Connecting Ports to Plains to Mexico’s West Coast

1. Connecting Ports to Plains to Mexico’s West Coast CELDi Fall Research Conference October 19, 2010 Gerardo de la O and Timothy Matis

2. U.S. Exports and Imports, 1997-2009 (Billions) Texas Tech University

3. Regional Distribution: Percentage of U.S. Population within 500 Miles Texas Tech University Source: ProLogis

4. Asia-Pacific Trade Texas Tech University

5. US West Coast ports have experienced remarkable growth in container processing, from 14.2 million containers in 2001 to 22.6 million in 2006. Large container ships, growing container volumes, and the implementation of new technologies adversely affect the ability of West Coast intermodal terminals to process peak-season container volumes efficiently. There were major labor disruptions in 2002 and again in 2004. The combination of these elements led logistic agencies to divert containers to ports in Canada and Mexico (McCray & Gonzalez, 2008). Texas Tech University

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8. Source: www.teamnafta.com Texas Tech University

9. It seems viable to keep commodity manufacturing off-shore while having more sensitive manufacturing closer to the Sates. Texas Tech University

10. Ports to Plains Corridor Texas Tech University

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13. Mazatlan is a popular tourist destination and commercial port. Source:http://images.google.com/imgres?imgurl=http://upload.wikimedia.org/wikipedia/commons/f/f1/Mazatlan_panorama_from_El_Faro_1.jpg&imgrefurl=http://commons.wikimedia.org/wiki/File:Mazatlan_panorama_from_El_Faro_1.jpg&usg=__xks_8l6bpshBCcOKw817Ti4wXag=&h=1200&w=2400&sz=343&hl=en&start=10&um=1&itbs=1&tbnid=Lt9hp0aHkS6Z0M:&tbnh=75&tbnw=150&prev=/images%3Fq%3Dmazatlan%26hl%3Den%26rlz%3D1T4GGIH_enUS218US290%26sa%3DX%26um%3D1 Planned TEU Capacity 280,000/year Texas Tech University

14. Tijuana Mexicali Nogales Ciudad Juárez Piedras Negras Hermosillo Chihuahua Nuevo Laredo Matamoros Saltillo Monterrey Torreón Culiacán La Paz Durango Cd.Victoria Mazatlán Zacatecas Cancún SLP Tampico Ags Progreso Tuxpan Mérida Tepic Querétaro Guadalajara Campeche Jalapa Toluca D.F. Colima Veracruz Chetumal Morelia D.F. Manzanillo Villa Hermosa Puebla Cuernavaca Lázaro Cárdenas Chilpancingo Oaxaca Tuxtla Gutiérrez Acapulco Salina Cruz Ciudad Hidalgo Amarillo Lubbock Dallas San Angelo Houston Acuña San Antonio Allende Texas Tech University Texas Tech University

15. Why is the Mazatlan-Durango highway rarely used? Texas Tech University

16. http://www.youtube.com/watch?v=z2h-KkDS6Gc&feature=related Texas Tech University

17. The Mazatlan-Durango highway will reduce the driving time from 6 to 2.6 hours. Texas Tech University

18. Manzanillo is a tourist destination and commercial port. http://www.youtube.com/watch?v=ykKhTUbYjPM http://www.youtube.com/watch?v=FqYT-RXKVUM&feature=related Planned TEU capacity 2.0 million/year Texas Tech University

19. Global Regional Layer Node Relations Links Local (Rodrige et al. 2009) Investment, trade and production Gateways and hubs (ports) Maritime lanes Global Corridors (rail lines, highways) Urban System Regional Cities Employment and commercial activities Roads and transit systems Commuting and distribution Local Texas Tech University Dr. Hongchao Liu is an Associate Professor in Civil and Environmental Engineering

20. Global Layer Questions What kind of partnership does the Mexico’s West Coast-Texas corridors require to succeed? How can foreign investment be attracted? What type of industries can be competitive in this corridor? What kind of environment do these industries require? Where are their suppliers going to be located? Which companies will provide capital goods? How reliable are the Mexico’s West Coast-Texas corridors? How will the flow of tourism and international cargo be promoted? What kind of security systems and initiatives are required? How will we ensure that security does not slow the transportation process? Texas Tech University

