The intense activity of steel imports that Mexico receives via maritime routes has presented Terminal Marítima Mazatlán (TMAZ) with a prosperous business opportunity that it doesn’t intend to miss. On the contrary, the company has designed a robust investment plan for the next five years to strengthen its services for the increasingly interested companies in its port facilities.
In recent years, this terminal has seen sustained growth of over 50% in steel imports, primarily from Japanese, Korean, Vietnamese, and Chinese markets. These Asian markets have continued to send various finished steel products despite the implementation of high tariffs aimed at protecting the market established in the area covered by the United States-Mexico-Canada Agreement (USMCA).
In fact, since the beginning of this year, the U.S. government has increased its demand for Mexico to enforce stricter customs controls due to the rise in Mexican steel exports to the northern neighbor. This surge is believed to be driven by an increase in Asian steel imports, especially from China, which seeks to bypass U.S. tariff treatment.
In 2023, industries manufacturing various products in Mexico consumed a total of 28.5 million metric tons (MMT) of finished steel products, marking a 14.0% increase compared to the previous year. Of this amount, 19.3 MMT were produced domestically, showing a decrease of 1.6% compared to 2022, according to data from the National Chamber of the Iron and Steel Industry (Canacero).
The high importation of steel received by Mexican ports along the Pacific Ocean generates a strong demand for handling services at terminals operating this cargo. Ensenada, Mazatlán, Lázaro Cárdenas, and Manzanillo are key focal points in this activity.
Moreover, operational conflicts observed in recent months among different terminals at the port of Manzanillo have compelled importers to seek other ports along this coastline. “Recently, we welcomed two new Japanese companies, and they confirmed that working in Manzanillo is very complicated. So, nowadays, Mazatlán is not just seen as an alternative but rather as a solution,” stated Mauricio Ortiz, CEO of TMAZ, in an interview with T21.
The executive also noted that the effect of production lines relocating to Mexico (nearshoring) has contributed to the increase in imports of Asian steel. “We are on a five-year strategic plan, where precisely we want to equip ourselves and build capacity,” Ortiz explained.
Currently, TMAZ has six warehouses within the port area, totaling just over 20,000 square meters (m2), used for the reception of steel and other goods. Specifically, there’s a specialized warehouse for steel handling, covering 5,300 m2 and equipped with two overhead cranes.
Additionally, they have eight forklifts capable of lifting up to 45,000 pounds and 18 forklifts able to handle loads up to 10,000 pounds, allowing them to handle loose or spot cargo.
“Through investment, we aim to renew and add new equipment due to steel growth. In fact, we’re expecting the arrival of three medium-sized forklifts for the reception of steel coils and rolls on pallets,” Ortiz added.
Allies on the Journey
Meanwhile, the logistical solution found by steel importers through TMAZ is complemented by their commercial alliance with Ferromex, which has provided and increased the equipment used for moving steel to major production centers in Mexico via their rail connection.
Mauricio Ortiz recalled that the terminal has five kilometers of railway track, enabling them to handle various types of cargo; furthermore, it boasts six docks representing 1,300 linear meters of berthing space.
“Mazatlán is not a saturated port, so ships dock upon arrival, which is a significant advantage. We can handle cargo within the warehouse in the bonded area, unlike other terminals that have to transfer and store cargo in yards or external warehouses, resulting in increased costs for clients,” he said.
The confidence that TMAZ has built among its clients is also based on the traceability it offers from the moment goods enter the terminal, supported by certifications such as ISO 9000, ISO 14000, Authorized Economic Operator (AEO), among others.
Furthermore, TMAZ’s service is supported by its “good relationship” with port authorities and customs, enabling them to maintain efficient processes for cargo clearance.
The investment plan TMAZ intends to complete over the next five years is significantly bolstered by the German group Hapag-Lloyd, which acquired the port terminal unit of the Chilean SAAM last year. This acquisition brings expertise in handling various types of cargo, including steel.
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