Chinese Iron Trade Fuels Port Clash With Mexican Drug Cartel MarEx
go to original January 2, 2014

When the leaders of Mexico and China met last summer, there was much talk of the need to deepen trade between their nations. Down on Mexico's Pacific coast, a drug gang was already making it a reality.

The Knights Templar cartel, steadily diversifying into other businesses, became so successful at exporting iron ore to China that the Mexican Navy in November had to move in and take over the port in Lazaro Cardenas, a city that has become one of the gang's main cash generators.

This steelmaking center, drug smuggling hot spot and home of a rapidly growing container port in the western state of Michoacan occupies a strategic position on the Pacific coast, making it a natural gateway for burgeoning trade with China.

Lazaro Cardenas opened to container traffic just a decade ago, and with a harbor deep enough to berth the world's largest ships, it already aims to compete with Los Angeles to handle Asian goods bound for the U.S. market.

But that future is in doubt unless the government can restore order and win its struggle with the Knights Templar, who took their name from a medieval military order that protected Christian pilgrims during the Crusades.

Read the rest at MarEx

Photo by LZC

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