Italian shipbuilding group Fincantieri has revealed plans to manage a major new shipyard in Mexico’s Yucatan state capable of servicing some of the world’s largest cruise vessels, cargo ships and oil and gas vessels.

Fincantieri this week signed a letter of intent related to the project with the Yucatán Government offering Fincantieri a 40-year concession for the exclusive management of a new ship repair, conversion and maintenance yard at the Port of Progreso, the state’s main port located about 35km from the capital city of Merida. Fincantieri will also take part in the design and construction of the site.

The company said plans are to have two masonry dry docks, said to be “the largest in the Americas,” which will be able to hold ships up to 400 meters in length, “particularly cruise ships, large cargos and Oil & Gas vessels, which need complex operations,” Fincantieri said in a press release. The yard will also have a lifting platform for units up to 150 meters in length, about 1,000 meters docks, cranes, workshops, special equipment, offices, and warehouses, it said.

Construction is scheduled to begin in the first half of 2021 with completion by 2027 “after various steps,” the company said.

The government is expected to directly manage the initial work through a special purpose company that will handle the dredging and construction of infrastructure. “Fincantieri is to provide advice from the very beginning, to carry out the later stage, also involving other partners, building the advanced facilities, notably workshops and lifting equipment, and installing the equipment and finally starting activities,” the company said.

“Mexico exports close to 400 billion dollars of goods every year, importing around 350 billion dollars. A considerable volume of this import/export is made through shipments by sea. Not to mention, the significant cruise traffic along the coasts of the United States, in the Caribbean and in the Gulf of Mexico, where there are the renowned settlements of the Maya civilization.

“The new Progreso shipyard will be strategically placed to serve the merchant operators of this area, benefiting from the near Yucatán navigation channel, a natural outlet to the Atlantic Ocean. The Gulf is also a region with a strong concentration of Oil & Gas related operations, with offshore exploration, production and storage of oil and natural gas,” Fincantieri said.