b'JULY 2024USMCA TRADE9Emergent Cold LatAms Benitez says Mexico provides significant opportunityBy Andrew Meadows, AJOTInMarch,SaoPaolo-basedEmergentin temperature-controlled processing areas near Cold LatAm appointed Juan Pablo Benitez asthe main borders for processes like deboning, its Managing Director in Mexico. In the role,IQF(individuallyquickfreezing),freezing, Benitezwilloverseethecompanysaggres- injection, and packaging.sive expansion plan there. Late last year, ECLWe believe a key driver of continued growth announceda$500millionwillbetheexportofanimal LatinAmericainvestmentprotein, especially beef.poolthatincludestempera- AJOT: In a release on the ture-controlled logistics giantannouncement of the compa-Lineageamongothers.Thenys expansion project in Apo-company said it will use thedaca, you said it is just the capital for acquisitions, green- beginningofourambitious fieldprojects,andexpansionexpansion plans in Mexico. of existing facilities.Can you give some details as Benitez recently took partto what is driving the aggres-in a Q & A with AJOT wheresive expansion?hediscussedtheUSMCABenitez: Mexico is key to four years later and his viewour strategy in Latin America of Mexicos cold chain.Juan Pablo Benitez becauseofitsproximityto AJOT:HowhastheMexico/U.S.coldthe U.S. and strong trade flows between the chainevolved/grownsincethepassageoftwo countries.the USMCA four years ago? Is this mostlyNearshoring is also a big help for Mexico. becauseofincreasedfruitandvegetableMany companies are moving their operations cross-border movement?closer to the U.S. to save on costs and improve (BENEFITScontinued fromis being shipped, the most fun- Benitez: The passage of the USMCA fourefficiency. This shift means that more companies page 6) damentalaspectofprovidingyears ago has positively impacted the Mexico/ are adding value to their products in Mexico, benefits,includingallowingexcellent service is understand- U.S.coldchain,particularlywithincreasedsuch as processing and packaging, before ship-companiestoincreasetheiring the shippers general needs,trade flow. Weve observed a significant riseping them to the U.S. This trend is creating a footprintswhilediversifyingcost drivers, cash flow scenar- in southbound shipments of animal protein andhigher demand for temperature-controlled facil-their logistics strategies. Andios, and the type of commoditynorthbound shipments of frozen fruits, vegeta- ities and logistics services in Mexico.forMexico,nearshoringhasbeing transported. bles, juices, and specialty meat cuts like swine. We aim to serve customers in all 11 coun-resultedinpositivechanges.Akerssaid,AtC.R.Mexicoplaysastrategicroleforthetries where we operate, and we are the only According to recent research,EnglandweareproblemU.S.,andnearshoringtrendshavefurthercompany in Latin America that can offer this in August 2023, constructionsolversandalwaysanxiousboosted trade flows. When effectively imple- advantage. Additionally,wecansupportour in manufacturing factories intobeapartofengineeringmented, international trade facilitation agree- customers on the U.S. side of the border through Mexicosurgedtoover47%viablesolutionsthateasements like the USMCA positively impact theour collaboration with Lineage Logistics, the comparedtotheprioryear.supplychainchallengesforeconomies of involved countries and fosterlargest temperature-controlled company in the Investments of billions of dol- our cross-border customers. industry development. world. Our strategy is to offer capacity on both lars are moving into MexicoRydersBatemanhasaBoththeUnitedStatesandMexicoaresides of the border and facilitate trade flows.as companies look to establishsimilar view, stating, Today,major food producers and exporters. The facil- The growing domestic market is also a cru-natural gas pipelines. our customers are looking foritation of cross-border movement and risingcial driver of our growth. We plan to be present While the minimum wagestrongbusinessintelligencedemand have necessitated that cold chain sup- in the main ports (both maritime and border in Mexico is still less than inandanalyticssotheycanpliers scale up to support this growth, enhanc- crossings) in Mexico, as well as in major met-theU.S.,Canada,orChina,seehowtheyreperforminging the overall efficiency and capacity of theropolitancenters.Beingclosetoourmain the USMCA stipulated that aacross the industry, and iden- cold chain in the region. customers and production areas in the country minimum of 40% of an auto- tify opportunities. AJOT:Arevalue-addedfoodproductsallows us to provide efficient and effective ser-mobiles content must be pro- He also noted that opera- fueling any of the growth? vices. This strategic presence helps us meet the duced by workers earning notional know-how, technology,Benitez: Yes, value-added food productsincreasing demand for storage and transporta-less than $16 an hour. Mexicoand business analytics are theare definitely fueling growth, especially withtionoffoodproducts,bothforcross-border has seen double-digit annualbenefitsthat3PLsprovidenearshoring.Companiesprefertoaddvaluetrade and within Mexico.increases in minimum wages(BENEFITScontinued ontotheirproductsinMexicobecauseoftheAJOT: How is new cold chain technology sincetheimplementationpage 19) cheaper and skilled labor. Many have invested(OPPORTUNITYcontinued on page 26)of the USMCA. There have alsobeenimprovementsin benefitsincludingpensions and paid holidays. An indus-tryanalystnotesthatthese changesareimportantand representadeviationfrom the NAFTA era.B esTP raCTiCes inC ross -B orders hiPPingCross-bordershipping requiresacompleteunder-standingofallinternational andgovernmentrulesof transportation. Some compa-nies, like Averitt, have cross-border logistics professionals to assist shippers. Averitt also has border service centers in Laredo,ElPaso,Harlingen, and Del Rio with an in-house team of customs brokers.Our border service cen-ters are state-of-the-art facili-tieswitharound-the-clock surveillance and security per-sonnel, said Habe. In addi-tion,wethoroughlyvetour partners in Mexico.Regardless of where freight'