“Borderlands” is a weekly update on the latest in US-Mexico cross-border trucking and trade. This week, experts advocate for enhanced infrastructure to promote cross-border trade; a Korean electric vehicle (EV) supplier starts building a new plant in Mexico; Kirchhoff Automotive is expanding its operations in Mexico; and WSI is announced as the operator of the CPKC transload terminal.
In Monterrey, Mexico, as nearshoring continues to boost trade between the US and Mexico, specialists emphasize the need for improved infrastructure, advanced technology, strategic policies, and enhanced cargo security to ensure smooth trade operations.
Mark Yeager, CEO of Redwood Logistics, expressed the critical nature of US-Mexico trade at the company’s first Cross-Border Logistics Council, saying, “Trade between the US and Mexico has never been more vital than it is today.” The event in Monterrey gathered over 75 professionals from various sectors to discuss the dynamics of cross-border supply chains and nearshoring trends.
Yeager likened the complexities and opportunities of cross-border logistics to major sports events, requiring both patience and strategic planning. He highlighted that US trade globally reached $5.1 trillion in 2023, with Mexico accounting for nearly $800 billion, reaffirming its position as the US’s leading trade partner.
The forum also focused on infrastructure development across North America, particularly noting significant investments around the Laredo, Texas area, a critical juncture for US-Mexico trade. “The amount of construction and new facilities near Laredo is impressive, signaling robust growth and investment in this corridor,” stated Jordan Dewart, president of Redwood Mexico.
Israel Delgado from Express Service Transport Inc. discussed challenges such as Mexico’s digital tax document regulation, the Carta Porte Complement, which has complicated cross-border transactions. He also highlighted the urgent need for more truck drivers in Mexico and encouraged inclusivity in the industry.
Marianna Raphael from Connecting Mexico stressed the importance of addressing cargo security concerns amid governmental shifts towards militarization, suggesting that different strategies may be necessary to bolster confidence among drivers and companies.
In related news, South Korean company Seco Seojin Mobility began constructing a $300 million EV motor plant in Escobedo, Mexico. Kirchhoff Automotive announced the expansion of its Puebla plant and a new facility near Queretaro to start in 2025. Furthermore, Warehouse Services Inc. has been named the operator of the CPKC’s Zacha Transload Terminal in Dallas, expected to enhance logistics efficiency in one of North America’s fastest-growing cities.
