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Borderlands: Developers capitalizing on booming California-Mexico trade

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Borderlands: Developers capitalizing on booming California-Mexico trade


Borderlands is a weekly rundown of developments on the planet of United States-Mexico cross-border trucking and commerce. This week: A improvement is capitalizing on the booming California-Mexico commerce; the Port of Galveston will obtain $11 million for a channel dredging challenge; a Canadian auto elements maker expands its Mexican plant; and Border Patrol rescues migrants locked in a railcar.

Landmark at Otay improvement capitalizing on booming California-Mexico commerce 

The world close to the Otay Mesa port of entry continues to be a Southern California industrial actual property sizzling spot.

Developer Majestic Realty Co. has begun development on the second part of its Landmark at Otay improvement being constructed close to the U.S.-Mexico border simply south of San Diego.

“Demand for actual property within the Otay Mesa space is white sizzling proper now,” Tom Simmons, vp of Los Angeles-based Majestic Realty Co., instructed FreightWaves. 

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The San Diego/Otay Mesa market is reaching “historic ranges” of demand for industrial actual property, in line with market analysis from Marcus and Millichap.

“San Diego’s industrial sector entered 2022 on a excessive word after customers absorbed 6.4 million sq. ft within the second half of final 12 months — a determine that exceeded the full from the prior 15 quarters,” Marcus & Millichap stated. “Heightened demand for warehouse and distribution house close to the U.S.-Mexico border fueled this sturdy degree of absorption with e-commerce retailers and logistics suppliers inking leases in Otay Mesa.”

Marcus and Millichap stated Otay Mesa emptiness charges are under 3%, in comparison with the nationwide emptiness charge common of 5.2%. The common hire within the space is forecast to be about $17.75 per sq. foot in 2022.

Simmons stated one more reason they’re seeing elevated demand within the space is as a result of availability is working out.

“San Diego is working out of actual property,” Simmons stated. “It has some vital geographical constraints; clearly you might have the Pacific Ocean within the west and you’ve got the border to the south. There’s additionally vital terrain from primarily mountains to the east after which Camp Pendleton navy set up, which is on the northern boundary of San Diego County.”

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The Landmark at Otay close to San Diego. (Photograph: Majestic Realty Co.)

The Otay Mesa port of entry totaled greater than $50 billion in commerce in 2021. It ranked because the second-busiest Mexico border crossing final 12 months with greater than 936,000 business vans. The highest business land crossing with Mexico in 2021 was Laredo, Texas, processing greater than 2.5 million vans.

The Otay Mesa port of entry can also be present process a $1.1 billion enlargement to construct a 3rd port of entry within the space, which shall be often known as Otay Mesa East or Otay II. The close by San Ysidro port of entry processes passenger autos solely. 

Otay II will create a brand new crossing 3 miles east of the unique Otay Mesa port of entry. Otay II will embody 10 lanes, 5 for passenger autos and 5 for cargo transport.

The aim is to scale back wait instances for vans on the Otay Mesa border crossing to a 20-minute common. Present wait instances common 150 minutes for business autos. Otay II is scheduled to be accomplished in 2024.

Simmons stated Majestic Realty Co. and Sunroad Enterprises have begun development on the second part of Landmark at Otay to reap the benefits of the elevated demand for house.

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Section II development is going down on 50 acres of the 67-acre improvement and features a 240,975-square-foot constructing and 235,085-square-foot constructing. Each services will function 36-foot ceiling clearance and 185-foot truck courtyard with particular person trailer storage.

Every constructing will even embody parking for 51 trailers, 40 dock-high doorways, and two ground-level doorways with ramps. Building is scheduled for completion in February 2023. Tenants at Landmark at Otay already embody International Logistics & Achievement, Exportalia, Avanza Loop, and Terry City.

“We’re seeing lots of curiosity from cross-border firms,” Simmons stated. “If all the things goes in line with plan and the brand new Otay border crossing opens in 2024, that may add one other business border crossing to serve the California market and we’re seeing these cross-border firms be sure they’re getting their investments in now.”

FreightWaves’ SONAR platform exhibits the West Coast regional tender rejection charges (OTRI.URWT) have plummeted as carriers rush to Southern California to reap the benefits of elevated truckload charges, miles and volumes.

