Kuehne+Nagel’s El Paso hub to meet demand at border

Freight forwarder Kuehne+Nagel will open a 363,000-square-foot facility in El Paso, Texas, on Aug. 5 to meet growing demand at the U.S.-Mexico border resulting from nearshoring. [caption id="attachment_57143349" align="alignright" width="300"] Kuehne+Nagel will operate a 363,000-square-foot facility in El Paso, Texas, to accommodate recent nearshoring trends. (Courtesy/Kuehne+Nagel)[/caption] The facility represents the consolidation of four El Paso warehouses: Pendale, 73,000 square feet; Rojas, 58,000 square feet; Pullman, 125,000 square feet; and Mercantile, 75,000 square feet. The combined facility adds 32,000 square feet to Kuehne+Nagel’s (K+N) El Paso operations. These four warehouses “will be closing and are being consolidated into one flagship building,” John Levin , regional vice president, Central, at Kuehne+Nagel USA, told Air Cargo Next . K+N ranked first on Air Cargo Next ’s Power 25 list of top air cargo forwarders, moving 2.2 million tonnes of air cargo in 2022. Key center of operations The Texas facility will serve as a key hub for K+N in the region. “All Kuehne+Nagel Sea’s less-than-container cargo will be deconsolidated in our container freight station at this facility,” Levin said. “Additionally, our airfreight import and export cargo will pass through this location prior to delivery to the final customer. Finally, the goods shipped by our customers to this cross-border facility will be received, inspected and consolidated into trucks crossing over to Mexico.” The facility is certified by K+N’s HealthChain program, the company’s quality standard for transporting, handling and storing health care products, according to Levin. This facility “will receive and ship for the following verticals: automotive, high tech, medical and industrial,” he said. “There will be a good range of products, from automotive motors to printers.” The warehouse will feature: Enhanced security; Modern offices; 54 dock doors; Front and rear cross-dock capability; 125 truck yard spaces; and Vertical racked storage locations. “This new facility will have capability to increase our receiving capacity by 70%,” Levin said. The four existing facilities process about 180 trucks of cargo daily, he said. “Within this facility we will install high-pile racking to store products for our customers,” Levin said. “This racking will contain pallet locations linked to our warehouse management system, which will enable us to fulfill our customer orders faster. “This site will hold an all-electric forklift fleet of over 25 forklifts,” he added. “The parcel receiving, verification and shipping process will be performed with conveyor systems to increase the productivity of our team.” Nearshoring trend grows More producers are turning to nearshoring to reduce costs and add resilience to their supply chain — a trend that is benefiting Mexico as goods production moves closer to customers in North America. Nearshoring could grow Mexican manufacturing exports to the United States from $455 billion today to an estimated $609 billion in the next five years, according to a June 2023 research paper by investment banking firm Morgan Stanley . “With this offering, we enhance our ability to support customers in overcoming logistics challenges presented by the global trend of nearshoring with more capacity and space as we move their valuable freight,” Levin said. While production far from the United States, specifically in Asian countries, is cheaper than production close to home, nearshoring makes a company’s supply chain more resilient. This became increasingly evident during the pandemic. “If you establish pretty much all of your resources and your networks far away from the U.S., you could have your supply chains being pretty much paralyzed and stuck if something were to happen, like what happened over the last couple of years,” Jose Fernandez , vice president and country manager for Mexico at BlueGrace Logistics , previously told Air Cargo Next . “Maybe they were saving some money throughout those couple of decades, but then having your supply chain being completely paralyzed … would basically defeat the purpose of that.” Register here for Air Cargo Next ’s upcoming webinar, “Air Cargo and Pharma: Using Technology to Save Lives,” on Tuesday, June 18, at 11 a.m. ET.

Kuehne+Nagel’s El Paso hub to meet demand at border

Freight forwarder’s 4 warehouses will consolidate ops

DHL breaks ground on carbon-neutral Leipzig/Halle site

GOL parent explores merger with Azul

Related Posts

Challenge Group launches engine dolly at LGG

New de minimis executive action targets Chinese retailers

CVC willing to bump DB Schenker bid after losing to DSV

GOL parent explores merger with Azul

Cargo Facts Free Newsletters

Cargo Facts Connect Podcast

Follow Us

Welcome Back!

Retrieve your password