New Texas port aims to streamline VW Group of America logistics

FREEPORT, Texas — Volkswagen Group of America, aiming to simplify vehicle shipping logistics for a large swath of its U.S. dealers, will utilize a new port facility along Texas' Gulf Coast.

The shipping hub in Freeport, south of Houston, will import and process up to 140,000 vehicles annually by VW, Audi, Bentley, Lamborghini and Porsche. The facility at Port Freeport will be used for only importing vehicles, a VW Group of America spokesperson said.

The opening of the Freeport site takes place on the heels of a rare strike between the International Longshoremen's Association union and the United States Maritime Alliance employer group. Port workers from Texas to Maine went on strike on early Oct. 1. A prolonged walkout could have significant effects on the automotive supply chain.

Port Freeport is still open, according to the spokesperson. Another port that VW Group of America uses in Davisville, R.I., is also still operating.

VW said the vehicles that arrive in Freeport will mainly be imported from Europe or Puebla, Mexico. VW and Audi operate large assembly plants in Puebla that supply U.S. dealers with core products such as VW's Tiguan and Taos crossovers and Audi's Q5 crossover.

Port Freeport will be used to distribute vehicles to 300 dealerships representing VW Group brands across the central and western U.S., the company said.

"Opening this new port facility in Freeport helps create a more resilient and more sustainable supply chain for many years to come," Anu Goel, VW Group of America's executive vice president of group after sales and services, said in a statement.

Goel said the Freeport site provides easier access to rail and trucking for streamlined logistics operations. Port Freeport's wider channel also allows the company to use larger liquified natural gas-powered vessels.

VW Group consolidated two smaller facilities in Houston and Midlothian, Texas, near Dallas, with the new location. VW first revealed plans for the Freeport site in 2022.

VW said the $114 million facility created 110 new direct jobs.

In addition to Freeport and Davisville, VW Group utilizes ports in Baltimore; Jacksonville, Fla.; Benicia, Calif.; San Diego, Calif.; and the VW assembly plant in Chattanooga.