APM Terminals Lázaro Cárdenas announces expansion with the start of construction of Phase II

By APM Terminals Lázaro Cárdenas

This is a machine translation of the original press release issued in Spanish

• APM Terminals Lázaro Cárdenas will invest more than $140 million dollars in phase two of its expansion project, increasing the annual capacity of its port terminal to 2.2 million TEUs.

Lázaro Cárdenas, Michoacán, Mexico, September 4, 2023. As part of its global strategy as a logistics integrator of the AP Møller-Mærsk Group, APM Terminals Lázaro Cárdenas, has announced the start of construction of the Phase II expansion of its port terminal, with an investment of $140 million dollars. This project will increase the capacity of the first semi-automated terminal in Latin America, with an additional million TEUs and will position it as a hub for the Americas region.

The Director of Ports and Merchant Marine of Mexico, Cap. Alt. Ana Laura López Bautista, the Director General of Puerto Lázaro Cárdenas, Admiral Jorge Luis Cruz Ballado, and the Governor of the State of Michoacán, Alfredo Ramírez Bedolla, participated in the inauguration ceremony.

During the expansion, the yard will increase by 15.7 hectares, the terminal's operating system will be upgraded to use Navis N4, the world standard for operating systems in the APM Terminals global network, combining best practices from around the world and support specialized centralized 24/7 to meet the volume requirements expected in both the medium and long term.

Upon completion, scheduled for the first quarter of 2026, the terminal will be able to handle an annual throughput capacity of 2.2 million TEUs. The expansion considers the United States-Mexico-Canada Agreement (T-MEC) that entered into force on July 1, 2020.

"This expansion positions the terminal as a key hub in the region. Increased capacity, new equipment and yard space will raise the standard of efficiency at the terminal through optimized traffic flows and improved lead times of cross-border transit, a key element of the USMCA," said Leo Huisman, Regional General Director of APM Terminals Americas.

The new phase includes new equipment to improve port capacity, such as 6 rail-mounted automated gantry cranes, 14 new Shuttle Carriers, unique equipment in Mexico and the region.

"In addition to increased efficiencies that will reduce logistics costs for both shipping lines and land customers, the new phase will include several sustainable initiatives and will create an additional 500 direct jobs and 900 indirect jobs during the construction phase that will improve living standards and will generate value for the local community. The expansion will also support opportunities for the growth of international trade and will transform the economic and social development of the State of Michoacán and Mexico," said Marliz Bermúdez, General Director of APM Terminals México.

The commitment that APM Terminals reaffirms today in Mexico represents a clear

economic and infrastructure development plan for the State of Michoacán, producing a specialized labor force that will implement the most advanced technology in the new terminal.

APM Terminals has invested more than $900 million to date in the terminal to boost Mexico's competitiveness, fulfilling the company's strategy of investing in emerging economies. The project will expand the terminal's current capacity to 65 hectares, including a total of seven ship-to-shore (STS) cranes, 32 shuttle carriers and 28 automated rail-mounted gantry cranes (ARMG).