APM Terminals
Lazaro Cardenas
Mexico’s new gateway
to the Pacific
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APM Terminals Lazaro Cardenas Whitepaper
Mexico’s new gateway
to the Pacific
2.2%
expansion in
the Mexico
economy in 2016
APM Terminals delivers Mexico’s most advanced container
facility in a major boost to the nation’s growing trade
Mexico’s GDP already ranks 11th in the world - and the country is continuing
to expand. The reasons for growth are many and varied: The country is wellplaced geographically, with direct routes to Pacific and Atlantic markets, and a
position midway between the major economic blocs of North America and South
America. With competitive labor rates and a rapidly growing, well-educated and
skilled workforce, Mexico has seen sectors such as automobiles, white goods
and aerospace flourish. Mexico has the fastest-developing aeronautical assembly
industry in the world, for example.
Overall, the picture for Mexico looks rosy: The Mexican economy expanded by
2.2% in 2016 and this prosperity is reflected in the trade volume of Mexican ports,
which climbed 4.6% in 2016 to 5.66 TEUs (shipping containers come in various
sizes, so their volumes are cited in TEUs - twenty-foot equivalent units.)
90%
of Mexico’s Pacific
Coast trade passes
through either Lázaro
Cárdenas or the Port
of Manzanillo
To accommodate the expected growth, the Mexican government has announced
plans to dramatically increase port capacity. As part of this expansion, APM
Terminals signed a 32-year concession for the design, construction and operation
of a new deep-water terminal at the Port of Lázaro Cárdenas.
Lázaro Cárdenas is Mexico’s second-busiest container port, handling 1.11 million
TEUs in 2016, with an annual growth rate of 5.2%. Over 90% of Mexico’s Pacific
Coast trade passes through either Lázaro Cárdenas or the Port of Manzanillo, 200
miles to the north.
The new terminal – the most advanced in Latin America - will not only eventually
add over four million TEUs of annual throughput capacity and thus greatly boost
the trade volumes of the nation, but will also create many hundreds of local jobs
and thus have a significant positive impact on the economy of Michoacán State.
Continental gateway
The new terminal is called APM Terminals Lazaro Cardenas. The first construction
phase is now complete with 750 m of quay, five ship-to-shore (STS) cranes, 22
automatic stacking cranes and two rail gantry cranes. The 49 hectare (about 50
soccer fields) site is connected to five rail tracks and offers gate services for landside customers.
More is to come: the terminal’s depth is currently 16.5 m, enough for even the
biggest container ships, but will be deepened to 18 m to accommodate future,
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APM Terminals Lazaro Cardenas Whitepaper
larger vessels. The quay will be lengthened to 1.5 km, and 10 more STSs and five
more rail tracks will be installed, thus increasing terminal capacity to 4.1 million
TEUs – twice the current capacity of Manzanillo, Mexico’s largest port.
$900m
total investment
by APM Terminals
By the time the final phase is complete, total investment by APM Terminals will be
USD $900 million.
Heavy lifting
Central to the new terminal’s facilities are the cranes. The STS cranes are the key
container movers. With a view to the future, these cranes have been designed to
handle the world’s largest ships. They can reach across vessels that are over 23
containers wide - so-called super-post-Panamax ships. Already, several ships have
been handled by the port and the STS’ have accomplished over 20 gross moves
per hour (GMPH) and 76 berth moves per hour (BMPH) - with an average of 4.2
cranes deployed. (GMPH describes a crane’s capacity for the onload, offload and
repositioning of containers; BMPH the total number of containers moved on or
off a vessel by all cranes each hour.) The STS cranes are inherently earthquakeresistant – an important asset in this part of the world.
Rail capacity with the two rail gantry cranes is 40 mph. With 11 stacks in total
to serve the waterside operation, the automated stacking crane capacity allows
around 17 containers per hour per stack to be transferred to or from vessels.
