Grupo TMM, S.A.B. Stock

Grupo TMM, S.A.B. operates as a logistics and transportation company in Mexico.

The company provides various integrated and dynamic logistics and transportation services to premium clients throughout Mexico, including maritime transportation services, ports and terminals management, logistics services, and warehousing services.

Segments

The company operates through four segments: Maritime, Maritime Infrastructure, Logistics Ports and Terminals, and Warehousing.

Maritime Operations

The company's maritime operations include supply and logistics services for the offshore oil industry at facilities in the Gulf of Mexico and between ports and/or to and from oil platforms; parcel tankers for the transportation and loading of liquid chemical products between ports in Mexico and the United States; and port agency services in the country's main ports for both cargo vessels and cruise ships.

Fleet Management

As of March 31, 2023, the company operated a fleet of 6 vessels included two parcel tankers, as well as 4 offshore vessels. It is worth mentioning that until August 2022, the company operated, commercialized, and managed 24 vessels owned by TMM Division Maritima, S.A. de C.V. (TMMDM) (23 supply vessels, 1 tanker), through a Maritime Services Agreement, which was terminated by both parties last August 2022.

Offshore Vessels

The company's offshore division provides supply and logistics services to the offshore industry between the ports and the offshore facilities in the Gulf of Mexico through a specialized fleet that includes mud vessels, supply vessels, anchor handling tug supply vessels, production, storage and offloading (FPSO) vessels and Dynamic Positioning (DP) vessels. Other services include supply and administration of onboard personnel, coordination and supervision of the maritime transport of staff, materials, and equipment from the base on shore to operational points of the vessels within the oil-drilling zone of the Gulf of Mexico.

During 2021, Petróleos Mexicanos, the national oil company of Mexico (PEMEX) conduced a public tender through which it was awarded three long-term charter contracts for the mud vessels Redfish 4, Beluga 2 and Go Canopus, each of which commenced operations in July 2021. At the end of August 2022, the company secured the addition of a fourth mud vessel, (Gannet).

Product Tankers

The company provides product tanker chartering services to PEMEX and its subsidiaries for the transportation of clean and dirty petroleum products from refineries to various Mexican ports. As of December 31, 2022, the fleet it operated was comprised of one product tanker without a contract.

Parcel Tankers

The company's Parcel Tanker business operates between Mexican and American ports in the Gulf of Mexico, transporting chemicals, vegetable and animal oils, and molasses. The majority of the transported cargo is under contracts of affreightment (COAs) in which the customers commit the carriage of their cargo over a fixed period of time on multiple voyages, with a minimum and a maximum cargo tonnage at a fixed price. The vessel operator is responsible for the vessel, the fuel, and the port expenses. The company's parcel tanker fleet includes two chartered vessels. It transported 531 thousand tons of chemical products in its parcel tankers during 2022. The company's primary customers for its parcel tanker services include major oil and chemical companies.

Bulk Carrier

On December 31, 2022, the company concluded bulk carrier service.

Maritime Agency Services

The company works as representatives of shipowners through its agencies in the principal ports of Mexico, including the ports of Acapulco, Veracruz, Coatzacoalcos, Ciudad del Carmen, Dos Bocas, Tuxpan, Cozumel, Costa Maya, Progreso, and Zihuatanejo. Its agencies that provide services to vessel owners and operators in Mexican ports include port agent services, including the preparation of the necessary documentation with the port authorities for the clearance of vessels; security agent services, which supports the rotation of crew members and the provision of spare parts; multimodal cargo and supervision; vessel provisioning services, which include the procurement of food, water and supplies; and fueling services, which include the coordination of fuel delivery services. The company's shipping agencies also provide shipping agency services to other major ports through agreements with local agents.

Customers and Contractual Arrangements

The primary purchasers of the company's Maritime Operations services are multi-national oil, gas and chemical companies. These services are generally contracted for on the basis of short-term or long-term time charters, voyage charters, COAs or other transportation agreements tailored to the shipper's requirements.

The services the company provides are arranged through different contractual arrangements. Time charters are the principal contractual form for its Maritime Operations.

Maritime Infrastructure Operations

The company has a concession to operate a shipyard in the port of Tampico, Mexico. The shipyard is strategically located on the Gulf of Mexico, in close proximity to offshore oil and gas facilities and other key trade routes between the southeastern United States and Mexico. The shipyard provides repair services to more than 30 vessels per year. In addition, to better capitalize on the opportunities created by new entrants in the Mexican market, the company intends to expand and diversify its shipyard capabilities through the addition of a new 6,600-metric-ton floating dock, expected to be delivered in the second quarter of 2023.

Ports, Terminals and Logistics Operations

The company conducts general cargo operations at the public berth in the port of Tuxpan pursuant to a permit awarded by the Mexican government. Additionally, the company owns land in Tuxpan on which it is developing a liquid oils terminal and a multipurpose one. The company's permit in Tuxpan gives it the right of first refusal to continue operations for a second term once the term of the original instrument expires. In 2019, the company's permit in Tuxpan was extended for an additional 10 years.

Tuxpan

The company holds a permit to provide general cargo operations at the public berths in the port of Tuxpan, such as loading and unloading of grain and gravel for the construction of a gas pipeline. It also offers container-warehousing services at this port. In addition, the company owns approximately 1,780 acres of land in the port of Tuxpan through its wholly owned subsidiaries, Bimonte S.A. de C.V., Prestadora de Servicios MTR, S.A. de C.V. and Services and Solutions Optimus, S. de R.L. de C.V., in which it plans to develop a liquid oils terminal, a multipurpose terminal, and logistic facilities.

