Borderlands is a weekly rundown of developments in the world of United States-Mexico cross-border trucking and trade. This week: A Texas highway expansion is a “boon” for the trade economy; a Texas port announces plans for a regional logistics hub; GrubMarket acquires an Arizona produce supplier; and a Japanese auto supplier opens a plant in Ramos Arizpe.
Texas highway expansion a ‘boon’ for trade economy
President Joe Biden signed a bill into law Tuesday that includes federal highway designation for portions of Interstate 27 in Texas and New Mexico as part of the Ports-to-Plains Corridor project.
Receiving the interstate designation is the first step to begin fundraising for the construction of the extension of I-27, according to a release.
The Ports-to-Plains Corridor project aims to extend I-27 in Texas and part of New Mexico, creating a new 986-mile interstate highway connecting Laredo, Texas, all the way up to the Oklahoma-Texas border.
“This is a boon for our trade economy,” U.S. Rep. Henry Cuellar, D-Texas, said in a statement. “The designation will make Texas and New Mexico eligible for increased federal funding to complete the I-27 highway expansion project, creating economic growth, jobs, trade opportunities across those two states.”
Interstate 27 is currently a 124-mile route connecting the Texas cities of Lubbock and Amarillo. The Ports-to-Plains Corridor project would extend I-27 638 miles south to Laredo, as well as 134 miles north to the Oklahoma-Texas border and 214 miles west to Raton, New Mexico.
With this project, the U.S.-Mexico port of entry in Laredo would become the only land port in the country connected with three interstate corridors: 35, 69 and I-27, Cuellar said.
The expansion of I-27 will also connect three of the eight border crossings along the Texas-Mexico border: Laredo, Eagle Pass and Del Rio.
“In addition to providing a new trade route, the extension of I-27 could also reduce congestion on I-35 throughout Texas,” Cuellar said.
John Osborne, chairman of the board for Ports-to-Plains Alliance, said the economic benefit for the U.S. is the addition of 1.7 million jobs and a $287 billion increase in GDP along the corridor.
“The impact of this designation is tremendous as it allows for the enhancement of infrastructure
for domestic and international markets, creates safer roads for leisure and business travels, and
connects underrepresented communities throughout the corridor with outside markets,” Osborne said in a statement.
The Ports-to-Plains Alliance is a Lubbock-based grassroots organization that has advocated for extending I-27 all the way to the Texas-Mexico border for the last 20 years.
Officials did not provide a timeline for the project. In 2015, the Texas Department of Transportation estimated the I-27 Ports-to-Plains Corridor project would cost about $7.2 billion, a figure that could likely be much higher now.
Watch: FreightWaves’ shipper update for March 17.
Texas port announces plans for regional logistics hub
Victoria County Navigation District officials recently unveiled plans for the Texas Logistics Center (TXLC) at the Port of Victoria.
TXLC will be a 2,000-acre logistics park offering tenants access to rail, water and highway transportation. The Port of Victoria is located about two hours southeast of Houston, Austin and San Antonio.
TXLC will also be attached to the 35-mile Victoria Barge Canal, which leads to the Gulf of Mexico and is on the M-69 Marine Highway, connecting to other ports along the Texas coast.
TXLC’s first phase calls for the construction of over 42,000 feet of train tracks, including three 10,000-foot drop-and-pull tracks. Construction is scheduled to be completed by 2025. The first phase will cost about $25 million.
Later phases include storage tracks, transloading and connections to new tenants, according to a release.
TXLC will be served by BNSF Railway Co. and Union Pacific Railroad.
GrubMarket acquires Arizona produce supplier
GrubMarket recently completed the acquisition of SunFed, a fresh produce supplier based in Nogales, Arizona.
Officials at San Francisco-based GrubMarket said the acquisition enables the company to strengthen its presence in the Texas and Arizona markets while solidifying its position in the food supply chain industry.
“SunFed is one of the most trusted brands in the nation for squashes and other dry vegetables, watermelons, cantaloupe and honeydews,” Mike Xu, CEO of GrubMarket, said in a statement.
Terms of the acquisition were not disclosed.
GrubMarket is a food technology and e-commerce company that provides a platform for consumers to order produce and other food and home items for delivery. The company also has a business-to-business service in which it supplies grocery stores, meal-kit companies and other companies.
SunFed, founded in 1994, has growers in over 30 locations, including 15 in Mexico, according to a release.
Japanese auto supplier opens plant in Ramos Arizpe
Japan-based Marelli Corp., one of the world’s largest Tier 1 automotive suppliers, recently opened a plant in Ramos Arizpe, Mexico.
The $17.4 million plant has a production area of 193,750 square feet and will create 250 jobs. The plant will produce automotive powertrain technologies including intake manifolds, electronic throttle bodies and engine control systems for automobiles, motorcycles, powersports and industrial engines.
Marelli’s automotive clients include General Motors, Nissan and Stellantis.
The Ramos Arizpe plant opening comes after Marelli closed its powertrain plant in Sanford, North Carolina, in December. The closure resulted in 300 layoffs.
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