Lázaro CárdenasLázaro Cárdenas

Second container Second container terminal terminal

March, 2011March, 2011

Lázaro CárdenasLázaro Cárdenas

Second container Second container terminal terminal

March, 2011March, 2011

2

Container markets.

Connectivity.

The second container terminal (TEC II).

Tender main points.

.The port of Lázaro Cárdenas.

The port of Lázaro Cárdenas in the Mexican port system

Progreso

Lázaro Cárdenas

Manzanillo

Mazatlán

Puerto Vallarta

Topolobampo

Ensenada

Guaymas

Tuxpan

Tampico

Veracruz

D

os

Boca

s

Altamira

.

Salina Cruz

Bahías de

Huatulco

Acapulco

Cabo San Lucas

Coatzacoalcos

Puerto Chiapas

6 State APIs

3 FONATUR APIs

16 Federal Port Administrations (APIs)

1 Private API

Federal API

FONATUR-API

Private API

Zihuatanejo

4

Port InfrastructureThe port site has 2,503 hectares.More than 1,400 hectares are available for new terminal developments.There is space available for 47 berth positions for future terminals.Main navigation channel is 59-foot deep and interior channels are 54-foot deep

Port site

Zones

Areas

Total Developed

(hectares) (hectares) %

Land 1,857.2 444.2 23.9%

Water 646.5 528.5 81.7%

Total 2,503.7 972.7 38.8%

380 m

The port of Lázaro Cárdenas

5

Leader in cargo handling among Mexican commercial ports

In 2010, It handled 24.5 million tons of commercial cargo (petroleum and oil-relatad products not included)

Including petroleum , the figure was 27.8 million tons.

Third in the ranking of Mexican ports, after Cayo Arcas, Campeche y Coatzacoalcos, Veracruz, ports mainly dedicated to petroleum

Type of cargo

(Thousand tons)

Cargo type 2009 2010 VAR %

TOTAL 19,983.5 27,827.6 39.3

General cargo 994.1 1,576.9 58.6

Containerized cargo 4,461.70 6,651.22 49.1

Grain bulk 519.1 457.8 -11.8

Mineral bulk 11,079.2 15,338.0 38.4

Fluid bulk 449.4 520.7 15.9

Commercial 17,503.6 24,544.6 40.2

Petroleum & oil-rltd 2,480.0 3,283.0 32.4       

Containers (TEUs) 591,467 796,011 34.6

Vehicles (units) 48,737 100,535 106.3

Cargo distribution in 2010

Cargo evolution (2000-2010)(Million tons)

The port of Lázaro Cárdenas

6

Leader in cargo handling among Mexican commercial ports

In 2010, It handled 24.5 million tons of commercial cargo (petroleum and oil-relatad products not included)

Including petroleum , the figure was 27.8 million tons.

Third in the ranking of Mexican ports, after Cayo Arcas, Campeche y Coatzacoalcos, Veracruz, ports mainly dedicated to petroleum

Type of cargo

(Thousand of tons)

2009 2010 VAR %

TOTAL 19,983.5 27,827.6 39.3

General cargo 994.1 1,576.9 58.6

Containerized cargo 4,461.70 6,651.22 49.1

Grain bulk 519.1 457.8 -11.8

Mineral bulk 11,079.2 15,338.0 38.4

Fluid bulk 449.4 520.7 15.9

Commercial 17,503.6 24,544.6 40.2

Petroleum & oil-rltd 2,480.0 3,283.0 32.4       

Containers (TEUs) 591,467 796,011 34.6

Vehicles (units) 48,737 100,535 106.3

Cargo distribution in 2010

Cargo evolution (2000-2010)(Million tons)

The port of Lázaro Cárdenas

7

Main projects 2007-2011

12

3

4

Customs facility: Customs Administration (AGA) is improving its infrastructure. Capacity for customs dispatching will increase 200% with the conclusion of its 1st phase in 2011. Investment : 29.2 MD in 48.14 hectares, with 30 positions in 1st inspection and 4 more in 2nd inspection.

ASLA: Platform for logistic coordination between land transportation and terminals. Area: 14 hectares.Capacity: 620 Trailers Operationts to start in 2011.Invesment: 2.6 MD .

