the port of lázaro cárdenas

KANSAS CITY SOUTHERN RAILWAY
THE PORT OF LÁZARO CÁRDENAS
MR T
market research team
LÁZARO CÁRDENAS TODAY:
The port of Lázaro Cárdenas is strategically located on the West Coast of Mexico in the state of
Michoacán with excellent maritime access to Pacific Rim nations as well as Central and South
America. The port of Lázaro Cárdenas currently has maritime services connecting it to 15 Asian
ports in the Pacific. The port is located in an economically vibrant region of México known
as the Delta Del Balsas which is comprised of the Mexican states of Michoacán, Guerrero,
Querétaro, México, Distrito Federal, and Morelos. This region represents a third of Mexico’s
population and makes up 42% of the nation’s GDP with 49% of the country’s manufacturing
sector being located here1. In 2014 the port handled 28,189,484 tons of cargo, comprised of
containerized cargo, break bulk cargo, agricultural products, minerals, petroleum products,
and other liquids. Also in 2014 the port handled 996,654 TEUs (Twenty-foot Equivalent Unit), and
304,798 finished vehicles. Through the first six months of 2015, TEUs at the port are up 5.1% and
finished vehicles are up 28.7% over 2014 volumes2.
Lázaro Cárdenas offers a sheltered deep water port that is post-panamax ready with a
variety of multiple purpose terminals capable of handling dry and liquid bulk, containers,
general cargo, and tankers. The port currently has one container terminal operated by
Hutchison Port Holdings with an annual capacity of 2 million TEUs. The container terminal has
been developed over the last decade with a total investment of $360 million. The terminal
has 11 post-Panamax cranes, 3 berths and has a natural draft of 16 meters3. In 2014, the
Journal of Commerce ranked the HPH Lázaro Cárdenas terminal as the 6th most productive
terminal among container ports in the Americas. They also ranked the port overall as the
3rd most productive port among ports in the Americas4.
Lázaro Cárdenas is well positioned to serve México City – the major population center of
the country – which has a population of 21 million today (2015) and a projected population
of 24 million by 20305. México City is only a distance of 385 miles by rail from Lázaro
Cárdenas. Lázaro Cárdenas is linked to México City and the US through the rail network of
Kansas City Southern de México.
1
Port of Lazaro Cardenas http://www.puertolazarocardenas.com.mx/plc25/ubicacicerca-del-puerto-55
Secretary of Communications and Transportation http://www.sct.gob.mx/puertos-y-marina/direccion-general-de-puertos/estadisticas/
mensuales/
3
Lazaro Cardenas Terminal http://www.lctpc.com.mx/conoce-lctpc/acerca-de-lctpc/
4
Journal of Commerce http://www.joc.com/port-news/port-productivity/asian-mideast-ports-maintain-port-productivity-lead_20150609.html
5
APM Terminals http://www.apmterminals.com/news/lazaro-cardenas
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KANSAS CITY SOUTHERN RAILWAY
THE PORT OF LÁZARO CÁRDENAS
MR T
market research team
LÁZARO CÁRDENAS MOVING FORWARD:
In 2012, APM Terminals won a 32 year concession to finance, design, build, and operate
a second container terminal at the port which is known as the TEC2 terminal. The project
represents an overall investment of US $900 million. The initial phase of the development
includes an investment of US $300 million to construct a 106 acre container yard that will
feature two berths. The terminal will include five super-post-Panamax cranes and a fleet of
other modern specialized equipment6. This first phase of the TEC2 terminal is scheduled to
open in mid-2016 and will be the first fully automated container terminal in Latin America.
1.2 million TEUs of annual capacity are expected to be added upon the completion of the
first phase of the terminal7. Based on the port’s current TEU capacity and the anticipated
expansion, the port’s annual TEU capacity will reach 3.2 million in 2016.
The port can also serve as an alternative gateway to the US, as ports in the US face
capacity and congestion issues, Lázaro Cárdenas could provide shippers a new option in
reaching US markets. Many of the major US ports are operating at or near capacity, while
Lázaro has ample room for growth. A recent report from the FMC on US port congestion
noted that US liner cargo could double between 2025 and 20298. This continued growth
will stress the capacity of US ports. In late 2014 and early 2015, the US West Coast port
complexes were challenged with severe congestion issues which highlighted how strained
the US ports already are.
LÁZARO CÁRDENAS & MÉXICO:
México is a leading global trading partner and is the second largest economy in Latin
America at $1.3 trillion annually9. There has also been a significant increase in the transPacific trade lane for México with the port of Lázaro Cárdenas being a leading growth
story. Just a decade ago the port handled just 1,600 TEUs; fast forward to today and they
are handling close to a million TEUs a year with plans to expand even further. Between 2000
and 2013, Mexico’s overall merchandise trade moved from $345.7 billion to $771 billion. The
population of México is forecasted to expand to 156 million by 205010.
As México continues to grow, the port of Lázaro Cárdenas will be a crucial gateway in
accommodating México’s growing middle class, as well as, the flourishing manufacturing
industry in the country. The country will require an advanced transportation network
capable of moving goods from the ports to the interior parts of the country as well
as for exporting manufactured goods to global markets. To learn more about foreign
investments in Mexico and the changing economic landscape, you can find our white
paper on the topic here.
2
Journal of Commerce http://www.joc.com/port-news/international-ports/port-l%C3%A1zaro-c%C3%A1rdenas/apmt%E2%80%99sl%C3%A1zaro-c%C3%A1rdenas-terminal-slated-open-2016_20141012.html
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Journal of Commerce http://www.joc.com/port-news/international-ports/port-l%C3%A1zaro-c%C3%A1rdenas/apmt%E2%80%99sl%C3%A1zaro-c%C3%A1rdenas-terminal-slated-open-2016_20141012.html
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Federal Maritime Commission http://www.fmc.gov/assets/1/Page/PortForumReport_FINALwebAll.pdf
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The World Bank http://data.worldbank.org/country/mexico
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APM Terminals http://www.apmterminals.com/news/lazaro-cardenas
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