1

Mexican Port System

116 Ports and Terminals

2

Change in port policy

Partial Assignments of Rights derived from

concession

Terminals

Permits for the rendering of services

(Land Lord) Public sector

Private sector

Operations

Ports have also become business centers, encouraging the development of value added

activities (logistics, manufacturing, etc.) in the surrounding areas.

Between 1993 and 1994, Mexico changed it´s port policy by creating a new model, where

government kept control of management and planning while encouraging private sector’s

partnership in construction, equipment, operation and maintenance.

3

Development of industrial and business parks (Altamira, Mazatlan y Lazaro Cardenas)

Logistic areas (Veracruz and Guaymas)

Value added activities and manufacturing

Development of specialized port facilities and infraestructure

Growth of investment and cargo

Outcome of the new model

7,955.0

28,306.8

39,355.6

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

1995-1999 2001-2005 2007-2011

Investment First 5 years of presidential periods

(millions of pesos)

58.1

67.5

82.0

82.5

90.0

89.3

97.7

93.1

97.5

100.4

104.3

115.2

122.8

121.4

128.4

114.6

134.0

146.0

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11*

Commercial cargo (millions of tons)

TCPM 1994-2010 = 5.4%

4

14%

24%

48%

8% 6% 11%

7%

65%

12%

5%

BREAK BULK CARGO

CONTAINERIZED

MINERAL BULK

AGRICULTURAL BULK

OTHER FLUIDS

Cargo movement

Commercial cargo

Steady growth since increase since 1995.

The mineral cargo has had a constant increase, although it has lost share in the total

cargo, it still represents 50% of it.

Container cargo has grown from 7% in 1996 to 24% in 2011 share of commercial cargo

and it has had an average rate of annual growth of 15% since 1996.

Average rate of annual

growth (1996-2011)

Break-bulk: 5%

Containerized: 12%

Mineral bulk: 2%

Agricultural bulk: 1%

Other fluids: 5%

1996 2011

5

13,937 12,651 15,186 15,159 17,514 18,505 20,806 20,010 20,280 15,973 18,707 20,000

9,967 10,145 11,815 12,742

14,552 15,872 20,355 22,940 25,764

23,589 29,777

34,590

56,413 51,951

51,249 54,549 55,901

63,345

62,831 59,702 64,841

54,531

64,236

70,550 11,857

13,058 12,385

11,298 9,369

10,648

12,108 11,218

9,482

11,632

10,924

11,320

5,537 5,247

6,822 6,643

7,005

6,797

6,744 7,529

8,020

8,912

10,577

9,290

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

BREAK BULK CARGO CONTAINERIZED MINERAL BULK AGRICULTURAL BULK OTHER FLUIDS

Cargo movement

Commercial cargo (thousands of tons)

6

Cargo movement

Vehicles

1995 2011

Average annual growth rate of 12% between 1996 and 2011 (second best, just behind

containers)

Veracruz has been the most important port for this type of cargo; however, other ports like

Lazaro Cardenas and Altamira report interesting growth trends

Between 2003 and 2011, Lazaro Cardenas registered an average rate of annual growth of

almost 50%

Acapulco 15%

Manzanillo 21%

Altamira 2%

Veracruz 62%

Acapulco 8% Lázaro

Cárdenas 15%

Manzanillo 4%

Altamira 5%

Veracruz 68%

7

106,300 144,400

174,435 201,468

346,739 332,981

432,285

488,122

589,117

654,178 688,401

769,208

836,809

921,179

853,013

532,857

871,510

1,091,672

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11e/

Average rate of annual growth (1996-2011) = 12% (number of vehicles)

Cargo movement

8

Trends in the port and maritime sector

Economies of scale capacity of container vessels rapidly increasing

Reconfiguration of trade routes primary and secondary routes

Container port development (hubs and feeders) Transshipment has become an

issue (Lazaro Cardenas, Manzanillo)

Expansion projects (Veracruz, Guaymas, Dos Bocas, Coatzacoalcos)

Environmental issues and cost efficient alternatives Short Sea Shipping

Regional development vis-à-vis foreign trade

9

Guaymas

Mazatlán

Lázaro Cárdenas

Altamira

Container Terminal TEC I

•285.5 million USD

• Increase the movement

capacity in 600 thousand

TEUs

Concluded port infrastructure projects

Cruise terminals and docks

Guaymas (Terminal):

9 million USD (RP)

•300 m of length.

Mazatlán (dock):

•12.8 million USD (RP)

•200 m of length

Manzanillo

P. Vallarta

Docks 1-5 alignment

• 30.8 million USD (PR)

• Total area: 17,500 m2

• Extra berth position

Puerto Vallarta (2 docks):

•21.2 million USD (RP)

•Increased in 3 times the port

capacity.

