Kuehne + Nagel, a prominent logistics provider, is poised to inaugurate a new cross-dock facility in El Paso, which will consolidate four of its cross-border warehouses on the US-Mexican border. The expansive 33,700 sq.m facility has been strategically designed to accommodate the rising volume of automotive parts shipments between the two countries.
The forthcoming launch of the El Paso cross-dock in August this year is part of Kuehne + Nagel’s substantial investment in the region. The company has pledged to operate the facility for an initial seven-year period, showcasing its enduring dedication to bolstering cross-border trade.
This decision is a direct response to the upsurge in container shipments from Mexico to the US and the 24% increase in import container bookings from China to Mexico last year. John Levin, the regional vice president for the central area of Kuehne + Nagel US, emphasized that the new facility will facilitate the distribution of automotive raw material shipments from the US to Mexico, as well as finished goods for assembly plants and top tier suppliers in the opposite direction.
The new warehouse boasts a remarkable design, featuring 54 dock doors, 125 truck yard spaces, and enhanced security measures. The facility’s layout has been optimised to enhance cargo flow efficiency and will provide additional vertical racked storage locations. Moreover, Kuehne + Nagel has expanded its warehouse footprint to improve building efficiencies.
The strategic location of the El Paso crossdock, just 10km from the El Paso port of entry between the US and Mexico, positions it as an ideal hub for cross-border logistics services. Furthermore, the facility has obtained C-TPAT certification, ensuring a secure link in the supply chain for customers.
As businesses strive to streamline their supply chain processes, Kuehne + Nagel’s new facility aims to offer effective alternatives for cross-border shipments. Levin highlighted that the facility provides crossdock space, long-term storage inside the foreign trade zone, and domestic distribution services.
The industry has witnessed a surge in demand for cross-border logistics services, particularly with the increase in inbound imports between China and Mexico. The Freight Waves Sonar Inbound Ocean TEU Volume Index indicates a substantial rise in import container bookings from China to Mexico, signalling a growing trend in cross-border shipping.
The new facility aligns with Kuehne + Nagel’s commitment to delivering top-notch logistics services to meet the evolving requirements of businesses engaged in cross-border trade. With the upcoming Automotive Logistics and Supply Chain Global conference in Detroit in September, the industry will have the opportunity to delve deeper into the trends and developments in cross-border logistics.
In conclusion, Kuehne + Nagel’s investment in the new cross-dock facility in El Paso underscores its dedication to facilitating efficient cross-border trade and supporting the evolving dynamics of the automotive industry. This strategic move will not only benefit the company but also contribute to the overall growth and development of cross-border logistics services.