Stakeholders Working Committee Meeting

MUSEO INTERACTIVO EL TROMPO

MARCH 5, 2020 Stakeholders Working Committee Meeting

Agenda

○ Border Innovation Challenge

○ Binational Axis and Tijuana Local Development Council

○ Border Dashboard

○ Insights

○ Initiative Progress

○ January Stakeholders Working Committee Meeting Highlights

2 Stakeholders Working Committee Meeting

Border Innovation Challenge

○ 2nd Edition

○ Format: Quick Pitch

○ Dates: March 9 through May 6

○ Prize Money: $10,000

○ Participants: anyone with a direct connection to a college or university in the -Tijuana border region (student, faculty, staff), self described entrepreneurs in the AI, machine learning and big data environments, seed and early stage companies and software developers.

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Binational Axis and Tijuana Development Council (CDT)

○ 8 key objectives:

■ Common agenda with Smart Border Coalition – monitoring and facilitation

■ Ties with San Diego

■ Mexico entry and exit improvements – Umbral de las Americas, Otay East Port of Entry, Puerta de Mexico

■ Enhance binational entrepreneurship

■ Additional sources of funding for projects

■ Border Dashboard

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Border Dashboard

○ Task force:

■ Spell out purpose and interest in developing a dashboard.

■ Looking for Key Performance Indicators: measure, target, data source, reporting frequency.

■ Essential to define customer and to be able to maintain the dashboard.

■ Is effort public or private?

■ Compile sources of information: Define “low hanging fruit”. There is already good information from Caltrans, SANDAG. CBP should be invited to participate. Find out which sources have APIs (Application Program Interfaces). Should Google become a partner?

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Border Dashboard

Key Indicators

Wait Times Purpose for crossing

Southbound Travel Directions (“Know Pollution levels before you Go”) Number of trucks on a daily basis Dollars spent by Mexican consumers on a daily basis

Traffic projections Traffic conditions close to ports

Value of lost time Tax revenues

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Border Dashboard

○ Collaboration with San Diego State and UABC: Professor Eric G. Frost of the Graduate Program in Homeland Security and Dr. Alma Navarro, International Relations Professor.

○ We have met with students of the “Imaging and GIS in Disaster Response” course and described the opportunity (GIS = Geographic Information System).

○ The dashboard will be their trimester project. We anticipate a formal presentation of the first iteration in May.

○ Example of a timely dashboard:

■ https://gisanddata.maps.arcgis.com/apps/opsdashboard/index.html#/bda7594740fd40299423467b48e9ecf6

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Insights

○ 2019 crossing stats for Otay, San Ysidro and :

■ Travelers were up 0.7%, far below the 6.5% from 2017 to 2018.

■ Pedestrian crossings were up 12.9% from 2018. Part of this could be due to PedWest being used for a full calendar year and the launch of the modernized version of PedEast.

■ Passenger vehicles declined 3.25%. Otay Mesa declined 14.6% (vehicles and passengers).

■ Bus use has come down substantially in the last 5 years. We are at 50% of what we had in 2015.

■ CBX stats: 2,897,903 million passengers in 2019, a 28.5% increase over 2018. There were 1,319,275 southbound and 1,578,628 northbound travelers.

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Insights

○ 2019 crossing stats for Otay, San Ysidro and Tecate, Continued:

■ Trade went from $52.3 billion in 2018 to $50.8 billion in 2019, a 2.9% drop.*

■ Number of trucks at Otay Mesa was down 1.4%, but Tecate was up 5.6%.

*Source: Customs and Border Protection

9 Crossing Statistics

All Travelers ALL PORTS (Northbound) 57,000,000 0.7% increase 56,048,086 from 2018-2019 56,000,000 55,670,006

55,000,000

54,000,000

53,000,000 52,275,450

52,000,000 51,307,226 51,367,707

51,000,000 2014.5 2015 2015.5 2016 2016.5 2017 2017.5 2018 2018.5 2019 2019.5

Source: Bureau of Transportation Statistics and CBX. 10 Crossing Statistics

Pedestrians ALL PORTS (Northbound) 18,000,000 16,874,769 12.9% increase from 2018-2019 16,000,000 14,943,677

14,000,000 12,695,458 11,560,768 12,000,000 11,075,866

10,000,000

8,000,000

6,000,000

4,000,000

2,000,000

0 2015 2016 2017 2018 2019

Source: Bureau of Transportation Statistics and CBX. 11 Crossing Statistics

Pedestrian Crossings (Northbound) 12,000,000 10,799,398 14.5% increase from 2018-2019 10,000,000 9,435,611 8,279,253 8,000,000 7,382,363 7,056,022

