Border-Trade-Report.Pdf

2020 International Trade Corridor Plan

FREIGHT, INTERNATIONAL TRADE AND CONNECTIVITY Transportation Planning and Programming Division

DECEMBER 2020

Table of Contents FIGURES ...... 3 TABLES ...... 4 EXECUTIVE SUMMARY ...... 6 1. INTRODUCTION ...... 19 2. TRADE HELPS DRIVE THE TEXAS ECONOMY ...... 20 2.1 U.S. AND TEXAS TRADE ...... 20 2.2 TEXAS’ TRADING PARTNERS ...... 24 2.3 WHAT COMMODITIES DOES TEXAS TRADE? ...... 26 2.4 TRADE BENEFITS ...... 30 3. ROLE OF TEXAS’ TRANSPORTATION SYSTEM IN FACILITATING TEXAS’ TRADE ...... 33 3.1 TEXAS’ HIGHWAY AND RAIL CORRIDORS ...... 33 3.2 TEXAS’ PIPELINES ...... 38 3.3 TRANSPORTATION GATEWAYS ...... 39 4. ENHANCING TEXAS’ TRADE TRANSPORTATION SYSTEM ...... 52 4.1 HIGHWAY TRADE CORRIDORS ...... 52 4.2 TEXAS RAIL TRADE CORRIDORS ...... 89 4.3 BORDER CROSSINGS ...... 92 4.3 TEXAS BORDER AIRPORTS ...... 100 4.4 TEXAS-MEXICO PIPELINES ...... 105 5. SUMMARY ...... 106 REFERENCES ...... 109

Figures

Figure 1. U.S. and Texas Trade ...... 20 Figure 2. U.S. Exports and Imports ...... 21 Figure 3. Texas, California, and New York Goods Export Values ...... 22 Figure 4. Texas, California, and New York Import Goods Values ...... 23 Figure 5. U.S. and Texas Trade with Mexico ...... 24 Figure 6. Texas' Trading Partners by Percentage of Total Trade Value (2019) ...... 25 Figure 7. Texas’ Largest Trading Partners ...... 25 Figure 8. Texas' Five Most-Traded Commodities with the World (2019) ...... 26 Figure 9. Texas’ Corridors Supports Trade with Mexico and Canada ...... 34 Figure 10. Texas’ Highway Freight Network ...... 35 Figure 11. Texas’ Rail Freight Corridors ...... 37 Figure 12. Texas’ Pipeline Network (2017) ...... 38 Figure 13. Texas’ Ports of Entry ...... 39 Figure 14. Texas’ Commercial Vehicle Border Crossings ...... 40 Figure 15. Texas Land Border Crossing Value by Truck and Rail (2010–2019) ...... 41 Figure 16. Northbound Truck Crossings by State ...... 42 Figure 17. Texas’ Top 5 Commodities Moved by Truck (2019) ...... 43 Figure 18. Northbound Loaded and Empty Rail Cars by State (2010–2019) ...... 43 Figure 19. Texas Top 5 Commodities Moved by Rail (2019) ...... 44 Figure 20. Number of Rail Cars Crossing the Texas – Mexico Border (2010–2019) ...... 45 Figure 21. Texas Seaports ...... 46 Figure 22. Weights at Texas Maritime Ports (Top 6 Deep Draft Ports) ...... 47 Figure 23. Weights at Texas Maritime Ports (Remaining Deep Draft Ports) ...... 47 Figure 24. Texas Inland Ports ...... 48 Figure 25. I-10 Corridor in Texas ...... 54 Figure 26. I-20 Corridor in Texas ...... 57 Figure 27. I-35 Corridor in Texas ...... 60 Figure 28. I-37 Corridor in Texas ...... 63 Figure 29. I-45 Corridor in Texas ...... 65 Figure 30. I-69 Corridor in Texas ...... 67 Figure 31. Ports-to-Plains Corridor in Texas ...... 70 Figure 32. I-30 Corridor in Texas ...... 73 Figure 33. I-40 Corridor in Texas ...... 75 Figure 34. US 87 Corridor in Texas ...... 77 Figure 35. US 69 Corridor in Texas ...... 80 Figure 36. US 67 Presidio to DFW Corridor in Texas ...... 82 Figure 37. US 281 Corridor in Texas ...... 84 Figure 38. East-West Corridor in Texas ...... 87 Figure 39. Ysleta-Zaragoza Bridge: Winn Road Project Limits ...... 93 Figure 40. Intelligent Transportation System (ITS) Project Boundaries ...... 94 Figure 41. Laredo International Airport Cargo Apron Rehabilitation Program ...... 103 Figure 42. Funding ($ billions) for Planned Projects on Texas’ Trade Corridors (2021 UTP)...... 107

