Hub Group Announces Joint Venture with EASO to Expand Intermodal and Cross-Border Services in Mexico
Author: Jeff Berman October 8, 2024
Hub Group, a freight transportation and logistics services provider based in Oak Brook, Illinois, announced today the formation of a joint venture with EASO, headquartered in Mexico City. EASO is the largest intermodal and trucking logistics service provider in Mexico.
EASO, founded in 1972 and family-owned, offers a range of services including intermodal operations, dedicated truckload transportation, full truckload freight, and freight forwarding. The company serves both the domestic market in Mexico and major logistics hubs in the United States through its cross-border intermodal network.
Hub officials noted that this partnership will significantly enhance Hub’s intermodal and transportation solutions business. EASO’s customer base, which includes blue-chip companies from various industries, will bolster Hub’s service offerings. With nearshoring continuing to drive increased cross-border trade, the joint venture is expected to maximize Hub’s cross-border services and create more opportunities for intermodal conversions. The founding family of EASO will lead and manage the joint venture, supported by existing management teams and Hub Group.
According to Hub, other key aspects of the joint venture include significant synergies in cross-selling, operational integration, asset utilization, and improvements in barge transportation. EASO has also been expanding its cross-border operations, converting road freight into intermodal transport, leading to an average annual growth rate of 30% in intermodal volumes.
“We are delighted to welcome the EASO team and their customers into the Hub Group family,” said Phil Yeager, President, CEO, and Vice Chairman of Hub Group, in a statement. “This joint venture aligns with our long-term investment strategy and further supports our vision of providing exceptional supply chain solutions. The cultural fit between Hub Group and EASO, along with the expansion in scale and network in Mexico, will enhance service delivery and create greater value for our customers.”
Hub Group’s Chief Marketing Officer and President of Intermodal, Brian Meents, told LM that this joint venture presents significant growth opportunities as nearshoring trends continue to expand Hub Group’s presence in Mexico through EASO’s network.
“We see multiple synergies from this joint venture between the two companies, including cross-selling capabilities within Mexico and across borders for Hub customers, and offering Hub services to EASO clients,” said Meents. “In summary, this joint venture significantly expands our end-to-end transportation service offerings, extends our geographic reach, and creates cross-selling opportunities.”
Meents also highlighted the key benefits that this joint venture will bring to Hub’s intermodal shippers, explaining that it greatly increases Hub’s scale in Mexico and strengthens its cross-border logistics services to better meet North American supply chain needs.
“With more service options, routes, and equipment, this joint venture as the largest IMC for both cross-border and within-Mexico operations provides optimal cost and service,” he said.
Source: Logistics Management
