Manzanillo Port Leads TEU Movement in the Pacific Region

The Manzanillo port transported 4.52 million twenty-foot equivalent units (TEU) during 2021 due to an increase in mining bulk handling, allowing the port to lead the logistic activity in the Pacific and hold the highest record in standard container movement.

Between Jan. and Oct. 2021, the Manzanillo port beat the Lázaro Cárdenas and the Veracruz ports, which reported 1.32 million TEU and 978,071 TEU, respectively. TEU movement peaked in May, with a total of 850,572 units, compared to the 769,685 TEUs transported during 2020, according to the Mexican Navy (SEMAR).

The increased transportation of twenty-foot equivalent units is attributed to the high demand to handle mining bulk containers as mineral-loaded vessels at the Manzanillo port increased by 26 percent, mobilizing around 2.81 million tons. This represents a 61 percent increase in mineral movement in the last decade.

Due to the growing port activity, a Secure Smart Port (PIS) program will be implemented to optimize and simplify the logistics processes of each player in the commercial chain, according to Manzanillo’s National Port System (ASPONA – Manzanillo).

Efforts to optimize processes in the logistics chain have also emerged from the private sector, including the use of artificial intelligence to facilitate freight movement and forecast possible scenarios during sea, land and air cargo movement.

"We deliver to customers a competitive advantage that they can use to predict [the weather] at a given time. For instance, we cannot avoid a snowstorm in Michigan, but we can anticipate that with this situation, you will have to load twice as much because of the snowstorm. We are looking for that competitive differentiation to capture more businesses," Eduardo Haros, CEO, Racing Cargo, told MBN.

The Manzanillo port is not only currently leading TEU transportation in the Pacific region; it is also an important strategic point for international companies that seek proximity to the US, as Mexico has become a hub for international energy activity. For example, solar panel manufacturer and distributor Solarever views Mexico as an attractive location for its manufacturing activities thanks to its engineering talent and low labor costs. The company recently opened a new plant close to the Manzanillo port given that the harbor allows Solarever to export to the entire continent.

“Mexico’s proximity to the US offers a unique opportunity, especially now that Joe Biden has been elected president. He will support the solar industry a lot more than his predecessor. As a result, Solarever expects to increase its exports to the US,” Simon Zhao, President, Solarever, told MBN.