Port of Lazaro Cardenas, a Southern Alternative

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Alternative ports both north and south of the US borders have taken on increasingly important roles as carriers add these ports to vessel strings in the transpac trade.   This article was published back in December 2007 but is more relevant now more than ever.

The other day I wrote about the Port of Prince Rupert, BC in western Canada.  Prince Rupert Island is positioned ideally as a natural northern alternative to congested US west coast ports. The combination of Prince Ruperts location plus speedy Canadian National Railroad connections across the top of North America can get shipments from Asia to the US heartland in record times.   That article also mentioned the development of port facilities in Mexico as possible alternatives.   The Port of Lazaro Cardenas, located on Mexico's west coast in the state of Michoacán is one worth considering.

The port of Lazaro Cardenas as well as the port of Manzanillo are both on Mexico's west coast.   Lazaro Cardenas is smaller, but has a key asset in that the on dock rail facilities are provided by Kansas City Southern de Mexico S.A. de C.V..    KCSM is a subsidiary of American railroad, Kansas City Southern.    That linkage gives Lazaro Cardenas on-dock intermodal links directly into the southern US as well as the shortest route to Mexico City.

Kansas City Southern purchased controlling interest in Transportacion Ferroviaria Mexicana (TFM) in April of 2005, enabling TFM, KCS and The Texas Mexican Railway Company to operate under common leadership, creating a single, 1300 mile rail system connecting the Midwestern United States, central Mexico and Mexico’s Pacific seaports.  KCS also makes connections to other US Railroads. One example would be delivery on the 7th morning into Atlanta from Lazaro Cardenas via a connection with Norfolk Southern.

The LCT Terminal was developed and managed by major international terminal operator, Hutchison Port Holdings.  That means the port is managed by experienced, professional terminal operations managers, and has the latest in terminal facilities.   LCT also offers a dedicated customs inspection area for railroad, truck and reefer cargo. 

Lazaro Cardenas is expected to handle over 2 million TEU's a year with future expansions.  LCT's deep water harbor features a natural 59 foot draft, capable of handling the most modern transpacific containerships.

Lazaro Cardenas Terminal is equipped with the latest in security technology, using pre-screening methods and advanced manifesting to alert both US and Mexican customs on the details of imported goods transiting the port.  New rules by Mexican customs authorities allow US importers to post a single $55,000 continuous bond for goods transiting Lazaro Cardenas for the US.  This move alone allows for significant savings over importation through LA or Long Beach.    Shippers also do not have to pay US harbor maintenance taxes for movement via Mexican ports.

Currently there are five shipping lines calling at the port of Lazaro Cardenas.  Maersk Line, NYK Line, COSCO, Evergreen and APL, with more to follow.   

Carrier strategies in vessel rotations can include LCT as a port call on a West Coast US String, as a port call on a West Coast South American rotation, as a first port of call prior to Panama Canal transit to the US East Coast, or as a connection to feeders for movement throughout Latin America.

With economies becoming global and international supply chain growth, use of alternative ports will become both economically and environmentally critical to the efficient movement of goods.   US West Coast ports will continue to grow, but alternatives provide not only a needed check valve to expansion pressures, but new jobs where there were few before. Those jobs will be true, new jobs, not ones taken from other markets.

Eric

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Comments

[Cheyenne A. Miranda]

Eric, for the Mexican southbound (USA Exports) market, a new player has emerged with service from Savannah and Houston to Progresso, Mexico. They offer a solid niche, with competitive short transit from a major East Coast port. Previously, the only sea container routing options have been ex port of Miami (Hyde Shipping). This eliminates excess inland transportation costs and transit time delays.

Their site is www.cajalogistics.com and are represented by Norton Lilly Agencies.

An interesting connection is the Progresso to Jamaica and Dominican Republic service.

Their vessels from what I understand are mixed use, and they are targeting the tourism trade industry in the Yucatan Peninsula.

[John Licht (Light)]

Eric:

Please be advised that there is a new all railroad route from the southeast to Mexico that avoids the congesion and long transit time of Texas.

Mobile Facility
Since 2007, CG Railways has been operating an easily accessible Gulf Coast terminal in Mobile, Alabama. The Mobile rail facility is equipped with ramps that connect to the vessels to enabling the discharge and loading of rail cars, and providing quick and convenient loading options. The facility is located at the Alabama State Docks, which is currently undergoing its largest ever expansion. schedule of ships, click here.

C. Operations Mexico
CG Railway offers direct interchange with Ferrocarril Del Sureste, S.A. de C.V. (FERROSUR) in Coatzacoalcos, Mexico. Railway customers have access to local industry in Coatzacoalcos and connecting interchange agreements with other Mexican Railroads, allowing shippers the option of routing traffic directly to destinations via Coatzacoalcos and Mobile, Alabama.

U.S. / Mexico Service
Every four days, CG Railway supplies vessels to and from Mobile, Alabama, to Coatzacoalcos, Mexico. The railway provides a safe, fast alternative form of transportation to the traditional land route between Canada, U.S. and Mexico. Regardless of the items being shipped, CG Railway provides customers with:

Fast Transit
Multi-Vessel Sailings
Reduction in Equipment wear & tear
Alternate Entry / Exit Points between U.S. and Mexico
Frequent Sailing every four days
Ability to carry all types of railcars
Reduction in Private Fleet Turnaround Cycles
Single Bill of Lading and Invoicing (when required)
Direct Connection to Mexican Railroad (FSRR)
Connecting with U.S. Class I Railroads at Mobile

For additional details, please contat me.

John Licht (Light)
270-274-0454