Gil González Dávila founded the city in 1524 and called
Villa de la Natividad de Nuestra Señora, now known as Cieneguita. In 1526
Hernán Cortés came to punish González Dávila and when he arrived on Honduras' coast from
Mexico and started unloading horses and cargo from the ships, several horses were drowned, and for that reason, Cortés called it
Puerto Caballos. By 1533, a local native leader, called Çiçumba (or Çoçumba, or Socremba, or Joamba – the Spanish recorded many variants of his name) had destroyed the town, reportedly taking a woman from Seville, Spain captive. After Çiçumba's defeat in 1536 by
Pedro de Alvarado, a new town, Puerto de Caballos was founded on the southern shore of the body of water known as the Laguna de Alvarado. The English attacked Puerto Caballos as they did other places along the Honduran coast.
Christopher Newport briefly occupied the town in the
Battle of Puerto Caballos, part of the
Anglo–Spanish War. Because it was vulnerable to pirates until the building of the Spanish fort at
Omoa in the 18th century, it had few permanent residents in the 16th and 17th centuries. People preferred to come out to the coast from San Pedro when a ship came into port. In 1869 Puerto Caballos changed its name to Puerto Cortés in honour of
Hernán Cortés.
Bananas, railroads and development in the twentieth century The proposal to construct an "inter-oceanic railway" (
Ferrocarril Interoceánico) in 1850, a product of the demand for transport from the Atlantic to the Pacific caused by the United States
Gold Rush of 1849, began with the anchoring of the railroad at Puerto Cortés. The rail line construction had many problems. In 1876 President
Marco Aurelio Soto nationalised the Trans-Oceanic Railroad, which only reached to
San Pedro Sula. When the
Panama Canal was completed in 1903, the alternative plan to connect the coasts was abandoned. The region became an early centre for
banana production in Honduras through cultivation and export, and the port was a leader in the export of bananas. The early banana export industry came to be dominated by foreigners; among the first foreigners to obtain a government concession was William Frederick Streich of Philadelphia in 1902. His concession was in the vicinity of
Omoa and both banks of the Cuyamel River. However, in 1910
Samuel Zemurray's
Cuyamel Fruit Company purchased these 5,000 acres, but soon branched out, both with more land and with political and tax concessions, especially after Zemurray installed
Manuel Bonilla in office as president using mercenaries hired in the area and abroad. In addition to awarding Cuyamel additional land, Bonilla also waived the company's tax obligations. Cuyamel had built port facilities at Omoa, but also began using the facilities at Puerto Cortés and soon came to dominate them to the point that local shippers had to ask Cuyamel's permission to use the port. In 1918, Cuyamel constructed a railroad spur into Puerto Cortés, and in 1920 he obtained effective control over the National Railroad, and from this and a network of clandestine railroads the company effectively controlled all transport to the port. When Zemurray sold Cuyamel Fruit to
United Fruit in 1929, the giant company had great influence in Puerto Cortés and in Honduras as a whole. ==The city==