Exel, a subsidiary of logistics provider DHL, opened its 250,000-square-foot distribution center in west Laredo, Texas to support the company's "Logistics Without Borders" supply chain solution.
The facility, that according to city of Laredo public records will cost nearly $10 million, is expected to create nearly 100 jobs and retain 29 jobs, a half mile from the U.S.-Mexico border.
Exel officials said this end-to-end supply chain solution provides customers with one-stop access to the tools, expertise and services necessary for cross-border commerce. "With the cost advantages of traditional offshoring increasingly offset by rising wages and transportation costs, U.S. companies are looking for opportunities to bring supplier operations closer to home. This facility is a major step in Exel-DHL Supply Chain's strategy to do just that," said Luis Eraña, Exel's president for the technology, aerospace and service logistics industries. "With more than five million truck containers crossing the U.S./Mexico border per year, and with a historical growth rate of 3.9 percent, Laredo offers a perfect location for Exel and DHL Supply Chain."
Capabilities offered at the facility, at Loop 20 and Riverbank Drive, include comprehensive managed transportation services, cross-docking, U.S. and Mexico customs brokerage, Vendor Managed Inventory, and value-added services such as classification. These logistics services are backed by an integrated and bilingual information technology platform that tracks inventory, facilitates and exchanges documentation, and connects into the customs clearance process.
"Moving goods across the U.S./Mexico border is a necessity for many of our customers, however, working across the border can present challenges with things like security, customs compliance and border congestion, to name a few," said Eraña. "This facility gives us the opportunity to leverage our cross-border expertise, while at the same time, giving our customers a best-in-class option when it comes to supply chain services at the U.S./Mexico border."
As an incentive city of Laredo provided tax abatement incentives based on the company meeting job creation quotas.