Borderlands is a weekly rundown of developments in the world of United States-Mexico cross-border trucking and trade. This week: Lean Solutions Group making big moves in Mexico; China-based tire maker opening $240M facility in Mexico; Mexican authorities again postpone Carta Porte tax document; and new logistics park begins construction along Texas-Mexico border.
Lean Solutions Group making big moves in Mexico
Lean Solutions Group, founded in 2012, began as a nearshore and offshore services provider to the transportation and logistics industry.
Today, the Coral Springs, Florida-based company has a workforce of 10,000 and has increased its offerings to include warehouse and distribution services, while also supporting other sectors including retail, manufacturing, software as a service, hospitality and health care solutions.
In the commercial transportation space, some of Lean Solutions Group’s clients include Riverstone Logistics, ARL Logistics and PGT Trucking.
Lean Solutions Group sees big opportunities in Mexico, which has more than 49 million workers between the ages of 20 and 49. In 2022, the company opened its eighth satellite office in Mexico City, as well as office locations in Guatemala and the Philippines.
“We have worked to diversify our locations to better serve our clients, and Mexico is a great extension to those efforts,” Robert Cadena, CEO and co-founder of Lean Solutions Group, said in a news release. “In Mexico, we can find a large, skilled and highly educated workforce that excels within a variety of industries.”
FreightWaves recently spoke with Daniel Agamez, Lean Solutions Group’s senior vice president of operations, about its expansion into Latin America, as well as trends in U.S.-Mexico trade.
FREIGHTWAVES: How many employees do you have in Mexico City?
AGAMEZ: We currently have 60 employees and plan to expand in the first quarter of 2024. We’ve already hosted various tours to both current clients and interested prospects.
FREIGHTWAVES: What kind of demand is Lean Solutions seeing in Mexico?
AGAMEZ: By the last quarter of 2022 and through 2023, the demand for Mexico operations increased considerably. This is mainly because of the rise of cross-border operations.
Carrier sales as well as distribution are key to our Mexico operation since the current demand focuses around leaner services and end-to-end solutions, meaning the final consumer requires a complete A-to-Z portfolio ensuring pickup/delivery across the border in a single transaction.
Our ability to post loads and procure carriers as well as ensure the safekeeping of the cargo has created an opportunity to expand operations in Mexico City given the talent pool and competent workforce.
FREIGHTWAVES: What industries in Mexico are growing right now?
AGAMEZ: Technology and transportation are certainly two of the top industries growing right now. Automation is also playing a huge role for most logistics companies around the world, as well as more high-end experiences. Given the geographic location of Mexico and latest agreements to facilitate ground transportation between the U.S., Mexico and Canada, it has only created a more speedy expansion of this market.
FREIGHTWAVES: What kind of services or added value do you think customers will be looking for in 2024?
AGAMEZ: We see Mexico as a land of opportunity as huge companies have had major success operating out of Mexico. We have seen great talent, as well as matching profiles for our clients’ job vacancies. So, we have in mind very specific roles for Mexico. The Mexican market itself has strong ties and relationships with the U.S business industry; therefore, we now offer our clients the opportunity to have their logistics workforce located in the same country, offering the possibility of direct logistics management where their supply chain begins.
China-based tire maker opening $240M facility in Mexico
Sailun Tire recently announced it is building its first North American tire manufacturing facility in Guanajuato, Mexico.
The $240 million facility is scheduled to open by the end of 2024. Company officials expect the facility to produce 6 million semi-steel radial tires annually.
“This expansion will not only allow us to meet the increasing demand for our products but also enable us to design, test and now build products for North America, in North America,” Peter Koszo, president of Sailun Tire North America, said in a news release.
Sailun Tire is based in Qingdao, China, and manufactures tires for passenger and commercial vehicles. The company has two factories in China and another in Vietnam. Sailun also has sales networks and logistics centers in Canada and Germany.
Mexican authorities again postpone Carta Porte tax document
The Mexican government announced it is indefinitely postponing the start of enforcement of the Carta Porte Complement (CCP) — a digital tax document issued to shipments aimed at protecting the transfer of legitimate goods across Mexico.
Enforcement of the CCP was set to begin after Jan. 1.
It’s the seventh time over the past three years the Mexican government has postponed the controversial measure.
The Mexican Tax Authority (SAT) announced the creation of the electronic CCP bill-of-lading requirement in May 2021. The CCP is a collection of over 120 data elements, including everything from shipper and consignee information to the cargo and its value and carrier equipment.
The CCP is being issued by trucking companies across Mexico. However, the SAT has not been imposing fines for incorrect information or mistakes when filing the document.
New logistics park begins construction along Texas-Mexico border
Panattoni Development Co. and Hunt Cos. announced a partnership to develop Project Grande, a speculative logistics development in El Paso, Texas, according to Commercial Property Executive.
The project will be two Class A logistics facilities totaling 939,612 square feet. Completion is scheduled for the end of 2024. The buildings were over 50% pre-leased prior to breaking ground.
The development represents the first phase of a planned 1.8 million-square-foot industrial park. Upon completion, Project Grande will feature 36-to-40-foot clearance heights for trucks, as well as rear-load and cross-dock configuration.
Irvine, California-based Panattoni Development Co. is an international real estate developer specializing in industrial warehouses. El Paso-based Hunt Cos. is a family-owned holding company that invests in operating businesses, real estate assets and infrastructure assets.
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