The pioneering role of Mexico's APM Terminals in transshipments

BNamericas was present at the third simultaneous transshipment operation carried out at Lázaro Cárdenas port in Mexico's Michoacán state. The Gemini Cooperation, as it is called, between Maersk and Hapag-Lloyd, aims to optimize efficiency on the world's main trade routes, primarily east-west. 

APM Terminals at Lázaro Cárdenas pioneered this container connection and transshipment operation, optimizing turnaround times from up to one week to a maximum of 48 hours. It is the only terminal on the Mexican Pacific that will carry out this operation.

Beatriz Yera, CEO of APM Terminals, told BNamericas that the terminal was chosen for its privileged geographical location and because it is the only one in Latin America that uses automated yards.

She said that as part of the efforts to achieve this maritime logistics feat, APM Terminals increased its investment in phase two of its expansion project to more than US$150mn from the US$140mn initially announced. This project is scheduled for completion next February.

APM Terminals, an independent division of AP Moller-Maersk, operates in 60 locations in 33 countries, has multiple projects under development and has a workforce of approximately 33,000.

BNamericas: Tell us what the Gemini Cooperation entails and what investment was required to enable this simultaneous transshipment operation at the port of Lázaro Cárdenas.

Yera: The Gemini Cooperation is a cooperation between shipping lines, between Maersk and Hapag-Lloyd. And APM Terminals in Lázaro Cárdenas is part of this service network of these shipping lines, and they chose us – there are only three or four terminals in the entire American continent with this service network – and specifically in the case of Lázaro Cárdenas, we will have or are currently having two services in the network called TP 11 and TP 15. What makes Lázaro Cárdenas unique within this service network is an operation we will carry out here in Lázaro, which will take place every weekend, called a simultaneous transshipment operation.

This is an operation that hasn't been done anywhere in the world, and it's an operation where containers from one of the services are transshipped to containers from the other service and vice versa. That's why it's a simultaneous double connection. This hasn't been done before.

And it's already an operation that has required a lot of preparation over many months due to training. We've also received a lot of support from the authorities because it requires special ship maneuvers.

BNamericas: Why was Mexico chosen to implement this operation with the Gemini Cooperation, and how much was the investment announced by the shipping companies and APM Terminals?

Yera: Why APM Lázaro Cárdenas? I think it's because of the port's geographical position. The port also has a depth that allows us to handle ships with deep drafts, and also in the specific case of APM Lázaro Cárdenas. The technology we use makes it the only terminal in Latin America with automated yards.

This technology also allows this type of operation to be carried out in a much more efficient manner. What benefits does it bring to the shipping companies? It brings shorter transit times from Asia to the east coast of the United States and, therefore, better service to end customers in terms of delivery time.

I couldn't tell you about the investments. Regarding the APM terminal, I think this is an important step. We're expanding the terminal. It's the second phase of expansion. As a terminal, we've invested more than US$150mn in the expansion, and we hope to have the terminal and the expansion completed by February 2026. This gives us greater capacity to continue attracting this type of service from other shipping companies worldwide.

BNamericas: Phase two of the expansion program began in September 2023. Why the increase in the initial investment announced for phase two of the expansion from US$140mn to US$150mn?

Yera: A little more than US$150mn. Precisely because of these additional services that have reached us, we've invested in additional equipment that wasn't initially contemplated. For example, we're bringing in an eighth gantry crane.

We're also bringing in more yard support equipment, which, initially, with the volumes projected at the time, didn't include these additional investments. There have been additional investments.

BNamericas: In December, you also announced the investment of US$14mn in 14 special shuttle carrier cranes. What other investments of this type are planned for this year?

Yera: As I said, we have the first yard cranes arriving at the end of May of this year, and we have the eighth gantry crane arriving during August. So, throughout this year and until we have the terminal and the second phase operating, we'll see a cascade of different types of equipment arriving.

BNamericas: Last year was a record at this terminal because you received more than one million 20-foot containers or TEUs. What's the outlook for this year, considering that the situation could become more complicated due to US tariffs, which have already been imposed on steel and aluminum? 

Yera: I think that from a tariff perspective, it's too early to say. What I can tell you, is that up to... the end of February, we've grown compared with the previous year. You also have to put into perspective that what is handled through APM's Lázaro Cárdenas port is domestic cargo, but there is also cargo that is transshipped to other countries as well.

But let's see what happens. I think it's too early to say. What we've observed so far indicates that the market remains solid, the market we manage.

BNamericas: But aren't you preparing for another scenario due to all these tariff threats that could obviously depress international trade?

Yera: For the moment, as a terminal... we remain positive. We'll see how things develop in the coming months.

BNamericas: Given your experience in the sector, do you think the Tehuantepec interoceanic corridor can in any way compete with the Panama Canal? Does APM Terminals plan to participate in this new corridor?

Yera: It's an interesting question, but right now we're focused on our phase two expansion investments, which are significant. We also operate in the port of Progreso, in Yucatán, and there we also have infrastructure investments planned for this year and the coming years, including infrastructure improvements, technology and security.

So, right now we're focused on the ambitious plans we have at our two ports, and we also have a very intense agenda on decarbonization issues, starting at the port of Lázaro Cárdenas and continuing at the port of Progreso.

Issues include investments in solar panels, investments in contracts to ensure that the electricity we consume comes from green sources, and we have quite ambitious targets in terms of decarbonization.

BNamericas: What are the goals in terms of decarbonization?

Yera: As APM Terminals in Lázaro Cárdenas, we have the ambition that by the end of 2027, all the electricity consumed at our Lázaro Cárdenas terminal will come from green sources, from renewable sources.

For us, the investment will be gradual over the next two or three years, so that we can reach the end of 2027 with all [green] energy. So, it's not just an investment this year but an ongoing investment, but mostly, and I'm speaking from the bottom of my heart, I believe that as APM in Mexico, we have a shared responsibility with the community in that regard.