Why CH Robinson is Growing its US-Mexico Border Operations

CH Robinson is growing its North American cross-border services by adding 450,000 square feet of warehouse and cross-docking space in El Paso, Texas.

This addition increases CH Robinson’s total operational footprint on the US–Mexico border to more than two million square feet. The enlarged network is designed to support the increasing trade between the countries and cater to companies seeking dependable cross-border logistics solutions.

The move is timely, as the neighbouring state of Chihuahua is Mexico’s leading exporter. In the second quarter of 2024, its export value reached US$47.551bn, a 35.7% year-on-year increase. This growth reflects a broader trend that has seen Mexico’s manufacturing exports rise by 13.5%, with high-tech products becoming the nation's primary export category.

Supporting high-tech manufacturing and export growth

Chihuahua is a central hub for this high-tech manufacturing boom, particularly in the production of computer and communication equipment which requires a robust logistics infrastructure.

Jay Cornmesser, Vice President for Mexico cross-border services at CH Robinson, says: "We continue to see El Paso emerge as a vital gateway for not just high-tech freight, but also automotive, medical devices and healthcare products."

He notes that the neighbouring city of Juárez has a significant maquiladora manufacturing base. This involves importing materials duty-free for assembly before exporting the finished goods.

Jay adds: "Our expansion in El Paso is a direct response to the evolving needs of our customers in today’s dynamic trade landscape."

Meeting nearshoring demands with end-to-end logistics

A growing number of companies are relocating their operations to Mexico to shorten their supply chains, a trend known as nearshoring.

Many firms setting up in Mexico for the first time require comprehensive support to navigate the country’s distinct logistics, infrastructure and customs procedures.

This applies to a range of businesses from technology start-ups to food and beverage companies, all looking for simple and predictable supply chain solutions.

Jay says: "For example, we’re currently supporting a fast-growing SMB food and beverage company based in Europe as they expand into Mexico to better serve the North American market.

"As they made the jump to expand, they needed a partner who could handle everything—customs, warehousing, multi-modal transportation, technology, and AI solutions. They needed an error-proof program that mitigated any potential for missteps that would cost time and money. That’s where C.H. Robinson excels. Our strategic growth at the border is designed to provide the agility and scalability that fast-moving industries require.

"By leveraging our integrated logistics capabilities, companies can streamline their supply chains and stay compliant as they adapt to new shipping, storage, and trade regulations."

Navigating US-Mexico trade and policy shifts

The El Paso development complements CH Robinson's existing operations in Laredo. Together, they form a supply chain network capable of responding to changing trade patterns and the preference for production within North America.

Michael Castagnetto, President of North American Surface Transportation at CH Robinson, adds: "Our customers are navigating a landscape where agility is everything. With 35 years of proven expertise in Mexico, boots on the ground, AI-driven solutions and two million square feet of strategically located facilities on the border, we set the standard for end-to-end service.

"We’re not just reacting to change—we’re anticipating it, ensuring our customers stay ahead in a rapidly evolving market."

The political environment surrounding US–Mexico trade is also shaping demand. While the US continues its "Fair and Reciprocal Plan on Trade" goods from Mexico benefit from exemptions under the United States–Mexico–Canada Agreement (USMCA).

Both the US and Mexico have increased tariffs on Chinese imports. This could encourage more nearshoring and domestic production, thereby increasing the need for border capacity.

Current US–Mexico discussions link trade access to security and migration controls. Mexico is being asked to increase its efforts on border security in return for continued tariff relief.

This dynamic encourages companies to prioritise supply chain security and efficient border processes. CH Robinson's expansion is a strategic response to these political expectations and the demand for a resilient North American manufacturing base.