Volkswagen of America Announces A Major Change To Vehicle Logistics
Photo credit: Volkswagen
Volkswagen makes a major announcement by naming Port Freeport as one of their major vehicle logistics port operations centers on the Gulf Coast. This major opportunity comes thanks to the collaboration of Port Freeport and developer PRP and KDC. The automaker proposes to further improve the efficiency of its vehicles and have a large import reach that will serve approximately 300 dealers in the U.S. The facility will be operational in the U.S. by early 2024. Let’s explore this a little more about this announcement.
Port Freeport has achieved 6th place in chemicals, 11th place in the U.S. for foreign seaborne tonnage, and 26th place in containers, making Port Freeport the leading port for the export of crude oil and natural gas liquids. Texas A&M Transportation conducted economic outreach studies in 2019 which revealed that Freeport Harbor Channel has generated between 279 and 780 jobs, and economically produced 149 million dollars in economic output. While KDC for 30 years has developed a corporation for companies from all over the United States and has produced 33 million square feet approximately which have a value of 9,000 million dollars which makes it a leader in investments. In addition, KDC is also committed to the development of upcoming businesses through mixed-use customer linkages and the development of urban environments.
Volkswagen Group of America together with Port Freeport and developer KDC later this year will begin construction of its new facility which will be operational by early 2024. The automaker will consolidate its port operations located in Houston and Midlothian into the new Port Freeport facility, and the development will enable Volkswagen to import 140,000 vehicles to production sites in Mexico and production sites in Europe. To support Volkswagen’s goal of improving its environmental logistics footprint, Port Freeport will enable the use of low-emission LNG carriers.
“We are continuously working to optimize the business and environmental impact of our logistics operations. Our new Port Freeport facility will allow us to serve nearly one-third of our U.S. distributor network more efficiently and sustainably. We couldn’t be more excited to work with Port Freeport and developer KDC on this next chapter,” announced Anu Goel, executive vice president of aftermarket and group services, at Volkswagen Group of America, Inc.
In the U.S., Volkswagen has eight ports that have been chosen to reduce transportation emissions and optimize its 1,00 dealerships. Volkswagen’s upcoming projects with Port Freeport are expected to create 113 jobs at the terminal facilities, and indirectly create more jobs related to road transportation, rail, ship unloading, and many more. To select an ideal site for the installation of the ports in the Gulf of Mexico, Volkswagen Group of America will be assisted by its exclusive real estate partner, JLL.
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