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DP World Pursues Operating in Mexico, WSJ

[ September 26, 2024   //   Gary G Burrows ]

Global port terminal operator DP World is talking to the Mexican government about beginning operations in the country, enabling the Dubai-based giant to handle cargo heading into the U.S. from the South, the Wall Street Journal reported Sept. 25.
In June, DP World initiated an intermodal container solution to transport cars via rail from Mexico to the U.S. and Canada using 53-foot intermodal containers.
In the service, finish vehicles are loaded into the container at the factor in Mexico or at designated stuffing yards close to manufacturing hubs. The 53-foot containers handle up to six vehicles, compared to up to four in a standard 40-footer.
The containers are then trucked to intermodal rail ramps and moved by rail to destinations like Los Angeles, Chicago, Detroit and Toronto, DP World said.
At destination, the containers are trucked from the rail ramp to designated yards where the cars are unloaded and trucked to the dealerships. Door to door transits range from eight to 14 days, depending on the route. DP World estimates the new service will enable an additional 30,000 finished vehicles to be transported between the trading partners in 2024.
In 2023, Mexico surpassed China to become the U.S.’s top trading partner, largely thanks to a burgeoning cross-border relationship based on Mexico’s growing manufacturing sector, particularly in automotive. This was bolstered by the 2020 United States-Mexico-Canada Agreement, DP World said.
The Dubai-based logistics company has also been making significant investments in its port terminals in Peru and Ecuador to enhance capacity and operational efficiency. DP World completed a US$400 million Bicentennial Pier expansion in the Port of Callao, Peru, boosting container capacity at the South Terminal by 80 percent to 2.7 million TEUs and includes a 40-hectare container yard. This includes recently completed pier expansion at Bicentennial Pier in the Port of Callao in Peru.
DP World has also initiated a berth expansion project at the Port of Posorja in Ecuador. The US$140 million expansion will extend the port to 700 meters of berth space and integrate advanced port equipment.
In August, DP World joined the American Chamber of Commerce, or AmCham, in its northeast chapter in Monterrey, Mexico. AmCham has offices in Mexico City, Guadalajara, Monterrey and Hermosillo, and serves as a critical link between the business communities of the U.S. and Mexico, advocating for policies that promote economic growth and development.
AmCham’s nearly 1,400 member companies account for about 25 percent of Mexico’s GDP.

Tags: DP World