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CANAMEX: What Are the Opportunities?

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CANAMEX: What Are the Opportunities? CANAMEX: What are the Opportunities? th 24 Annual Pinal County Town Hall: Reactivating the Regional Economy October 12, 2011 Casa Grande, AZ Presented by Congressman Jim Kolbe, Chairman, Presentation Overview • What is CANAMEX? • How is it structured? • What are the priorities? • Where are the opportunities? CANAMEX a high priority corridor 1995 National Highway Systems Designation Act The CANAMEX Corridor from Nogales, Arizona, through Las Vegas, Nevada, to Salt Lake City, Utah, to Idaho Falls, Idaho, to Montana, to the Canadian Border as follows: (A) In the State of Arizona, the CANAMEX Corridor shall generally follow-- (i) I-19 from Nogales to Tucson; (ii) I-10 from Tucson to Phoenix; and (iii) United States Route 93 in the vicinity of Phoenix to the Nevada Border. (B) In the State of Nevada, the CANAMEX Corridor shall follow-- (i) United States Route 93 from the Arizona Border to Las Vegas; and (ii) I-15 from Las Vegas to the Utah Border. (C) From the Utah Border through Montana to the Canadian Border, the CANAMEX Corridor shall follow I-15. Broader Vision—More than a line on the Map, it supports jobs and facilitates economic activities • In 2010, the bilateral trade in goods between U.S. CANAMEX States and their NAFTA neighbors was nearly $29 billion • The trade relationship between Canada and the US CANAMEX States supports over 309,00 US jobs; when you include Mexico the total US jobs that rely on trade increases to 583,000. • An economic profile of the CANAMEX Trade Shed (Alberta to Mexico City) identified a consumer market of over 54 million. • The US CANAMEX States combined have over 2 million jobs linked to global trade. • In 2009 alone, nearly 3 million Canadian visitors traveled to the CANAMEX Corridor Region and spent over $1.7 billion. CANAMEX Mission, Structure, Priorities Strategically invest in infrastructure and technology to increase competiveness in global trade, create jobs and maximize economic potential • Marine Ports Committee-allocated $250,000 for a feasibility analysis to determine the viability of constructing the Arizona Multi-modal Logistic Complex (AzMLC), that would serve as the U.S. gateway to Mexico’s Punta Colonet seaport and capture existing Asian trade flows. • Border and Corridors Committee-secured over $1 million for a robust system at the modernized Mariposa Port of Entry to calculate wait times and facilitate enforcement/compliance activities for international commercial traffic; championed over $1 billion in improvements to Hoover Bypass, US 93, I-10, SR 85; facilitated the allocation of $22 million in Coordinated Border Infrastructure funds within AZ border region. • Government Affairs Committee-organized a lobbyist network to champion the preservation of the Coordinated and Border Infrastructure (CBI) and National Corridor Planning and Development Program in the next transportation authorization bill. • Multi-state and International Collaboration Committee-collaborated with Arizona State University to develop an economic profile of the CANAMEX to highlight its efficiencies, profitability and key assets. Top 20 World Container Ports: 2000 and 2009 (Thousands of loaded and unloaded TEUs) 30,000 25,000 20,000 15,000 2000 10,000 2009 5,000 0 Dubai Busan Tainjin Ningbo Qingdao Antwerp Malaysia Shanghai Hamburg Shenzhen Singapore Port Klang Kaohsiung Rotterdam Hong Kong Hong Guangzhou LongBeach Los Angeles Source: RITA, America’s Container Ports: Linking Markets Home and Abroad, January 2011 Top 25 Water Ports by Containerized Cargo: 2009 Source: US Department of Transportation, Maritime Administration, U.S. Waterborne Container Trade by U.S. Custom Ports 1997-2009, as cited in Freight Facts and Figures, 2010 Top U.S Ports for Foreign Containerized Trade and the Proposed Punta Colonet Port (Thousands of loaded TEUs, 2009 & PC Projected Opening & 2030) Punta Colonet 2030 6,000 5,000 4,000 3,000 2,000 Punta Colonet Opening Year 1,000 0 Seattle Norfolk NY & NJ Oakland Tacoma Houston Savannah Charleston Long BeachLong Los Angeles Source: RITA, America’s Container Ports: Linking Markets Home and Abroad, January 2011 and Mexico’s Secretary of Communication and Transportation LA/LB Yuma Punta Colonet Punta Colonet in a nutshell • Early 2000s Hutchinson Whampoa initiates study for a new mega seaport in Punta Colonet; connected to the U.S. via a 205 mile rail line to Arizona, the access point of choice. • In 2008, Mexico first released an RFP for a 45 year concession to build the port, rail and operate the facilities. The estimated range of total investment was between $2.7 to $5 billion (USD). • PC port’s ultimate capacity would be 4 to 6 million TEUs annually, with initial volume at 1 million (the amount needed to amortize the cost of construction). • Citing the economic slowdown and the financial crisis, the Mexican government announced in early 2009 that the bidding process would be modified. • Potential concessionaires feedback emphasized needs: 1)ability to stand on it’s own not a compliment to LA/LB; 2) the U.S. gateway (port of entry) had to be determined to mitigate risk; 3) a chain of custody/security paradigm needed to ensure the safe and efficient cargo movement to the U.S. CANAMEX Strategy for Inland Ports • Contracted with Wilbur Smith to evaluate the feasibility and market potential of constructing a state of the art facility, Arizona Multi-modal Logistic Center (AZMLC). • The conceptual model would be Alliance Project in Texas which has attracted $5 billion in private investment, generated over $150 million in property tax revenues and created over 24,000 full time jobs. • Preliminary findings suggest considerable opportunity for Arizona to establish the AzMLC, even without Punta Colonet. Distance, cost and increased congestion at the U.S. West Coast Ports coupled with assets support feasibility. • A new rail crossing in Yuma, home to one of the country’s most vibrant agribusiness centers, would need to mitigate negative impacts, and result in economic benefits. • Our message: Arizona has the potential to reap significant benefits provided that the Yuma area is selected as the crossing and the AzMLC is developed to capitalize on these trade flows. Our challenge is to add value to the goods moving through out State and implement a strategy to generate freight for export to others. The Proportion of Imports vs. Exports at the Top US Ports, 2009 Composition of Freight Movements, Arizona Leaving Local 10% 1% Entering 14% Within Through 13% 62% Source: US Department of Transportation, Federal Highways Administration, Office of Freight Management and Operations as cited in Freight Facts and Figures, 2010 Mariposa Fast Lanes & Reconfiguration Over $2 billion in investments along the CANAMEX Corridor New Commercial Port of Entry San Luis Improvements to U.S. 93 New Bridge over the Colorado—Mike O’Callaghan-Pat Tillman Memorial Bridge Major Truck Routes on the National Highway System: 2040 Source: US Department of Transportation, Federal Highways Administration, Office of Freight Management and Operations as cited in Freight Facts and Figures, 2010 Thank you! Questions? CANAMEX Task Force 333 North Central Avenue, Ste 1900 Phoenix, AZ 85004 602.845.1297 .
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