I was excited and honored to be invited by the leadership Albuquerque Alumni Association to participate as featured panelist, and discuss economic development and trade corridor opportunities for Albuquerque and New Mexico. Honored because New Mexico Transloading was recognized as an industry leader in this sector and excited because it’s a subject I’m very passionate about.
Randy Trask, the Director of the Albuquerque – Bernalillo County Trade Alliance gave a tremendous presentation. All of us attending were given some great insights into the developing opportunities for the creation of New Mexico as a major domestic and international trade corridor. I’ll share some of those insights with you now.
An Efficient Port of Entry
In 2014 New Mexico ranked #1 nationwide for growth in exports to Mexico with a 93% increase, followed by Montana with a growth of 66%. Why is that? It’s because New Mexico has particularly efficient ports of entry with additional capacity currently being built in Santa Teresa.
Manufacturers are just waking up to the fact that they can export goods to Mexico faster and more efficiently through New Mexico than they can through congested Texas, West Coast or East Coast ports of entry.
Location, Location, Location
The I 40 and I 25 highways are the two biggest arterials in America and they happen to intersect in Albuquerque. From here you can reach both coasts, Mexico or Canada by highway.
Albuquerque sits on the BNSF transcontinental railroad which moves the highest density of intermodal freight east – west in the country. BNSF also operate a north – south line running from Albuquerque direct to Mexico City.
Nearshoring – The New Outsourcing
Remember “outsourcing?” Well “cheap labor” in developing Asian countries is a thing of the past. Major offshore manufacturing facilities that grew big on outsourcing are now “nearshoring” their plants to Mexico in order to be closer to the biggest consumer market in the world – the USA.
Foxconn, a Taiwanese company which manufactures and assembles for companies such as Apple and Dell, have located a new manufacturing facility just the other side of the New Mexican border. When it becomes fully operational it will be the largest manufacturing facility in the western hemisphere. The volume of imports through New Mexico destined for the rest of the country will significantly increase.
New Mexico Investment
Two industrial parks on 455 acres have been developed in Santa Teresa on the New Mexico border of Mexico. A new, uncongested port of entry eliminates the long waiting times normally seen in nearby El Paso. Both parks are fully occupied and developers are looking for more space to expand.
In addition Union Pacific built a 2,200 acre intermodal terminal in Santa Teresa for a total investment of $400m which represents the largest private investment in infrastructure for over a decade anywhere in the US.
Mexico’s Infrastructure Investment
The Peña Nieto administration is currently investing 50% more than any previous administration in infrastructure. He has seen the US not invest in their infrastructure and the difficulties in the American seaports brought on by labor strikes and congestion. He sees infrastructure upgrades as a big opportunity for Mexico to move goods through Mexican ports for final distribution to the US.
If shippers can ship to the US via Mexico at less cost and more efficiently than using US ports then they will. New Mexico will be a big beneficiary of this supply chain paradigm shift having the least congested and most efficient port of entry.
New Mexico Transloading
We transfer goods from railcars to trucks and trucks to railcars for domestic or international distribution. We have the capability to transload a wide range of products including palletized goods, bulk liquids, bulk solids, construction materials and construction equipment. Amerigas, Halliburton and United Poly Systems number among our clients.
Add all this up and you understand why James and I decided to build New Mexico Transloading here in Albuquerque. New Mexico is poised to become the epicenter of a major new trade corridor. Anyone in the business of production or moving goods will do well to pay attention and establish a presence here as soon as possible.
My thanks go to Albuquerque Chamber of Commerce for my invitation to participate on the panel and to Randy Trask of the International Trade Alliance for making such a great presentation.
New Mexico Transloading is in the business of moving goods and I invite companies to call Ted Keener at (505) 908 1911 to find out how we can serve your transloading needs.