New US/Mexico cargo processing facility

News 21 Aug 2017 by WCN Editorial

US CBP and Mexican SAT officials have opened a new Joint Unified Cargo Processing Facility at the Laredo, Texas Rail Border-Crossing

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The ceremony was attended by Kansas City Southern (KCS) railroad President and CEO Patrick J. Ottensmeyer last week.

“The objective of this new facility is to share Non-Intrusive Inspection (NII) security scanning images; conduct Mexico export processing at the U.S. railhead; streamline the documentation review of northbound trains; and conduct joint inspections, when needed, on inbound shipments.

“During the week that U.S., Mexican and Canadian trade representatives begin opening negotiations to update the North American Free Trade Agreement (NAFTA), U.S. and Mexican customs officials are dedicating this new facility to improving the fluidity and security of this vital, cross-border rail corridor,” KCS said in a statement.

“As our governments begin the important work of updating the North American Free Trade Agreement this week, we must all remember the importance of the NAFTA trade relationship to both countries and both economies,” said Mr. Ottensmeyer. “This project, and others to follow, are essential to facilitate the goal of expanding trade and particularly increasing exports of goods such as refined petroleum products and petro-chemicals from the U.S. to Mexico.”

The Laredo/Nuevo Laredo rail crossing is the busiest on the U.S.-Mexico border, processing on average 23 trains in both directions per 24-hour period, and carrying a wide variety of products such automobiles and parts, steel, grain and petroleum products. Customs delays are, however, a regular occurrence, and have long been pointed to as an impediment to trade

“CBP, Mexico Customs, KCS and Union Pacific are committed to continually improving this border-crossing for security, safety and efficiency through government and private sector collaboration,” KCS stated. “Eliminating stopping trains on the bridge would increase velocity and fluidity of train movements over the border, which is important for all stakeholders. Keeping trains moving increases security and throughput, while reducing traffic congestion within the city limits of Laredo and Nuevo Laredo”.

The collaborative nature of the project is in stark contrast to the divisive comments of President Trump on the US-Mexico trade relationship. “This project is a model for how communities, governmental authorities and private enterprises can work together to create outcomes that benefit everyone and strengthen our relationships with our key trading partners and neighbours,” said Mr. Ottensmeyer.

The first round of trilateral negotiations on NAFTA has just been completed. In a joint statement the three countries said: “The scope and volume of proposals during the first round of the negotiation reflects a commitment from all three countries to an ambitious outcome and reaffirms the importance of updating the rules governing the world’s largest free trade area”.

President Trump has indicated he wants a new NAFTA deal to be concluded as soon as possible, and the first rounds of talks have been scheduled for just one week each. “Negotiations will continue at this rapid pace, moving to Canada in late September and returning to the United States in October, with additional rounds being planned for the remainder of the year,” the countries said in the statment.