After dredging, port can now accommodate larger vessels.
The Port of Brownsville, a deepwater seaport in Brownsville at the southernmost tip of Texas and connected to the Gulf of Mexico by a 17-mile-long ship channel, is crucially important for steel transportation; consequently, the US steel industry has been closely following the completion of the port’s channel deepening project.
The steel industry’s interest was also evident at the recent Global Steel Dynamics Forum (GSDF) 2026, held in New York City, where Port of Brownsville had set up a booth to inform, and answer questions from participants at the event.
With the completion of the port’s dredging work, which was celebrated with an official ribbon-cutting ceremony on June 25, 2026, port officials said that the port can now accommodate the larger post-Panamax vessels while also strengthening its position as a major gateway for liquid and bulk commodities at the Texas Gulf Coast.
The Brownsville Navigation District (BND), the port operating agency, had the Brownsville Ship Channel deepened to 54 feet and its main channel to 52, adding approximately 10 feet of depth to each facility. The $295 million project was completed in partnership with the US Army Corps of Engineers and liquefied natural gas producer NextDecade, the project’s federal and private sponsors. This would reduce transit times and increase the port’s capacity for larger cargo volumes.
According to port sources, there are plans to invest an additional $50 million in carrying out landslide infrastructure improvements aimed at sustaining future growth; the dredging work would benefit the port’s main cargo sectors, particularly bulk and energy shipments. While bulk carriers and general cargo vessels were the mainstay of the port’s traffic last year, with such vessels accounting for 195 of the port’s 292 deep-sea vessel calls, or some 63% of the total weight tonnage handled, the port also handled significant refined petroleum and other energy exports.
The port’s expansion comes at a time when the region is concentrating on energy-related development. Indeed, NextDecade is planning a 2027 startup for the first phase of its Rio Grande LNG export facility in South Texas, while America First Refining has plans to build a new refinery in Brownsville. These two projects are aimed at boosting vessel traffic and reinforcing the port’s growing role in US energy exports and the Gulf Coast maritime trade.
Mexico Is the Port’s Cargo-Growth Engine
Guillermo Rico, Port of Brownsville’s director of business development and marketing, said in an interview with the American Journal of Transportation at the GSDF 2026 in New York City, that 90% of the port’s maritime and logistics business is related to Mexico.
“We receive materials from all over the world and ship these to Mexico. Of course, steel and aluminum form a large chunk of our cargo traffic, but we also ship gasoline, diesel, lubricants, naphtha, etc. to Mexico. Furthermore, we get from Mexico heavy oil which is transported to Houston, Texas, where it is refined and then distributed in the United States,” Rico explained.
Port officials say that Mexico remains the primary engine behind Brownsville’s cargo growth. Total cargo throughput increased from 11 million tons in 2020 to 28 million tons in 2024; volumes are projected to reach between 30 million and 32 million tons by end 2026.
According to Rico, increased movement of steel and aluminum connected with Mexican industry has played a major role in that growth. “This (growth) is happening mainly because of Mexico, as both steel and aluminum traffic has grown significantly,” he said. Steel imports from Mexico attract 20% tariff rate.
He referred to Brownsville Navigation District as a “city by itself”, with a 40,000-acre large industrial park with facilities for all kinds of industries, including manufacturing, energy, raw-material processing, etc.
The Rio Grande LNG project, with a planned investment of up to US$36 billion, is already under construction and is expected to become one of the most significant liquefied natural gas energy projects on the US Gulf Coast. Similarly, the Texas LNG, a separate liquefaction project, is said to be worth about US$6 billion.
In addition to LNG infrastructure, the port is expected to host the proposed America First Refining project, announced by US President Donald Trump in March with massive investments. “We have about 16 different projects (ship building, rare minerals, energy, metals, etc.) with an investment potential of $39 billion,” Rico said.
The port has been attracting nearshoring investments, with the Mexican company Forza Steel, for instance, completing a $85 million, 650,000-square-foot facility, and Ternium building a $200 million development that includes a marine terminal. The terminal is expected to increase the port’s steel and metal cargo volume to more than 9 million tons a year.
Other Mexican companies are also following this strategy, leveraging the port’s location and facilities to strengthen their presence in the US market. “Their presence here enables them to be near their customers and also be in close contact with them” Rico said.
He highlighted that the Port of Brownsville is North America’s most strategic multimodal logistics hub. “Our strength also lies in offering connectivity to the eastern and midwestern United States through a network of highways, railroads, and the intracoastal Waterway. In Mexico, we have direct links to Monterrey, Saltillo, and the northeastern region, thus enhancing our attractiveness for nearshoring and manufacturing. Besides direct access to the Gulf of Mexico, we offer connectivity to the European Union, Asia and South America,” he observed, adding that the port actively supports nearshoring by providing ready-to-invest infrastructure.
Rico said that the port’s key advantage is its multimodal connectivity, with an on-site rail service BRG, operated by OmniTRAX. With this network, the port is connected to railroads in the US, including the Union Pacific and the BNSF Railway to the north and the Canadian Pacific Kansas City (CPKC) to the south. The CPKC, Rico added, moves over two-unit trains of steel daily.
Brownsville’s bonded facilities allow cargo to enter without immediately paying tariffs or duties, making the port an attractive gateway for products destined for Mexico.
Impact of SpaceX Expansion
With SpaceX planning expansion of its Starbase operations in nearby Boca Chica, the Elon Musk-owned aerospace company’s operations would strengthen the port’s growth. The port receives launch towers, tanks, and other large aerospace components shipped from Cape Canaveral before being transported to Starbase.
Port officials are also negotiating a lease agreement that would allow SpaceX to build its own dedicated dock within the Port of Brownsville and establish direct connection to Starbase operations; the SpaceX expansion, port officials say, will create additional demand for logistics services, engineering capabilities, industrial suppliers, and specialized transportation providers throughout the region, including companies operating in Mexico.
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