Arriving commercial vehicles wait in line to pass through the Multi-Energy Portal (MEP) system at the Port of Mariposa in Nogales, Arizona, on November 9, 2023.
Photo by by Jerry Glaser courtesy of U.S. CBP
If you believe that border immigration issues at the U.S.-Mexico border are slowing down commercial activity, it’s time to reconsider.
Chicago-based real estate investment firm Brennan Investment Group has launched a new U.S. Border division, signaling strong confidence in cross-border opportunities. This division is set to make significant investments along the entire 1,961-mile U.S.-Mexico border, which encompasses 25 ports of entry.
“The nearshoring trend, driven by factors like geopolitics, labor cost disparities, and advancements in robotics, will be a cornerstone of our business for years to come,” said Troy MacMane, managing principal for Brennan’s Texas Region, during the March 2024 announcement of a new cross-dock facility at Pinnacle Business Park in Laredo.
In 2023, Mexico surpassed China as the leading exporter to the United States, with goods valued at nearly $500 billion. Michael Brennan, Chairman and Managing Principal of Brennan Investment Group, highlighted the significance of this shift: “Laredo has the number one port in North America, making our strategic investments here a key part of our success.”
Hildeberto Moreno, Vice President for U.S. Border Investments, Brennan Investment Group
The newly formed border division is led by Hildeberto Moreno, Vice President for U.S. Border Investments, who brings extensive experience from his previous roles at Iron Horse in El Paso, IDI Gazeley, and Prologis on industrial projects along the U.S.-Mexico border. Moreno is also an active member of the Border Industrial Association (BIA) and Mesilla Valley Economic Development Alliance in New Mexico.
“Our location in Laredo is strategically positioned between the two primary commercial trading bridges—the World Trade and Columbia bridges,” Moreno noted.
When asked about the global interest in border locations, Moreno pointed out that 76% of Mexico’s foreign investment in 2023 was funneled into the state of Nuevo León, with approximately 15 million square feet of space absorbed, 5 million of which was occupied by Chinese companies. Moreno added, “Around 20-25% of the absorbed space in Monterrey is reflected in Laredo in terms of warehouse and third-party logistics activity.”
Is economic growth along the border continuing despite the ongoing debates about illegal immigration? “Absolutely,” Moreno confirmed. “There is still impressive absorption and active construction in Laredo and El Paso.”
Brennan’s border division is also eyeing investments in the El Paso region and, in the mid-term, the McAllen area.
In 2022, U.S. Foreign Direct Investment (FDI) in Mexico, led by the manufacturing sector, reached $130.3 billion, a 7.6% increase from 2021. Goods imports from Mexico totaled $454.8 billion in 2022, up nearly 19% from the previous year and 64% from a decade earlier, according to the Office of the U.S. Trade Representative.
A flyer from the Pharr Bridge Board said there was $47 billion in global trade at the international bridge in 2022, with a growth rate of 3% monthly in 2023. A second span is on the way.
Photo courtesy of Pharr International Bridge
Progress in Infrastructure Supporting Trade
A fact sheet from the U.S.-Mexico High-Level Economic Dialogue (HLED) Mid-Year Review in April 2024 highlighted several border infrastructure accomplishments. These include the January 2024 modernization and expansion of the Otay Mesa Port of Entry (POE), the completion of an enhanced feasibility study for the modernization of the Bridge of the Americas POE in November 2023, and the start of southbound transit of empty commercial vehicles at the Donna POE.
Key developments include:
– A memorandum of understanding signed by the United States to advance the 30% design of the Otay Mesa East POE, with Mexico’s Secretariat of National Defense (SEDENA) reporting 60% progress on the Mexican side, expected to be completed by September 21, 2024.
– The GSA’s Environmental Impact Statement for a new commercial crossing at the Douglas Agua Prieta POE, where Arizona meets Sonora, is expected in May 2024, with the project design-build process set to begin this summer.
– Completion of works by early June 2024 at the Piedras Negras-Eagle Pass II crossing between Maverick County, Texas, and Coahuila, Mexico, as expected by Mexico’s SEDENA.
– Mexico’s Secretariat of Infrastructure, Communications, and Transportation (SICT) anticipates finishing construction for the second span of the Nuevo Amanecer (Reynosa)-Pharr international bridge at the Texas-Tamaulipas border by October 2024. Pharr ranks third in the nation for trade with Mexico, following only Laredo and El Paso.
Source
https://siteselection.com/issues/2024/jul/us-mexico-border-corridor.cfm
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