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

Texas Tech University2 U.S. Exports and Imports, (Billions)

Texas Tech University3 Source: ProLogis Regional Distribution: Percentage of U.S. Population within 500 Miles

Texas Tech University4 Asia-Pacific Trade

US West Coast ports have experienced remarkable growth in container processing, from 14.2 million containers in 2001 to 22.6 million in 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 The combination of these elements led logistic agencies to divert containers to ports in Canada and Mexico (McCray & Gonzalez, 2008). Texas Tech University5

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It seems viable to keep commodity manufacturing off-shore while having more sensitive manufacturing closer to the Sates. Texas Tech University9

Ports to Plains Corridor Texas Tech University10

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Mazatlan is a popular tourist destination and commercial port. Planned TEU Capacity 280,000/year Texas Tech University13 Source:h ttp://images.google.com/imgres?imgurl= mons.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

Texas Tech University14Texas Tech University D.F. Piedras Negras SLP Querétaro Ciudad Hidalgo Salina Cruz Cancú n Chilpancingo Oaxaca Hermosillo Chihuahua Durango La Paz Culiacán Monterrey Saltillo Mexicali Mérida Campeche Villa Hermosa Tuxtla Gutiérrez Chetumal Tijuana Nogales Ciudad Juárez Nuevo Laredo Matamoros Mazatlán Acapulco Lázaro Cárdenas Colima Manzanillo Tampico Tuxpan Progreso Veracruz Torreón Zacatecas Ags Cd.Victoria Guadalajara Tepic Morelia Toluca D.F. Cuernavaca Puebla Jalapa Houston San Antonio Dallas Lubbock San Angelo Amarillo Acuña Allende

Texas Tech University15 Why is the Mazatlan-Durango highway rarely used?

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Texas Tech University17 The Mazatlan-Durango highway will reduce the driving time from 6 to 2.6 hours.

Manzanillo is a tourist destination and commercial port. Planned TEU capacity 2.0 million/year Texas Tech University 18

Texas Tech University19 Global Regional Local (Rodrige et al. 2009) Global Gateways and hubs (ports) Maritime lanes Investment, trade and production RegionalCities Corridors (rail lines, highways) Urban System Local Employment and commercial activities Roads and transit systems Commuting and distribution Relations Links Node Layer Dr. Hongchao Liu is an Associate Professor in Civil and Environmental Engineering

Texas Tech University20 Global Layer Questions 1.What kind of partnership does the Mexico’s West Coast-Texas corridors require to succeed? 2.How can foreign investment be attracted? 3.What type of industries can be competitive in this corridor? 4.What kind of environment do these industries require? 5.Where are their suppliers going to be located? 6.Which companies will provide capital goods? 7.How reliable are the Mexico’s West Coast-Texas corridors? 8.How will the flow of tourism and international cargo be promoted? 9. What kind of security systems and initiatives are required? 10. How will we ensure that security does not slow the transportation process?

Texas Tech University21 Regional Layer Questions 1.Is the Mazatlan-Durango-Torreon-San Pedro-Monclova- Piedras Negras a natural corridor? 2.How will the economic growth in regions be activated? 3.What kind of education or training programs are required? 4.How can bottlenecks in the supply chain be detected? 5.Which strategies, guidelines, and key factors of success are optimal for each region? 6.Which are the competitive advantages or disadvantages of alternative routes? 7.How will we create sustainable competitive logistic centers to rapidly attract value-added logistic activities? 8.If a natural disaster occurs in a region, how reliable will the Mexico’s West Coast-Texas corridors be?

Texas Tech University22 Local Layer Questions 1.Which is the optimal commercial developing plan to involve La Laguna region locations in world trade? 2.Which strategies, guidelines, and key factors of success are optimal for each city? 3.Which local infrastructure is required to create a sustainable competitive logistic center to rapidly attract value-added logistic activities? 4.What kind of services should any location offer? 5.How will we create job opportunities for local labor? 6.What kind of education or training programs are required at each location? 7.What kind of products will be available in each location?

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 University23

Texas Tech University24 D.F. Piedras Negras SLP Querétaro Ciudad Hidalgo Salina Cruz Cancún Chilpancingo Oaxaca Hermosillo Chihuahua Durango La Paz Culiacán Monterrey Saltillo Mexicali Mérida Campeche Villa Hermosa Tuxtla Gutiérrez Chetumal Tijuana Nogales Ciudad Juárez Nuevo Laredo Matamoros Mazatlán Acapulco Lázaro Cárdenas Colima Manzanillo Tampico Tuxpan Progreso Veracruz Torreón Zacatecas Ags Cd.Victoria Guadalajara Tepic Morelia Toluca D.F. Cuernavaca Puebla Jalapa 2.O Million TEUs 280,000 TEUs Acuña Allende

Texas Tech University25 D.F. Piedras Negras SLP Querétaro Ciudad Hidalgo Salina Cruz Cancún Chilpancingo Oaxaca Hermosillo Chihuahua Durango La Paz Culiacán Monterrey Saltillo Mexicali Mérida Campeche Villa Hermosa Tuxtla Gutiérrez Chetumal Tijuana Nogales Ciudad Juárez Nuevo Laredo Matamoros Mazatlán Acapulco Lázaro Cárdenas Colima Manzanillo Tampico Tuxpan Progreso Veracruz Torreón Zacatecas Ags Cd.Victoria Guadalajara Tepic Morelia Toluca D.F. Cuernavaca Puebla Jalapa 2.O Million TEUs 280,000 TEUs Acuña Allende San Pedro Monclova

Texas Tech University26 Humberto Moreira Valdés is the Governor of the Mexican State of Coahuila Jorge Alanis is the Coahuila Secretary of Economic Development Juan Francisco Gutiérrez is the Durango Secretary of Economic Development San Pedro Mayor Jorge Abdala (key player) Torreon Mayor Eduardo Olmos

Texas Tech University27 Omar Gutiérrez de Anda is the Laguna region private sector president. L-R: Carlos Román Cepeda representative in Mexico City of Coahuila Ministry of Economic Foster (key Player); San Angelo Mayor Alvin New (key Player); and San Pedro Mayor Jorge Abdala (key player). L-R: Michael Reeves Ports to Plains Trade Corridor president and Acuña Mayor Alberto Aguirre (key player) Elizabeth Grindstaff, San Angelo Assistant City Manager

Texas Tech University28 ntrevista/coahuila-se-integra-al-proyecto- transnacional-port-plains/3235/ Newspaper Publications

Texas Tech University29 Met-Mex: the world’s fourth largest metallurgical complex, and the largest producer of refined silver and metallic bismuth. 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 The largest dairy producer in Mexico is now the second largest in the US after it bought National Dairy Holdings and Farmland Dairies in Affected Companies

Texas Tech University30 Governments Involved San Pedro

Texas Tech University31 Consejo de Instituciones de Educación Superior de la Laguna (CIESLAG)

Texas Tech University32 Universities

Comments and Questions? Texas Tech University33 or