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UTi adds US-Mexico border logistics service suite

By Nick Taylor , 24-May-2011
Last updated on 24-May-2011 at 12:23 GMT

Logistics provider UTi Worldwide has set up a US-Mexico transport service to support clients producing goods south of the border.

UTi has logistics facilities in Mexico and the US and the new service aims to links these assets to cut the time and hassle associated with cross-border distribution. It is hoped speeding and simplifying logistics will make Mexico a more practical site for manufacturing facilities.

"The new border service and its combined infrastructure are designed to assist companies in leveraging lower cost manufacturing and better 'near shore' options", said Jeff Hammond, global vice president, trade services and compliance at UTi.

Outsourcing US-Mexico transit to UTi gives the logistics provider responsibility for many of the tasks associated with cross-border transport. For instance, UTi handles Mexico customs brokerage documentation and harmonised tariff schedule (HTS) verification.

The suite also includes general UTi logistics services, such as automated track and trace. Packaging these offerings with border-specific services allows UTi to meet growing demand for US-Mexico distribution.

"As cross border trade continues to grow, we recognize a faster and more efficient cross border surface transport service is required to handle the growing trade between the United States and its North American Free Trade Agreement partners”, said Hammond.

UTi has US multi-client distribution centres in McAllen and Laredo, Texas. In Mexico UTi has seven third-party logistics facilities in: Chihuahua, Guadalajara, El Paso, Reynosa, Monterrey, Matamoros, and Toluca.

South African expansion

UTi Pharma, the South African pharma unit of UTi Worldwide, is building a warehouse and distribution centre in Johannesburg, South Africa, reports Business Day .

The R530m ($75m) centre is due to open in October 2012 and will triple the company’s distribution capacity in South Africa, helping it meet double-digit growth in demand.

Rob Botha, chief operating officer and incoming CEO at UTi Pharma, said: "The increased storage capacity will facilitate organic growth and guarantee our ability to service our existing manufacturers for the next 15 years.”

UTi acquired the South African assets in 2004 when it bought International Healthcare Distributors (IHT), a pharmaceutical logistics company jointly owned by 11 major pharma companies.

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