6,000,000

4,000,000

2,000,000

0 2015 2016 2017 2018 2019

Source: Bureau of Transportation Statistics. 12 Crossing Statistics

Pedestrian Crossings (Northbound)

3,600,000 3,569,271 5.2% increase from 2018-2019 3,550,000 3,504,800 3,500,000

3,450,000 3,411,485 3,391,349 3,400,000 3,361,489 3,350,000

3,300,000

3,250,000 2015 2016 2017 2018 2019

Source: Bureau of Transportation Statistics. 13 Crossing Statistics

Pedestrian Crossings (Northbound) 1,000,000 927,472 10.7% increase 900,000 837,643 from 2018-2019 771,453 800,000 673,605 700,000 608,359 600,000 500,000 400,000 300,000 200,000 100,000 0 2015 2016 2017 2018 2019

Source: Bureau of Transportation Statistics. 14 Crossing Statistics

Pedestrian Crossings CBX (Northbound) 1,800,000 23.4% increase 1,578,628 1,600,000 from 2018-2019

1,400,000 1,279,074 1,200,000

1,000,000

800,000

600,000

400,000 283,263 200,000

0 2017 2018 2019

Source: CBX. The total for northbound and southbound travelers was 2,897,903 in 2019, a 28.5% increase from 2018. 15 Crossing Statistics

Personal Vehicles ALL PORTS (Northbound) 23,400,000 23,305,612 3.2% decrease 23,200,000 23,130,691 from 2018-2019

23,000,000

22,800,000

22,600,000 22,549,106 22,395,424 22,400,000 22,277,206 22,200,000

22,000,000

21,800,000

21,600,000 2015 2016 2017 2018 2019

Source: Bureau of Transportation Statistics. 16 Crossing Statistics

Personal Vehicle (PV) Passengers SAN YSIDRO PORT OF ENTRY (Northbound) 26,000,000 25,845,348 2.6% increase 25,646,073 from 2018-2019 25,500,000 25,182,134

25,000,000

24,500,000

24,014,192 24,000,000 23,831,138

23,500,000 2014.5 2015 2015.5 2016 2016.5 2017 2017.5 2018 2018.5 2019 2019.5

Source: Bureau of Transportation Statistics. 17 Crossing Statistics

Personal Vehicle (PV) Passengers OTAY MESA PORT OF ENTRY (Northbound) 14,000,000 14.6% decrease 13,583,328 13,600,059 from 2018-2019 13,500,000 13,318,027

13,000,000

12,500,000 12,225,410

12,000,000

11,500,000 11,372,048

11,000,000 2014.5 2015 2015.5 2016 2016.5 2017 2017.5 2018 2018.5 2019 2019.5

Source: Bureau of Transportation Statistics. 18 Crossing Statistics

Personal Vehicle (PV) Passengers TECATE PORT OF ENTRY 2,150,000 2,130,145 8.7% decrease 2,100,000 from 2018-2019 2,039,817 2,050,000

2,000,000 1,944,890 1,950,000 1,908,418 1,900,000

1,850,000

1,800,000 1,776,948

1,750,000 2014.5 2015 2015.5 2016 2016.5 2017 2017.5 2018 2018.5 2019 2019.5

Source: Bureau of Transportation Statistics. 19 Crossing Statistics

Buses ALL PORTS (Northbound)

100,000 26% decrease 90,000 90,172 from 2018-2019 80,000

70,000 69,186 64,837 60,000 61,591 50,000 45,606 40,000 30,000 20,000 10,000 0 2014.5 2015 2015.5 2016 2016.5 2017 2017.5 2018 2018.5 2019 2019.5

Source: Bureau of Transportation Statistics. 20 Stakeholders Working Committee Meeting

Initiative List and Progress

○ Puerta de Mexico demolition

■ We have no formal word yet on time frame (in December, Carlos Rascón, Works Resident from the Communications and Transportation Ministry, had stated that project would conclude in June of this year). Investment is estimated at $40 million pesos ($2.1 million), 8 lanes (3.8 yard width), distance of 224 yards. There will also be a “Center for Traffic Control and Information” that will measure wait times using WiFi technology. Traffic information to be exchanged between countries. Project is in process of being assigned to a contractor.

