b'26American Journal ofTransportation ajot.com(OPPORTUNITYcontinuedfore,ourplanstoincreasenewtechnologicalbreak- ernor of Baja California is onsionals. Their findings noted, from page 9) capacityinMexicoarecru- throughsthatdelivergreaterboard, says Tutor. For starters,Thepersistentlaborshort-either at the warehouse or incialtomeetbothdomesticefficiencies and cost-effective- he wants to test public dedi- age,ongoingsupplychain transithelpingthemarket- and international demands. ness in material handling, sumscated charging stations at eachinterruptions,risingfreight place? Any specific examples? AJOT: There is an effortup Rock. AI, machine learn- (border) crossing. costs and the fear of running Benitez:Newcoldchaintoshipmoretemperature- ing and eco-friendly design areSometoelectrifyU.S- out of physical space remain technologyisgreatlyimprov- controlled goods from Mexicojust some of the advancementsMexicogroundlogisticsareastopissuesintheorder ing the marketplace, both in ourtoU.S.byrail(intermo- movingintoourfieldwhichextreme. Another suggestionfulfillmentanddistribution warehouses and during transit.dal).Do you see rail as ais being largely remade by thefor a Mexican electric truckoperations space.Here are some highlights: growing/efficient option? sharp and continuing growth ofdrainingitspowerwaitingAndaswithallthings Edge Advanced Certifica- Benitez: We are commit- the e-commerce supply chain.intraffictocrosstheU.S.concerning the supply chain, tion: Our new buildings receivetedtotemperature-controlledWarehouseswillkeepadapt- Mexico border is for one longnothing happens in a vacuum this certification, which meanslogistics,withourprimarying to meet consumer and (our)haul truck to drop its load at especially the demand for theyaredesignedtoreducefocusonbuildingwarehous- customer demand and optimizeTijuana, load it on to anotherstorage space. water and power consumptioning capacity and integrating itoperations. No doubt about it. truckthatwaitsandmakesLink Logistics, a leading and use more environmentallywithtransportationtoensurethe crossing, and a third elec- owneroflast-milelogistics friendly construction materials. thehighestlevelofservicetric truck would pick up thereal estate, recently published WaterandEnergyEffi- and quality for our customers. (ELECTRIFYcontinued fromloadontheCaliforniasidea novel take on a new market ciency:InareasofMexicoCurrently,weemphasizepage 12) and make the delivery. pressurethatwill,asLink wherewaterandenergyareroad transportation to providepresident of Bali Express Ser- Logistics says, have a spill-scarce,weusetechnologiesflexibilityandresponsive- vices, in an exclusive interviewover impact impact on logis-that almost completely elimi- ness. However, we acknowl- with theAmerican Journal of(BENEFITScontinued fromtics space in the US market. natewaterusage.Wealsoedge that rail transport is anTransportation,saysrecentlypage 19) LinkLogisticsResearch install solar panels to reduceefficientandcost-effectiveordered 11 Peterbilt Class 8 all- Today,ourcustomers& Analytics department believes power consumption. option for moving large vol- electric trucks and trailers, fivearelookingforstrongbusi- that the transition clean energy Retrofitting Existing Facil- umes of temperature-controlledKenwoodand20 Volvotrac- nessintelligenceandana- transitionwillpromptthe ities: We are retrofitting almostgoodsbetweenMexicoandtors and trailers. lyticssotheycanseehowdemandfor84millionsq/ft. all of our existing facilities andthe United States. The tradeWehaveourownSantheyre performing across theAlthoughinrecentmonths implementing solar panels tobetween these two countriesDiego Gas & Electric approvedindustryandidentifyoppor- therehasbeenconsiderable make them more environmen- isofimmenseimportance,charging station in San Diegotunities. Theyrelookingforpushbackonaspectsofthe tally friendly. andwecannotavoidbeingthat can charge 18 electric vehi- a smart procurement strategyadoption of clean energy sys-Werealizedthatbeinga part of this critical supplycles at once and a charging sta- toensuretheyrepositionedtems,nonethelessthetransi-environmentally friendly is notchain.Therailinfrastruc- tion in Tijuana that can chargewhenthemarketchangestion is underway. an option; its our way to go.ture between Mexico and thesix (electric) trucks at a time,again, noted Bateman. And the logic behind the But more than just the technol- UnitedStatessignificantlyBaez explains. Ironically, onlyNotonlydoshippersLink thesis is understandable: ogy, our biggest contribution toenhancescross-bordertrade,20precentofBalisannualhavetheoptionofchoosingLetssayacompanythat the market is operational effi- providingareliablemeansrevenuescomefromUS-third-party logistics providersmakesEVsmovesproduc-ciency and the reach of our net- fortransportingperishablesMexicocross-borderhauls.with expertise in serving spe- tiontoanewmarket.Next, work. We use what we call theand other temperature-sensi- Most of its business is longcific markets or commodities,thecompanymustestablish Emergent Way in our opera- tive cargo. haulfreighttransportationbut Bateman said, Its reallyanecosystemofsupport tions, which standardizes pro- While our immediate focusanddrayageinandoutofaboutpartneringwitha3PLcompaniesandsuppliers, cesses and increases efficiency.remains on expanding our ware- the ports of Los Angeles andthatprovidesflexibilityandsparkingtheneedformore This ensures our clients get thehousing and trucking capabili- Long Beach, he says. resiliency, no matter the cur- warehouse space. Not coin-same high-quality service in allties, we are actively exploringThe new electric trucks,rent challenge or opportunity. cidentally, much of this