The Valley makes use of a dozen ports of entry for commercial cross-border trade, with Hidalgo County home to two of the most important crossings for produce in the nation: the Pharr International Bridge and the Anzalduas International Bridge.
The city of Pharr continues to compete with Nogales, AZ to be the largest U.S. port of entry for Mexican produce. With the completion of the Baluarte Bicentennial Bridge in Mexico in 2012, linking Sinaloa to Durango, travel time from the Mexican coast to Reynosa (and, by default, distributors and shippers on the U.S. side) has been cut by four to six hours. As a result, transportation costs have also shrunk by $500 to $1,500 per load.
This means Pharr, which boasts easy access to markets in the Midwest and Northeast, is quickly becoming the belle of the produce ball. An added bonus regards truck weight—in 2015 the Texas legislature passed a bill that allows overweight trucks from Mexico to cross over on the Pharr Bridge, which means they no longer have to unload a third of their cargo before crossing. Instead, they can use designated routes to reach warehouses in Pharr, McAllen, or Mission.
Wholesale Happenings
Despite all the produce coming across the border and grown nearby, only one Valley city has a terminal market (at least so far). The McAllen Produce Terminal Market, owned and operated by the Abasto Corporation, is conveniently located—just a stone’s throw from the Hidalgo International Bridge.
Given the flow of produce imports, the terminal market offers plenty of warehouse space to receivers and distributors, from 1,400 to 20,000 square feet.
There is also ample cold storage all around the terminal market in McAllen and the surrounding area, as well as opportunities to consolidate loads.
Pluses and perks
As for doing business in the Valley, people in every aspect of the industry from growers and wholesalers to shippers and retailers say the advantages outweigh the downsides.
“This location has a major impact on our industry,” says Richard Ruiz, president and CEO of Pharr-based Ruiz Sales, importer and distributor of fresh produce from Mexico and South America. “We can load our fresh produce daily, with a competitive freight price for on-time delivery to major Midwest and East Coast cities.”
Tony Incaviglia, vice president of sales and marketing at GR Fresh, based in Torreón, Mexico but with an office in McAllen, agrees, noting that the Mazatlán-to-Matamoros superhighway, which opened in 2014, has had a favorable impact on business.
“There’s more focus on McAllen from a produce standpoint,” Incaviglia explains, and “more value because of logistics.”