Tender rejection charges measure the speed at which trucking firms settle for their electronically submitted load requests from their contracted shippers. Because the starting of January, tender rejection charges have fallen from close to 19% to 4% on the West Coast.

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Because the starting of January, tender rejection charges have fallen from close to 19% to 4% within the West. To be taught extra about FreightWaves SONAR, click on right here.

Port of Galveston to obtain $11M for channel dredging challenge 

The Port of Galveston will be capable to attain its full financial and business potential as a deepwater port with funds from the federal Infrastructure Funding and Jobs Act (IIJA), officers stated. 

The IIJA consists of $11 million in funding for dredging to increase and keep the Galveston ship channel to a depth of 46 ft.   

“This federal dedication is a sport changer for the Galveston Wharves, its tenants and personal operators on the channel,” Rodger Rees, CEO and port director of the Galveston Wharves, stated in a press release.  

The dredging challenge will lengthen the 46-foot depths to the tip of the Galveston ship channel, permitting vessels calling on privately operated terminals alongside the ultimate 2,500 ft of the channel to entry the permitted depths. The IIJA additionally consists of $25 million for 2023 upkeep.

“This channel extension and upkeep challenge will improve cargo exercise, strengthen the port’s competitiveness, create extra and higher jobs, enhance operational security and cut back emissions,” Rees stated. “The deepened channel will be capable to accommodate bigger vessels, which is vital as ships proceed to extend in measurement.”

The dredging challenge is scheduled to be accomplished by the tip of 2023. The Port of Galveston ended 2021 with complete business cargo of 5 million tons, its highest complete since 2016.

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Canadian auto elements maker expands Mexican plant 

ABC Applied sciences lately introduced a $40 million enlargement of its auto elements manufacturing facility in Ramos Arizpe, Mexico.

The enlargement will embody creating 170 jobs and including 53 plastic injection machines within the manufacturing facility. The plant at the moment employs about 429 folks. The enlargement is scheduled to be accomplished by the tip of the 12 months.

Toronto-based ABC Applied sciences (TSX: ABCT) is a Tier 1 producer and provider of customized plastics and elements for the North American auto trade, with purchasers resembling Ford, GM, Nissan, Honda and Stellantis.

ABC Applied sciences has 28 manufacturing services in North America, Europe and Asia. The corporate employs greater than 6,150 folks. 

Border Patrol rescues migrants locked in railcar

U.S. Border Patrol brokers rescued 50 undocumented migrants from inside a locked railroad automobile Tuesday in Del Rio, Texas.

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Border Patrol officers from the company’s Del Rio sector had been inspecting railcars parked on tracks close to Eagle Cross after they reportedly discovered 50 undocumented migrants locked inside.

The migrants had been recognized as 41 Honduran nationals and 9 Mexican nationals. They had been arrested and transported to a processing facility. 

“Migrants are usually not all the time conscious of the risks related to ways like these,” stated Jason D. Owens, Border Patrol’s chief patrol agent for the Del Rio sector. “With excessive temperatures, and summer time quickly approaching, the results may very well be lethal.”

Watch: FreightWaves’ shipper replace for April 15.

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Click on for extra FreightWaves articles by Noi Mahoney.

Extra articles by Noi Mahoney

Texas border bridges blocked as truckers protest inspections

Texas now inspecting all business autos coming into from Mexico

Texas automobile checkpoints gradual vans from Mexico

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California

How California’s high-speed rail line will advance in 2025

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How California’s high-speed rail line will advance in 2025


California’s high-speed rail project, which aims to connect San Francisco and Los Angeles with a 494-mile route capable of speeds up to 220 mph, aims to continue construction in 2025.

Phase 1 of the project focuses on linking San Francisco in the north to Anaheim via Los Angeles in the south, with plans to extend the line north to Sacramento and south to San Diego in Phase 2.

The California High-Speed Rail Authority, which is overseeing the project says it has already generated significant economic benefits, including creating over 14,000 construction jobs and involving 875 small businesses.

But despite its transformative goals, the project remains politically contentious, with critics questioning its costs and viability. It has been in development since voters approved funding in 2008 and has faced delays, cost increases, and shifting timelines.

