Infrastructure Investment at the Border—Progress, Bottlenecks, and Solutions

Border Infrastructure

When it comes to U.S.-Mexico trade, infrastructure is the backbone of economic growth. Ports of entry, highways, and railways dictate the efficiency of supply chains and the success of nearshoring strategies. Billions of dollars in goods flow between both countries daily, yet bottlenecks—whether in outdated facilities, underfunded projects, or bureaucratic red tape—continue to hinder progress.

Progress in Key Projects

Major investments are in motion. The recently expanded Otay Mesa East border crossing in California promises faster trade processing, while the Laredo-Colombia Solidarity Bridge expansion aims to alleviate congestion at one of the busiest land ports in North America. Arizona is also seeing significant upgrades at Nogales and Douglas, designed to facilitate commercial trade. Private and public partnerships are fueling these projects, but delays in funding and construction still slow momentum.

Bottlenecks Holding Trade Back

Despite these efforts, critical bottlenecks remain. Customs processing inefficiencies, security delays, and outdated technology create congestion that costs businesses millions in lost productivity. The challenge isn’t just physical infrastructure—it’s policy. The lack of a coordinated strategy between federal, state, and private stakeholders leads to fragmented investments instead of a comprehensive, integrated plan for long-term growth.

Innovative Approaches: Learning from SouthBridge

One way to accelerate infrastructure investment and maximize its impact is through private-sector-driven solutions, like what I'm working on with Intermestic SouthBridge. This project is a case study in how targeted infrastructure investment can support nearshoring by integrating logistics hubs with efficient cross-border connectivity. By linking Arizona’s semiconductor industry with Nogales, SouthBridge addresses two of the biggest nearshoring challenges: reliable energy and security.

Another innovation that should be scaled is digitizing border crossings with real-time tracking and AI-assisted customs inspections. Using advanced technology, Mexico and the U.S. could significantly reduce wait times and increase trade flow efficiency. Some pilot programs exist, but widespread adoption is slow due to regulatory hurdles.

The Impact on Nearshoring and Local Communities

For companies looking to nearshore operations to Mexico, infrastructure remains a make-or-break factor. Faster processing at ports means supply chains move seamlessly, reducing costs and boosting competitiveness. However, for local communities, infrastructure projects bring both opportunities and challenges—job creation, economic investment, and workforce development must be balanced with sustainable urban planning and environmental considerations.

Looking Ahead: A North American Strategy

The future of U.S.-Mexico trade depends on bold infrastructure investments that align with long-term regional strategies. We need:

• More public-private partnerships like SouthBridge that bring the private sector into infrastructure development.

• Binational planning committees that ensure cross-border investments match industry needs.

• A push for digital border processing to eliminate inefficiencies and modernize trade logistics.

This isn’t just about roads and ports—it’s about unlocking North America’s full economic potential and ensuring that cross-border commerce is a driver of shared prosperity.