APM Terminals to invest US$900M in Lazaro Cardenas, Mexico, deepwater container port; first phase, to be complete by 2015, includes on-dock rail facilities to serve growing intermodal cargo volumes to Mexico City

Alison Gallant

LAZARO CARDENAS, Mexico , December 29, 2011 (press release) – • USD 900 million investment will strengthen infrastructure,
transform economic and social development
• Closest port to Mexico City’s 21 million population with rail
connections
• Deepwater container port reshapes Mexico’s congested
Pacific port dynamics and attractiveness
• Only port on Mexico’s Pacific coast with 16.5m depth and
plans to dredge up to 18m.
• Logistics providers gain more opportunities for near-sourcing
• Natural location for Central America trans-shipment
• Future potential: US Gulf market

The port authority of Lazaro Cardenas has announced APM Terminals as the winner of its deepwater container terminal bid (TEC2), designed to attract private investment and operational efficiencies to the port. The award represents a 32 year concession of a greenfield site for the design, financing, construction, operation and maintenance of a new container terminal at the port.

APM Terminals CEO Kim Fejfer said “We are honored to receive this award from the Port Authority to launch a new era in Mexican ports. Our vision is to make Mexico’s
infrastructure more competitive by investing USD 900 million that promises to create significant economic benefits nationwide to lift Mexican business and society through a
stronger port. This new port will increase the country’s international trade competitiveness, attract more foreign investment and reduce logistics costs through higher operational efficiency. In short: We simply believe strongly in the Mexico market.”

Demographics-wise, Mexico has a population of 112 million with the purchasing power of a fast growing middle class. It has an extensive coastline, numerous manufacturing sites
and offers near-sourcing benefits to logistics providers serving North America. As a port operator, APM Terminals will inject high reliability into supply chains through its
operational excellence models. The new port is also a strategic fit into APM Terminals’ broader Latin America strategy to create the port and inland solutions that lift the region.

Phase I consists of an investment over USD 300 million to build a 43 hectare container yard, 650 meter quay with two berths, an administration building, warehouse, gates and
modern on-dock rail facilities to serve growing intermodal cargo volumes to Mexico City – one of the largest cities in the world, and cities to the north up to Monterrey. New
container handling equipment will be purchased: 5 Super-Post‐Panamax ship‐to‐shore gantry cranes with 23 wide reach and 17 Eco-RTG’s (Rubber tire gantry cranes), a fleet
of trucks and other specialized equipment. This first phase will be completed in 2015 and operations start Q1 2015.

The terminal will undergo phased expansion in accordance with provisions stipulated in the concession agreement and driven by commercial market demands. Once construction of the final phase is completed, the terminal will have a total area of 102 hectares, with 1,485 meters of quay, 4 berths and water depth in the channel and alongside of 16.5 meters. Job-wise, 900 jobs will be generated during the construction phase and more than 550 jobs during the first phase of operation, excluding indirect jobs in the area.

The on-dock railyard is a key defining feature of the terminal in the market designed to allow shipping lines to pre-stow intermodal cargo for direct transfer to rail which is not an option presently offered at other terminals. The rail tracks will be parallel to the berth. Remote Mobile Gantry’s (RMG’s) will transport boxes from berth to rail. Future phases offer the potential of rail service to the US Gulf once rail capacity and infrastructure is in place for a border transfer by the rail provider.

APM Terminals has partnered with Mexico’s largest, leading construction company, ICA, who will have a 5% share, designed to leverage ICA’s expertise in construction and high standards with materials procurement in the Mexico market.

In Mexico, APM Terminals operates inland services in Ensenada, Lázaro Cárdenas and Manzanillo that focus on inland transportation and storage depots.

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