3PL news: Exel set to construct new facility supporting U.S.-Mexico trade

Third party logistics transportation services provider Exel, a wholly-owned entity Deutsche Post DHL, recently announced it plans to begin construction on a 250,000 square-foot distribution facility in Laredo, Texas.

Company officials said this facility is part of its Logistics Without Borders program, which is an end-to-end supply chain service that provides Exel and DHL Supply Chain customers one-stop access to tools, expertise, and services needed to ship across the U.S./Mexico border. They added that it will primarily serve technology, automotive, engineering, and manufacturing shippers, among other sectors and is expected to be completed in June 2012.

Types of services Exel will provide shippers at this new facility include managed transportation services, a large trailer yard, warehousing, cross-docking, U.S. and Mexico customs and brokerage, drayage, bonded warehousing, with logistics services backed by an integrated and bilingual information technology platform that tracks inventory, facilitates and exchanges documentation, and connects into the customs clearance process.

Gary Allen, vice president of innovation and product development, Exel, told LM that there were various drivers for this new distribution facility.

“Exel needed a hub for its Logistics Without Borders supply chain solution. This service offers customers an end-to-end solution to ship across the U.S.-Mexico border, so we began looking for a strategic location that could offer the biggest benefits to Exel and our customers,” he said. “We chose Laredo because of its border location, positions as the country’s top inland port and the 6th largest port overall, as well as the strong support received by the City of Laredo and its officials.”

This distribution center is a shared-use site that will manage customers’ entire supply chains in support of U.S.-Mexico shipping, explained Allen, adding that U.S.-Mexico trade is a crucial part of the supply chain for many companies, yet can be a big pain point in terms of execution, fragmentation, receiving accurate and timely information, and dealing with administrative requirements. He also noted that the Logistics Without Borders service simplifies this process for its customers with a cohesive solution. 

“The site itself offers our customers existing infrastructure at the border so they don’t have to invest real estate capital to facilitate the flow of goods,” said Allen. “We will be able to provide the level of service and process monitoring each customer may require. Once built, this distribution center will offer a number of certifications and benefits such as FTZ, TAPA-A, C-TPAT and LEED certification.”

This new distribution center also has a significant sustainability slant as well, with Exel stating it plans to pursue Leadership in Energy and Environmental Design (LEED) certification for the site, which if received would be the first LEED-certified distribution center for Exel in its North American network and in Laredo.

Facility plans include a number of sustainability features including energy efficient lighting, landscaping and building materials, as well as low-flow plumbing and a recycling program, said Allen.

“One of Exel’s corporate missions is to make a positive contribution to our world, so improving the sustainability of our facilities is certainly part of that,” he said. “We also recognize that many of our customers share this same commitment, so this site will support our customers’ objectives as well.”