Borderlands is a weekly summary of developments in U.S.-Mexico cross-border trucking and trade. This week: Werner celebrates 25 years of operations in Mexico; Diehl Aviation invests $49 million in a new factory in Mexico; TCA welcomes Olympic Transport as its first Mexican carrier member; and South Texas sees a new cold storage warehouse near the border.
Werner Marks 25 Years of Operations in Mexico
Truckload carrier Werner Enterprises recently celebrated 25 years of cross-border operations in Mexico. Werner began its Mexico-based operations in 1999 with a small team and an office in Mexico City. Today, Werner’s cross-border team comprises 150 associates across 10 offices in Mexico and the U.S.
“Werner’s first official load in Mexico moved on July 1, 1999, and it’s been a race ever since,” Lance Dixon, senior vice president of Mexico, Canada, and temperature-controlled divisions at Werner, told FreightWaves in an interview.
The company continues to serve many of the same cross-border customers from 25 years ago, including Rheem, Toro, and Schneider Electric.
Omaha, Nebraska-based Werner (NASDAQ:WERN) is one of the largest carriers and logistics companies in the U.S., providing truckload transportation and logistics services across the United States, Mexico, and Canada.
Werner’s Mexico operations were initiated by President and CEO Derek Leathers, who had previously been with Schneider National and was one of the first foreign members of Mexico’s national trucking association, Canacar.
Before moving its first cross-border load, Werner’s Mexico team traveled extensively across the country to meet with potential clients and establish a foothold in the cross-border truckload sector.
In 2023, more than 7.35 million cargo trucks crossed the U.S.-Mexico border, compared to 6 million at the U.S.-Canada border.
One of Werner’s first hires in Mexico was Bernardo Alexander, who helped establish key contacts throughout the country.
Since Werner launched its Mexico operation in 1999, the global supply chain has changed significantly. In 1999, Canada was the top U.S. trading partner, but by 2023, Mexico had surpassed both Canada and China to become the largest U.S. trading partner, partly due to the U.S.-China trade conflict and shifting global supply chains post-COVID.
Foreign direct investment in Mexico has reached record levels, with $36 billion in 2023 and $38.2 billion in the first five months of 2024.
Diehl Aviation Investing $49 Million to Build Factory in Mexico
Aerospace supplier Diehl Aviation will begin construction of a factory in Queretaro, Mexico, to produce aircraft cabin overhead bins. The $49 million facility will cover 86,111 square feet and create up to 500 jobs, with an opening scheduled for mid-2025.
“America is an important growth market for Diehl. Being closer to its customers enables shorter travel and transport routes and more effective collaboration,” Diehl Aviation stated in a news release.
TCA Adds Olympic Transport as First Mexican Carrier Member
The Truckload Carriers Association (TCA) recently welcomed Olympic Transport as its first carrier member from Mexico. This cross-border expansion emphasizes TCA’s role as a North American trade association serving members in Mexico, Canada, and the U.S.
“With Olympic Transport, we enhance our advocacy and representation of carriers across all of North America, ensuring a more connected and efficient cross-border trucking landscape,” TCA President Jim Ward said.
Olympic Transport, founded in 1990 by Fernando Paez, operates terminals in Nuevo Laredo, Monclova, and Queretaro in Mexico, and in San Antonio and Laredo, Texas.
South Texas Getting New Cold Storage Warehouse Near Border
Greenway Construction LLC will start building a 95,000-square-foot cold storage facility in Pharr, Texas. The first phase involves constructing a 50,000-square-foot warehouse for Greenway’s sister company, LakeWay Produce, according to the Rio Grande Guardian.
“This project is a significant boost for our local economy and community development by creating jobs and helping fill the gap for refrigerated space,” Pharr Economic Development Corp. said in a statement.