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FedEx Freight expanding cross-border operation in Laredo

New distribution center in Laredo will almost double capacity of previous facility

FedEx Freight’s new 166-door service center in Laredo, Texas, will be more than 142,000 square-feet, located on 61 acres. (Photo: Jim Allen/FreightWaves)

Bullish on cross-border trade, FedEx Freight is expanding the size of its operations in Laredo, Texas.

FedEx Freight’s new, 166-door service center will be more than 142,000 square feet, located on 61 acres, said FedEx spokesman Ron Mears.

“The new service center is larger and allows us to better serve our customers in the region now and in the future,” Mears said. “The site was chosen because of its ease of access to major highways, proximity to customers and a strong local community workforce.”

Mears did not disclose the cost of the new FedEx Freight center.  

FedEx Freight is FedEx’s (NYSE: FDX) less-than-truckload (LTL) division and one of the largest LTL operators in the country. The company currently has an 87,836-square-foot facility in Laredo at 13145 S. Unitec Drive.

Mears said Fedex Freight will relocate to the new facility later this year. FedEx Freight currently employs 210 people in Laredo. “Additional positions at the new service center will depend upon the needs of our customers,” Mears added.

FedEx’s new facility “is another reason why Laredo leads the country in trade and is positioned to leverage the United States-Mexico-Canada-Agreement (USMCA) leading out of the pandemic,” Teclo Garcia, Laredo’s economic development director, announced on Linkedin. 

“Laredo is important to FedEx as it serves as the firm’s U.S. freight gateway to Mexico’s interior,” Garcia said. “Also, [FedEx Freight] operates multiple cargo distribution centers in the city, including FedEx Express at Laredo International Airport, with multiple aircraft daily and FedEx Ground, a recently completed 122,000-square-foot project.”

Last month, FedEx officials hailed the July 1 implementation of the USMCA as it “streamlines trade in North America for FedEx customers” in the U.S., Canada and Mexico.

“Modernizing and expanding global trade through free trade agreements like USMCA breaks down trade barriers, creates new job opportunities and helps our customers reach new markets,” said FedEx COO Raj Subramaniam in a release.

According to FedEx, the USMCA offers several advantages to day-to-day shipping, including potentially reducing overall shipping costs, reducing the amount of documentation necessary and quicker clearance for more shipments, resulting in higher customer satisfaction.

Click for more FreightWaves articles by Noi Mahoney.

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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]