○ Export Corridor at Otay Mesa POE

■ We are analyzing the possibility of working with the Tijuana Local Development Council to facilitate the project’s implementation starting this year. This is a federally driven decision that entails high level conversations with SAT (customs authority) and INDAABIN (customs buildings owner).

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Initiative List and Progress

○ Tecate Railroad

■ It was agreed that ADMICARGA and Baja Rail would TOGETHER go to SAT to present the finished executive plan and get formal FINAL authorization for the project. Baja Rail also renewed conversations with MTS to get approval.

○ Otay East Port of Entry (Otay II)

■ Executive study for the access road to the port in Tijuana has been completed. It will be 8 lanes on Avenida Las Torres and will follow the power line route. Concession for build out is about to be assigned. Construction could start in July.

■ Baja SCT Center Director Felipe Verdugo stated on 2/17 that there are $800 million pesos available to acquire land for the port itself. Land acquisition will start in April. ’s Urban Infrastructure Secretariat (SIDURT) has informed us that they have agreed on project leader prerequisites with federal government.

■ Caltrans stated on 2/28 that the traffic innovation analysis has been completed. The next stage will be project financing. 22 Stakeholders Working Committee Meeting

Initiative List and Progress

■ 5x5 port, meaning it will have 5 northbound and 5 southbound lanes. Lanes will be reversible, and operational between 2023 and 2025. The goal is to have 20-minute wait times.

■ The new port will integrate the latest technology in travel control systems and variable tolls, with travel times and conditions conveyed to travelers well before reaching the port. The idea is to have a DEPENDABLE port.

○ Wait Times: there are potentially 2 wait time measurement projects in store for 2020. One will be paid for by the California Transportation Commission and the other has been commissioned by the GSA. The Tijuana Local Development Council has a pilot project approved for funding.

○ Signage: City of Tijuana is working to assign resources to to implement tourism signage for at least 1 district near San Ysidro POE. The Local Development Council would likely lead the implementation effort.

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Initiative List and Progress

○ Access Roads: CANACAR (Tijuana transportation association) led a group that proposed a new plan for trucks to access lanes near the Otay Mesa POE. City of Tijuana has started to implement the plan but there are no formal results yet.

○ Joint Inspection / Unified Cargo Processing: increased communication between Mexican trade groups and CBP, new access road strategy in Tijuana as well as the opening of a 10th lane on the U.S. side of the border in October have decreased wait times to levels not seen in years: FAST trucks took an average of 1 hour in the last quarter of 2019 vs. 2-3 hours in the 4th Quarter of 2018. However, wait time volatility continues to be an issue.

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January Stakeholder Working Committee meeting highlights

○ Ruben Roa-Dueñas, Undersecretary of Economy, Baja California: Relaunch of Commision of the Calfornias will focus on 6 areas: environment and energy; agriculture; emergency preparedness and response; economic development and tourism; transportation and infrastructure; and public health. Official meeting will be in September or October.

○ Miguel Marshall, Director of Economic Improvement Districts, Baja California: The state will create districts in Tijuana, Ensenada, Mexicali, and Rosarito. It has been working with the San Ysidro Chamber of Commerce and the City of San Diego for benchmarking purposes. There is a development structure in place but the initiative must come from citizens.

■ Funding sources: $75 million pesos from the State Government, $60 million pesos from Urban Infrastructure Secretariat, and $75 million pesos from local governments. Team of urban designers will also be involved.

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January Stakeholder Working Committee meeting highlights

○ Mario Orso, Caltrans Corridor Director:

■ Applauds Border Innovation Challenge and adds that project leaders must get in touch with agencies for implementation possibilities.

■ The Commission of the is excellent news but technical support will be critical to its success. We need short, medium and long term goals.

■ State Route 11 conclusion: $100 million of construction happening today, with another $100 million in 2021 for the final connection from SR 125 to 905 West (interchange).

■ Fiber optic connection for 20 miles going to the SY border happening now; by 2022 fiber optic connections will be installed all the way to the CA-BC ports.

■ Caltrans/SANDAG will continue to pursue funding for new port with SB1 and federal resources.

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January Stakeholder Working Committee meeting highlights

○ Caltrans Corridor Director, Cont.:

■ Northbound wait times: Caltrans has secured $1 million to install wait time readers; this money will potentially be enough to complete the Otay Mesa Port of Entry as well. Contract procurement will go out in the next 3 months.

■ Investment grade revenue study should be completed this year. This is the basis for port financing plan. Staffing will be an important challenge for the Otay Mesa East POE.

