Borderlands is a weekly overview of the world’s developments in cross-border freight and trade between the United States and Mexico. This week: $18 billion LNG export terminal project moves forward in Texas seaport; DHL invests $560 million to expand supply chains in Mexico, South America; German manufacturer announces first location in Mexico; and CBP seizes nearly $4 million worth of meth from a California border crossing.
$18 billion LNG export terminal project moves forward in Texas seaport
Energy producer NextDecade Corp. said Wednesday it is moving ahead with construction of a multibillion-dollar liquefied natural gas export terminal at the Port of Brownsville in South Texas.
The Houston-based company’s Rio Grande LNG terminal at the port will consist of five compressor units upon completion, each designed to process 5.4 million tons of LNG per year, making the 984-acre facility one of the world’s largest LNG exporters. becomes in the world.
“We look forward to delivering this important LNG project that will provide the world with reliable and low-carbon LNG,” said Matt Schatzman, Chairman and CEO of NextDecade, in a press release. “Now we’re focused on safely building Phase 1 on time and within budget.”
The total cost of the Rio Grande LNG terminal project for the first phase is $18.4 billion. NextDecade said it has secured nearly $6 billion in funding from international partners to begin work on the project’s first three compressors for LNG from Texas shale fields for export to global markets.
NextDecade’s partners in the project include French oil giant TotalEnergies and financial investors Global Infrastructure Partners, GIC and Mubadala Investment Co.
The company did not specify an end date for the first phase of the project during Wednesday’s announcement. NextDecade initially planned to begin construction of the Rio Grande LNG terminal last year, with a target of 2026.
Port of Brownsville officials said the Rio Grande LNG terminal will transform South Texas and the state’s trade with the world.
Located 277 miles south of San Antonio on the southernmost tip of Texas along the Gulf of Mexico, the Port of Brownsville is the only deep-water seaport along the border, making it an important trade channel between Texas and Mexico.
“The Rio Grande LNG facility will be a real game-changer for our community and represent an achievement of a generation,” said Eduardo A. Campirano, the port’s president and CEO, in a press release. “Its impact will be huge and significantly benefit Texas’ energy industry.”
DHL invests $560 million to expand supply chains in Mexico, South America
German transport and logistics giant DHL Supply Chain announced a $556 million investment in Latin America by 2028.
The investments include building warehouses, developing robotics and automation solutions and decarbonization efforts in Mexico, Brazil, Colombia, Chile, Peru and Argentina.
DHL will use the money to strengthen logistics capabilities in high-demand industries, including healthcare, automotive, technology, retail and e-commerce, the company said.
“Companies around the world are seeking more diversified sourcing and supply chain strategies by moving stock points closer to their production and sales markets,” Oscar de Bok, CEO of DHL Supply Chain, said in a statement. “We see an increasing demand for logistics support in Mexico, Brazil and the other strategic markets in Latin America.”
DHL Supply Chain currently operates 242 warehouses in Latin America with a total area of 3 million square meters.
The company also announced that it has opened the Center of Excellence for Electric Vehicles in Mexico City. The facility is the first in the Americas to store and distribute electric batteries for the automotive industry, according to DHL.
DHL Supply Chain, with 510,000 employees, operates 1,400 warehouses and offices in 55 countries.
German manufacturer announces first location in Mexico
Germany-based manufacturer Kurtz Ersa has recently begun construction of a factory in Ciudad Juarez, Mexico.
The factory, which will initially create about 60 jobs, will produce welding machines used in the automotive industry. The factory is expected to open in 2024 and will be the company’s first in Mexico.
The Ciudad Juarez plant will be Kurtz Ersa’s third-largest plant outside of Germany and China and will also serve as a pre-production center for the company’s Plymouth, Wisconsin plant.
al border location provides excellent access and facilitates access to strong local markets in America,” said Albrecht Beck, president and COO of Kurtz Ersa in a press release. “Into the new production facility [Cuidad Juarez] will better serve local customers, minimize the carbon footprint, shorten delivery times and reduce freight costs.”
Kurtz Ersa produces industrial machines used in the electronic and automotive industries. The company has 2,500 employees in 17 production and sales locations around the world.
CBP seizes nearly $4 million worth of meth at California border crossing
U.S. Customs and Border Protection officials at a Southern California port of entry reportedly recently discovered 1,815 pounds of methamphetamine hidden in the roof of a tractor-trailer.
The case arose on July 6, when CBP officers at the Tecate Port of Entry south of San Diego inspected a tractor trailer arriving from Mexico. Officers reportedly found 138 packages in the roof of the tractor that tested positive for methamphetamine.
The narcotics have an estimated street value of 3.9 million euros. CBP agents turned the case over to Homeland Security Investigations.
Click for more FreightWaves articles by Noi Mahoney.
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