tran-11 countries where we operate,thepotentialopportunitiesfinanced by the North Ameri- sitional activity is located in from Mexico to Paraguay. thatrailtransportcanoffer.can Development Bank, havealready high density logistics AJOT:Is current capac- Thisincludesunderstandingbeenwelcomedbydriv- (DEMANDcontinued fromcorridors putting pressure on ity sufficient? howintegratingrailservicesers, insists Baez.They arepage 24) existing space. Even account-Benitez: If we look at thecouldaddvaluetoourcus- veryhappywiththetrucks.leasing appeared in 2023 andingformarketshiftsasso-currentMexicanmarket,wetomers by potentially offeringThey are easy to drive, makeisstillunderway.CBRE,aciatedwithnearshoringon see that the storage and trans- a complementary solution thatnonoise,havemorepowerglobalrealestatecompanyinonshoring moves Link Logis-portationinfrastructureforleverages the strengths of bothandlessmaintenance.Prean April commentary reportedtics forecasts, that manufac-temperature-controlled food istrucking and rail logistics. and post trip inspections aregeneralretailersandwhole- turing and associated supplier stillnotsufficient,especiallyWe recognize the preva- faster and easier with electricsalers leased the most big-boxnetworks will ultimately drive when considering the necessarylenceofintermodalrailintrucksbecauseyouhavenowarehousespaceinNorthdemandforapproximately quality standards. This situationtheU.S.andaremappingoil leaks or broken hoses, andAmerica in 23, accounting for408millionsquarefeetof alonejustifiesourinvestmentouthowthiscouldbenefitthe engine is simpler.36% of all transactions accord- space, comprised of 324 mil-plans in the country. our operations and ultimatelyBut there is one big chal- ing to a new report from CBRE.lion square feet of industrial The 3PL (third-party logis- enhance our service offeringslengetoall-electrictrucks,Retailersandwholesalersreal estate for direct manufac-tics)marketinMexico,likefor our clients. theBaliExpressServicesdethroned last years top occu- turing and 84 million square inotheremergingmarkets,AJOT:Willhealthcare/ chiefconcedes.Themile- pier category 3rd party logisticsfeetdesignatedasspillover hasnotyetreacheditsfullpharma be part of the Mexico/ agebetweenchargesranges(3PL) providers. space for supplier networks.potential.ManycustomersU.S. cold chain? Will there befrom 150 miles for the Peter- Thereportalsoadded,Howmuchimpactthis are now moving from privategrowth in any other types ofbiltandtheKenwoodandAutomobile, tires & parts andwill have on industrial prop-warehouses to outsourcing totemperature-sensitive goods?220 miles for the Volvos. building materials & construc- erties, and specifically logis-companieslikeours.IntheBenitez:ThereiscertainlyWhileCalifornia-basedtionalsosawanincreaseintics properties, over the next U.S., according to data frompotential for development intruckersarebeginningtoshare of leasing activity whichdecade might turn out to be a theGlobalColdChain Alli- thecoldchainasawhole;buyall-electrictrucks,itisoverall fell 15.8% in 2023. game-changer. Could we see ance(GCCA),over80%ofhowever, our growth focus isunclear how Mexican-ownedw haTd oes Thef uTure another run on space like we thecoldstoragecapacityison the storage and tempera- motorcarriersaregoingtodid in the post-COVID surge?managedby3PLs.InLatinture-controlled transportationcomplywiththeimpend- h old ? However,Collierssees America, the data is less pre- of food. ing CARB mandate that willThere is little doubt thatthemarketalittlediffer-cise,butitsestimatedthatalso require charging stationtheCOVID-19pandemicently, forecasting a normalcy only 35% to 40% of cold stor- infrastructures.AJOTcalledchangedthebusinessland- ofsortsinthenearterm, agecapacityishandledby(CURVEcontinued fromseveraltimesandemailedscapeandeverythingsinceAsconstructioncomple-3PLs. This indicates a signifi- page 12) Alfonso Millan Chavez, Can- hasbeenanadjustmenttionsanddemandfallmore cantopportunityforgrowthhumanworkersandassistcars delegate in Tijuana, butwhetherthatishowandinlinetowardstheendof in these regions. with receiving, storing, pick- he did not respond. where we work or the view of2024, vacancy is expected to Whenweaddinterna- ing,packingandshipping.TutorofCARBsaysthe supply chain. And logis- plateau around 6.6% slightly tionaltradetothedomesticCo-bots automate repetitiveheistalkingwithMexicotics real estate is no different.above the 15 year average of context, the need for expand- processes,allowinghumantruck owners, freight special- So,whatdoesthefutureof6.4% before it begins to fall ingcapacitybecomesevenworkerstofocusonmoreists and government officialslogistics space look like? again in 2025. greater. Food consumption isstrategicactivities,RockregularlyandreportsthatWhenKardexRemstar,Nevertheless,itishard growing, and Mexico is oneexplains. Modern robotics arethenationsgroundlogisticsanautomatedstoragesys- toshakethenottoodistant of the biggest food exportersalso shrinking in size todayindustrywantstomoveintotems provider, published thememoryofeveryavailable intheworld.Coupledwithand can work in smaller ware- all-electrictrucksifthey2024WarehousingIndus- inch of space crammed with theincreasingneedinthehouses and distribution centers,couldsecuresomefinancialtryReport[withPeerlessfreightwithoutwondering domesticmarket,thispres- freeing up floor space, he says. incentives and afford the elec- ResearchGroup]thatsur- ifthisisjustalullbefore ents a strong opportunity forToday, Equipment Depottronic infrastructure needed toveyed200warehouseandanother storm of demand for expandingcapacity.There- continuestotrailblazewithsupport the vehicles. The gov- distributioncenterprofes- logistics space.'