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January Stakeholder Working Committee meeting highlights

○ Venu Sarakki, Sarakki Associates:

■ His company designed 5 SENTRI lanes in the 2000s.

■ In 2018 was awarded a $10 million contract from GSA to implement a variety of operation-enhancing projects at U.S.’s northern and southern border.

■ Most significant efforts are to develop real-time traffic simulation for efficient port operations, port-specific software for real time decision making and process baseline for CBP primary and secondary inspection functions.

○ Israel Delgado, CANACAR President, Tijuana Chapter:

■ Collaboration with CBP, SAT and City of Tijuana has helped to reduce average wait times for cargo from 3-4 hours per truck in the 4th Quarter 2018 to a 1-hour average in the 4th Quarter of 2019. Mexico can process trucks in 12 seconds, whereas the U.S. takes 3 minutes.

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January Stakeholder Working Committee meeting highlights

○ Israel Delgado, Cont.

■ Looking for technology to have real-time wait times.

■ There are approximately 1,000 empty trucks crossing each day – CANACAR has worked with CBP to mandate the use of emanifest for all empties. This is still being evaluated and if passed will substantially reduce wait times.

■ The more trucks wait in line, the higher the probability of “contamination”.

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January Stakeholder Working Committee meeting highlights

○ Miscellaneous contributions:

■ Ramon Riesgo, GSA: they have the capacity to triple the number of booths / lanes at Tecate once SR 94 is expanded, but this is likely not going to happen. Limitations for SR 94 expansion are local in nature.

■ Various contributions, CBP group: for northbound new lanes to San Ysidro, only gates 26-28 are operational. Lanes 29-34 are not being used until Mexico concludes Puerta de Mexico demolition; Ready Lane+All Traffic lane merger at PedEast was based on 10/12 months of short lines; more agents in SENTRI are justified by paying customers; for Global Entry card renewal, CBP has expanded the grace period to one year after expiration so long as the renewal application is sent at least one year in advance.

■ Jason Wells, SY Chamber of Commerce: the consistent and constructive dialogue we have enjoyed, and depended on, with CBP over many years has not been as effective in the last 5 months - since administrative changes took place, including the removal of our Assistant Port Director.

■ Baja California Congressman Luis Moreno Hernandez just returned from a trip to the Singapore/Malaysian border. He sees may similarities. Border expert from Singapore will be here in March. Moreno is planning a trip to Singapore in May and would welcome any stakeholders.

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Social Media

@smartbordercali

Smartbordercoalition

smartbordercali

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Next meeting is at San Diego Foundation on May 7

2020 Meetings:

July 9, Tijuana September 3, San Diego (San Diego Foundation) November 5, Tijuana

THANK YOU

32 Crossing Statistics

Imports from Mexico OTAY MESA AND TECATE PORTS OF ENTRY (in millions $) $40,000

$33,359 $33,864 $35,000 $32,111 $32,792 3.7% decrease 3.2% decrease $30,000 from 2018-2019 from 2018-2019

$25,000

$20,000

$15,000

$10,000 34.5% increase from 2018-2019 $5,000 $506 $681 $- Otay Mesa Tecate Totals

2018 2019

Source: CBP, Bureau of Transportation Statistics.. 33 Crossing Statistics

Exports to Mexico OTAY MESA AND TECATE PORTS OF ENTRY (in millions $)

$20,000 $18,448 $18,141 $17,627 $18,000 $18,000 2.8% decrease 2.4% decrease $16,000 from 2018-2019 from 2018-2019 $14,000 $12,000 $10,000 $8,000 $6,000 21.5% increase $4,000 from 2018-2019 $2,000 $307 $373 $- Otay Mesa Tecate Totals

2018 2019

Source: CBP, Bureau of Transportation Statistics. 34 Crossing Statistics

Trade in Region OTAY MESA AND TECATE PORTS OF ENTRY (in millions $)

$52,500 $52,313

2.9% decrease from 2018-2019 $52,000

$51,500

$51,000 $50,792

$50,500

$50,000 2018 2019

Source: CBP, Bureau of Transportation Statistics. 35 Crossing Statistics

Trucks - ALL PORTS 2,500,000

2,000,000 1% decrease from 2018-2019

1,500,000 1,026,373 1,015,861 957,621 990,759 883,686

1,000,000

962,577 948,630 500,000 829,581 899,336 929,614

0 52,090 56,269 59,128 61,778 65,212 2015 2016 2017 2018 2019

Tecate Otay Mesa Totals

Source: CBP, Bureau of Transportation Statistics. 36