Exclusive: There Will Be Trade: FTZ No. 12 Eyes Port Mansfield

FTZ News: Foreign-Trade Zone No. 12 has extended its reach into Willacy County and Port Mansfield, opening the door to new possibilities for cross-border trade in South Texas. Mark Garcia, the zone’s president and CEO, says the Alternative Site Framework can help companies move from site designation to activation in about two to three months. In this interview, he discusses Port Mansfield’s potential role in cargo activity, the advantages of the region’s connections to the Pharr and Anzalduas bridges, and how the FTZ program can help businesses manage duties and inventory. Whether the expansion translates into new operating sites will ultimately depend on companies’ decisions to invest and use the zone.



1. When the Foreign-Trade Zones Board approved the expansion of the Alternative Site Framework boundary into Willacy County and Port Mansfield after roughly 13 months of review, what was the first reaction you heard from companies or local officials? 


There was quite a bit of excitement from the entire community. The process which took over a year to complete, had the full support of the County Judge and the City of Raymondville, Texas. We were constantly being asked about the status of the application, but without any concrete information from the Board in D.C., there wasn't anything we could positively convey other than we're eagerly awaiting the decision. 



2. For a manufacturing or logistics company that wants to set up a site in the new Willacy area, how much shorter is the path from the initial contact to actual site activation, and what steps does the company still have to go through? 


Well, the good thing about operating under the alternative site framework is that we can go from designation to activation in approximately 2-3 months. Once a company wants to pursue designation, we as the Grantee will submit an application to the Board in Washington D.C. asking them to formally designate our client's site as an FTZ. Once designated and approved, we will then request activation from our local CBP port officials. Throughout this process, we work closely with the company guiding them and ensuring they understand all program requirements.  



3. What role does Port Mansfield play in this expansion, and do you expect any of the zone’s cargo to move through the port?


We fully support the Port of Mansfield, and will continue working with them to develop a strategy to bring potential investors to the port. Once we have identified users, we can then work with them and identify opportunities by using the FTZ program and help them become successful. Operating as an FTZ may not be a fit for everyone. 



4. How does the Willacy expansion relate to the work underway on roughly 1,800 acres of industrial land in North McAllen, and do you see the two as parts of a larger plan?


The property in North McAllen is approxmately 1288 acres is not directly related to what we're doing in Willacy County, but it is part of our overall expansion strategy to bring FTZ designation and services to more business througout our region. 



5. For a company that brings goods in from Mexico or ships goods to Mexico, what practical difference does it make that Willacy County is now inside the zone’s service area?


Port Mansfield has more of an opportunity to see international cargo activity, so we knew that had to be a large part of our economic justification when we applied. Bringing in foreign cargo to the port whether north or southbound without paying duties until it's brought into the commerce of the US is a huge money saver to the companies. The data centers can also benefit by bringing in their equipment if sourced from a foreign supplier, and defer duty payments until the production equipment is ready turn on. That can be a huge benefit to a company's cash flow especially during ramp up. 



6. How are you prioritizing the Willacy expansion alongside the zone’s existing activity in McAllen, and how many new sites do you expect to see activated in that area over the next 12 months?


I can't say what we may see in store for Willacy County in the next 12 months, but I can tell you that things look very positive for both Willacy County and McAllen. We continue to see interest in Willacy, and are currently working with several new and existing companies in the McAllen area that are requesting designation due to the current trade and tariff environment. 



7. Foreign-Trade Zone No. 12 has access to the McAllen–Hidalgo, Pharr, and Anzalduas international bridges. What does that connectivity offer an investor looking at the zone?


There is a huge benefit to being located near 3 international bridges, especially when 2 of the 3 currrently move truck cargo. Pharr, Tx is one of the most active ports along the border, and Anzalduas will be online very soon to support north bound trucks crossing as well. Our FTZ is strategically located between both bridges, so we can support companies both in the U.S. and Mexico when it comes to cross border operations. 



8. The zone helps businesses manage inventory carrying costs, cash flow, and logistics operations, which matters for companies whose supply chains run between the United States and Mexico. Can you walk through how that works in practice?


It's a huge benefit for our manufacturers and 3PL's operating here on the border. We have an enormous amount of manufacturing just south of the border in Reynosa, MX and the FTZ plays a big role in managing south bound freight from suppliers all over the world. We manage a large amount of consignment and VMI inventory that will ultimately cross into Mexico for production. The FTZ #12 essentially admits foreign cargo, receives it and makes it ready for picking by the manufactureres in Reynosa. We ship daily raw materials to surpport productions lines and receive finished products in return. The ability for our clients to import their production inputs free of duty is a game changer for the success of the twin plant model./.

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