U.S./Mexico Cross Border
Supply Chain News
Union Pacific and Norfolk Southern Railroads Announce Plans for a Merger
Union Pacific (UP) and Norfolk Southern (NS) Railroads announced plans to merge and form the first transcontinental railroad in the U.S. The merger, if approved by regulators and shareholders, will result in a railroad with approximately 43% U.S. market share and $36 billion in revenues, and connect over 50,000 route miles and 100 Ports from the East Coast to the West Coast. According to Gene Seroka, Executive Director, Port of Los Angeles (POLA), the merger would make the POLA more competitive with East Coast Ports, providing seamless transit to Eastern cities. Today, UP hands off cargo to East Coast railroads at interchange points (e.g., in Chicago), which causes delays. The combined company will be renamed the Union Pacific Transcontinental Railroad and headquartered in Omaha, NE. The companies aim to close the transaction in 2027. Read more at Logistics Management and AJOT.
UP to Launch Faster Intermodal Rail Service from the SoCal Inland Empire to Chicago
Union Pacific Railroad (UP) announced the launch of a faster domestic intermodal service linking SoCal’s Inland Empire Intermodal Terminal (IEIT) to the Global 2 Terminal in Chicago starting next month. UP says the new high-priority Z-train service will be up to 20% faster “than current industry options,” with a transit time of just over three days. Kenny Rocker, UP’s Executive VP of Marketing, stated: “As we continue expanding IEIT, this service will deliver consistent, reliable, and truck-competitive transportation, challenging the norms of over-the-road shipping and competing head-to-head with team driver truck services,”. The IEIT Terminal, adjacent to the West Colton hump yard, has a capacity of 120,000 annual lifts and is within 10 miles of the 625 million SF of warehouse space in the Inland Empire. The IEIT is key for UP. Containerized imports are trucked from the ports of Los Angeles and Long Beach to Inland Empire warehouses for transloading into domestic containers before riding the rails to inland destinations. Read more at trains.com.
The Hub Group to Acquire Marten Transport’s Intermodal Division and Temperature-Controlled Fleet
The top intermodal and drayage carrier, the Hub Group, announced the acquisition of Marten Transport’s Intermodal Division, which includes about 1,200 refrigerated containers for $51.8 million. The deal will more than double the size of the Hub Group’s temperature-controlled intermodal fleet and enable the offering of refrigerated intermodal services in Mexico to customers after the close of the deal, expected by the end of the 3rd quarter. Phil Yeager, Hub Group, CEO, stated, “This opportunity aligns with our long-term investment strategy, expands margin, and preserves capital flexibility. We are committed to sustaining the strong service and growth momentum of our leading temperature-controlled intermodal offering”. Read more at Transport Topics.
Greenlane Announces Plans for Second Heavy-Duty Truck EV Charging Corridor in SoCal
Greenlane Infrastructure announced plans for a second commercial electric vehicle (EV) charging corridor to be located along Interstate 10 connecting SoCal to Phoenix. In April of last year, Greenlane, a joint venture between Daimler Truck, NextEra Energy and BlackRock, announced its first heavy-duty truck EV charging corridor in SoCal along Interstate 15 along the 280 miles from Los Angeles to Las Vegas, with charging stations 60-90 miles apart at Colton, Barstow, and Baker, enabling day-cab drivers shorter charging sessions at each stop. The charging station at Colton, next to San Bernardino in the Inland Empire, opened in April and serves as an anchor for both corridors. Read more at Transport Topics.
Remaining Nikola Zero-Emission Truck Assets and Intellectual Property Sold
The intellectual property (IP) and remaining assets of bankrupt zero-emissions truck maker Nikola were sold to Hyroad, a hydrogen trucking-as-a-service provider. The sale included new hydrogen fuel cell electric vehicle (FCEV) tractors, raw material and subassembly inventory, and Nikola’s IP, including patents, proprietary truck management software, trade secrets, designs, research and development data, trademarks, customer data, and license agreements. Nikola, which launched production of its TRE Class 8 Battery Electric Vehicle in 2021 and Class 8 Hydrogen FCEV in 2023, filed for Chapter 11 bankruptcy in February 2025. The Nikola manufacturing facility in Arizona was sold to the Lucid Group in April 2025. Read more at Transport Topics.
DSV Celebrates the Groundbreaking of Its New Cross-Border Logistics Hub
Top Logistics Company DSV celebrated the groundbreaking of its newest facility in Laredo, TX, on July 22, 2025. The nearly 900,000 SF high-tech facility represents a relocation and expansion of DSV Laredo’s existing operations, with the addition of Contract Logistics, further strengthening this hub for warehousing and transportation across the US and into Mexico. It will support a variety of industries, including consumer products, technology, and industrial equipment. The facility includes 853,000 SF of warehouse space, 40′ clearances, 85 dock doors, 4 ramp doors, and pallet racking and floor storage. Josh Summers, President of DSV, stated, “Today marks a milestone in our commitment to driving cross-border commerce and strengthening supply chain reliability to our customers. This new warehouse is a strategic investment in the region with opportunities for growth, and we’re proud to be part of the community.” Read more at DSV.
SoCal Industrial Real Estate Demand Forecasted to Outgrow Supply over the Next 3 Years
In a recent survey of commercial real estate developers and financiers in the SoCal industrial real estate market, respondents expect demand to grow faster than supply over the next three years. The Summer 2025 Allen Matkins/UCLA Commercial Real Estate Survey and Index, a potential leading indicator of future industrial construction, indicates a positive and improving Developer sentiment in the Los Angeles, Orange County, and Inland Empire regions. The biannual survey, taken this Summer 2025 after the announcements of import tariffs and the Eaton & Palisades fires, which devastated parts of Los Angeles and destroyed over 16,000 structures, compiles the views of supply-side participants of a 3-year time horizon (2025-2028) – chosen to approximate the average time for completion of a new commercial project. Most respondents alluded to the rising costs of construction, rising interest rates, and volatilities regarding tariffs. Overall, the survey reveals trends that highlight cautious optimism, underpinned by stabilizing vacancy rates and generally increasing rental rates.
E-commerce is a major driver of expected industrial development over the next three years, with approximately 20% of respondents expecting to redevelop or repurpose existing office space for industrial use. The industrial market is holding strong with a particular focus on non-infill areas, such as Banning/Beaumont and the high and low desert areas in the Inland Empire. About 83% of the respondents expect a higher or similar percentage of equity participation for their firms in the next 2 years, while about 93% expect their IRR threshold to increase or stay the same in Southern California. Read more at Allen Matkins/UCLA.