Digital Edition

May16, 2016

Issue link: https://jocdigital.uberflip.com/i/675756

Contents of this Issue

Navigation

Page 53 of 63

54 THE JOURNAL OF COMMERCE www.joc.com MAY 16.2016 MEXICO TRADE AND LOGISTICS SPECIAL REPORT n APM Terminals Bullish on Lazaro Cardenas Hub A new APM Terminals container terminal in Mexico will have an immediate impact on the country's local and international trade despite lagging regional Latin American and global economic growth and a sluggish global ocean container market, the terminal operating arm of Maersk Group says. APMT expressed confidence in its $900 million investment in the semi-automated Lazaro Cardenas Terminal 2, scheduled to open by the end of June, with an initial annual capacity of 1.2 million 20-foot-equivalent units. "We view the Latin American market, and particularly Mexico, as an area of great opportunity," APMT CEO Kim Fejfer said in March. "Mexico is not only the second- largest economy in Latin America, but also one of the world's top 15 manufacturing economies, including having become one of the world's top five car makers, and we feel that investing in Mexico's continuing economic and trade progress is a sound business strategy." Mexican ports handled a combined 5.4 million TEUs in 2015, a 7 percent year-over-year increase compared with global market growth of just over 1 percent, APMT said. Container throughput at Lazaro Cardenas, where Hong Kong-based Hutchison Port Holdings also operates a terminal, grew 6 percent in 2015 to more than 1 million TEUs, trailing only Manzanillo, Mexico's biggest container port, which handled 2.4 million TEUs. At full build-out, the terminal will double the quayside to nearly 4,900 feet, increase the number of ship-to-shore cranes from seven to 15 and more than double annual capacity to 4.1 million TEUs. The terminal will be linked to Kansas City Southern de Mexico's rail network, which connects to Mexico City, Monterrey, Veracruz, Guadalajara and to the U.S network of Kansas City Southern Railway. n Yusen Logistics to Open Celaya, Mexico, Warehouse Third-party logistics provider Yusen Logistics is building a logistics center near Celaya in south-central Mexico to meet the growing demands of its domestic and international automotive customers. "The automotive industry is growing at a tremendous pace in Mexico. In recent years, a number of major auto manufacturers invested in large assembly plants in the Bajio area. This is bringing many Tier 1 and Tier 2 auto suppliers into the region as well," said Kunihiko Miyoshi, chief regional officer of Yusen Logistics' Americas Region. The 53,820-square-foot warehouse is located on a 17-acre site in the Amistad Industrial Park in the Bajio region, one of Latin America's largest automotive clusters. The industrialized area offers access to a road and rail network, and strengthens Yusen Logistics' global capabilities to offer automotive supply chain solutions to original equipment manufacturers, as well as Tier 1 and Tier 2 suppliers conducting business in Mexico. Services include just- in-time scheduling; domestic truck, rail and intermodal transportation; international freight forwarding; project cargo; import/ export services; warehousing and value- add services; and trade compliance. The warehouse, scheduled to open by the end of the year, will feature 10,764 square feet of office space, 10 dock doors, a large trailer yard and an ocean container depot. There is room for expansion, including the capacity to double the amount of warehouse and office space and add a cross-dock facility with 30 dock doors. Yusen Logistics (Mexico) in 2015 launched an Automotive Logistics division in Celaya and established a customs office in the Mexico City Airport, as well as a cross- dock office for air exports outside the airport. The company also arranges U.S.-Mexico cross-border rail and trucking for customers and partners with its Yusen Logistics (Americas) affiliate, which operates a 100,000-square-foot warehouse in Laredo, Texas. n Weak Peso, Auto Downturn Hit KCS Earnings Intermodal volume moving on Kansas City Southern Railway declined for the second consecutive quarter in the January- March period, in part reflecting weakness in

Articles in this issue

Links on this page

Archives of this issue

view archives of Digital Edition - May16, 2016