Manzanillo (dock):

•7.5 millionUSD (RP)

•Allows the reception of 2

cruises of last generation

•Industrial Facilities

388.6 millions USD

•Marine platform dock

55 usd

Dredging works: • 159.7 million USD

10 10

Bypass road Altamira

•Benefits: road connectivity to the

ports of Altamira and Tampico

• Total Investment: 25.5 millons

USD (PR)

Altamira

Obras de conectividad concluidas (2007-2010)

Veracruz

Bypass Km 13.5

Veracruz

Bridge Allende and

Morelos, Veracruz

Lázaro Cárdenas

•Total Investment: 48.4 millons USD (PR)

•Reduces traffic in the northern port

Bypass road San José – Puente Douglas

•Bypass 6 km south of the port access

•Total Investment: 3 million USD

Guaymas

Concluded connectivity projects

Albatros Bridge

•60.7 million USD (PR)

•Reduce the connection to the Siglo

XXI highway from 22 km to 8 km

11

Mazatlán

Lázaro Cárdenas

Container Terminal TEC II

Bidding process concluded

Container Facility

Bidding concluded

Tuxpan

Dos Bocas

Facility for storing

Asphalt and Oil related

products

Bidding concludes)

Multipurpose Terminal

Bidding begins june

Puerto Chiapas

Main projects 2011 - 2012

Multipurpose Terminal

Bidding concluded

Facility for copper related

products

Bidding in process

Topolobampo

Car Terminal

Bidding begins march 2012

Multipurpose terminal

Bidding process concluded

Mineral bulk terminal

Bidding in process

Veracruz

Port expansion

To begin in 2012

Logistic area

To lease in 2012

12

Investment: 651 million USD

APM Terminals

Construction, operation and exploitation of a container terminal, which will

increase total installed capacity from 2 to 5.7 million TEUs per year. It will be

a competitive infrastructure to cover the demand of the national and

international container activity.

Berth positions: 4

Waterfront (m): 1,485

Area (Ha): 102

Depth (feet): 59

Projected capacity: 3.7 Million TEUs

Equipment (cranes):

14 super-postpanamax

In focus: 2nd Container terminal Lazaro Cardenas

13

Mazatlan: Multipurpose Terminal

Modernize and operate the present

terminal

Area: 15.2 ha

300 m dock

Capacity: 60 thousand TEUs per

year

Durango-Mazatlan highway will

begin operations in 2012

Invstment: 40 million USD (PI)

SAAM Puertos

In focus: Multipurpose terminal in Mazatlan

14 14

PORT PROJECTS Veracruz Port Expansion in the North Zone

North Zone Project

Total # of docks

37

(it includes container terminals)

Total area (Ha): 532

Capacity: Total project (Million tons)

124

2 Container Terminals

Total # of docks: 8

Waterfront (m): 2,880

Total area (Ha): 250

Capacity (million TEUs)

4.1

Estimated investment of 3,670.7 million USD.

• 1,155.7 in public investment

• 2,204.9 in private investment

Estimated job creation: 18,000 jobs.

Goals: Meet demand for maritime

transportation in the Gulf of Mexico / Atlantic

Ocean shore, for international trade in Central

Mexico.

Logistic area in development will be ready

Veracruz: Port Expansion

Future projects

Tender invitation: second half of

2012

15

Future Port Projects

Lazaro Cárdenas: Car Terminal

Private financing with

estimated investment of 37.1

millions USD

Total area (Ha): 36

Number of docks: 2

Total dock length: 600 m

Paved and equipped areas for

car storage in the best

conditions.

Specialized areas to provide

value added service

Storage areas of spare parts

Loading and unloading area

from or to railroads or trailers

Tender invitation: march 2012

16

Dock length: 286 m and 14 m of

depth

Total area: 15.4 ha

5,200 m2 storage for consolidation

and deconsolidation of cargo

Railway facility: 2,350 m of length

It will handle steel, wood, sugar,

plastics, aluminum and mineral

cargo

Investment: 31.4 million USD

Tender invitation: march 2012

Future Port Projects

Lazaro Cardenas: Multipurpose Terminal III

17

Conlcusions

• Mexico´s ports expect a consistent growth in commercial cargo,

especially in containes, vehicles and mineral bulk.

• Shipping companies will surely reconfigure their routes to maximize

their capacity. New routes will be calling ports with new terminals

and facilities.

• Lazaro Cardenas and Manzanillo may benefit of the Panama Canal

expansion, especially as transshipment ports.

• Both ports are ready to receive larger vessels.

• Veracruz will also be attractive as a hub port, especially as the port

expansion develops together with the logistics area