Volkswagen Group of America (VWGoA) recently celebrated the grand opening of a Union Pacific (UP)-served vehicle processing center in Freeport, Tex.
The facility, located south of Houston along the Gulf Coast at Port Freeport, is “strategically positioned to provide easier access to rail, streamlining vehicle shipping logistics and supporting VW’s goal to grow its U.S. market share,” UP reported Nov. 11.
Spanning more than 120 acres, it offers 53 railcar spots and the capacity to process up to 140,000 vehicles from parent company Volkswagen AG, including the VW, Audi, Bentley, Porsche and Lamborghini brands. The facility will mainly import vehicles from Europe and Mexico, where VW and Audi operate large assembly plants, according to UP. The railroad said it will help the manufacturer distribute the imports to approximately 300 dealerships across the central and western United States, which represent one-third of VWGoA’s U.S. retail dealers.
The $114 million facility was established to consolidate two smaller facilities in Houston and Midlothian, Tex. Real estate development and investment firm KDC and real estate investment management company PRP teamed with VWGoA and Port Freeport to develop the site, which is slated to generate 110 new jobs for the Freeport community. Additionally, VW partnered with Brazosport College in Lake Jackson, Tex., to create a new credentialed program in logistics with an emphasis on vehicle logistics operations. “Developing programs like this in collaboration with local stakeholders will support future transportation, storage, and distribution job opportunities across Brazoria County and at Port Freeport,” according to VWGoA.
“Union Pacific is a key partner in establishing this vital facility for VW and the community,” said Anu Goel, VWGoA’s Executive Vice President of Group After Sales and Services. “I want to thank Union Pacific for being part of VW’s success as we drive economic growth and innovation in the automotive and transportation industries.”
“This is a significant milestone for Union Pacific and Volkswagen as we continue our long-term partnership,” UP Director, Marketing and Sales Andrew Dziuda said. “I’m proud of the collaborative relationship we’ve built and look forward to our railroad playing a pivotal role in VW’s growth journey.”
VWGoA also operates facilities in Baltimore, Md.; Benicia, Calif; Davisville, R.I.; Jacksonville, Fla.; San Diego, Calif.; and the Volkswagen Assembly Plant in Chattanooga, Tenn.
