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Crossroads of THE AmericaS

Crossroads of THE AmericaS. Feili Hong Mark Lynch Almin Ramic . CROSSROADS OF AMERICA. CROSSROADS OF THE AMERICAS. CROSSROADS OF THE AMERICAS. CROSSROADS OF THE AMERICAS. TEXAS & THE TRANS-TEXAS CORRIDOR. Introduction Background: Networks and NAFTA The Trans-Texas Corridor

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Crossroads of THE AmericaS

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  1. Crossroads of THE AmericaS Feili Hong Mark Lynch Almin Ramic

  2. CROSSROADS OF AMERICA

  3. CROSSROADS OF THE AMERICAS

  4. CROSSROADS OF THE AMERICAS

  5. CROSSROADS OF THE AMERICAS TEXAS & THE TRANS-TEXAS CORRIDOR

  6. Introduction • Background: Networks and NAFTA • The Trans-Texas Corridor • TTC-35 and TTC-69 • Financing • Trade Corridors, Inland Ports, and Texas • Conspiracy? Conspiracy! • Discussion CROSSROADS OF THE AMERICAS

  7. Trans-Texas Corridor: Background and History NETWORKS & NAFTA NAFTA is working, working for you and working for the American people. --- President Bill Clinton May 7, 1997

  8. East-West Pattern • Canadian Pacific Railway • It was Canada's first transcontinental railway, now primarily a freight railway. • The railway was originally built between eastern Canada and British Columbia between 1881 and 1885 Canada Source: Canadian Pacific Railroad Factbook 2006

  9. Canadian National Railway • Spanning Canada from the Atlantic coast in Nova Scotia to the Pacific coast in British Columbia • TransCanada Highway • The system was approved by the Trans-Canada Highway Act of 1948 and officially opened in 1962. Canada

  10. East-West Pattern 1916 Federal Highway Act & 1956 Defense Interstate Highway Act Interstate Highway System The United States

  11. North-South Pattern • Mexican-American War of 1848 • Mexico ignored the northern border states to limit its contact and interaction with the US. • National railway system in late 19th century • Highway system in 20th century enhanced the pattern Mexico

  12. The North American Free Trade Agreement • eliminated the majority of tariffs between products traded among the United States, Canada and Mexico, and gradually phases out other tariffs over a 15-year period. • North American Agreement on Environmental Cooperation and the North American Agreement of Labor Cooperation NAFTA

  13. Freight transportation between the U.S., Canada, and Mexico grew at a strong pace • 8 percent annual growth in both current and inflation adjusted terms • During the past decade, U.S. trade with Canada and Mexico has increased at a faster rate than U.S. GDP. (U.S. Department of Transportation, 2006) • Higher levels of international freight movement and a demand for expanded freight transportation services Impact of NAFTA

  14. Land modes • In 2005, land modes of transportation carried the great majority (88 percent) of goods traded with Canada and Mexico • In 2006, land modes of transportation (truck, rail, and pipeline) carried the bulk, $760 billion worth of U.S. freight with Canada and Mexico. • Trucks remain the dominant mode for transporting U.S.-North American freight, carrying 62 percent of the total value in 2006. Rail accounted for 15 percent and pipeline 7 percent. Value of Goods Exchanged in U.S. Trade with Canada and Mexico by Mode U.S. Department of Transportation, Research and Innovative Technology Administration

  15. In 2005, Texas surpassed Michigan as the top state for value of NAFTA trade by land modes. Laredo, El Paso, and Hidalgo, in Texas, accounted for 22 percent of all U.S.-NAFTA land trade Texas

  16. Inadequate Infrastructure Lack of Redundancy Current Infrastructure Problems

  17. Trans-Texas Corridor: Logistics LOGISTICS, FINANCING, & PPP Our view is, you can run from the corridor if you want to, but that's eventually what we'll build. Because that's where the fricking people live! Ric Williamson, Texas Transportation Commissioner

  18. Long term 50-year plan for infrastructure expansion • Some call in a “Super Highway” • Car lanes, truck lanes, high-speed passenger and freight railways, and utility distribution channels. • 4000 miles long and 1200 feet wide with 200-foot wide utility zone • TTC 35 & I-69 TTC What is TTC?

