Mexico expands container terminal capacity amid rising Chinese trade

Posted on August 14, 2024   |  

Additional container port capacity is being developed at a key growth area in the liner trades.

International Container Terminal Services, Inc. (ICTSI) is investing $300 million to expand the annual capacity of its terminal in Manzanillo, Mexico, from 1.4 million TEU to 2 million TEU.

This expansion aligns with global shipping lines increasing capacity on new routes from Asia to Mexico, as the country becomes a key manufacturing hub in North America.

From January to May, container volumes between China and Mexico hit a record 563,829 TEU, a 28% rise from the same period in 2023.

In 2023, container shipping between China and Mexico grew by 34.8%, a notable jump from the 3.5% growth in 2022.

In recent years, there has been a significant increase in direct investment from Chinese companies into Mexico, rising from $38 million in 2011 to $386 million in 2021.

This growth in trade and investment highlights Mexico's increasing role in global supply chains, particularly in China.