More Competition for U.S. West Coast Ports

With freight shipments from the Asia-Pacific region continuing to grow along the U.S. West Coast, development of the Mexican Port of Lazaro Cardenas offers an alternative entry point for goods destined for the U.S. interior.

On March 31, 2006 Hutchison Port Holdings (HPH, www.hph.com.hk) broke ground on a threephase expansion of the Port's Specialized Container Terminal. Expected to be operational in July 2007, this is the first phase of a $200-million investment by HPH at Lazaro Cardenas.

Increasing the attractiveness of the port for the U.S. shipping community is a new, daily service from Lazaro Cardenas, San Luis Potosi and Monterrey, Mexico to the southeastern U.S. The service began just in time for this year's peak shipping season. Kansas City Southern de Mexico (KCSM) and Kansas City Southern Railway (KCSR, www.kcsi.com) are providing the daily, seven days a week intermodal service that will move in the U.S. from Laredo, Texas to Jackson, Miss., and on to Atlanta, Ga. As the service grows, KCSR expects to expand it to Houston, Texas and Kansas City, Mo.

Transit times are promised to be competitive with those from other West Coast ports. Delivery time for shipments from Lazaro Cardenas to Jackson will be six days, with seventh day arrival at Atlanta.

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