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Lazaro Cardenas is a port worth watching

By Patrick Burnson, Executive Editor
January 09, 2012

As if U.S. West Coast ports didn’t have enough to worry about, a new competitor is surfacing South of the Border to challenge them.

Canadian and U.S. East Coast ports have been taking business away from LA/Long Beach; Seattle/Tacoma; and Oakland for several years now. Analysts suggest that there is a number of reasons for this, but most center of efficiency and productivity.

Now the long-rumored development of the deepwater Mexican port of Lazaro Cardenas is becoming a realty as APM Terminals – a division of Denmark’s A.P. Moller-Maersk Group – breaks ground for a new $900 million terminal.

Once completed in 2015, the port will provide shippers with a four-berth terminal linked to the Kansas City Southern Railroad.

Furthermore, like its northern neighbor, Prince Rupert, it is a foreign port that is not subject to the U.S. harbor maintenance tax.

Shippers may expect an aggressive response, however, as U.S. West Coast port leaders lobby Congress for a change in existing laws regarding cross-border movement of containers. The question remains: will this be too little too late?

About the Author

Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).

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