The Border at Nogales Terry Shannon, Jr. Chairman

1. The Border at Nogales Terry Shannon, Jr. Chairman Greater Nogales and Santa Cruz County Port Authority

2. Who We Are • Greater Nogales and Santa Cruz County Port Authority: • Created in December 2004 • Main purpose is to foster the economic growth of the region, to improve the POE’s at Nogales and to enhance the quality of life for the residents of the region • Nogales has four POE’s: • Morley Avenue - Pedestrian • DeConcini (“Grand Ave.”) – Pedestrian, train, buses and POV’s • Nogales West (“Mariposa”) – Commercial, POV’s, Pedestrian, Buses • Nogales International Airport

3. Board of Directors • Membership • City of Nogales; • Santa Cruz County; • Fresh Produce Association of the Americas • Maquila Association of Sonora; • Nogales Alliance: Port of the Future; • Nogales Community Development Corporation; • Nogales Santa Cruz County Chamber of Commerce; • Nogales U.S. Customs Brokers Association; and • Santa Cruz Tourism Council. • Ex-Officio Members • US Customs and Border Protection; • US General Services Administration; • Arizona Department of Transportation; • ConsejoEmpresarial de Nogales, Sonora; • Municipality of Nogales, Sonora; • Mexican Consulate General – Nogales, Arizona; and • US Consulate – Nogales, Sonora.

4. Nogales 1936 Grand Ave./Rail Morley www.nogalesport.org

5. TODAY: DeConcini POE Secondary Rail Primary Southbound Morley Pedestrian US MX SENTRI Aduanas

6. Mariposa POE Cattle Pens Mexican Inspection Southbound Northbound MX US Inspection US FAST Lanes ADOT N

7. Nogales By The Numbers (Source: Customs and Border Protection) (*) Includes Morley

8. Untenable Situation • Complaints by truck drivers resulted in a blockade of Mariposa that caused multi-day delays for crossing, back ups of several miles on the Mexican side, diversion of produce to other ports of entry, shortage of trucks in Northwestern Mexico and delays in delivery of product. • Key reasons for complaints: • Implementation of ACE during Peak season • Insufficient infrastructure • Need additional staffing • Need to improve Mexico access February 2007

9. Mariposa Reconfiguration • POE completed in 1979 • Not designed for Pedestrians • Close to 500,000/year • Designed truck throughput: 400/day • Average Daily Truck Crossings: 1,500+/day (Oct – May) • Effective Inspection Docks: 20-23 • No Refrigerated Dock space • 4 Billion Pounds of Fresh Produce each season • Estimated value: $2 billion • 47% of Fresh Winter produce in entire US!! • Approximately $20 billion in Maquila Trade

10. Mariposa Reconfiguration • Projected Growth in Traffic: • ASU Seidman Institute Study forecasts Double to triple truck traffic in 20 years! • Ford expansion in Hermosillo, Sonora • Initiatives to promote Chilean cargo and container traffic through Port of Guaymas • SCT to issue RFP for a 15 hectare private sector expansion of Port of Guaymas • Initiatives to expedite flow of produce from Sinaloa • USTDA Grant Application for Safe Seal and Secure initiatives

11. Reconfiguration Project • Border Station Funding in FY ’07 Budget • $13.694 Million as part of the Federal Buildings Fund in FY’07 • Jones Studio selected as design firm • FY ‘09 Request for approx. $174 million for construction • GSA and CBP confirmed that Mariposa project is a National Priority • Working with ADOT on new interconnector road between POE and I-19 • ADOT and CANAMEX consider interconnector #2 priority on the border

12. GSA Reconfiguration Concept Latest Conceptual Drawing of Mariposa Reconfiguration Project (as of April 3, 2008) Construction Timeline: Approx. 36 months GSA, CBP, ADOT and other stakeholders working on final revisions to concept

13. Other Initiatives • Nogales is Gateway for CANAMEX Trade Corridor • Connecting State of Jalisco all the way to Province of Alberta, with Arizona/Sonora as the principal gateway for the corridor • ASU Received DHS Grant: • “Vulnerability Assessment and Reduction of Economic Impact for the Fruit and Vegetable Industry: A Food Defense Assessment for border Communities in the Southwestern United States” • U of A Received National Center of Excellence for Border Security and Immigration • To be co-lead with UTEP

14. Other Initiatives • Organized visit to ASU’s National Center of Excellence on SMART (Sustainable Materials and Renewable Technologies) • Incorporate SMART technologies, materials and processes into design and construction of Mariposa • Organized a demonstration for GSA, Jones Studio, CBP, ADOT, CANAMEX and border communities • Jones committed to finding ways to leverage space and facilities to include i.e.: solar panels • Find ways to make POE’s more durable, lower maintenance cost, and integrate better into environment • Examples: • Fibers in pavement that increase weight bearing capacity • Paints that help reduce heat retention

15. Other Initiatives • Tucson-Guaymas Corridor Study • ADOT, Sonora and SCT partnership • GNSCCPA member of Technical Advisory Committee • Feasibility study for container traffic at Guaymas • Phase I completed • Principle conclusion includes: Source: Logistics Capacity Study of the Guaymas-Tucson Corridor

16. Short Term Solution: FAST Lanes • C-TPAT program based on voluntary participation by low risk shippers, but requires dedicated lanes • ADOT and Cyberport funds $4.3 million (US Side) • State of Sonora Approx. $1.0 million (MX Side) • ADOT, Cyberport, BTA, GNSCCPA, DHS/CBP form strategic partnership to secure: • Presidential Permit (August 2005, 1st at-grade permit!!) • FAST Inaugural Ceremony August 15, 2006 • First POE expansion in past 5 years!

17. FAST Expansion View into Mexico August 15, 2006 New Lanes Existing PSA

18. Q & A Terry Shannon, Jr. Chairman Greater Nogales and Santa Cruz County Port Authority www.nogalesport.org (520) 287-2707 tshannons@mchsi.com