Construction dredging: North channel and North and East basins expansion, among others. Investment of 90.8 MD between 2007 y 2011.

Albatros bridge: joining two main islands in the port. It reduces distance from 22 to 8 km and prevents heavy handling from entering the city. Investment of 55.8 MD.

4

1

2

3

The port of Lázaro Cárdenas

8

Program for public construction projects in 2011

35.2 MD

96

The port of Lázaro Cárdenas

9

.

Connectivity.

The second container terminal (TEC II).

Tender main points.

Container markets.

The port of Lázaro Cárdenas.

10

Container handling grew at double-digit figures both in México and worldwide in the last 12 years, even considering the 2009 drop.

This growth exceeded those of Gross National Product and international trade.

Drewry, the international consulting firm, projects an average growth rate of 7.3%/year worldwide, up to 2015. For México, the projection is 8.8%/year for the same period.

Cargo containerization process in México:

* Port Movements (Full + empties), transhipments included.p/: Preliminar e/: Estimated * Average Annual

Growth Rate

Container markets

International and National markets

(Million TEUs)

World container port throughput

AAGR* 1994-2010 =10.5%

(Thousand TEUs)

Container handling in Mexican ports

AAGR 1994-2010 =12.7% Container cargo participation in Total Cargo in México (%)

  1996 2010

Total cargo 2.9 10.9

Commercial cargo 7.4 22.2

General cargo 39.5 61.4

Cargo evolution in the Central Pacific Region (Manzanillo and Lázaro Cárdenas)• Container handlings in the Central Pacific Region have grown at an average annual rate of

23% in the last 23 years.• Container handlings in 2010 (January to December) grew at 35.5% as compared to 2009

and 19.2% when compared to 2008.

201020031990

(TE

US

)

2020 = 7.20AAGR =12%

2011 = 2.67+16%

Demand projection(Million TEUs)

Container markets

Container handling evolution in the port of Lázaro Cárdenas(TEUs)

Container handlings went from almost zero in 2003 to nearly 800 thousand TEUs/yr in 2010 (AAGR 2004-2010: 62.4%).

Containers handled in 2010 (January to December), amounted to 796 thousand TEUs. This represents an increase of 34.6% as compared to the same period in 2009 and 51.7% when compared to 2008.

Existing (2003) Terminal

Both Existing and HPH-Phase 1 Terminals

AAGR 2004-201062.4%

2020 = 3.90AAGR =17%

2011 = 0.90+13%

Demand projections(Million TEUs)

Container markets

Present capacity

Projected capacity with both expansion projects and productivity gains

Thousand TEUs (impo, expo and empties)

Supply – Demand analysis in the Central Pacific Region

(Manzanillo and Lazaro Cardenas)

Scenario with historic growth rateCAGR = 23%

Moderate scenario CAGR = 12%

Container markets

With the construction of TEC II in Lázaro Cárdenas and the development of all phases in all existing terminals, mexican ports of the Central Pacific Region (Manzanillo and Lázaro Cárdenas) will reach an installed capacity of 9.3 million TEUs to handle containers in 2023.

14

.

The second container terminal (TEC II).

Tender main points.

Connectivity.

The port of Lázaro Cárdenas.

Container markets.

15

Multimodal corridor for cargo between the Asia and North America, using the Port of Lázaro Cárdenas.

Very competitive for movements to / from México, Southeast US and North America East Coast.

The railroad and road infrastructure for the Lázaro Cárdenas corridor, is being developed and improved.

Transpacific and Lázaro Cárdenas Corridors

16

Railroad network

The port of Lázaro Cárdenas is a node in the Kansas City Southern México railroad network. Through this network, the port connects with Morelia, México City, San Luis Potosi, Monterrey and Nuevo Laredo.