  19. http://www.kwtx.com/breakingnews/5374096.html

  20. Why is TTC being planned? • For the past 25 years Texas: - 57% increase in population - 95% increase use of our roads - 8% increase in Texas road capacity Source: Russell, 2007

  21. Source: Russell, 2007

  22. Development of TTC-35 • Advances on two separate paths – Environmental Study – Comprehensive Development Agreement (CDA) Source: Russell, 2007

  23. TTC/35 development timetable • In 2005, CDA signed with Cintra-Zachry • Fall 2005: Master Development Plan delivered • May 2006: Environmental impact studies • July- August 2006: Public hearings • May 18,2007: Governor Perry vetoed a bill that would have placed significant limitations on future Trans Texas Corridor • June 11, 2007: Governor Rick Perry signed Senate Bill 792, will provide Texans with many new and important protections. Source: Russell, 2007

  24. I-69/TTC Timetable • Late 2007: choose a partner and sign (CDA) • Late 2007: Public Hearings continued • Beginning 2008: Request for Detailed Proposals • Summer 2008: Selection of Developer • Fall 2008: DraftEnvironmental Impact Statement (DEIS) Source: Russell, 2007

  25. PPP • “Public-private partnerships” (PPP) refers to contractual agreements formed between a public agency and private sector entity that allow for greater private sector participation in the delivery of transportation projects. www.fhwa.dot.gov/ppp/defined.htm#1

  26. The primary benefits of using PPPs to deliver transportation projects • Accelerated completion • Project cost savings • Improved quality • Improved performance • Use of cutting edge technologies • Better management techniques • Access to more capital.

  27. Comprehensive DevelopmentAgreements (CDAs) • “Open for Business,” TxDOTs plan getting private sector investments in Texas transportation system. • CDA focuses on new ways of financing • Calls for the partnerships between the agency(TxDOT), local officials and the private sector • A CDA may also include, right of way acquisition, maintenance and/or operation of a transportation facility

  28. 1. design/build 2. pre-development agreements 3. concession agreement Types of Comprehensive Development Agreements

  29. Developer requirements • Achieve set deadlines • Reviews by independent engineers • Observe federal requirements • Provide funding • In return developer gets up to 50 years of control over tolls

  30. Texas Turnpike Authority Division ,Phillip E. Russell www.keeptexasmoving.org

  31. All Electronic Tolling • No Toll Boots • No waiting and traffic congestions • Make tolling compatible with other toll roads in state • Use TX Tag Source: Russell, 2007

  32. The Trans-Texas Corridor in Action: TRADE CORRIDORS, INLAND PORTS & Texas We know the way this chicken-and-egg works. The chicken is the big industrial area that lays a lot of highway eggs, not necessarily the other way around. --- John McCray, Associate Professor of Management University of Texas at San Antonio

  33. TRADE CORRIDORS “The North American trade corridors are bi- or tri-national channels for which various cross-border interests have grouped together in order to develop or consolidate the infrastructures. The North American corridors are considered multimodal in the sense that they bring into play different modes of transport in succession. The infrastructures may include roads, highways, transit routes, airports, pipelines, railways and train stations, river canal systems and port facilities, telecommunications networks and teleports.” --North American Forum on Integration www.fina-nafi.org/eng/integ/corridors.asp  graphic from ciscoportcom