21. Regional Layer Questions Is the Mazatlan-Durango-Torreon-San Pedro-Monclova-PiedrasNegras a natural corridor? How will the economic growth in regions be activated? What kind of education or training programs are required? How can bottlenecks in the supply chain be detected? Which strategies, guidelines, and key factors of success are optimal for each region? Which are the competitive advantages or disadvantages of alternative routes? How will we create sustainable competitive logistic centers to rapidly attract value-added logistic activities? If a natural disaster occurs in a region, how reliable will the Mexico’s West Coast-Texas corridors be? Texas Tech University

22. Local Layer Questions Which is the optimal commercial developing plan to involve La Laguna region locations in world trade? Which strategies, guidelines, and key factors of success are optimal for each city? Which local infrastructure is required to create a sustainable competitive logistic center to rapidly attract value-added logistic activities? What kind of services should any location offer? How will we create job opportunities for local labor? What kind of education or training programs are required at each location? What kind of products will be available in each location? Texas Tech University

23. Objective of Studies • Take advantage of the geographical potential of the Mexico transversal corridor for developing an efficient • and agile global trade route. Texas Tech University

24. Tijuana Mexicali Nogales Ciudad Juárez Hermosillo Piedras Negras Chihuahua Nuevo Laredo Matamoros Saltillo Monterrey Torreón Culiacán La Paz Durango Cd.Victoria Mazatlán Zacatecas Cancún SLP Tampico Ags Progreso Tuxpan Mérida Tepic Querétaro Guadalajara Campeche Jalapa Toluca D.F. Colima Veracruz Chetumal Morelia D.F. Villa Hermosa Manzanillo Puebla Cuernavaca Lázaro Cárdenas Chilpancingo Oaxaca Tuxtla Gutiérrez Acapulco Salina Cruz Ciudad Hidalgo Acuña Allende 280,000 TEUs 2.O MillionTEUs 2.O MillionTEUs Texas Tech University

25. Tijuana Mexicali Ciudad Juárez Nogales Hermosillo Piedras Negras Chihuahua Nuevo Laredo Matamoros Saltillo Monterrey Torreón Culiacán La Paz Durango Cd.Victoria Mazatlán Zacatecas Cancún SLP Tampico Ags Progreso Tuxpan Mérida Tepic Querétaro Guadalajara Campeche Jalapa Toluca D.F. Colima Veracruz Chetumal Morelia D.F. Villa Hermosa Manzanillo Puebla Cuernavaca Lázaro Cárdenas Chilpancingo Oaxaca Tuxtla Gutiérrez Acapulco Salina Cruz Ciudad Hidalgo Acuña Allende Monclova San Pedro 280,000 TEUs 2.O MillionTEUs 2.O MillionTEUs Texas Tech University

26. HumbertoMoreiraValdés is the Governor of the Mexican State of Coahuila Jorge Alanis is the Coahuila Secretary of Economic Development Juan Francisco Gutiérrezis the Durango Secretary of Economic Development Torreon Mayor Eduardo Olmos San Pedro Mayor Jorge Abdala(key player) Texas Tech University

27. L-R: Michael Reeves Ports to Plains Trade Corridor president and Acuña Mayor Alberto Aguirre (key player) L-R: Carlos RománCepeda representative in Mexico City of Coahuila Ministry of Economic Foster (key Player); San Angelo MayorAlvinNew (key Player); and San Pedro Mayor Jorge Abdala(key player). Elizabeth Grindstaff, San Angelo Assistant City Manager Omar Gutiérrez de Anda is the Laguna region private sector president. Texas Tech University

28. Newspaper Publications http://www.territoriodecoahuilaytexas.com/entrevista/coahuila-se-integra-al-proyecto-transnacional-port-plains/3235/ http://impreso.milenio.com/node/8754516 Texas Tech University

29. AffectedCompanies Soriana is the holding company for one of the largest self-service retail chains in Mexico, with 462 stores in operation in 120 cities at the end of 2008. Met-Mex: the world’s fourth largest metallurgical complex, and the largest producer of refined silver and metallic bismuth. The largest dairy producer in Mexico is now the second largest in the US after it bought National Dairy Holdings and Farmland Dairies in 2009. Texas Tech University

30. Governments Involved San Pedro Texas Tech University

31. Consejo de Instituciones de Educación Superior de la Laguna (CIESLAG) Texas Tech University

32. Universities Texas Tech University

33. Comments and Questions? gerardo.o@ttu.edu or timothy.matis@ttu.edu Texas Tech University