In 2016, the company announced a new venture with TransCanada and Sierra Oil & Gas to jointly develop a mid-stream infrastructure in Tuxpan, as well as an inland distribution center to serve the growing demand for refined products such as gasoline, diesel and jet fuel in the central region of Mexico. The site includes a liquid oils terminal being developed by Services and Solutions Optimus, S. de R.L. de C.V., which had been jointly owned 50% by the company and 50% by Sierra Oil & Gas. In 2019, the company purchased the 50% interest held by Sierra Oil & Gas. With this purchase, it acquired full ownership and control of the project and Services and Solutions Optimus, S. de R.L. de C.V. became a wholly owned subsidiary of the company. Once completed, the liquid oils terminal should allow it to supply up to 80,000 barrels per day of refined products.

Logistics Operations

Through TMM Logistics, S.A. de C.V. (TMM Logistics), a wholly owned subsidiary of Grupo TMM, the company provides dedicated logistics services to major manufacturers, including automobile manufacturers, and retailers with facilities and operations throughout Mexico. The services that it provides include consulting, analytical, and logistics outsourcing services, which encompass the management of inbound movement of parts to manufacturing plants consistent with just-in-time inventory planning practices; logistics network (order-cycle) analysis; logistics information process design; supply chain and logistics management; and maintenance and repair of containers in principal Mexican ports and cities.

Automotive Services

The company provides specialized logistics support for the automotive industry within Mexico. Services include the arrangement and coordination of the movement of motor vehicle parts or sub-assemblies from supplier facilities to assembly plants, warehousing, inspection, and yard management. Its logistics services can be provided as end-to-end integrated logistics programs (bundled) or discrete services (unbundled) depending on customer needs.

Container Maintenance and Repair

The company offers maintenance and repair services for dry and refrigerated containers in Manzanillo, Veracruz, Altamira, Ensenada, Aguascalientes, and Mexico City (Pantaco). These services involve keeping refrigerated components and other parts of a container in useable condition, including mechanical repair, welding, and repainting of such containers.

Warehousing Operations

The company offers warehousing and bonded warehousing facility management services through its subsidiary, Almacenadora de Depósito Moderno, S.A. de C.V. Auxiliary Credit Organization (ADEMSA). ADEMSA operates over 217,000 square meters of warehousing space throughout Mexico, including 67,353 square meters of direct warehouse space (the largest of which is located in northern Mexico City).

Strategy

The company's business strategy focuses on strengthening its business related to the maritime sector by adding more specialized vessels to its offshore operations services, as well as increasing its client base in parcel tankers and maritime agency services; increasing the installed capacity in its maritime infrastructure operations; maintaining efficient and profitable operations in ports and terminals, logistics and storage; diversification and expansion of services; and business development with the assets strategically located in Tuxpan, Veracruz and the existing investment opportunities in the oil and gas storage sector, as well as general cargo, to develop liquid and multipurpose terminals, such as lubricants, fertilizers and grains, equipped with modern equipment for the handling and storage of high quality, fast, and safe goods.

Strategic Partners

The company partners with Petrosoluciones en Firme, S.A.P.I de C.V.; EGI Oil & Gas, S.A. de C.V.; and TAP La Junta.

Sales and Marketing

The company's marketing network includes affiliated offices, agencies at Mexican ports and a sales force based throughout Mexico to sell its logistics, warehousing, ports, and specialized maritime services.

Competition

Maritime Operations

The company's primary competitors in the offshore vessel business are Tidewater de Mexico, S. de R. L. de C.V.; Naviera Bourbon Tamaulipas, S.A. de C.V.; Mantenimiento Express Marítimo, S.R.L.; Naviera Integral, S.A. de C.V.; Blue Marine Technology Group; Harvey Gulf; and Hornbeck Offshore Services de Mexico S de RL de CV.

The company's primary competitor in the parcel tanker business is Stolt-Nielsen Transportation Group Ltd. Some other competitors in this business include Team Tankers, Ace Tankers, Eitzen and Caribbean Tankers, Inc., and Nordic Tankers.

The company's primary competitors in the product tanker business are Scorpio Tankers, Maersk Tankers, and PEMEX Refinación.

In the shipping agency business, the company's main competitors are Representaciones Marítimas, Meritus, and Aconsur.

Maritime Infrastructure Operations

The principal competitors of the company's shipyard business are Talleres Navales del Golfo, Astilleros Mexicanos JP, Astilleros de Marina Tampico, Astilleros de Marina Coatzacoalcos, and Reparaciones Navales Zavala.

Ports, Terminals and Logistics Operations

The company's key competitors in its ports business are CICE, Hutchinson Ports, SSA Mexico, and Amports.

In the logistics business, the company faces competition primarily from Car Logistics S.A. de C.V., Axis Logistics S.A. de C.V., Wallenius, SEGLO, Ceva Logistics, Syncreon, Keuhne-Nagel, SeSe, Amport, DHL, CPV, and CSI.

In its maintenance and repair business, the company faces competition primarily from Container Care International Inc., CIMA, and Grupo SLTC.

Warehousing Operations

The company's warehousing business' main competitors are Almacenadora Mercader, Afirme Almacenadora, Almacenadora Sur and, ACCEL.

Regulation

The company's port operations are subject to the Ley de Puertos.

The company's operations are subject to Mexican federal and state laws and regulations relating to the protection of the environment, as well as technical environmental requirements issued by the Mexican Ministry of Environmental Protection and Natural Resources (Secretaría del Medio Ambiente y Recursos Naturales).

History

Grupo TMM, S.A.B. was founded in 1955. The company was incorporated under the laws of Mexico as a variable capital corporation in 1987.