Modular and decoupled terminal design
APM Terminals Lazaro Cardenas layout reflects one of APM Terminals’ main
strategies for facility design: modularity. By decoupling the terminal’s functional
blocks from each other, knock-on delays can be reduced and overall berth efficiency
improved. For example, underneath the STS cranes is a transfer area, which serves
as a “waiting room” where containers are picked up and delivered by the manned
straddle carriers. The STS crane can work at full speed and does not have to
wait for a carrier to appear to take (or bring) a container. This decoupling makes
it is easier to optimize the interface between modules and cope with unexpected
events. The modular approach also facilitates standardization and allows detailed
infrastructure to be re-used in multiple locations.
Control room and automation
With the advent of ultra-large ships of 20,000 TEU capacity, ports have to be
able to load and unload ships very efficiently in order to avoid congestion. Rapid
handling necessitates a high degree of automation and well-organized rail access.
The APM Terminals control room at Lázaro Cárdenas is the nerve center of the
entire port. From here, every single operation can be monitored and guided.
APM Terminals has installed the most advanced port automation solution available.
Even before a ship docks, its cargo manifest will be known and an unloading
sequence worked out. Optical character recognition identifies the container and
allows the operator to track its progress all the way through the terminal. Sensors
assist the operator with trajectory prediction, alignment and stacking, as well as
pendulum control. These tools help prevent accidents, increase productivity and
reduce damage.
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APM Terminals Lazaro Cardenas Whitepaper
Cargo flows are segregated depending on the final destination and the mode of
transport. This information is known in advance and if the container is moving on
by rail, the terminal management system will schedule a railcar and interact with
the shunting software to ensure that an optimal train composition is created in
the on-dock rail facilities. The system identifies, tracks and archives the image
and equipment number information of each rail wagon and its containers, thus
eliminating the need for manual inventory procedures. In addition, images are
captured to enable verification of equipment condition to check for damage. Two
railway cranes are available to load the containers onto the railcars that sit on the
five (later, 10) rail tracks to be transported to Mexico City and beyond.
“The APM Terminals
control room at
Lázaro Cárdenas
is the nerve center
of the entire port.
From here, every
single operation
can be monitored
and guided.”
Road traffic entering or leaving the facility passes through an automated truck
gate. Here, the driver can take care of the required procedure and make direct
contact with the control room in the event of cargo issues or exceptions. Mexican
trucks are often of the double-chassis type, which are long and difficult to reverse
so the entire truck handling process has been laid out to make maneuvering
easy. This speeds things up (truck turn time is just 23 minutes) and is more
environmentally- friendly. It is safer, too, as there are far fewer people present in
areas where trucks are moving.
Once the container has left the terminal, it is automatically tracked on an APM
Terminals database on its way to the next intermodal facility or until it leaves APM
Terminals’ custody.
All this automation ensures that cargo is unloaded as rapidly as possible and sent
on to its final destination in the shortest possible time.
Safety first
In a facility of such technical sophistication, training and safety are paramount.
For this reason, APM Terminals has put a full training program in place. Each
employee is rigorously trained and examined in all aspects of their tasks and
on the machinery for which they are responsible. Crane operators, for example,
undergo thorough training on a crane simulator before they are allowed to progress
to the real thing and complete their certification. Training videos have been made
available on YouTube so that employees can refresh their knowledge as and when
required. Employees also receive comprehensive general Safety training as well
as an education in the company’s business ethics approach – APM Terminals is
dedicated to promoting ethical behavior amongst its employees and suppliers.
In their air-conditioned and ergonomically designed control rooms, operators suffer
much less exposure to danger and are subject to less noise and stress. Working
in such a surrounding improves concentration and productivity and results in all
around better mental and physical health. The wellbeing of outdoor personnel is
also of high importance: The terminal layout is such that people are not present
on the same level as horizontal dockside transport. For example, a raised lashing
platform is provideded for those performing manual container lock-on.
Equipment health check
The wellbeing of the terminal equipment is also taken care of. Asset digitization
allows data to be collected from cranes, shuttles, etc. to help the onsite
maintenance team analyze their operating condition. Real-time, online supervision
supports proactive maintenance, which is more cost-effective than scheduled
maintenance. This type of fleet management optimizes performance, increases
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APM Terminals Lazaro Cardenas Whitepaper
asset availability and provides alarm messages, historical records, operation
trend displays, condition reports and energy reports.
