The U.S. and Guatemala have finalized the steps to expand Puerto Quetzal, a milestone in their partnership. The expansion plan is paving the way for a broader infrastructure network in the Central American country.

"Infrastructure projects like these can only move forward when there is unity among all sectors. Together, we can build a safer, stronger, and more prosperous region," the U.S. Embassy in Guatemala highlighted.

In the presence of Ambassador Tobin Bradley, the Commander of the U.S. Southern Command, Admiral Alvin Holsey, and President Bernardo Arévalo, Defense Minister Henry David Sáenz signed the letter of offer and acceptance presented by the U.S. Army Corps of Engineers (USACE) authorizing the design project to expand Puerto Quetzal's capacity.

The initial phase is a $63 million investment that includes port navigation improvements, transportation services, navigation channels, docking systems, and storage enhancements.

The agreement also includes the U.S.'s willingness to help Guatemala restructure its railway system.

The agreement, titled the "Letter of Offer and Acceptance for the Expansion of Puerto Quetzal," also includes plans for the port of Santo Tomás de Castilla, on the Atlantic Ocean.

The USACE will design and implement the expansion and modernization project for Puerto Quetzal, Guatemala’s most important port on the Pacific coast.

The port terminal, which the Guatemalan government will fully finance, has the potential to transform Guatemala into a logistics hub for Central America and a driver of sustainable economic growth.

"The signing of this letter, following the initial assessments carried out by USACE last February, as well as the visit of a second team of USACE experts to analyze the feasibility of rehabilitating the country’s railway network, is a response to Secretary Rubio’s commitment to advance President Trump’s America First policy to promote economic prosperity, eliminate illegal migration, and improve regional security," said the U.S. Embassy in Guatemala.

"The signing also reiterates President Arévalo’s commitment to eradicating drug trafficking and corruption, ensuring accountability, and working with trusted partners," the embassy added.