Port of Manzanillo: Climate Risk Management

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Port of Manzanillo: Climate Risk Management FINAL REPORT Port of Manzanillo: Climate Risk Management September 2015 Mejorando vidas Copyright © 2015 Inter-American Development Bank. This work is licensed under a Creative Commons IGO 3.0 Attribution-NonCommercial-NoDerivatives (CC-IGO BY-NC- ND 3.0 IGO) license (http://creativecommons.org/licenses/ by-nc-nd/3.0/igo/legalcode) and may be reproduced with attribution to the IDB and for any non-commercial purpose. No derivative work is allowed. Any dispute related to the use of the works of the IDB that cannot be settled amicably shall be submitted to arbitration pursuant to the UNCITRAL rules. The use of the IDB’s name for any purpose other than for attribution, and the use of IDB’s logo shall be subject to a separate written license agreement between the IDB and the user and is not authorized as part of this CC-IGO license. Note that link provided above includes additional terms and conditions of the license. The opinions expressed in this publication are those of the authors and do not necessarily reflect the views of the Inter- American Development Bank, its Board of Directors, or the countries they represent. 2 FINAL REPORT Port of Manzanillo: Climate Risk Management September 2015 Manzanillo, Mexico Mejorando vidas © 2015, Inter-American Development Bank State of Colima: Instituto para el Medio Ambiente y Desarrollo Sustentable del Estado de Colima (IMADES), Centro Universitario de Gestión Ambiental (CEUGEA, AUTHORED BY Universidad de Colima), Secretaría de Desarrollo Urbano del Estado de Colima. Richenda Connell and Laura Canevari, Acclimatise Group Limited; Chris Coleby, Stewart Wright, John N. Robertson, Federal Government: Comisión Nacional del Agua Will Morgan, Antonio Cerezo, Alvaro Rivero, Guadalupe (CONAGUA), Centro Nacional de Prevención de De- Ugarte, Robert Larson and Christopher Carr, WorleyPar- sastres (CENAPRED), Comisión Nacional de Áreas Na- sons; Richard Washington, Universidad de Oxford; Edu- turales Protegidas (CONANP), Comisión Nacional para ardo Saucedo and Efrén Ramírez, Consultoría Técnica; el Conocimiento y Uso de la Biodiversidad (CONABIO), Marcelo Olivera, Universidad Autónoma Metropolitana; Instituto Nacional de Ecología y Cambio Climático (IN- Austin Becker, Universidad de Rhode Island. ECC), Instituto Mexicano del Transporte (IMT), Secretaría de Comunicaciones y Transportes (SCT), Secretaría We thank Inter-American Development Bank staff mem- de Marina (SEMAR), Secretaría del Medio Ambiente y bers Joana Pascual, Melissa Barandiarán, Gmelina Ramírez, Recursos Naturales (SEMARNAT), and Secretaría de Ernesto Monter Flores and Juan-Pablo Martínez-Molina for Turismo (SECTUR). their comments throughout the development of this study. The authors wish to thank the management and staff of API DESIGNED BY Manzanillo for their continuous support and cooperationin this study, especially Rosa Aurora Quiroz Dahas, Alejandro Ana Dorado Infodesign Abundis Santamaría, Roberto López Ceballos, Zayda Ar- menta, Berenice López, Juan Manuel de los Santos, Juan Carlos Córdova Estrada and Francisco Santana Roldán. This report was produced with the support of the In- RIGHTS AND PERMITS ternational Finance Corporation. The technical lead for the study was Vladimir Stenek, International Finance The material in this publication is subject to copyright. Corporation, World Bank Group. Quote, copy and / or reproduction of any portion or all of this publication is permitted provided that the The authors also wish to thank the following organiza- reference is mentioned. tions for their contributions to this study. Publication of this report was made possible through Port community: APASCO, CEMEX, CONTECON, FRIMAN, financial support provided by the IDB’s Infrastructure GRANELERA, HAZESA, LA JUNTA, MARFRIGO, MULTI- Project Preparation Fund (INFRAFUND). MODAL, OCUPA, PEMEX, SSA, TIMSA, USG, Capitanía de Puerto, Ayuntamiento de Manzanillo, FERROMEX. 4 5 Forewords Message from the Vice President for the Private Sector and Non-Sovereign Guaranteed Operations, a.i., at the Inter-American Development Bank Hans U. Schulz Ports are located in coastal areas that are increasingly sus- reducing draft clearance for vessels and terminal access, ceptible to climate change impacts. By 2050, according due to increased rainfall intensity; and (iii) increased to IDB estimates, rising sea levels, temperature increases intensity of rainfall causing increased damage to infra- and changes in rainfall patterns will result in an estimat- structure and equipment through surface water flooding. ed annual cost of 2-4 percent of GDP for Latin America and the Caribbean (LAC)1. Climate change has already The aim of this study is to analyze in depth the cli- begun to affect the availability of