State-of-the-art technology and world-class
customer services herald the comeback of the
respected carrier
THE MEXICAN flagship transporter returns to
the international arena under its strong brand
image TMM intending to create long-lasting ripples.
From August this year, the acronym that gained
popularity navigating the seven seas and reaching
the main international ports with its maritime
liner services returned to the depths of international
maritime transportation via the creation of
a new NVOCC (non-vessel operating common carrier)
and freight forwarding.
The beginning of this new era could not be
better. From the inception of its return to
international business TMM knew it could rely
on representatives in their 20 strongest trading
partner countries. Additionally the company
had just recently acquired Ademsa, a leading
warehouse supplier with more than 17 years serving
the Mexican market, to rely on for the full
implementation of TMM’s integrated international
logistics services. Also, its state-of-the-art
technology enables customers to keep permanent
track of their goods during transport.
Moreover, TMM’s strongest asset remains
its brand, the bold green and red flag, which
is highly regarded in the leading markets of
the world by big transportation users that have
regularly made use of its foreign trade services
since 1955.
Today TMM is truly back on track and it appears
to be happening at a time when President Calderón’s
government is paving the way for Mexican ports
and maritime players to attain global competitiveness.
One of the main areas of opportunity for TMM
is the growth of Mexican imports from China
and the bottlenecks that Asian trade is creating
on the U.S. West Coast ports, namely L.A. and
Long Beach. On the other coastline, the Gulf
of Mexico is itching for growth and business
diversification. According to Mexico’s
Ministry of Communications and Transport, investment
in port development will grow 10 percent in
the next five years and the sustainable growth
of container movement will be of approximately
20 percent, including expansions carried out
at the Manzanillo Port and the much-awaited
expansion of the container terminal at Lázaro
Cárdenas on the Mexican west coast.
Javier Segovia, President of TMM since 1999,
believes the new Mexican navigation law will
encourage maritime transportation in Mexico
and help Mexican transport companies in general.
He explains that the group will remain fully
committed to assisting PEMEX in its quest for
huge investment plans concerning exploration
and production.
He comments, “In terms of fleet, TMM
is one of the main contractors of PEMEX, providing
sophisticated services in terms of mobilization
of platforms, anchor management and supply vessels
for offshore services to the exploration platforms.
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“We have everything.
Today we can provide services throughout
the whole chain”
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“In the past 26 months we have invested
approximately $300 million in vessels enabling
us to keep our market share, our participation
and our support as an accessory to the investments
made by PEMEX towards refinery and exploration
and production.
“Our strategy is to invest in a niche
where Mexican shipping companies have a preference
in accordance with the new Mexican navigation
law since PEMEX has just announced an $850 million
investment program destined to cabotage and
exploration services. We aim to secure a critical
mass of 60 vessels on a national scale as a
springboard for long-lasting international operations.”
TMM’s new line of business is not based
on fleet purchases or containers. It is based
on the high quality of service that has characterized
the company for more than 55 years while competing
with big European, Asian and American shipping
lines companies in the leading maritime markets.
The new business is also based on its large
infrastructure in Mexico and the vast experience
gained throughout the years.
The main objective is to position TMM as the
number one integrated logistics services provider
in Mexico within two years. Internationally
TMM aims to increase the presence of the brand
elsewhere in the medium term.
The launch of the freight forwarding services
and NVOCC – an international carrier without
operating vessels – is under the commercial
name of TMM Global Logistics. The plan is to
take advantage of the history and presence of
TMM in the international markets with all of
its previous liner services to and from Europe,
South America, Asia and South East Asia
TMM’s competitive advantage – in
a country lagging in terms of logistic sophistication
where many companies still manage logistics
with different vendors or providers in segmented
stages – is its entire TMM infrastructure,
trucks, ports, warehousing, technology and vast
experience. All of these assets provide TMM
with the key to success for its new adventure
of returning to international markets.
With the new NVOCC service, TMM will be able
to link all of its assets by providing complete
logistics services and total supply chain management
for all importers and exporters by taking and
transporting the products from the plant of
origin in any country to the plant or retailer
store at a destination country regardless of
its precise location and complying with precise
required times of delivery.
“We have all the infrastructure. We can
provide the market with services throughout
the whole chain today; we are starting with
the companies that are in the forefront of this
process,” says Mr. Segovia.
TMM’s long-standing commitment and world-class
excellence in terms of quality remain the brand’s
best assets. The president adds: “Fortunately
I have the best people with me, whom I am very
proud of. Throughout the years they have accumulated
so much knowledge and experience, but what is
more important here in TMM is that we all have
this sense of wanting TMM to succeed and that
is why I trust our future is bright. This, for
me, is the most gratifying experience of all.”
For door-to-door service both to and
from Mexico contact us at www.tmm.com.mx
Current events at TMM
secure its future
Headquartered in Mexico City, Grupo TMM provides
a dynamic combination of ocean and land transportation
services through its branch offices and network
of subsidiary companies.
Following the recent expansion of its logistics
services through the acquisition of automobile
transportation assets, TMM is now set to become
one of the largest auto hauling carriers in
Mexico.
• TMM Logistics has recently acquired
an important fleet of auto hauling equipment
and operating yards
• It simultaneously entered into long-term
contracts with two major auto manufacturers
• The acquisition price for the new business
was $36 million
• It is expected that this new enterprise
will add more than $40 million of annual revenue
to the logistics division
• This new specialized auto hauling business
will be supported by existing management, commercial,
IT and operating capabilities, creating additional
synergies over time
• The group has also added a new warehousing
operation to complete its total service package
• The new acquisitions reflect TMM’s
commitment to growth and to effectively service
its customers.
The nation’s multimodal transportation
and logistics specialist has also recently securitized
the future revenues of 20 of its vessels, 18
offshore vessels and two product tankers in
its drive to further increase its market leadership
in Mexico.
• TMM Group issued a first tranche of
20-year Mexican trust certificates – certificados
bursatiles – in July for three billion
Mexican pesos (approximately $280 million)
• The securitization was completed under
the group’s Mexican trust certificates
program
• The program may eventually result in
as much as nine billion pesos (approximately
$840 million) as the company continues to identify
new business opportunities
It will provide long-term financing tied to
the useful life of the company’s vessels
• The transaction is the first of its
kind in Mexico
• A rating of AA (mex) by Fitch Ratings
for this financing structure reflects TMM’s
quality operating performance and the increased
demand for maritime transportation services
• The program allows TMM to improve its
debt profile while at the same time increasing
its financial flexibility by reducing the debt
service under former vessel financings
• It also affords the company a better
position to participate in the fulfillment of
Mexico’s expanding demand for offshore
vessels and product tankers, as well as other
transportation assets and services.
