DHL Global Forwarding expands service offerings in El Paso, Texas facility

Earlier this week, DHL Global Forwarding, an air and ocean subsidiary of Deutsche Post DHL Group, said it has expanded its El Paso, Texas-based facility, with the addition of air freight, ocean freight, Foreign Trade Zone (FTZ), and cross-border services.

DHL officials said that the Southern region represents one of the largest manufacturing centers in North America, and it is largely due to El Paso’s unique bi-cultural and bilingual workforce. They added that according to the City of El Paso, the city stands out for being the largest metro area along the Texas-Mexico border and the sixth-largest city in Texas.

Alejandro Palacios, RVP of the South Region for DHL Global Forwarding, told LM that the company’s driver for this expansion stemmed from the large amount of sustained and increasing trade at the United States-Mexico border, in various point of entry across the border.

“Two years ago, the decision was made to invest on expanding our capabilities (talent and infrastructure) along the United States-Mexico border in order to service our customers,” he said. “Many customers are large multinationals with who we have established relationships, as well as their tier-two and tier-three suppliers. We have also developed strong relationships with various companies located in Mexico that needed subject matter expert logistics support, to design optimized solutions for their logistics needs… going beyond purely transactional movements of freight.”

What’s more, he said that El Paso is a growing city, with an already established large market in the U.S. and at various points south of the border, noting that DHL Global Forwarding benefits from a solid customer based to grow from, and the ability to attract experienced local talent. As an example, he pointed to how has set up an FTZ Center of Excellence with around 30 experts serving customers along the border and across the U.S.

Palacios highlighted that DHL Global Forwarding has brought a full suite of services to the market through its CBS (Cross Border Solutions) offering, allowing it to bring customers “all the pieces of the puzzle” together in a simple value proposition.

He said this includes multi-modal transport, customs clearance, FTZ, cross-dock and warehousing.

“We have found a gap when it comes to offering best-in-class services, with strong emphasis on compliance, security, experiences local leadership; this is the core strength of DHL,” he said. “Customers along the border benefit from a Global Logistics Leader that can offer true E2E solutions from the origin of raw materials or parts, to the delivery of final products. For example logistics solutions that start in Asia, go to Mexico, and end up in various destinations in the U.S. and elsewhere.”

When asked what the main benefits of the El Paso expansion are for shippers, Palacios pointed to DHL’s ability to act global and think local, as United States-Mexico southern border is a market where this is particularly important to customers.

“In many cases we are partnering with relatively small companies that have contracts with the largest, most demanding global multinationals,” he said. “DHL is able to understand and deliver on the needs of both audiences. The El Paso facility is staffed with seasoned leadership adequately empowered to make on the spot decisions, dedicated teams for each product; and recently remodeled facilities, that include a large, modern and secure warehouse.”

As for competitive advantages this expansion provides, Palacios said the biggest one that DHL offers in El Paso, and along the US-Mexico border, is the ability to offer the same level of expertise and infrastructure that customers would expect in its largest stations and markets in the U.S.

“We are now using our facility in El Paso as a showcase for customers and colleagues from our entire network,” he said. “DHL has a staff of local professionals that understand both the need of our customers and the complexities of a Global Network. DHL in EL Paso leverages our relationships with the largest carriers, and secures competitive rate for our customers, while ensuring the highest standards of compliance and security.”