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REGIONAL GOODS MOVEMENT

REGIONAL GOODS MOVEMENT. LOS ANGELES – SAN DIEGO – BAJA CA. Armando Freire President & CEO DIMEX Freight Systems Inc. AUGUST 2nd 2005. MULTIMODAL CORRIDORS. THERE ARE CURRENTLY THREE NAFTA CORRIDORS AROUND THE COUNTRY ONE OF THE MAIN CORRIDORS IS HERE IN OUR BACK YARD

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REGIONAL GOODS MOVEMENT

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  1. REGIONAL GOODS MOVEMENT LOS ANGELES – SAN DIEGO – BAJA CA Armando Freire President & CEO DIMEX Freight Systems Inc. AUGUST 2nd 2005

  2. MULTIMODAL CORRIDORS THERE ARE CURRENTLY THREE NAFTA CORRIDORS AROUND THE COUNTRY ONE OF THE MAIN CORRIDORS IS HERE IN OUR BACK YARD THE I-5 CORRIDOR CONNECTS THE MANUFACTURING CENTERS IN BAJA CALIFORNIA WITH THE MAIN TRUCK, RAIL AND OCEAN FACILITIES IN THE LOS ANGELES AREA I-29 I-5 Los Angeles/Long Beach SAN DIEGO Tecate I-35 TIJUANA MEXICALI ENSENADA

  3. DISTANCE IN KILOMETERS

  4. MEXICO’S EXPORTS Percentage by Port of Entry 100 80 60 40 20 10 0 Tijuana Otay Mesa 75% Mexicali Calexico 20% Tecate 5%

  5. CURRENT ESTIMATED VOLUMES AND POTENTIAL CAPACITY DIRECT RAIL SHIPMENTS 2001 2004 2005-2006 IMPORTS TO MEXICO VIA RAIL 169* 465* EXPORTS FROM MEXICO VIA RAIL -0- -0- AVAILABLE RAIL CAPACITY Over 4400* CURRENT CONTAINER MOVEMENTS THROUGH ENSENADA 50 TU’s p/month ENSENADA EXPANSION PROJECT COULD INCREASE ITS CAPACITY TO OVER 6000 TU’ TRUCK EXPORT/IMPORTS THROUGH OTAY MESA 1985 1995 2005 MEXICO EXPORTS 225 550 3000 p/day MEXICO IMPORTS 125 300 2000 p/day *Rail Cars Per Month

  6. CURRENT TRAFFIC CONGESTION Traffic delays in Tijuana due to lack of infrastructure create long delays for Trucks to reach the Customs Facilities. Once in line, at times, trucks have from 2 to 4.5 hours delay to clear the entire Customs Process Serious delays are also encountered during peak traffic hours on the US side to reach the Port, Rail and Distribution Facilities In the Los Angeles area. Truck travel time between Long Beach and Otay Mesa in 1985 was approximately 2.5 hours one way; currently travel time is in the range of 3.5 to 4.25 hours per trip.

  7. Northbound Truck Traffic Near Mexico Customs Facility

  8. Northbound Truck Lanes

  9. Northbound Truck Lanes on days where the line is over 5.5 miles long

  10. Northbound Truck Line

  11. NOW THE GOOD NEWS NOT ALL NEWS IS BAD NEWS, CURRENTLY THERE ARE NUMEROUS PROJECT THAT COULD IMPROVE THE GOODS MOVEMENT IN THE REGIONT SOME MAY CREATE ADDITIONAL TRAFFIC PROBLEMS HOWEVER MANY MAY ACTUALY IMPROVE OUR TRAFFIC SITUATION • The Port of Ensenada is working on an expansion project that together with a potential Intermodal Facility in the Tijuana area, could reduce some of the Long Beach-Tijuana Truck Traffic. • There is a proposed new port in Punta Coronet south of Ensenada that once completed could remove a significant amout of Mexico and East Bound US traffic from Long Beach. • The Port of San Diego is also working on an expansion project that will not do anything to improve the South Bay or Cross Border Traffic, but could reduce some of the Long Beach-San Diego truck traffic • There are a number of other smaller projects in the works that could do some good to reduce traffic congenstion. • The most significant of these projects is a joint venture between the short haul Rail Road and some Intermodal Truckers to build a full service Intermodal facility in the Tijuana/Tecate region. The significance of this project is that it would tie together many of these other ventures and could move several hundred trucks off the road between San Diego and the Los Angeles area by diverting the traffic from over the road to over the rail through the Tijuana-Plaster City rail corridor thus moving freight east bound without having to take space in our current highway.

  12. RAIL PORT LOGISTICS S.A. De C.V. THE PROPOSED FACILITY WOULD TIE TOGETHER THE PORT OF ENSENADA WITH THE RAILROAD VIA THE ENSENADA-TIJUANA T7 TRUCK CORRIDOR THE FACILITY ALSO PLANS TO HOST CUSTOMS FACILITY TO PROVIDE DIRECT IMPORT AND EXPORT RAIL SERVICE WITHOUT THE NEED TO CLUTTER THE CURRENT CUSTOMS FACILITIES AT OTAY MESA

  13. PROPOSED LOCATION FOR THE RAIL PORT LOGISTICS TERMINAL Terminal

  14. A MULTIMODAL SOLUTION APEARS TO BE THE BEST SOLUTION TO OUR REGION’S CONGESTION PROBLMES IF ALL MODES OF TRANSPORTATION JOIN TOGETHER AS EQUAL PARTNERS ,WE WILL FIND ADEQUATE SOLUTIONS. THANKYOU Armando Freire President & CEO DIMEX Freight Systems Inc

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