Skip to main content

Houston's Position as a Global Logistics Hub

Published May 30, 2023 by Taylor Tatum

Port Houston

In 2022, the Houston/Galveston Customs District ranked number one in the country in total trade value as companies from across the U.S. and around the world chose Houston as the gateway to the Americas and the world.

Houston boasts a central geographic location and numerous logistical and distribution channels, making it an ideal hub for companies with global distribution needs and access to the central United States and Latin America.

The region’s position as a global logistics hub is bolstered by its exceptional transportation infrastructure. Houston boasts one of the largest multi-airport systems in North America with two international airports, and the Port of Houston, one of the busiest ports in the world along with 3 Class I railways. This infrastructure enables companies to transport goods quickly and efficiently, reducing transportation costs and improving supply chain management.

Houston is continuously investing in infrastructure improvements. The Houston Ship Channel, the nation's busiest waterway, now sees more vessel traffic than the next three largest U.S. ports combined. The first phase of a $1 billion expansion project to widen and deepen the ship channel has been completed, providing greater capacity and efficiency for the port.

Houston's extensive highway network also connects the city to major markets in the U.S. and Mexico, with access to half of U.S. population within a 1,000-mile radius.

The region's logistics advantages have cemented Houston's status as a premier location for business expansion. An example is TGS Cedar Port, located in Baytown. This is the country's largest master-planned rail-and-barge-served industrial park. Retail giants such as Walmart, Floor & Décor, and Home Depot have significant distribution and fulfillment centers in the park. 

Houston’s central location, diverse population, and world-class transportation infrastructure position Houston as the top logistics hub in the United States. For more information about expanding in the Houston region, click here.  

This article was originally published in the May/June issue of Business Facilities, where Houston was selected as a Business Facilities Top Logistics Hub, click here for the article beginning on page 24.
 

Related News

Economic Development

Greater Houston Partnership Receives 2024 Excellence in Economic Development Award

8/28/24
The Greater Houston Partnership received a 2024 Excellence in Economic Development Bronze Award from the International Economic Development Council (IEDC). The award was bestowed specifically for the Partnership’s work in the regional or cross-border partnership for regions with 500,000 or more residents.  The strategy formed in partnership with regional allies, as elaborated in the regional playbook, aims to enhance regional economic development in greater Houston by fostering collaboration and coordination among stakeholders. This involved creating a framework for the Houston Regional Economic Development Alliance (HREDA) to maximize engagement and support.  Formed in 2006, HREDA is comprised of economic development organizations and municipalities interested in creating jobs and investment to maintain a positive business environment. HREDA meets monthly at Partnership Tower, and often at other locations around the region. Hosted monthly at Partnership Tower and other regional sites, HREDA meetings include members from 98 economic development organizations, representing over 160 full-time economic development professionals.  The project's uniqueness and innovation reside in member involvement at every stage, ensuring ownership of the final playbook. It addressed previous collaboration deficits noted in studies, aiming to leverage regional resources for economic growth. The scale of marketing the region is no small feat. Covering 8,838 square miles, the 12-county Greater Houston region, with its centerpiece, the 10-county Houston-Pasadena-The Woodlands MSA, surpasses an area the size of New Jersey,  Despite this vast expanse, the region's stakeholders have rallied together as allies, streamlining processes to attract prospective companies. This collective effort reflects a shared commitment to securing victories for the region's economic growth. “I am proud to be a part of an organization, such as HREDA, that exemplifies how regionalism and collaboration can drive economic success and set high standards for regional development,” HREDA Chair and Chief Economic Development Officer at Partnership Lake Houston Stephanie Wiggins said. “By uniting various stakeholders under a common goal, HREDA leverages the strengths of the Houston region to create a prosperous and sustainable economic environment." Every year IEDC looks specifically for economic development organizations, government entities, initiatives, and programs that have demonstrated consistent, exemplary performance in the economic development profession, leading the execution of projects that have a significant impact on revitalizing communities, and playing a major role in shaping and improving the practice of economic development. “This group understands what it means to succeed together," Greater Houston Partnership President and CEO Steve Kean said. “When we work together as one to combine the expertise, assets and capabilities of our regional partners, the Houston region is unmatched in potential. Through this mindset of regionalism, we can create a more prosperous and inclusive future for all of our citizens.” Learn more about the 12-county region the Partnership represents.  
Read More
Economic Development

Chevron Relocates Headquarters to Houston

8/2/24
Chevron Corporation has announced plans to relocate its corporate headquarters to Houston from San Ramon, California.  The announcement follows the energy giant's recent efforts to consolidate its operations in Houston, which began in 2022, with the sale of its 92-acre headquarters in San Ramon.  This strategic move aims to enhance collaboration among senior leaders, executives and business partners, according to Chevron’s press release. Chevron currently employs 7,000 people in the Houston area and 2,000 in San Ramon. While the relocation will initially have minimal impact on San Ramon employees, all corporate functions are expected to migrate to Houston over the next five years. Positions supporting Chevron’s operations in California will remain in San Ramon. According to the company, this move aligns with its ongoing efforts to streamline its operations and improve performance. By consolidating its headquarters in Houston, Chevron can leverage the city's robust energy infrastructure and diverse talent pool to advance energy affordability, reliability and security globally. “This is just the final step that many industry observers were waiting to happen,” Ken Medlock, Senior Director of the Baker Institute’s Center for Energy Studies, explained in a recent release. “To start, Houston provides a world-class location for internationally focused energy companies, which is why there is such a massive international presence here. Texas is also the nation’s largest energy producer across multiple energy sources and is poised to lead in emerging opportunities such as hydrogen and carbon capture, so Houston is a great place for domestically focused activities as well. To top it off, Texas rates very favorably for business in general.” Chevron will become the 24th Fortune 500 company to establish its headquarters in Houston, joining the city's growing hub of major corporations. Among these is ExxonMobil, which announced its corporate headquarters relocation to Spring in 2022. “Chevron’s decision to relocate its headquarters underscores the compelling advantages that position Houston as the prime destination for leading energy companies today and for the future," said Partnership President and CEO Steve Kean. "With deep roots in our region, Chevron is a key player in establishing Houston as a global energy leader. This move will further enhance those efforts." Learn more about corporate headquarters in the Houston region.   
Read More

Related Events

Airports

State of the Airports

The Greater Houston Partnership invites you to the State of Airports on Tuesday, December 5, as Jim Szczesniak, Director of Aviation, outlines the next history-making chapter for Houston Airports.  Szczesniak…

Learn More
Learn More
Executive Partners