Mexico is following up on a recent master-plan for port development with proposed spending of close to $2 billion to build port facilities.

According to the Mundo Marítimo, Mexico's transport and communications ministry SCT plans to invest about $1.96 billion in the construction of five new commercial ports between now and 2012.

Mexico announced a National Infrastructure Programme last year, calling for the construction of five new ports and the modernization of 22 others along with a major upgrade of port, road and rail infrastructure.

The five ports to be constructed include Punta Colonet and Manzanillo II in the states of Baja California and Colima respectively, both on the country's west coast.

East coast projects include Veracruz II, Seybaplaya and Puerto Morelos in the states of Veracruz, Campeche and Quintana Roo respectively.

According to the SCT, Punta Colonet will cost some $1 billion, Manzanillo II will need $500 million and Veracruz requires some $340 million.

Puerto Morelos and Seybaplaya will require $64 million and $46 million respectively, said the SCT.

Reports discussing the master-plans say top priority is being given to the Punta Colonet project to create a deep-water container port able to accommodate the largest modern ships.

The port is scheduled to have 10 to 20 berths with a 300-kilometre double-track rail connection to the US border.  The land for the project is currently undeveloped.

Bidding for both port and rail developments are scheduled to begin next year, with construction to be completed in four years.

Reports say the port will have an initial annual capacity of one million TEUs (twenty foot equivalent units), with the potential to grow to six million TEUs by 2025.

Analysts caution, however, that funding issues and environmental concerns have still to be resolved.

Players also say that the rationale of the project is undermined by the expansion of the Panama Canal, which will allow the waterway to carry large modern container vessels.

Meanwhile Mexican government officials point to the continuing expansion of the southern ports of Manzanillo and Lazaro Cardenas.

Lazaro Cardenas was recently identified by Maersk Line as being at the heart of its strategy to expand its business in Central and South America.

The port's container throughput was up by more than 60% in the first seven months of this year.

Analysts meanwhile have called some of Mexico's projects 'grandiose' , saying it is not clear how many will get off the ground.