move to counterbalance China's presence in the region through its current prevalence in the Panama Canal in addition to the projected Nicaragua interoceanic crossing already under construction.

The Guatemalan initiative seeks to extend the terminal by 800 meters, add four new berths, and accommodate larger commercial vessels. The US Army Corps of Engineers (USACE) will oversee the project, which will begin construction in 2027 after a formal agreement is signed in May. This collaboration is part of a broader effort to boost the country's trade capacity and position the port as a regional logistics hub, Empresa Portuaria Quetzal's José Antonio Lemus explained. The total cost of the project is estimated at $600 million.

The new project stems from agreements signed during Secretary of State Marco Rubio’s recent visit to Guatemala, where he met with President Bernardo Arévalo de León.

Since its establishment in 1980, Puerto Quetzal has handled up to 700 million kilograms of cargo annually but has not undergone significant modernization. Puerto Quetzal’s location 100 kilometers south of Guatemala City makes it a critical gateway for exports like sugar, coffee, and textiles. Its proximity to the Panama Canal enhances its strategic importance for global shipping routes.

Puerto Quetzal's expansion also reflects broader geopolitical dynamics after last year's opening of the Beijing-sponsored Chancay Port project in Peru under its Belt and Road Initiative (BRI) which made the Peruvian facility a key trade link between Asia and South America.

The Guatemalan alternative also offers the nearby Quetzal Duty-Free Zone just four kilometers from the port.