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VW Opens Port Freeport Processing Center

[ November 22, 2024   //   Gary G Burrows ]

Volkswagen Group of America in October opened a new vehicle processing center in Port Freeport in Texas, which represents a US$114 million in the Freeport area.
The Freeport facility, built by KDC, spans more than 120 acres about 63 miles south of Houston along the Gulf Coast. It will have 53 railcar slots and be able to annually import and process up to 140,000 VW, Audi, Bentley, Porsche and Lamborghini vehicles. The site will mainly import vehicles from Europe and Mexico, where VW and Audi operate large assembly plants.
Union Pacific said it will provide rail service to distribute the imported vehicles to about 300 dealerships across the central and western U.S.
“Union Pacific is a key partner in establishing this vital facility for VW and the community,” said Anu Goel, VW Group of America’s executive vice president of group after sales and services.
VWGoA consolidated smaller facilities in Houston and Midlothian, Texas, to Port Freeport. KDC, the real estate and development investment firm, partnered with PRP Real Estate, VWGoA and Port Freeport on the new facility.
Port Freeport’s wider channel allows for the use of larger liquified natural gas, or LNG, vessels which supports the automaker’s sustainability goals.
“Opening this new port facility in Freeport helps create a more resilient and more sustainable supply chain for many years to come,” Goel said. The facility is strategically positioned to provide easier access to rail, streamlining vehicle shipping logistics and supporting VW’s goal to grow its U.S. market share, she added.
Port Freeport joins VWGoA operations in six other U.S. ports: Baltimore; Benicia, California; Davisville, RI; Jacksonville, Florida; San Diego; and the Volkswagen Assembly Plant in Chattanooga, Tennessee.
VWGoA has partnered with Brazosport College in nearby Lake Jackson to create a new credentialed program in logistics with an emphasis on vehicle logistics operations. The automaker said the new facility provides 110 direct jobs as well as indirect jobs such as trucking, rail and vessel operations.

Tags: Port Freeport, Volkswagen Group of America