Wednesday, June 19, 2024

Government to invest over US $322 million in Lázaro Cárdenas port

The Mexican government will invest over $6 billion pesos (approximately US $322 million) in the Lázaro Cárdenas port in Michoacán, the port’s administration has said.

In a meeting with the Mexican Association of Shipping Agents (Amanac), Asipona head Jorge Luis Cruz Ballado said that improvement works started in 2020, with upgrades scheduled to be completed by 2026. 

Cargo trucks leave the Lazaro Cardenas port
Links with rail and road networks are also due to be improved as part of the upgrade works. (APM Terminals)

Ongoing projects include the construction of a goods yard with a static capacity for 7,560 automotive units.

Cruz Ballado said that the new funds will be allocated to projects including the construction of the control tower, the renovation of the Lázaro Cárdenas airport terminal and the optimization of handling of cabotage cargo and customs services.

The port will also build nine fluid storage tanks with a capacity of 401,280 barrels.

To discuss ways to improve efficiency for the transit of rail cargo, Director General of Lázaro Cárdenas port, Norma Becerra Pocoroba invited representatives of Kansas City Southern railroads, APM Terminals and Hutchison Ports to take part in the meeting.

During discussions, Amanac reinforced that Lázaro Cárdenas is key to the development of the Mexican economy owing to its strategic geographical position within the Eastern, Western, Northern and Southern maritime routes. The site also boasts more than 820 hectares available for new business.

With drafts of up to 19 meters in its access channel, Cruz Ballado said that Lázaro Cárdenas can accommodate ships of up to 165,000 tons as well as seventh-generation container ships.

In 2022, the total cargo movement from Lázaro Cárdenas was 2,460,374 tons. This was predominantly mineral bulk (44%), followed by containerized cargo (35%) and oil products (5%). 

Despite automotive units amounting to only 3% of the port’s total cargo, imports hit a record figure of 646,578 units, placing Lázaro Cárdenas as the nation’s second in automotive cargo statistics thanks to strong import quantities from Asian manufacturers. 

Forbes Mexico reported that the Chinese automakers Zhong Tong Bus, Ankai, Skywel, Karry, Chirey Brilliance, Yutong and Dongfeng, increased by 40%. In January 2023 alone, the port reported a movement of 56,983 units from Chinese automakers and brands like Toyota, Mazda, Suzuki, General Motors, Hyundai and BMW, among others. 

This high number of automobiles has led to port congestion. 

With reports from Forbes México, Actualidad MP and Reforma.

Have something to say? Paid Subscribers get all access to make & read comments.
Employees in an avocado processing plant in Michoacan move around large carts of avocados

US pauses Michoacán avocado inspections, citing agent safety issues

After two USDA inspectors reported an incident, the U.S. paused avocado inspections in Michoacán, Mexico's No. 1 exporter of "green gold."
Jorge Guajardo head shot

5 questions about investment in Mexico: An interview with former Ambassador Jorge Guajardo

Jorge Guajardo, former Mexican ambassador to China, answers five questions about FDI, nearshoring and Mexico's economic future.
Tropical Storm One projection Cyclone Albert

Potential tropical cyclone approaches northeastern coast of Mexico

The potential tropical cyclone could become the first named storm of the hurricane season by Wednesday.