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Dive Summary:
- The Ryder system has opened a new, multiple logistics facility in El Paso, Texas, as the third-party logistics provider capitalizes on growing regional demand and cross-border activity, according to a press release.
- The newly constructed 50,000 square foot, 20 dock doors facility seeks to leverage its location to serve cross-border shippers. It is located near the Ysleta Port of Entry, which connects Ciudad Juárez, Chihuahua, Mexico. 15 miles from El Paso International Airport. and along I-10, a critical east-west US trucking lane.
- Ryder plans to use the facilities to offer shippers in the automotive, high-tech and other industries a wide variety of services, including cross-docking, environment storage, consolidation and unbundling.
Dive Insight:
Ryder’s expansion into the El Paso-Juarez region is both proactive and reactive, Frank Bateman, Ryder’s vice president of supply chain, said in an interview.
On the one hand, Bateman said the expansion of the 3PL’s footprint was dictated by customer needs. In this case, Ryder began looking for expansion a year and a half ago, as some customers asked Ryder for additional infrastructure in the area. However, the company is also responding to what they see as continued investment from manufacturers in Mexico, thanks in part to increased interest in close connection.
When Ryder announced its new facility in Laredo, the company said Trucking Dive he felt that business should be won in the border areas, such as the rise near the coast The activity also meant customers would need additional logistics support. According to the press release, the location of the El Paso facility specifically helps deliver that.
“If you look at it latest numbersUS trade with Mexico is nearly $800 billion a year, and the Ysletta The port processes about nine to 10 percent of that,” Bateman said in the press release. “It’s second only to the Port of Laredo, Texas, which processes nearly 40% of the goods that cross the border – and where we recently opened another new logistics center.”
Bateman dug further into the warehouse location strategy in the interview, explaining how the company’s two recent expansions in Laredo and El Paso serve different markets in Mexico, where all investment has increased.
“If you compare like a Laredo to El Paso, Laredo is really the corridor that goes into the interior of Mexico,” Bateman said. “But El Paso works as multiple corridors: you have the corridor that goes to western Mexico, but you also have this east-west corridor [across the U.S. Southwest].”
Shippers’ varied logistics needs are part of why Ryder built the facility in a way that can offer multiple services. While some shippers may need space to transship goods from a Mexican container to a US container, others may need a facility in El Paso for storage or final distribution.
While Ryder has operated in El Paso for decades, its expansion comes as a flurry of logistics competitors increase their cross-border presence in anticipation of The near end will be a boon for logistics. The wave of investment is also one reason CBRE named El Paso one of the hottest warehouse purchases to watch in 2024.