In Nuevo Laredo – Laredo, this network connects wtih the American railroads:

o Kansas City Southern

o Union Pacific

17

Main projects in the railroad network:

Construction of KCSM Intermodal terminal in “

“Isla de la Palma”: Total investment 80 MD (by KCSM)

Yard relocation and railroad bypass in Morelia. Total investment: 297.3 MD

Celaya railroad bypass Total investment: 200

MD

Monterrey Metropolitan Area Development Total investment: 382.3 MD

International railroad bridge in Nuevo Laredo. Total investment: 295.9 MD

Railroad network

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Road Network

The port of Lázaro Cárdenas belongs to the West-east road corridor from Manzanillo to Tampico, with branches to Lázaro Cárdenas and Ecuandureo

Querétaro

Monterrey

Nuevo Laredo

Lázaro Cárdenas

MoreliaD.F.

CuernavacaManzanillo

Tampico

Veracruz

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Querétaro

Monterrey

Nuevo Laredo

Lázaro Cárdenas

Morelia D.F.CuernavacaManzanillo

Tampico

Main road projects impacting Lázaro Cárdenas:

Michoacan Package: Asset utilization scheme, in the bid process:

Uruapan – Patzcuaro: 55 km; 85.5 MD

Morelia bypass: 58 km; 128.3 MD

Uruapan bypass: 24 km; 57 MD

Morelia – Salamanca. A concession, already in operation:

83 kmInvestment: 146.0 MD

Irapuato – La Piedad: 75 km; 200.8 MD Irapuato bypass: 29.2 km; 51.8 MD La Piedad bypass: 21.3 km; 109.3 MD

Road Network

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The port of Lázaro Cárdenas.

Container markets.

Connectivity.

. Tender main points.

The second container terminal (TEC II).

Berth positions: 4

Waterfront (m): 1,485

Area (Ha): 102

Depth (feet): 59

Projected capacity: 2.6 Million TEUs

Equipment(cranes):

12 super-postpanamax

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The second container terminal project (TEC II)

Development plan in 3 phases.

Private Financing:

440 MD

This project is part of the National Infrastructure Program (NIP)

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Expected Benefits:

Increase installed capacity to handle containers in 2.6 million TEUs, to reach a total of 5.2 million TEUs in Lázaro Cárdenas

Promote competition, among and within ports

Create jobs in the region: 2,900 direct and 13,000 indirect jobs.

Have enough container-handling capacity in the Central Pacific Region to meet projected demand (2015-2025)

The second container terminal project (TEC II)

23

The port of Lázaro Cárdenas.

Container markets.

Connectivity.

The second Container Terminal (TEC II).

.Tender main points.

24

The Tender

Objective: Concession for 30 years, that can be extended 2 more. It encompasses:

Construction and operation of a public container terminal in an area of 850,000 m2 with an optional additional 20% (170,000 m2).

Tender schedule:

1/: Mexican Antitrust Commission •Request for evaluation submitted to COFECO **Due date to notify APILAC

Pre-classification period

Informational meetings

Proposals Presentation and Opening

Tender results

Contract Signing

1st: Abr. 7, 2011

2nd: July 29, 2011

Abr. 18, 2011to

May 9, 2011

Aug. 15, 2011 Oct. 18, 2011 Nov. 17, 2011

Tender publication

Sale of Bid package

Information Room

COFECO 1/

evaluation Visit the Area

Feb. 11, 2011 Feb. 11, 2011to

March 14, 2011

March 7, 2011to

May 9, 2011

March 21, 2011*

Aug.15, 2011**

March 28, 2011to

March 31, 2011

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The Tender

Objective: Concession for 30 years, that can be extended 2 more. It encompasses:

Construction and operation of a public container terminal in an area of 850,000 m2 with an optional additional 20% (170,000 m2).

Tender schedule:

1/: Mexican Antitrust Commission•Request for evaluation submitted to COFECO **Due date to notify APILAC

Pre-classification period

Informational meetings

Proposals Presentation and Opening

Tender results

Contract Signing

1st: Abr. 7, 2011

2nd: July 29, 2011

Abr. 18, 2011to

May 9, 2011

Aug. 15, 2011 Oct. 18, 2011 Nov. 17, 2011

Tender publication

Sale of Bid package

Information Room

COFECO 1/

evaluation Visit the Area

Feb. 11, 2011 Feb. 11, 2011to

March 14, 2011

March 7, 2011to

May 9, 2011

March 21, 2011*

Aug.15, 2011**

March 28, 2011to

March 31, 2011

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Thank You