Space cowboys: Houston grows to become one of the busiest trading posts in the United States, thanks to geography.

Virtually the same distance from the U.S. Pacific and Atlantic coastlines, the Texas city of Houston has become home to many air-cargo companies flying the U.S. skies. For logistics companies, that's not all: The city also is very close to Galveston Bay, home to one of the biggest and busiest port systems in the United States.

Those are just some of the reasons that air-cargo companies are investing millions to boost their presence in Houston, which handles more U.S.-Mexican air traffic than any other city. If that weren't enough, the city's centralized location serves as a key connecting point for planes to load cargo onto trucks bound for U.S. interstate highways.

Air-cargo companies are spending either to set up shop or expand in Houston, and they come in all shapes and sizes, including global giants such as U.S. carrier Continental and Chile's LAN to smaller outfits like Americargo Transport, all out to grab a bite of rising north-south trade. Since 1996, Houston has handled more products moving to and from the United States and South America than any other city, according to Daniel Marrero, Americargo Transport president. "Today, South America and Mexico are unquestionably our key objective and, strategically, Houston is the best distribution point," says Marrero.

Houston's airport system consists of three, interconnected facilities. The largest is the George Bush Intercontinental Airport, which currently ranks 11th on the United States' list of busiest airports in terms of international cargo. According to the Airport Council International Worldwide, an industry association, the country's busiest airports in terms of international cargo are Anchorage, Miami, New York, Chicago and Los Angeles, in that order. In Latin America, the No. 1 cargo airport is Sao Paulo's Guarulhos airport, followed by Mexico City.

Continental handles more cargo in Houston than any other company, both nationally and internationally. Last year alone, the carrier handled 100 million kilograms of cargo, which is why the company inaugurated new installations at the George Bush airport, a $20 million investment. Continental reported a $184 million loss in the first quarter, despite increasing passenger revenue by 11.6% in the period vs. the first quarter of 2004, to $393 million. The airline has spent $180 million so far this year shoring up its employee pension fund and was in talks at press time with its flight attendants.

According to Jack W. Boisen, Continental's vice president, the investment will allow the company to better control access to its operations and improve security, although what Continental really wants it to do is move more cargo with no delays. "We have the best reputation in the airline industry as we have the least delays and the fewest complaints," Boisen says. With more than 70 years in business, Chile's LAN Cargo is another multinational that has traditionally looked to Houston for business. The city ranks as the carrier's third-busiest international destination, trailing Miami and then Los Angeles, says Gabriel Covarrubias, LAN'S general director for cargo.

Access. During 2004, LAN Cargo moved 7 million kilograms of cargo through Houston to and from Brazil and Argentina. Doing business from Houston has been a plus, not only for its three-in-one airport system but also for its access to highways, which ease distribution of products inside Texas and out to the rest of the United States. Other companies are considering Houston. U.S. carrier Amerijet, which operates from its headquarters in Fort Lauderdale, Florida, will double installations in Houston to more than 2,000 square meters.

Heavy ground traffic from Houston to the rest of the United States has brought in more air and ocean-going cargo into Houston, says Genaro Pena, the Houston airport system's marketing director. For oil companies, too, Houston has traditionally been a hub for trade, especially the port at nearby Galveston, which holds the first-place title in the United States for international cargo and second for national. It's sixth in the world.

That's been the case for several years, due to the types of terminals used, says Rainer Lilienthal, general manager for trade development at the Port of Houston. In 2004, imports came in primarily from Mexico, Venezuela, Saudi Arabia, Algeria and the United Kingdom. Mexico is the largest export market, followed by Germany, Saudi Arabia, Venezuela and the United Kingdom.

JOSE CASTILLO * HOUSTON