Guatemala Ports
Guatemala and the United Sates Army Corps of Engineers “USACE” will work together to strengthen critical Infrastructure.
Secretary of State Marco Rubio’s first official trip abroad in February 2025 included a visit to Guatemala. During his visit, he made a commitment to support the expansion of Guatemala’s two largest seaports: Port Quetzal and Port Santo Tomas. He affirmed that U.S. assistance related to the project would also explore connecting a railway corridor between both ports linking the Pacific Ocean to the Atlantic Ocean. The projects will be administered by USACE with the Guatemalan Government paying the costs. Guatemala has confirmed a provision of technical reserves for more than $1 billion.
In addition to aligning the two countries around these critical infrastructure projects, this commitment underscores the strategic importance of U.S.-Guatemala relations and strengthens economic ties. This project supports the Administration’s “America First” policy goals by developing and securing critical regional infrastructure to support regional trade and resilient supply chains. The project will position Guatemala as a regional hub of economic activity, creating jobs and fostering economic growth, while cementing trusted partnerships.
A month after Secretary of State Rubio’s visit, a USACE team came to Guatemala to conduct an initial scoping trip, meeting with private sector representatives and Guatemalan officials to understand Guatemala’s priorities for the project. The delegation met with both port authorities and conducted technical assessments during their visit to Port Quetzal as they gathered information to determine the port’s potential for expansion and future scope of work.
The U.S. and Guatemalan Governments have committed to continuing close cooperation to formalize a workplan that includes additional feasibility studies, design planning, and capacity building by U.S. subject matter experts for Guatemala’s infrastructure workforce.
USACE and Guatemalan representatives expect to conduct feasibility studies in the next 12 to 24 months and thereafter the USACE procurement phase will follow standard federal contracting processes.
The two impacted seaports are both state-owned and have the largest commercial activity on the country’s coasts, Puerto Quetzal on the Pacific and Santo Tomás de Castilla on the Atlantic. Operating conditions have significantly impacted trade; port congestion and slow operations have caused delays since last year.
The situation at the ports has also impacted on land transportation, as trucks must wait longer at the ports. Adding to delays, damaged and inadequate roads that have not received maintenance or realized plans for adding new and larger roads have increased transportation costs and delays of supply chain of imported products. A lack of investment in improving and updating the infrastructure at the ports has been a long-standing issue. There has not been a large upgrade project in the last decade.
Trade between Guatemala and the rest of the world has increased significantly as export and import volumes continue to grow. As of today, there is a supply chain crisis in Guatemala and export and import associations have requested solutions from President Arevalo, given this cooperative project significant importance.
For more information, contact the U.S. Commercial Service Office in Guatemala City at antonio.prieto@trade.gov