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Composite image of trains and the California state flag. The state’s high-speed rail project will continue construction in 2025, despite Republican critics questioning its costs and viability.

Photo Illustration by Newsweek

Work Planned for 2025

In a statement to Newsweek, the California High-Speed Rail Authority outlined its planned work for 2025, which focuses on continuing construction in the Central Valley between Merced and Bakersfield.

The 171-mile segment between Merced and Bakersfield will be the first part of the line to be operational, with services expected to start between 2030 and 2033. Of that section, 119 miles are currently under construction.

Of the planned structures in the Central Valley section, 85 are underway or completed out a total of 93 on the segment. Work will continue on these structures as well as on the tracks capable of handling high-speed trains.

By the end of 2025, civil construction on the 119-mile segment currently underway is expected to be completed and construction will begin on the next stretches to Merced and Bakersfield.

In 2025, the authority also plans to advance design and begin construction on its stations in the Central Valley. It also expects to select a manufacturer for the trains.

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Although the initial operating segment will only run 171 miles from Merced to Bakersfield, environmental clearances have been obtained for 463 miles of the 494-mile Phase 1 route, completing the stretch between San Francisco and Los Angeles. Only the Los Angeles-to-Anaheim section is still awaiting approval.

California High Speed Rail Map
A map showing California’s proposed high-speed rail network from February 2021. The initial operating segment, between Merced and Bakersfield, is expected to begin services between 2030 and 2033.

California High Speed Rail Authority

The Authority said it plans to publish its draft environmental impact report for the Los Angeles-to-Anaheim section in 2025, a key milestone for the eventual full-approval of Phase 1.

More than $11 billion has been invested to date, with funding sources including state bonds, federal grants, and proceeds from California’s carbon emission trading auctions.

The authority has not yet received funding to construct the segments westwards from the Central Valley to the Bay Area or southwards to Los Angeles.

Despite this, the authority said it was committed to pushing on.

“California is the first in the nation to build a true high-speed rail system with speeds capable of reaching 220 mph,” the Authority told Newsweek. “The Authority remains committed and aggressive in moving this historic project forward while actively pursuing additional funding.”

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Political Opposition to the Project

Despite ongoing progress, the high-speed rail project continues to face political opposition, particularly from Republican leaders.

While President Joe Biden’s administration has invested billions in it since 2021, the incoming Republican administration, which will control the House of Representatives, the Senate, and the presidency, is unlikely to continue funding it at the same level.

Representative Sam Graves of Missouri, who chairs the House Transportation and Infrastructure Committee, has criticized the project’s costs and funding strategies.

In a statement to Newsweek, Graves described the rail line as a “highly troubled project” and raised concerns about its reliance on government subsidies.

California High Speed Rail Rendering
A rendering of one of the trains for California’s proposed high-speed rail project, which is currently under construction.

California High Speed Rail Authority

He pointed out that the current funding supports only a limited segment between Merced and Bakersfield, which he estimated will cost $35 billion.

“Full cost estimates [for Phase 1, between San Francisco and Anaheim] now exceed $100 billion and growing,” Graves said, calling for a comprehensive review of the project before any additional funding is allocated.

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“California high-speed rail must have a plan and prove that it can wisely and responsibly spend government money—something it’s failed to do so far.”

The congressman stated that over the next four years, he would oppose any further federal funding for the California high-speed rail project.

Instead, Graves advocated for efforts to redirect unspent funds and focus on improving existing transportation infrastructure, such as Amtrak.

Graves also emphasized the need for private-sector involvement in future rail projects, citing Brightline’s operations in Florida and Las Vegas as a successful example of private investment.

While Graves acknowledged the potential of high-speed rail, he argued that the California project has failed to meet the necessary criteria for viability and local demand.

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The authority told Newsweek it would engage with the federal government to seek other funding sources.

“We continue to explore strategies aimed at stabilizing funding, potentially allowing the program to draw private financing and/or government loans,” it said.



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Hawaii resident flies to California to clear name from identity theft

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Hawaii resident flies to California to clear name from identity theft


HONOLULU (HawaiiNewsNow) – A Honolulu man who had his identity stolen had to fly to California to clear his name. He acted quickly to stop his bank account from being completely drained.

Jamie Dahl said he’s speaking out because identity theft can happen to anyone and he’s not sure how his personal information was stolen.

