Global Port Group DP has established a logistics freight forwarder in Mexico
DP World, a port and logistics operator, recently opened a freight forwarding center in Mexico City to support the growing demand for cross-border logistics services between Mexico and the United States.
Terry Donohoe, senior vice president of freight forwarding for the Americas at Dubai Global Ports Group, said that the group's investment in Mexico is a response to the accelerating trend of nearshore outsourcing in the country and the dynamic changes in global trade.
Donohoe said in an email to FreightWaves: "As more and more companies move their manufacturing operations closer to the end markets in North America, Mexico has become an important logistics hub, especially for industries such as automotive, electronics and consumer goods." Mexico is not only a high-growth market but also a natural extension of our end-to-end logistics strategy in the Americas.
Dubai World Port Group, headquartered in Dubai, United Arab Emirates, is one of the world's largest container terminal operators, with 108,100 employees in 74 countries and regions across six continents. The company also offers logistics solutions, sea freight services and free trade zones.
DP World currently has nearly 800 logistics and freight forwarding professionals in Mexico.
Donohue said that they have seen the demand for logistics services for north-south freight transportation between Mexico and the United States.
Donohoe said, "We see strong and sustained demand from shippers for two-way logistics services between Mexico and the United States." In early 2025, cross-border freight volumes will reach a record high, with Mexico's exports to the United States driving a significant portion of this growth."
Donohue said that in recent months, manufacturers in Mexico's automotive, electronics and industrial products industries have been increasing their exports to the United States
Donohoe said, "This has led to a surge in demand for cross-border freight forwarding, customs declaration and multimodal transport solutions." As enterprises reconfigure their supply chains around resilience, regionalization and speed to market, this corridor... It is experiencing a long-term structural growth."
As of Thursday, the SONAR Inbound Sea Standard Container Volume Index showed that the volume of import container orders from China to Mexico (IOTI.CHNMEX) has increased by 26% since May 12, but has decreased by 16% compared with the same period in 2024.
SONAR's Inbound Maritime Standard Container Index (IOTI) measures the booking volume of 20-foot standard containers based on the departure date at the port of shipment, using a 14-day rolling average. This index reflects the demand for Marine containers and is also a leading indicator of ground transportation demand.
Donohoe said that although it is almost impossible to clearly state what has driven the growth of container transportation from China to Mexico, the trend of nearshore outsourcing can be seen throughout the Americas.
Donohoe said, "The Americas is one of our fastest-growing and top priority regions."
In September, The Wall Street Journal reported that Dubai Global Port Group was in talks with the Mexican government about establishing a large industrial park in the country, including merging the port and the industrial park to simplify the transportation of goods to the United States
Although Dubai World Ports Group currently does not operate any US ports, the company has been investing in Canadian terminals and US inland logistics businesses.
Donohue refused to disclose specifically whether Dubai World Ports Group plans to invest in or operate ports in Mexico.
Donojo said, "At present, we are very focused on strengthening Mexico's inland logistics capacity." Our focus includes freight forwarding, contract logistics, warehousing, and multimodal transport solutions serving the important Mexico-US trade corridor."
In addition to opening a freight hub in Mexico City, Dubai Ports World has also been expanding its business in Latin America and the Caribbean, especially in the freight forwarding sector.
Over the past two years, Dubai Ports Worldwide has opened more than 35 freight forwarding offices across the Americas. Recently, it has added new offices in Curitiba, Brazil and Toronto.
In May this year, Dubai Ports World announced plans to invest 760 million US dollars to expand the Port of Corsedo and its free trade zone in the Dominican Republic.
Donoho said, "We recently signed a multi-million-dollar memorandum of understanding with the Dominican Republic, aiming to expand the freight capacity and manufacturing operations of the Port of Corsedo and its adjacent special economic zones." This investment will meet the urgent demand of global enterprises for alternative trade and manufacturing centers to serve their major American market.