Lazaro Cardenas- Is It Time?

Might it be the time for Lazaro Cardenas?

As noted at other topics by both myself and others, Lazaro Cardenas, located in the Mexican state of Michoacán, is a deepwater port that reportedly can handle any vessel afloat. It appears quite underused, and at this time of crisis within the maritime industry, I must wonder if it's time for more callings there.

True, security is a big issue. Trains on the KCS-M - the only line serving - would probably need a military escort - helicopter where no highway follows the railroad. In order to efficiently handle traffic consigned to Western states, the KCS may have to relent and offer access and ratemaking to Ferromex.

Highway is not much of an option, and air transport is simply non existent. Some goods simply must be moved expeditiously, cost be danged (Wally World and Jeff do not need wailing kids come this December 25 and families with long memories come '22).

But I still think, and I'll bet Mr. Cowford could come up with a thousand more reasosn to make use is impractical, if this port is to ever have a time, this is it.

disclaimer: author Long UNP. which owns a "chunk" of FCM

Is the Panama canal no longer feasible for many of these ships to reach a US port?

Mr. Toolmaker, I don't think the issue is who can transit the Canal, but rather the berthing and drayage ctisis confronting all North American ports - Coast notwithstanding.

Even with ports operating 24/7, the current estimate to clear the backlog is Summer '22

An excerpt from the CP-KCS merger application made to the Surface Transportation Board:

Among these new services will be the longest-distance intermodal train on the CP/KCS system, connecting the Port of Lazaro Cardenas with Chicago, Toronto, Montreal, and Eastern Canada. CPKC will build numerous other through trains connecting Canadian and Upper Midwest points seamlessly with the U.S. Gulf Coast and Mexico

Maybe this essentially dormant deep water port that reportedly can handle any vessel afloat, will have its day.

While outside the jurisdiction of any US regulatory agency, if it gets busy alleviating the crisis at US West Coast ports, you can be sure that Ferromex will be applying to the Mexican regulatory authorities for access to the port (KCS-M is presently the only road serving it).

GBN, may I draw your attention to an article that appeared in the Mexico Daily News and rereported on by Trains Magazine:

After 91 days, security forces clear teachers’ rail blockades in Michoacán
The move came after the ]government forked out 1.5 billion pesos to settle unpaid wages

Teachers who blockaded train tracks in Michoacán for the last 91 days were removed by security forces on Sunday.

https://mexiconewsdaily.com/news/securi ... blockades/
https://www.trains.com/trn/news-reviews ... oute-ends/

91 days is 3 months. Nothing was able to get in or out by rail for 3 months. If shippers like one thing, it's reliability. Do you think any rational shipper would ship via a route that can be unexpectedly blocked for months at a time? CPKC can dream all they want but until these periodic blockades (most of which aren't even done for railroad-related reasons) stop, I don't expect Lazaro Cardenas to grow much even in the face of backlogs at other ports and a new transcontinental railroad.

We've seen the same thing in Washington state where BNSF was blocked for reasons entirely unrelated to the railroad but for days rather than months. However, even the perceived (by shippers) possibility of such stoppages could cause route diversions. (I don't think any traffic was actually diverted during the short BNSF interruption , but I can believe that containership operators from Denmark to Taiwan got the maps out and were considering the possibilities.)

Mr. Shortline, I couldn't agree more. Michoacán is reported to be one of the more lawless states in a lawless nation.

But I'd like to think that the CP would not have made the statement of their intent to establish regular rail service from Lazaro Cardenas is they did not think such would be "adequately" safe and secure.

I would think though, having to secure any such trains with armed security forces, both in the air and on the ground, will raise the overland shipping costs beyond anything acceptable to the shipping community. Therefore, despite the CP's predictions in the merger application, use of Lazaro Cardenas as a regular West Coast port will likely have to wait until Mexico achieves a greater degree of political stability than at present.

One must remember that in the application no bold statements will be made as far as drawbacks to the application either. The end goal is having it approved.

As noted in the CP-KCS merger discussion topic, with or without the merger, KCS and CP have begun twice weekly container handling between Lazaro Cardenas and Chicago.

This indeed is exciting news. It represents an opening of an essentially dormant maritime port for Trans-Pacific shipping, and it also means that all parties in interest believe that security through a lawless region in a lawless state is sufficiently under control to allow movement of high value Containers.

here is TRAINS coverage of this development for subscribers.