Business, Freight News, Sea

Port Freeport new Gulf hub for Volkswagen

[ October 5, 2022   //   ]

Volkswagen Group of America, Inc. (VWGoA) announced Port Freeport as the new major Gulf Coast hub for its future vehicle logistics port operations, in collaboration with Port Freeport and developer PRP and KDC. With a 20-year lease agreement, Volkswagen Group of America aims to further improve vehicle logistics efficiency and increase importation capacities to serve nearly 300 dealers in the United States.

The new port facilities are set to be operational in early 2024. Volkswagen Group of America, Port Freeport and developer KDC aim to break ground on the new location in late 2022 and expect for the facility to be operational in early 2024.

 Current VWGoA port operations in Houston and Midlothian, Texas, will be consolidated into the new hub at Port Freeport. Developing Port Freeport will enable Volkswagen Group of America to import approximately 140,000 vehicles per year, primarily from its production hubs in Mexico, as well as imports from Europe.

Port Freeport will allow utilization of low-emission LNG vessels, supporting Volkswagen Group’s goal to improve the environmental footprint of its global logistics.

“Moving Volkswagen Group of America’s major Gulf Coast hub to Port Freeport is part of our network and growth strategy for the United States”, said Anu Goel, Executive Vice President, Group After Sales & Services, Volkswagen Group of America, Inc. “We’re continuously working to optimize the business and environmental impact of our logistics operations. Our new hub at Port Freeport will allow us to serve nearly one-third of our U.S. dealer network more efficiently and more sustainably. We couldn’t be more excited to work with Port Freeport and developer KDC on this next chapter.”

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