To Mexico, and beyond
250
distribution centers
withim a 20km radius
Container handling infrastructure extends far beyond the port: Two key elements
of the national and international container distribution network are APM Terminals’
Mexico Inland Services off-dock yard in Lázaro Cárdenas and the intermodal
terminal in Cuautitlán Izcalli, on the edge of Mexico City. Intermodal transport
means that containers can be effortlessly switched between sea, road or rail.
These facilities support the port operations and serve as an access point to the
250 distribution centers within a 20 km radius that support the vast local Mexico
City market (over 20 million people). Further, the use of this rail transport corridor
minimizes environmental impact and reduces truck traffic.
Power base
A terminal of this size and sophistication has an electrical power demand
equivalent to that of a medium-sized factory. This power is supplied via a 115 kV
substation with a connection to the high-voltage grid of CFE, the Mexican utility
company. An infrastructure of distribution substations, reefer substations and
building substations deliver the power to where it is needed.
An investment in Mexico’s future
APM Terminals’ investment and involvement in the major port of Lázaro Cárdenas
will benefit Michoacán State by creating new, well-paid jobs and enabling continued
growth of the nation’s trade. The design and construction of an installation as
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“APM Terminals
gave me full training
as an STS crane
operator. Many of
my colleagues were
in the same boat
as myself, so to
speak, and they
too have been set
on a promising
career path”
APM Terminals Lazaro Cardenas Whitepaper
complex as this was only possible with the full cooperation of local and national
governmental bodies, enterprises throughout the region and the port authorities.
APM Terminals is one of the world’s largest and best-known global terminal
operating companies, and its interest and activities in Mexico are a testimony to
Mexico’s ongoing emergence as a leading global trade partner.
The APM Terminals Lazaro Cardenas project represents $1 billion in infrastructure
investment and will create Mexico’s, and Latin America’s, most advanced
automated container terminal, thus attracting even more cargo and creating yet
more new jobs for Mexicans.
But perhaps the last word should be given to terminal workers themselves.
Martin Aviles Luna who is an STS crane operator, says, “before I joined APM
Terminals, I was basically an unskilled worker, even though I had a good high
school education. APM Terminals gave me full training as an STS crane operator.
Many of my colleagues were in the same boat as myself, so to speak, and they
too have been set on a promising career path. It’s great to be a part of the team
here and take personal pride in the high service delivery figures we’re providing at
this early stage.”
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APM Terminals Lazaro Cardenas Whitepaper
Lázaro Cárdenas:
Port of productivity
Lázaro Cárdenas:
Port of productivity
400m
Maersk
Triple E-class ship
7.5 Soccer
Fields
Capacity (Phase 1):
Quay Length (Phase 1):
1.2 Million TEU
750m
Phase 2
Equipment (Phase 1)
Operation area (Phase 1)
10ha
22
Yard
ASCs
5
STS Crane height
93m
Reach
Stackers
18
Shuttle
Carriers
2
Empty
Handlers
Berth depth
16.5m
5 Rail lines
Destined to
Mexico City with
connecting rail
links to all major
markets in
the Americas
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APM Terminals Lazaro Cardenas Whitepaper
Lázaro Cárdenas:
Port of opportunity
Lázaro Cárdenas:
Port of opportunity
Population of Mexico City
Metropolitan Area:
2016 Top commodities
volumes (by country) via
Lázaro Cárdenas
21.2 Million
From Far East Asia to Mexico:
China
60%
South
Korea
27%
Hermosillo
Japan
4%
Monterrey
Transit times to Asia
17-31 days
15-30 days
From Mexico to Far East Asia:
South
Korea
16%
China
41%
Cuautitlan Izcalli
Intermodal Facility
Yokohama | Busan | Shanghai | Ningbo
Kaohsiung | Chiwan | Hong Kong
Transit times from Asia
Others
8%
Vietnam
19%
Others
24%
Mexico City
Lázaro Cárdenas
Yokohama | Kwangyang | Ningbo | Chiwan | Hong Kong
Hong Kong | Nansha | Kaohsiung | Tanjung Pelapas
Strategic location with more
than 250 distribution centers
within a 12 mile radius