Ryder opens new Texas logistics hub to bolster US-Mexico trade

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Ryder opens new Texas logistics hub to bolster US-Mexico trade
Credit: © Reuters.

LAREDO - Ryder System, Inc. (NYSE: R ), a major player in logistics and transportation, has inaugurated a new facility in Laredo, Texas, and expanded its operations across the border in Nuevo Laredo, Mexico. The move comes as the ports of Laredo and Nuevo Laredo rise to prominence as the top inland transborder trade port between the United States and Mexico.

The newly constructed 228,000-square-foot warehouse and cross-dock in Laredo, situated just three miles from the World Trade Bridge, features 102 dock doors and space for 143 trailers. This strategic location aims to support the increase in nearshoring activities, a trend that has seen significant growth since the pandemic, with truck border crossings up over 20% annually.

Ricardo Alvarez, vice president of supply chain operations for Ryder Mexico, highlighted the benefits of nearshoring, noting that it can significantly reduce lead times compared to overseas manufacturing, with goods reaching final-mile distribution centers within days.

The expansion of Ryder's Nuevo Laredo drayage yard is set to enhance the efficiency of freight transfers across the border. Ryder Mexico is responsible for managing over 250,000 freight movements annually and operates around five million square feet of warehouse and yard space across Mexico, catering to industries such as automotive, industrial, technology, and consumer packaged goods.

Frank Bateman, another vice president of supply chain operations at Ryder, emphasized the flexibility of the new Laredo warehouse for customers seeking scalable logistics solutions. Ryder's services include integrated port-to-door supply chain solutions, transportation logistics, and real-time visibility with RyderShare™ technology.

The information in this article is based on a press release.

InvestingPro Insights

Amidst the strategic expansion of Ryder System, Inc. (NYSE:R) in the bustling transborder trade hubs of Laredo and Nuevo Laredo, the company's financial health and market performance provide additional context for investors. With a market capitalization of $4.82 billion and a price-to-earnings (P/E) ratio of 10.32, Ryder presents an interesting valuation in the logistics sector. The adjusted P/E ratio for the last twelve months as of Q3 2023 stands at 17.31, indicating a shift in earnings valuation over the recent period.

InvestingPro Tips suggest that Ryder's management has shown confidence in the company's future through aggressive share buybacks, a sign that could be interpreted as a positive signal for investors. Additionally, the company has demonstrated a strong commitment to shareholder returns, having raised its dividend for 19 consecutive years. This consistent dividend growth, which was 14.52% for the last twelve months as of Q3 2023, is a testament to Ryder's financial resilience and strategic planning.

While the company's revenue growth saw a slight dip of -3.66% in Q3 2023 on a quarterly basis, the overall revenue for the last twelve months as of Q3 2023 reached $11.85 billion with a gross profit margin of 19.72%. These figures underscore Ryder's capacity to generate earnings and maintain profitability in a competitive industry.

For investors seeking further insights and analysis, there are additional InvestingPro Tips available on InvestingPro. By using the coupon code PRONEWS24, readers can take advantage of an extra 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking even more valuable investment information.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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