  34. I-35 CORRIDOR NASCO CORRIDOR Source: www.nascocorridor.com/naipn/ Source: I-35 Corridor Executive Summary

  35. Source: I-35 Corridor Executive Summary I-35 CORRIDOR SEGMENTS AND LANEAGE

  36. U.S. CONGESTION: 1998 http://ops.fhwa.dot.gov/freight/freight_analysis/freight_story/congest.htm

  37. U.S. CONGESTION: 2020 http://ops.fhwa.dot.gov/freight/freight_analysis/freight_story/congest.htm

  38. TEXAS CONGESTION 1998 TEXAS CONGESTION 2020 CONGESTION IN TEXAS

  39. Connects: Denver Amarillo Lubbock Midland/Odessa San Angelo Del Rio Border Crossing: Laredo, Texas Nuevo Laredo, Tamaulipas Maritime Port: None PORTS-To-PLAINS TRADE CORRIDOR Source: Ports to Plains website: www.portstoplains.com

  40. Connects: Midland/Odessa (hub) Lubbock Amarillo Wichita Falls Dallas-Fort Worth Chihuahua Border Crossing: Presidio, Texas Ojinaga, Chihuahua Maritime Port: Topolobampo Source: www.la-entrada-al-pacifico.com La ENTRADA EL PACIFICO (LEAP) CORRIDOR

  41. “The Relief Valve” “Is everyone going to want to go that way? No. If everybody wanted to go that way could we handle it? No.” --- James Beauchamp, president of the Midland-Odessa Transportation Alliance

  42. INLAND PORTS • Two kinds: • Those by rivers or lakes that can use barges and such • Interior ports: • Air, rail, highway • All are intermodal • Inland ports are not a new concept • Front Royal, Virginia

  43. INLAND PORTS • Two kinds: • Those by rivers or lakes that can use barges and such • Interior ports: • Air, rail, highway • All are intermodal • Inland ports are not a new concept • Front Royal, Virginia

  44. ROAD Vs. RAIL • Trucks are most cost-effective at distances up to 400 miles: • West Texas to Dallas • Trucks are usually most cost-effective at distances from 400 to 700 miles: • El Paso to Houston • Distances for miles: • Kansas City to Laredo or Lazaro Cardenas

  45. Hubbing creates an economy of scale, using the same technologies and capital improvements. • Airports • Maritime ports • Started as small ports, consolidated to larger ports HUBBING AND THE “HINTERLANDS”

  46. Hinterlands: The market region that a port serves. For Kansas City: No. Dakota So. Dakota Nebraska Iowa Illinois Indiana Michigan Kansas Missouri Minnesota Wisconsin KANSAS CITY AND THE “HINTERLANDS”

  47. 1900 acres former air force base 11,500-foot runway Foreign Trade Zone Two class I railroads Access to I-35, I-10, I-37, TTC-35 On NASCO corridor 90 million people within two days’ drive Five major ports easily accessible: Houston Corpus Christi Manzanillo Veracruz Lazaro Cardenas Source: Ports San Antonio THE PORT OF SAN ANTONIO

  48. Top preferences for Iowa: internet website port of entry/customs transportation center for licensing and compliance activities an intermodal transport facility information clearinghouse for transportation and trade publications location for federal and state trade agencies Suggestion to minimize financial risk: build non-capital improvements first Biggest beneficiaries: Those who participate in international trade ? THE PORT OF IOWA – DES MOINES

  49. The Trans-Texas Corridor Conspiracy: UNIONS, EMINENT DOMAIN, & THE NORTH AMERICAN UNION When we talk about the super-corridor, we're basically talking about how do we make best efforts in terms of the existing infrastructure. We're not part of any super-plan that's going to have this four-football-field-wide corridor with no regulatory controls on it. -- Andy Horosko, Manitoba Deputy Minister of Transportation

  50. China-US (via Texas) trade • West coast ports have lost their lock on Texas trade. • Strike in 2002, ability to freeze freight flow • High cost of union dockworkers • Congestion at LA/Long Beach • Beneficiary: East Coast ports, and to a lesser extent Gulf ports • West Coast ports are reaching their land-side limits • In the early 2000s, East Coast ports began seeing signs of congestion as well • Mexican ports will not have capacity without serious investments • West Coast ports have the ability to retain their dominance through gains in efficiency, such as flexible scheduling Unions

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