Mexico, United States Revamp Border Infrastructure

Mexico and the United States are ramping up efforts to revamp their border infrastructure to capitalize on nearshoring and strengthen cross-border trade. Recently, US President Joe Biden granted three Presidential Permits that signal a step forward in infrastructure development across the Mexico-US border.

In 2023, trade between Mexico and the United States, according to data from the US Census Bureau, amounted to US$797.9 billion, representing 2.79% more than in 2022. The most traded commodities in 2023 were electrical machinery, computers, vehicles and parts, measuring instruments, plastics, furniture, iron and steel, fruit and nuts, vegetables and roots, rubber, and mineral fuels.

However, bilateral trade faces several challenges. The International Road Transport Union (IRU) reports that many issues impact carriers running cross-border services, including infrastructure, border processes, driver shortages, and differing national standards and approaches to decarbonization and digitalization. 

Another pressing problem were the recent closings at ports of entry in which industry insiders labeled unsustainable and a threat to North American supply chains essential for domestic and regional economic prosperity. 

To streamline trade, US President Joe Biden signed three Presidential Permits, including one for the expansion of the World Trade Bridge in Laredo, Texas. As previously reported by MBN, this expansion project includes constructing an additional eight-lane bridge for northbound traffic and increasing the existing bridge span from eight lanes to 10. US Congressman Henry Cuellar says that this expansion will ease congestion and reduce wait times, boosting trade and supporting economic growth.

The second permit was granted to Cameron County, Texas, allowing the construction, maintenance, and operation of a vehicular and pedestrian crossing at the US-Mexico border in Brownsville, Texas. This project, detailed in the “Cameron County Flor de Mayo International Bridge Presidential Permit Application” dated Sep. 14, 2021, aims to improve cross-border infrastructure to facilitate increased trade and travel between the two countries.

The third permit, issued to Maverick County, Texas, authorizes the construction, maintenance, and operation of a vehicular, pedestrian, and rail crossing in Eagle Pass, Texas. This project, outlined in the “Puerto Verde Global Trade Bridge Presidential Permit Application” dated Oct. 17, 2023, aims to enhance cross-border trade and infrastructure, facilitating smoother and more efficient transportation of goods and people between the two nations.

The conditions of the permits stipulate compliance with federal laws, environmental protection measures, and the requirement for the permittees to bear the costs of necessary infrastructure and staffing. These permits are valid for five years, contingent on the commencement of construction within this period, and include provisions for inspection and transfer of control.

On June 4, President Andrés Manuel López Obrador and Biden discussed these permits and other bilateral issues during a phone call. During the call, Biden confirmed the approval of these permits and the authorization to start construction on the US side of the Otay Mesa II border crossing. This infrastructure development is expected to benefit local communities and strengthen economic ties by promoting increased trade and travel. Both leaders pledged to maintain strong cooperation and ensure a stable bilateral relationship during the transition to the administration of President-elect Claudia Sheinbaum.

Additionally to the Presidential Permits, on June 20, the US General Services Administration (GSA) released its Final Environmental Impact Statement (FEIS) and Record of Decision (ROD) for the planned new commercial port in Douglas, Arizona, as well as the modernization and expansion of the existing Raul Hector Castro Land Port of Entry (LPOE). The project budget is slated to range between US$170 million and US$220 million.

The new Douglas Land Port of Entry is a planned commercial port construction project 7.2km west of the existing Raul Hector Castro Land Port of Entry (LPOE). Upon its completion, the US Customs and Border Protection will permanently relocate commercial inspection operations from the Castro LPOE to the newly constructed dedicated commercial Douglas LPOE. 

The project is set to significantly expand commercial vehicle inspection capacity and allow the processing of oversized mining equipment too large to cross through the Castro LPOE. The expansion will significantly increase efficiency and security, improving the flow of commercial and passenger traffic at the port, enhancing border security measures, and reducing wait times. The new infrastructure is designed to support the latest technology in CBP operations.

The upgraded facilities are also expected to bolster economic activity by streamlining trade and travel between the United States and Mexico. This project supports local businesses and communities reliant on cross-border commerce.