resources, supply and mate-related risks and opportunities facing the Port demand of products and services, and performance of of Manzanillo in Mexico. The report also provides an physical assets, making it urgent to strengthen public Adaptation Plan for the port. The Port of Manzanillo policy priorities on climate change. Financial returns becomes once again a pioneer, as this is the first climate as well as management of non-financial risks, such as risk management study performed on a full port in LAC. economic development and environmental and social issues, may be affected if climate change is not taken into account in investment strategies. We estimate that the 340 extreme weather phenomena observed in 2007- 2012 in LAC left at least 8,000 dead, affected more than 37 million people and led to economic losses of more than US$ 32 billion. Low-income people and women are disproportionately affected by climate change. More than 80 percent of goods traded worldwide are transported by sea. Ports in developing countries handle more than 40 percent of the total containerized traffic, of which a significant portion relates to export of goods produced in the country2. Maritime infrastructure and transport sector is critical to trade growth in most of LAC. The region accounts for 41.8 million twenty-foot equivalent units (TEUs), about 7% of the world’s total3. Within Latin America, Mexico represents 10.23 percent of total port traffic or third place. As Mexico is a key operational hub for the logistics sup- 1. Climate Change at the IDB: Building Resilience and Reducing ply chain in LAC, it is critical to undertake an ex- ante Emissions –Inter-American Development Bank (IDB). http:// assessment in collaboration with key logistics providers publications.iadb.org/handle/11319/6692?locale-attribute=en#s- and or local governments to address vulnerability to thash.vTioHDnt.dpuf climate change. Thus, while ports in Mexico could be impacted by climate change locally, changes to the sup- 2. Climate Risk and Business: Ports, Terminal Marítimo Muelles el ply chain and local infrastructure can create additional Bosque –International Finance Corporation (IFC), World Bank disruptions that require working collaboratively on a Group. http://www.ifc.org/wps/wcm/connect/topics_ext_con- broader climate risk and adaptation strategy. tent/ifc_external_corporate_site/cb_home/publications/cli- materisk_ports Specifically, in the case of the Port of Manzanillo, a climate change risk assessment conducted found that aspects 3. According to the United Nations Economic Commission for of performance are likely to be significantly affected due Latin America and the Caribbean (UN ECLAC) statistic on to climate change, if no action is taken, specifically: (i) transport: http://www.cepal.org/cgi-bin/getProd.asp?xml=/ increased rainfall intensity causing greater surface water perfil/noticias/noticias/1/53131/P53131.xml&xsl=/perfil/tpl-i/ flooding of the internal port access road and rail con- p1f.xsl&base=/perfil/tpl/top-bottom.xsl nections; (ii) increased sedimentation of the port basin, 6 Message from the Director General of the Port Authority of Manzanillo Vice Admiral Ruben Bustos Jorge Espino I am pleased to announce that the participation of the Port Authority of Manzanillo in the study: Port of Man- zanillo: Climate Risk Management, together with the Inter-American Development Bank, strengthens the objectives and actions set out in the Mexican National Development Plan 2013-2018 to address the adverse effects of climate change. The content of this study will undoubtedly serve as a guide to determine priorities and programs to encourage best practices of climate change adaptation and miti- gation to reduce emissions of greenhouse gases, more sustainable and environmentally friendly processes in the Manzanillo port community. We commit to include this study as part of the strategy, plans and the daily actions of our performance. We thank all the institutions, federal, state and municipal agencies, terminals and port service providers who made possible this study –first of its kind for a Mexican port, who generously and transparently shared information, experience and practices in the use of systems and technologies oriented to operation with low-carbon emissions. 7 Contents 1. Study aims, approach and main findings 15 1.1. Study aims and audience 16 1.2. Overview of the Port of Manzanillo 19 1.3. Overview of other main ports in Mexico 24 1.4. Climate adaptation policy frameworks and port policy 25 frameworks at Federal, State and Municipal levels 1.5. Methodological approach to the study 31 1.6. Priority climate change risks, opportunities and adaptation 41 actions identified for the Port of Manzanillo 1.7. Adaptation Plan for the Port of Manzanillo 46 2. Current and future climate, hydrological
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