Laredo: A Rising Trade Star at the Border
Laredo, Texas, is emerging as a crucial land port due to growing US-Mexico trade. This border city, with $800 million worth of goods passing through daily, is increasingly significant to American companies reducing dependence on Asian factories. With a population of over 250,000, Laredo's stature as a dominant US-Mexico land port is poised for a substantial boost.
Customs Brokers and Freight Handlers: The Big Winners
The rising trade volume is a goldmine for customs brokers, freight handlers, and trucking companies. Akzent Logistics, with two warehouses in Laredo, reports up to 30% annual growth rates. Though an estimated two million square feet of warehouse space is under construction, the city's current 98% warehouse occupancy hints at a swift fill-up of these new facilities.
Laredo as an Alternative to Major Ports
Laredo could potentially be an alternative to major ports like Los Angeles. American companies are already rerouting goods from Asia, shipping them to Manzanillo on Mexico's Pacific coast, then moving them north to Laredo. For instance, Kansas City Southern, a significant railroad company, transports containers from Mexico's port of Lázaro Cárdenas northward, demonstrating Laredo's increasing importance.
Addressing the Infrastructure Challenge
Nevertheless, handling increased traffic is a challenge. Glafiro Montemayor, president of Laredo-based freight handler Gemco, underlines the necessity for additional infrastructure. His proposed $360 million bridge project could expedite truck crossings on the Rio Grande, pending US State Department approval.
Looking Forward: The Future of Trade in Laredo
Despite these hurdles, the growth in trade seems set to continue. As American retailers seek closer suppliers, Laredo's role will likely expand. Companies like Tesla and Lego plan to use the city's port facilities to ship finished products directly to Texan warehouses. To fully leverage these opportunities, more state and federal funds are needed to expand the surrounding highway system.
