Every week, Borderlands provides an overview of events in the area of cross-border transportation and trade between the United States and Mexico. This week: Fictiv establishes a facility in Monterrey; Arcadia Cold Storage opens a facility in the Phoenix region; an investment group buys California-based Source Logistics; and three Texas seaports get a total of $37 million in federal upgrading awards.
Nearly $38 million in federal funds will be allocated to three significant seaports in Texas to enhance transportation capacity and expedite supply chain processes. The U.S. Department of Transportation announced $653 million in grants on Friday to repair and develop 41 coastal and inland ports as part of the government's yearly funding round for the Port Infrastructure Development Program. The awards in Texas represent a portion of this total.
To develop its Velasco Terminal, Port Freeport, which is situated on the Gulf of Mexico around 60 miles south of Houston, will get roughly $16 million. A new terminal access truck gate and a 36,900-square-foot cross-dock facility are being built as part of the development.
According to a news release from the DOT, "the cross-dock facility will enable cargo to be unloaded, sorted, and loaded onto trucks without interfering with other terminal traffic, reducing congestion." "By including more room for forklift movement, loading, and aisle ways, the warehouse design enhances safety and lowers risks for both warehouse employees and forklift operators. By expanding the truck lanes of the nearby roadway, the new truck gate will increase safety and productivity by reducing truck turn times.
In order to accommodate larger container and tanker boats and turn the port into a regional shipping center, Port Freeport finished expanding its Velasco Container Terminal in June, according to authorities. One of the nation's top exporters of natural gas liquids and crude oil is Port Freeport. In 2022, more than 1,189 ships called at Port Freeport, moving 31.2 million tons of cargo.
The Port Freeport Ship Channel is being widened and deepened by the port in conjunction with the construction of its Velasco Terminal facilities. Deepening the Freeport channel from 51 feet to 56 feet is part of the $295 million project, of which the federal government is contributing $165 million. The completion of the project is slated for 2025. The Cedar Port Industrial Park in Baytown, approximately 26 miles east of Houston, is set to receive $10.9 million for the purpose of expanding the port and channel adjacent to the facility. Additionally, a heavy-haul road linking the barge dock to the park's tenant area will be added.
One of the biggest master-planned industrial parks in the United States, Cedar Port Industrial Park is situated along the Houston Ship Channel and spans 15,000 acres. It is served by rail and barge. For its West Basin Bulkhead Project, which will build a 400-foot-long bulkhead along with a paved cargo dock and loop road for truck access, the Port of Bay City will get $9.9 million. The port is situated along the Gulf of Mexico, approximately 80 miles southeast of Houston.
A temperature-controlled facility spanning 293,000 square feet has been opened by Arcadia Cold Storage and Logistics in the vicinity of Phoenix. With 40,500 pallet locations and a convertible freezer, the cold storage facility can provide high-volume throughput handling services, import-export activities, and regional distribution.
With access to major markets in Southern California, Arizona, Nevada, Utah, New Mexico, and Colorado, the location will act as a hub for the Southwest.
According to a press statement from Arcadia Cold CEO Chris Hughes, "The facility represents our westernmost site to date and will satisfy our customers’ need for a well-designed and operated building to help manage their product storage and handling requirements." Cold chain hubs are located in Texas, Pennsylvania, and Georgia for the Atlanta-based company Arcadia Cold Storage and Logistics.
Palladium Equity Partners, a New York-based company, has purchased the majority of Source Logistics, a Montebello, California-based company that offers third-party logistics, storage, and distribution services to the consumer products industry, specializing in Hispanic food and beverage brands. The financial transaction's terms were kept a secret.
Established in 1999, Source Logistics provides its clients with services from twelve locations nationwide, encompassing California, Texas, New Jersey, and Oregon. The firm imports goods from South and Central America as well as Mexico. Palladium officials stated that their presence in the Mexican food and beverage value chain has expanded as a result of their investment in Source Logistics. Palladium is an investment organization with a portfolio that includes over 200 firms.
Daniel Ilundain, co-head of Palladium's flagship funds, stated in a news release that "our firm has invested over $1.3 billion in the U.S. Hispanic market across consumer, healthcare, services, and industrial sectors." Palladium's 20th platform investment, "Source Logistics," targets this fast-expanding population, which generates $3.2 trillion in GDP.
With the goal of providing more alternatives for on-demand manufacturing services across North America, Fictiv, an operating system for bespoke manufacturing, has launched a location in Monterrey, Mexico.
According to authorities, the Monterrey manufacturing cluster offers clients more manufacturing capacity, flexible supply chain alternatives, and agility in addressing their demands for product development. According to a press release, co-founder and CEO of Fictiv Dave Evans, "Mexico is an incredibly exciting region for manufacturing growth, full of untapped potential." "We're excited to link our U.S. customers with Mexico's top manufacturing talent and vice versa by utilizing our digital platform and excellence in supply chain management."
Apart from Mexico, Fictiv operates in the United States, China, and India. Established in 2013, Fictiv is located in San Francisco. More than 20 million parts have been produced by the company for both big businesses and startups.
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