Daniel Covarrubias
LAREDO, TEXAS

PORT LAREDO

North America's busiest land port. $339 billion in trade. 20,000 daily truck crossings. The story of a border city that became a continental trade gateway.

DC
Daniel Covarrubias, Ph.D.
Texas Center for Border Economic and Enterprise Development · TAMIU
$0B

Annual trade (2024)

0+

Daily truck crossings

#0

U.S. land port by value

0M+

Sq ft logistics space

Geography & Strategic Position

Why Laredo

Laredo sits at the convergence of I-35 (the NAFTA Highway) and two major Mexican highways, just 150 miles from Monterrey — Mexico's industrial capital and the manufacturing engine of North America's nearshoring wave.

From Laredo, 80% of the U.S. population is reachable within 2-day ground delivery. The city is the gateway for the $2 trillion+ USMCA trade corridor and the natural strategic corridor where goods flowing north from Mexico meet the U.S. freight network.

For its second consecutive year, Laredo claimed the title of America's #1 trade port in 2024 — the first land crossing to ever hold that position, surpassing Los Angeles, Chicago, and JFK Airport.

Gateway for $2T+ USMCA trade corridor
150 miles from Monterrey, Mexico's industrial capital
80% of U.S. population within 2-day delivery
Convergence of I-35 and two major Mexican highways
#1 U.S. trade port two consecutive years (2023-2024)

“The nearshoring phenomenon isn't happening despite the border — it's happening because of it.”

Infrastructure Breakdown

The Four Bridges

Laredo's four international bridges provide critical capacity for cross-border commerce. Combined, they operate at roughly 40% total capacity — leaving significant room for growth.

World Trade Bridge

Commercial trucks

~80% of commercial traffic

Opened in 2000, celebrating 25th anniversary in 2025. The primary artery for U.S.-Mexico commercial truck traffic.

Colombia-Solidarity Bridge

HAZMAT, overflow

17.5% capacity utilization

Authorized for hazardous materials transport. Significant room for commercial growth as nearshoring demand rises.

Laredo-Nuevo Laredo (Bridge I)

Mixed traffic (Gateway to Americas)

Oldest crossing

The original Gateway to the Americas crossing — handling mixed commercial and passenger vehicle traffic since 1956.

Laredo-Nuevo Laredo (Bridge II)

Pedestrian / vehicle

Non-commercial

Primarily serves pedestrian and non-commercial vehicle crossings between the two Laredos.

World Trade Bridge opened in 2000, celebrating its 25th anniversary in 2025. Colombia bridge is authorized for hazardous materials.

What Crosses Through Laredo

Trade Flow

Top U.S. Ports by Trade Value (2024)

Source: U.S. Census Bureau, 2024

Mode of Transport (2024)

Truck: 85.1% ($282B)
Rail: 14% ($46.4B)
Air/Other: 0.9% ($2.8B)

Source: BTS / Census Bureau, 2024

Port Laredo handled 40% of all U.S.-Mexico trade and processes 23% of all commercial truck crossings into the United States.

The Billion-Dollar Bet

The Industrial Transformation

Laredo is experiencing an industrial construction boom that is fundamentally reshaping the city's physical and economic landscape. National-scale tenants — VanTrust, Phelan, and institutional logistics investors — are arriving with capital at scale.

2018 baseline
36-40M sq ft

Mostly aging, undersized facilities

2025 present
50M+ sq ft

Across 59 active industrial parks

Construction pipeline
11.3M sq ft

247% increase from mid-2024

Since 2020
1,500+ acres

Developed in North Laredo + Colombia

Land & infrastructure
$375M+

Estimated investment in land alone

Built on top
$700M+

Structures and facilities investment

Total investment trajectory: approaching $1B+

Land, infrastructure, and built facilities combined represent the largest capital deployment in Laredo's history — transforming a transit point into a distribution hub.

“For decades, Laredo was the gateway goods passed through. The question now: what if the most efficient place to distribute isn't 250 miles north — but right here at the border?”

Gateway to Distribution Hub

First-Touch Advantage

The “distribution-plus” thesis from the “Beyond the Gateway” op-ed, co-authored with Dr. Gastón Cedillo-Campos, challenges the dominant model of cross-border logistics.

TRADITIONAL MODEL
Mexico FactoryCross at Laredo
Truck ~250 miles to Dallas/Houston distribution center
Sort, redistribute, ship nationwide
Double handling · 48-72 hours · Extra 250-mile leg
FIRST-TOUCH MODELFASTER
Mexico FactoryCross + Distribute at Laredo
Ship direct to final market
Single touch · 4-6 hours · No repositioning leg
80%

of U.S. population within 2-day ground delivery from Laredo

250 mi

repositioning leg eliminated — reducing time and cost

50M+

sq ft warehouse space to support distribution operations

Economic Logic

Distribution Routes

Mexico is now America's largest trading partner, surpassing China for the first time in two decades. Laredo sits at the center of this shift.

+30%
Truck crossing increase
2019-2024
3M+
Annual crossings
through Laredo
~40%
US-Mexico trade share
via Laredo corridor

Distribution Routes from Laredo

Hover over cities to see drive times.

Detroit
Atlanta
Indianapolis
Los Angeles
Denver
San Francisco
LAREDO
Laredo Hub
East
West

Regional Connectivity

MonterreyLaredo
140 mi3 hours
LaredoSan Antonio
150 mi2 hours
LaredoAustin
220 mi3 hours
LaredoHouston
310 mi4.5 hours
Network Effects

Workforce & Network Effects

A self-reinforcing ecosystem where growth begets growth — and Laredo's workforce stands at the center.

1/3
of local jobs

Trade, transportation, and warehousing employ one-third of Laredo's workforce — the highest concentration of any major U.S. metro.

+20%
workforce growth

Logistics workforce expanded 20% from 2007-2017 and continues growing — outpacing national averages in the sector.

The Reinforcing Cycle

Network effects create a virtuous cycle: each new investment strengthens the case for the next.

Step 1: Distribution Centers

Growing warehouse and fulfillment footprint

Operational Advantages

Beyond location, Laredo offers structural benefits that compound over time.

FTZ 94

Duty deferral on imports, exemptions on re-exports

Carrier Density

Ensures reliable capacity and service options

Backhaul Market

Creates competitive rates for all directions

Direct Control

Operational autonomy vs 3PL dependency

DC

Daniel Covarrubias, Ph.D.

Director, Texas Center for Border
Economic & Enterprise Development

TAMIU A.R. Sanchez Jr. School of Business

Education

  • Ph.D. — Deusto Business School (Spain)
  • M.A. Political Science — TAMIU
  • MBA — UTSA
  • BBA — Monterrey Tec

Board Positions

  • TRB Standing Committee on International Trade & Transportation (National Academies)
  • CBP COAC Cross-Border Recognition Working Group
  • US-Mexico Foundation C2B+ Smart Borders Working Group

Media

Wall Street Journal, Texas Standard, PBS

Explore the Port Laredo Story

Dive deeper into the research, get the book, or join the conversation on cross-border trade and border innovation.

dcova@tamiu.edu| 956.326.2520

Texas Center for Border Economic & Enterprise Development • Texas A&M International University