By james art US logistics providers are expanding their cross-border operations, building infrastructure to meet the growing demand for efficient trade connections. This was reported by the railway news portal Rail supply.
US logistics providers are building cross-border connections to Mexico’s booming market
US logistics providers are expanding their reach into Mexico’s dynamic logistics market by investing in infrastructure. Key industry players are strengthening cross-border networks to take advantage of growing trade opportunities.
Rail expansions drive cross-border growth for US logistics providers
Class I rail carriers CPKC and CSX are at the forefront of cross-border growth, connecting the US Southeast with Mexico. Their expansion reflects growing commercial demands and aims to improve transit efficiency.
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CPKC and CSX have received regulatory approval from the US Surface Transportation Board to move forward with operations. The new rail link offers direct connections aimed at improving trade between the US and Mexico while challenging established networks.
The strategic location in Myrtlewood, Alabama allows CPKC and CSX to streamline their services. This infrastructure connects the two regions, meeting the increased demand for fast and efficient cross-border logistics.
Uber Freight has significantly expanded its presence in the Mexican market, maintaining efficient logistics with its office in Nuevo Laredo. This location is one of 10 cross-border hubs, demonstrating Uber Freight’s commitment to growth.
In July, Uber Freight also established an innovation center in Mexico City to advance technology. Their team has expanded by nearly 300 employees to provide optimized logistics solutions and improve service reliability.
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Uber Freight’s appointment of veteran Jesus Ojeda as executive vice president for Mexico reflects a strategic focus on growth. Ojeda’s experience strengthens their operations as demand grows in Mexico’s logistics landscape.
Due to the increased proximity market and the growth of foreign investment in Mexico, Uber Freight plans further cross-border expansion. Studies predict that Mexico’s logistics market will expand from $128.1 billion to $171.4 billion by 2029.
Ojeda highlights this period as an “unprecedented boom in cross-border logistics”, with demand set to grow. Beyond the automotive industry, he sees opportunities in other sectors, strengthening Mexican cross-border services.
In 2022, Uber Freight achieved success, handling over 2,000 daily shipments across the US-Mexico border. The company processed more than 25,000 customs entries, recording a 77% growth in operations.
The trade data reflected rising logistics demand in Mexico, while US-Canada freight was down 6.4% year-on-year. According to the U.S. Bureau of Transportation Statistics, freight traffic between the U.S. and Mexico increased 4.2 percent annually.
Infrastructure investment in Laredo supports expanded cross-border trade
Investments in the Laredo Gateway’s infrastructure underscore its strategic importance in cross-border trade. Realterm, a global investment firm, has partnered with Alliance Industrial to expand Laredo’s logistics capacity.
The partnership acquired a 19.76-acre site in Laredo, building a 236,693-square-foot transshipment facility. This facility focuses on cross-border operations, strengthening their foothold in the growing Mexican market.
Joe Nunn, Realterm’s vice president of development, said Laredo benefits from “close to and re-maintaining supply chains.” Planned expansions, including an expanded World Trade Bridge, are aimed at growing demand and commercial needs.
Additionally, the construction of a high-capacity international rail bridge in Laredo is helping to increase trade and the movement of goods. These infrastructure investments underscore Laredo’s role in Mexico’s logistics and cross-border supply chains.
The growing appeal of the Texas Gateway shows the growing opportunities in cross-border logistics and trade between the US and Mexico. Nearshoring trends and a manufacturing boom in Mexico are contributing to Laredo’s rapid cross-border growth.
In August, Laredo reached $30.7 billion in trade volume, setting a record for the largest import port. This milestone reflects the critical role of Mexican trade, driving logistics providers to focus on the south.
As many logistics companies expand, cross-border solutions become essential to meet this growth in trade. Infrastructure expansion improves efficiency and reliability, supporting economic growth between the US and Mexico.
Investments in Mexican operations improve Mexico’s logistics network, making it increasingly efficient for international business. These strategic investments are in line with transformative market changes and Mexico’s expanding trade dynamics.
US logistics providers have seen steady growth, proactively responding to Mexico’s booming logistics sector. Their expansions reflect a commitment to efficient operations ensuring timely, reliable cross-border trade and success.
Industry players recognize the strategic importance of the Mexican market, creating strong foundations for sustainable investment. The expanded infrastructure supports a cohesive logistics network, facilitating smoother trade flows to Mexico.
The cross-border logistics industry expects Mexico’s growing demands to drive future business strategies.
Source: theloadstar.com
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