Tables

Table 1. 2018 Exports to Mexico by Metropolitan Statistical Area...... 30 Table 2. AllianceTexas Access and Infrastructure ...... 49 Table 3. Estimated Contributions of the AllianceTexas to the Texas Economy, 2018 ...... 50 Table 4. Port San Antonio Access and Infrastructure ...... 50 Table 5. Overall Port San Antonio Workforce, 2018 ...... 51 Table 6. Estimated Contributions of Port San Antonio to the Texas Economy, 2018 ...... 51 Table 7. Let Projects on I-10 by Type (2019 and 2020) ...... 55 Table 8. Planned I-10 Projects by Type (2021 UTP) ...... 56 Table 9. Let Projects on I-20 by Type (2019 and 2020) ...... 57 Table 10. Planned I-20 Projects by Type (2021 UTP) ...... 58 Table 11. Future I-20 Corridor Needs ...... 59 Table 12. Let Projects on I-35 by Type (2019 and 2020) ...... 61 Table 13. Planned I-35 Projects by Type (2021 UTP) ...... 61 Table 14. Future I-35 Corridor Needs ...... 62 Table 15. Let Projects on I-37 by Type (2019 and 2020) ...... 63 Table 16. Planned I-37 Projects by Type (2021 UTP) ...... 64 Table 17. Let Projects on I-45 by Type (2019 and 2020) ...... 65 Table 18. Planned I-45 Projects by Type (2021 UTP) ...... 66 Table 19. Future I-45 Corridor Needs ...... 67 Table 20. Let Projects on I-69 by Type (2019 and 2020) ...... 68 Table 21. Planned I-69 Projects by Type (2021 UTP) ...... 69 Table 22. Future I-69 Corridor Needs ...... 69 Table 23. Let Projects on the Ports-to-Plains Corridor by Type (2019 and 2020) ...... 71 Table 24. Planned Ports-to-Plains Projects by Type (2021 UTP) ...... 71 Table 25. Future Ports-to-Plains Corridor Needs ...... 72 Table 26. Let Projects on I-30 by Type (2019 and 2020) ...... 73 Table 27. Planned I-30 Projects by Type (2021 UTP) ...... 74 Table 28. Future I-30 Corridor Needs ...... 75 Table 29. Let Projects on I-40 by Type (2019 and 2020) ...... 76 Table 30. Planned I-40 Projects by Type (2021 UTP) ...... 76 Table 31. Future I-40 Corridor Needs ...... 77 Table 32. Let Projects on US 87 by Type (2019 and 2020) ...... 78 Table 33. Planned US 87 Projects by Type (2021 UTP) ...... 79 Table 34. Future US 87 Corridor Needs ...... 79 Table 35. Let Projects on US 69 by Type (2019 and 2020) ...... 80 Table 36. Planned US 69 Projects by Type (2021 UTP) ...... 81 Table 37. Future US 69 Corridor Needs ...... 82 Table 38. Planned US 67 Presidio to DFW Corridor Projects by Type (2021 UTP) ...... 83 Table 39. Let Projects on US 281 by Type (2019 and 2020) ...... 84 Table 40. Planned US 281 Projects by Type (2021 UTP) ...... 85 Table 41. Future US 281 Corridor Needs ...... 86 Table 42. Let Projects on the East-West Corridor by Type (2019 and 2020) ...... 87 Table 43. Planned East-West Corridor Projects by Type (2021 UTP) ...... 88 Table 44. Future East-West Corridor Needs ...... 89 Table 45. Planned Kansas City Southern Projects ...... 92 Table 46. Planned Projects at the Anzalduas International Bridge ...... 96 Table 47. Planned Projects at the Pharr Reynosa International Bridge ...... 97 Table 48. Planned Projects at Donna International Bridge ...... 99 Table 49. Planned Projects at the Progreso International Bridge ...... 99 Table 50. Proposed New International Bridges on Texas-Mexico Border ...... 100 Table 51. Planned Brownsville International Airport Projects ...... 101 Table 52. Planned McAllen International Airport Projects ...... 101 Table 53. Planned Laredo International Airport Projects ...... 104