“I’m still mystified how he pulled it off,” Dahl said.

In late November, Dahl found some fraudulent charges on his credit card so he ordered a replacement card.

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Two weeks later, he says went to his online bank account with Bank of America and discovered his identity had been stolen. The hacker had account access for instant money transfers.

“My phone number is missing, my email is missing, my mailing address. I live in Honolulu. It’s Mililani,” Dahl said.

He knew he was in trouble.

Dahl said two days after his discovered his identity had been stolen, he had to fly to California to clear his name because there are no Bank of America branches in Hawaii.

He brought several forms of ID to re-authenticate himself.

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“It was just an incredible ordeal,” he said.

“The bad guys are shopping just like everybody else for Christmas,” said former HPD Deputy Chief John McCarthy, who investigated cybercrime.

McCarthy says check your bank account daily and having a local bank is helpful.

“If you don’t have a local bank, you are that much father away. I’ve had problems with banks that are on the East Coast,” he said.

“It takes a day to communicate with them, a day to get a response. That’s a lot of damage you can do in 24, 48, 72 hours,” McCarthy added.

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McCarthy says most banks have streamlined their re-authentification process so you don’t have to see them in person.

Hawaii News Now contacted Bank of America to find out their process and are waiting to hear back.



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California high surf and flood warnings continue after pier collapse

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California high surf and flood warnings continue after pier collapse


What’s New

California’s coastal residents are facing dangerous conditions this Christmas Eve as high surf and flood warnings continue after heavy waves caused a pier to collapse on Monday.

Why It Matters

Portions of the Pacific coast are currently under hazardous seas warnings, high surf warnings and coastal flood warnings as it is shaping up to deliver some of the most severe surf conditions of the winter season, according to the National Weather Service (NWS) office in Portland.

The NWS issued a high surf warning, with waves reaching up to 35 feet, which can pose significant risks to both property and lives.

“Large waves can sweep across the beach without warning, pulling people into the sea from rocks, jetties, and beaches,” the agency warned in a Christmas Eve bulletin.

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The alert remains in effect until Tuesday evening, prompting evacuations and heightened vigilance in several coastal communities.

What To Know

The NWS warnings come after a municipal wharf in Santa Cruz that was under renovation succumbed to a storm’s force. Around 150 feet of the structure collapsed into the Pacific, pulling three engineers inspecting the site into the water. All three individuals survived with two rescued by lifeguards and one swimming to safety.

A building floats in the ocean after a wharf partially on December 23, 2024, in Santa Cruz, California. This Christmas Eve, California’s coastal residents are facing dangerous conditions as high surf and flood warnings continue.

Shmuel Thaler/The Santa Cruz Sentinel/ AP

Santa Cruz Mayor Fred Keeley said that section of the pier had been damaged over time, and the structure was in the middle of a $4 million renovation following destructive storms last winter.

Tony Elliot, Santa Cruz Parks & Recreation Department head, confirmed that the severed portion of the wharf, which included restrooms and a closed restaurant, drifted nearly half a mile before settling in the San Lorenzo River.

In response, coastal towns including Santa Cruz have evacuated vulnerable homes and hotels as the state braces for more damage.

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What People Are Saying

Keeley said Monday: “We are anticipating that what is coming toward us is more serious than what was there this morning.”

The National Weather Service’s Bay Area office said in a post on X (formerly Twitter): “You are risking your life, and those of the people that would need to try and save you by getting in or too close to the water.”

The NWS office in Portland, Oregon, said in a post on X:“It will likely go down as some of the highest surf this winter.”

California Governor Gavin Newsom’s press office posted to X on Monday afternoon, saying that he is aware of the situation with the pier.

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“@CAGovernorNewsom has been briefed on a previously damaged section of the Santa Cruz pier that broke off due to heavy surf. @Cal_OES is coordinating with local officials and is ready to provide support,” Newsom’s press office wrote. “Residents and visitors should avoid the area and follow local guidance.”

What Happens Next

As California residents grapple with these dangerous conditions, meteorologists warn that the storm’s high surf may be the most intense of the season.

With more severe weather expected, officials are urging the public to heed warnings and avoid risky coastal areas.

This article includes reporting from The Associated Press.

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