Oak Brook, Ill.-based freight transportation and logistics services provider Hub Group announced today that it has entered into a joint venture with Mexico City-based EASO, the largest intermodal and trucking logistics services provider in Mexico.
Founded in 1972, family-led EASO offers a range of services, including intermodal, dedicated trucking, truckload, and freight brokerage. The company serves the Mexican domestic market and key logistics hubs in the United States through its intermodal cross-border network.
Hub officials explained that the partnership will significantly enhance Hub’s intermodal and transportation solutions business. EASO’s customer base, which includes blue-chip companies across various modes, will help strengthen Hub’s offering. As nearshoring continues to drive increases in cross-border trade, the joint venture is expected to maximize Hub’s cross-border service offerings and create more opportunities for intermodal conversions. EASO’s founding family will lead and manage the joint venture, supported by its existing management team and Hub Group.
Other key aspects of the joint venture, according to Hub, include substantial synergies in cross-selling, operational integration, asset utilization, and drayage enhancements. EASO has also been expanding its cross-border presence and converting over-the-road freight to intermodal, which has resulted in a 30% annual growth in intermodal volume.
“We are excited to welcome the EASO team and their customers to the Hub Group family,” said Phil Yeager, Hub Group’s President, CEO, and Vice Chairman, in a statement. “This joint venture aligns with our long-term investment strategy and further supports our vision to deliver the premier supply chain solution. Our cultural alignment with EASO and the founding family, along with the increased scale and expanded network in Mexico, will enhance service and deliver greater value for our customers.”
Brian Meents, Hub Group’s CMO and President of Intermodal, told LM that the joint venture presents significant growth opportunities as nearshoring trends continue, further expanding Hub Group’s presence in Mexico through EASO’s network.
“We see numerous synergies between the two companies through this joint venture, including cross-selling intra-Mexico and cross-border capabilities to Hub’s customers, and offering Hub’s services to EASO’s customers,” said Meents. “In short, this joint venture dramatically scales our end-to-end transportation offerings, expands our geographical footprint across the border, and creates cross-selling opportunities.”
Meents also highlighted the key benefits this joint venture will provide to Hub’s intermodal shipper customers, explaining that the initiative greatly increases Hub’s scale in Mexico and strengthens its cross-border logistics offerings to better serve North American supply chain needs.
“With more service options, routing, and equipment, this joint venture delivers the best cost and service as the largest cross-border and intra-Mexico IMC,” he said.
