Brownsville Booms After Hurricane Alex

Cargo traffic at the Texas port of Brownsville has spiked because of the severe damage suffered by portions of Mexico’s rail system after Hurricane Alex made landfall on June 30 in Tamaulipas, about 120 miles south of Brownsville. The storm caused widespread flooding, eliminating service on many roads, bridges and rail lines that carry cargo between Monterrey, Mexico – a major steel production center -- and the Port of Brownsville, Texas, which supplies Mexican steel mills with millions of tons of steel annually.

Much of the cargo that would have traveled from Monterrey to Brownsville by rail is now moving by other modes of transportation, including trucks and ships. "Truck traffic at the Port of Brownsville has basically doubled based on the number of permits sold, and we have also seen an increase of approximately 100 percent in vessel revenue," Brownsville port spokesman Manuel Ortiz told the regional press.

Mexico-bound cargo passing through the port of Brownsville includes steel, iron ore, and other bulks. Most of that cargo, which arrives at the port of Brownsville by ship, is now being trucked to Monterrey. Only a small percentage is still being shipped by rail, and Ortiz said that there is a shortage of trucks available for transportation.

Ortiz said he expects the spike in traffic at Brownsville to last "for the foreseeable future." He added, “It’s pretty bad down there…The railroad company is working to get (the damage) fixed as soon as possible, but it’s not something that can be done overnight.