Can you provide an overview of FR Terminales and its presence in the Mexican market?

FR Terminales is a Mexican company that has over 25 years of experience in the chemical sector. We focus on the storage and transloading services of chemicals, grains, minerals and plastic resins, as well as tolling and mixture of products. We can provide our services throughout the whole country through nine railway terminals and one seaport terminal. Our objective as a company is to strengthen the supply chain of our customers, guaranteeing the security of our cargo and personnel, while also meeting all regulatory demands and necessary permits for the proper handling of the products we manage in our facilities.

How has FR Terminales contributed to the growth of the chemicals industry in 2022?

The entire supply chain suffered from setbacks in production costs and logistics in 2021, so the role of logistic oriented companies such as FR Terminales was essential to meet the market demands of our clients nationwide. The chemical industry accounts for approximately 90% of our portfolio, and we are specialized in handling different chemicals. To do this well, our personnel undergo rigorous training, and we have several certifications, such as ISO-9001:2015. Also, we form part of ANIQ's Responsible Care Management System (SARI), which sets ESG standards for chemical and petrochemical companies that operate in Mexico.

Our ability to specialize in the safe handling of chemicals has allowed us to expand our customer base and thus contributed to the growth of the chemicals industry in Mexico.

What were important lessons learned from the tight supply chain over the last two years?

We faced operational challenges that required us to quickly adapt to our customer's needs, so we had to learn how to make our strategies more efficient and responsive to the different chemical products that we handle. One of the most important lessons we learned is the need to invest in technologies and training of our staff to be as effective via remote work as in person. We are still seeing disruptions to the supply chain because of the ongoing geopolitical issues and the lingering effects of the pandemic. Our biggest challenge now is attuning to the logistical problems in Mexico, where investments are needed in terms of infrastructure and operation capacity. While we are being cautious about making large investments due to a potential global recession, we are still expanding our customer base and improving our systems. For example, we increased our installed capacity to be able to stockpile high-demand products and be able to maintain the supply chain active. We have seen trends toward specialty chemicals to feed the auto and houseware industries, which are largely concentrated in the northern part of the country, so we have increased the storage capacity of these chemicals.

We also learned to strengthen our relationships with our regional trade partners, given that 80% of the products we receive in our terminals come from the US and Canada.

How has FR Terminales adapted to the increase in the cost of petroleum?

We have implemented a series of initiatives to optimize the use of energy, which have allowed us to significantly reduce operational costs. We have also improved our procurement strategies. Additionally, we have invested in state-of-the-art equipment and proper personnel training to make our operations more environmentally friendly. Many of these changes have also been driven by our customers, as they are also opting to minimize their environmental impact. In fact, many of our customers opt to use our railways systems because of the minimal carbon emissions and high quantity delivery.

What is FR Terminales objectives in 2023?

We are a company that prides itself in meeting the needs of our more than 180 customers. Currently, our most important expansion project is in the seaport terminal in Tuxpan, which will increase our storage capacity by 30%. At the same time, we are diversifying our portfolio and expanding our knowledge on the safe and efficient handling of specialty chemicals that are in demand. Our focus is to support our domestic and international customers and open Mexico to more companies. The chemical industry is essential for the growth of the Mexican economy, and we want to expand our services and expertise to better serve our clients.