Borderlands is a weekly overview of developments in the world of cross-border freight transport and cross-border trade between the United States and Mexico. This week: Cross-border trade helps Mexico close technology gaps; Investment firm acquires 2.3 million square feet of logistics space in Houston; CJ Logistics America leases 1 million-square-foot facility near Dallas; and the Texas auto transporter is acquiring three logistics companies.
As Mexico continues to grow as a critical hub in global supply chains, more technology investments must be made before the country can unlock its full trade potential, says Fernando Correa, CEO and co-founder of Cargo bot.
Correa believes that by addressing the technological challenges between shippers, trucking companies and logistics professionals, Mexico could be well positioned for even greater trade growth in 2025.
Mexico is currently the US’s top trading partner, with cross-border trade totaling $798 billion in 2023. This year, US-Mexico trade is on track to surpass 2023, with trade volume totaling $706, $9 billion from January through October.
“From my perspective, Mexico is very important for the future of the next three, four years in shipping, because we have a lot of traffic,” Correa told FreightWaves in an interview. “We have to take that traffic into account. We have to organize traffic. Because we transport 13,000 shipments every day between Mexico and the US.”
Founded in 2016, Cargobot is a global freight technology company that connects shippers and carriers through its platform to manage truckloads, less-than-truckloads and partial truckloads in the United States, Canada and Mexico.
Cargobot recently released Planimatik, a planning tool aimed at simplifying carrier onboarding and streamlining daily logistics operations for shippers. The software also includes tools to connect shippers with customs brokers.
“I think technology facilitates the way you can verify the carrier’s profile,” Correa said. “The carriers are all different. You want to have a reliable network of carriers. But the truth is that the ease with which you can move your shipment in Mexico is a little more complicated than in the United States. You believe in the carrier’s network in the United States. In Mexico it is more complicated because you need to verify the carrier network for security reasons and the technology makes this possible.”
“From my perspective, Mexico is very important for the future of the next three, four years in shipping because we have a lot of traffic,” said Fernando Correa, CEO and co-founder of Miami-based Cargobot. (Photo: Jim Allen/FreightWaves)
Mexico-based tech startups have attracted nearly $10 billion in venture capital since 2015, according to research and communications firm Quantico. Venture Capital Report 2024 for Mexico.
“Over the past decade, Mexico has become a leading hub for venture capital in Latin America, attracting both local and international investors. Mexican startups have raised $9.89 billion in 1,897 funding rounds, solidifying the country’s position as a driving force for innovation and entrepreneurship in the region,” the report said.
In 2021, Mexican startups attracted a record $3.6 billion in venture capital funding, led by used car e-commerce marketplace Kavaks $810 million financing round. Last year, Mexico-based startups raised $1.14 billion in venture capital funding, far less than in 2021 but up 1% from 2022.
Nacho De Marco, CEO and co-founder of the San Francisco-based company BairesDevAccording to the report, Mexico has developed into a hub for tech talent, including companies focused on logistics and commercial transportation.
Founded in 2009, BairesDev is a software outsourcing company with a network of 4,000 senior software engineers and more than 500 clients, including Google, Pinterest and Adobe.
“We have experience working with clients in transportation, logistics and supply chain management,” De Marco said in an email to FreightWaves. “As these industries undergo digital transformation, companies are increasingly relying on technology to streamline operations, improve customer experience and increase efficiency. Our teams have supported customers here by building custom applications, optimizing data analytics and implementing automated solutions that address specific logistics challenges.”
In 2024, Mexico City surpassed Sao Paulo, Brazil, as the largest market for technology talent in Latin America with 300,000 technology professionals, according to a report from global real estate investment company CBRE.
“Monterrey, Mexico, leads in talent growth rate over five years at 125%, followed by Mexico City at 88%,” CBRE said.
According to De Marco, the Mexican talent working at BairesDev has increased by 99% in the past five years.
“Latin America is becoming a global technology center, driven by key factors: increased investments in STEM education by public and private entities; Latin American engineers have an excellent level of English; cultural affinity and time zone proximity to the US; a ‘signaling’ effect of an increasing number of successful Latin American tech founders, together with new access to venture capital,” said De Marco.
Investment firm acquires 2.3 million square feet of logistics space in Houston
Stone peak announced the acquisition of six logistics assets totaling 2.3 million square feet in Houston.
The assets are located less than eight miles from Port Houston and give the company 3.4 million square feet of logistics space throughout Texas.
New York-based Stonepeake is an investment firm specializing in infrastructure and real estate assets with approximately $70 billion in real estate under management.
In September, Stonepeak acquired a 1.1 million square foot logistics portfolio located in the AllianceTexas development in Fort Worth.
“We continue to believe in the power of supply chain real estate, anchored by Port Houston’s critical infrastructure, given its mission-critical role in local and national supply chains, and we are excited to continue investing behind this theme,” said Phill Solomond, senior at Stonepeak. director, director and head of real estate, as stated under a press release.
Provider of supply chain services CJ Logistics America has leased a 1.07 million-square-foot facility in Wilmer, Texas, according to the American newspaper Dallas business magazine.
The logistics facility is located in the 252 hectare Southpark Logistics Park. The industrial development is located 17 miles south of downtown Dallas.
CJ Logistics has more than 80 warehouses, shipping and transportation operations in the US, Canada and Mexico. The company’s U.S. headquarters are in Des Plaines, Illinois.
CJ Logistics America is a subsidiary of the South Korea-based CJ Group.
Texas car transporter is acquiring three logistics companies
Interlink transporta provider of finished vehicle logistics, recently acquired Tennessee Auto Carriers, No Boundaries Transportation and BST Auto Transportation, according to PE hub.
As part of the acquisition, Interlink Transport will change its name to No Boundaries Auto Logistics. The company provides transportation solutions to original equipment manufacturers in the US Midwest and Southeast
The financial terms of the transaction were not disclosed.
Interlink Transport, based in Wills Point, Texas, is a division of Dallas-based MAG Capital, an industrial real estate investment firm.