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Borderlands: Exports, production of heavy-duty trucks from Mexico drop in May

Exports of Mexican-made heavy-duty cargo trucks fell 24% year-over-year in May to 6,021 units. (Photo: Jim Allen/FreightWaves)

Exports, production of heavy-duty trucks from Mexico drop in May

Mexico’s truck production and exports continue to be affected by global supply chain issues and parts shortages, officials said.

Exports of Mexican-made heavy-duty cargo trucks fell 24% year-over-year in May to 6,021 units, while production fell 20% year-over-year to 7,179 units.

Both export and production figures for May represent the lowest totals so far in 2022 for Mexico’s truck production and export industry.

“One day you’re missing a screw, another a window, another a tire. … It’s no longer exclusively the topic of semiconductors,” Miguel Elizalde, president of Mexico’s National Association of Bus, Truck and Tractor Producers (ANPACT), said during a recent monthly press conference

The U.S. continues to be the main destination for trucks produced in Mexico, accounting for 94.4% of exports in May, followed by Canada and Colombia. 

Truck makers and parts manufacturers with assembly plants and factories in Mexico include Freightliner, Kenworth, Navistar, Hino, International, DINA, MAN SE, Mercedes-Benz, Isuzu, Scania, Cummins and Detroit Diesel, according to Anpact.

Freightliner was the top truck producer and exporter in Mexico for the month. The company built 6,653 trucks in May, a 25% year-over-year decline; and exported 5,776 units, a 28% year-over-year decline.

International Trucks Inc. produced 4,957 units in May, a 3.3% year-over-year increase; and exported 4,642 units, a 9% year-over-year increase.

Kenworth produced 1,359 units in May, a 23% year-over-year decline; and exported 653 trucks, a 1% year-over-year decline.

Kansas City Southern de Mexico commits $120 million to new projects

Kansas City Southern de Mexico (KCSM) is celebrating 25 years of operation in the country  and announced an investment of more than $120 million in new railway infrastructure projects.

“KCSM’s objective in the short and medium term is to continue strengthening its rail network to offer better opportunities for international and cross-border trade, with an extension of connectivity to ports and interior terminals, more so now with the integration into the network of the Canadian Pacific,” said Oscar del Cueto, president of KCSM, in a release.

KCSM did not specify what projects the company would be investing in this year. 

In 2021, KCSM made improvements at its facilities in the Mexican cities of Matamoros, Monterrey, Nuevo Laredo, San Luis Potosí and Veracruz, as well as the Port of Brownsville, Texas.

KCSM is a division of Kansas City Southern, a Class I railroad based in Kansas City, Missouri.

Prologis building distribution warehouse in Dallas area

Warehouse giant Prologis plans to build a new warehouse and distribution space in Plano, Texas, according to The Dallas Morning News

The development will be a 64-acre, eight-building warehouse complex about 20 miles north of Dallas. Once completed, the complex will offer about 1 million square feet of industrial space. The construction schedule for the project was not available.

Prologis is already one of the largest industrial warehouse owners in the Dallas-Fort Worth industrial market, with more than 200 warehouses and about 40 million square feet of space. 

Amazon opens sixth fulfillment center in Mexico

E-commerce giant Amazon recently opened a new fulfillment center in Guanajuato, Mexico.

The aim is to boost e-commerce for small and medium-size retailers in the area, officials said.

The Amazon facility is located in the León Bajio Industrial Park, which already includes Michelin, Iriso Electronics, Minamida, Samtech, Atzumi and Senko, and Boix.

Amazon now has six fulfillment centers in Mexico, including two in Mexico City, along with facilities in the cities of Tijuana, Cuautitlan and Tepotzotlan.

Watch: FreightWaves’ carrier update for June 24.

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Noi Mahoney

Noi Mahoney is a Texas-based journalist who covers cross-border trade, logistics and supply chains for FreightWaves. He graduated from the University of Texas at Austin with a degree in English in 1998. Mahoney has more than 20 years experience as a journalist, working for newspapers in Florida, Maryland and Texas. Contact [email protected]