Table 54. Planned Texas-Mexico Pipelines ...... 105 Table 55. Planned Texas Trade Corridor Projects by Type (2021 UTP) ...... 107 Table 56. Future Texas’ Trade Corridor Needs ...... 108

Executive Summary

. U.S. goods trade increased The International Trade Corridor Plan is a biannual from $3.2 trillion in 2010 to $4.1 trillion in 2019 - a 30 report required by the Texas Transportation Code percent increase. in sections §201.114 and §201.6011. In compliance with the requirements set out in the . Texas, California, and New Texas Transportation Code, this document York are the U.S.’s top trading includes information on: states. . . Texas trade at $625.3 billion Texas’ global trade, including information on the accounts for 15 percent of U.S. state’s major commodities traded and major trade. trading partners. . Texas’ trade with its top five trading partners. . Texas has been the U.S. state . Texas’ infrastructure facilitating trade, including with the highest value of an overview of Texas’ major trade corridors and exports for 17 consecutive years. Texas’ gateways (e.g., commercial vehicle and rail border crossings, marine ports, pipelines, and . Texas goods exports increased inland ports). from $264.8 billion in 2017 to . Planned investments in major highway trade $330.5 billion in 2019 – a 25 corridors that facilitate trade. percent increase. . Planned non-highway investments that facilitate . Mexico is the U.S. and Texas’ trade. top trading partner. The International Trade Corridor Plan is relevant to . U.S. trade with Mexico Texas as trade is important to both the United increased from $393.7 billion States (U.S.) and Texas economies. in 2010 to $614.5 billion in 2019 — a 56 percent increase. U.S. and Texas Trade . Texas trade with Mexico In 2019, the U.S. traded $4.1 trillion in goods— increased from $151.7 billion $2.5 trillion were imports and $1.6 trillion were in 2010 to $212.9 billion in exports. This trade value represents an almost 2019 - a 40 percent increase. 7 percent ($257.2 billion) increase from the total . Texas accounted for 35 goods trade value in 2017. In 2019, Texas’ goods percent ($212.9 billion) of the trade represented 15 percent of all U.S. goods value of U.S. trade with Mexico trade at $625.3 billion. Texas had the largest in 2019. goods trade value followed by California. Texas . Texas’ ports of entry processed also leads the country in goods export value, $441.9 billion of U.S.-Mexico having exported $330.5 billion in 2019. All values trade in 2019 - 70 percent in the report are in current year dollars. ($310.1 billion) crossed by truck and 17 percent ($74.8 billion) crossed by rail.

Texas’ Trading Partners Texas’ five largest trading partners are Mexico, Canada, China, Japan, and South Korea (see Figure ES1. Texas' Trading Partners by Percentage of Total Trade Value (2019)). In 2019, Texas traded:

. $212.9 billion with Mexico.1 . $47.2 billion with Canada.2 . $44.5 billion with China.3 . 35.4 billion with Japan. . $25.9 billion with South Korea. Source: U.S. Census (USA Trade Online: https://usatrade.census.gov/)

These five countries account for 59 Figure ES1. Texas' Trading Partners by Percentage of percent of Texas’s trade with the rest Total Trade Value (2019) of the world.

Texas’ Top Traded Commodities4 In 2019, Texas’ most traded commodity with the world by value was machinery/electrical products at $205.9 billion, followed by mineral products at $163.3 billion. Other highly traded commodities were transportation products ($68.8 billion), chemicals and allied industry products (which consist mostly of petrochemicals) at $41.4 billion, and miscellaneous products ($31.3 billion) (see Figure ES2. Texas’ Top Five Traded Commodities).

1 Mexico represented 34 percent of all Texas international trade at $212.9 billion. 2 Canada moved up from third in 2017 at $41.1 billion to second in 2019. 3 China dropped from Texas’ second largest trading partner in 2017 at $59.0 billion to third in 2019. 4 According to the U.S. Census: • Machinery/electrical commodities include electrical motors and generators; parts of electrical motors, generators, and sets; electromagnets, permanent magnets, and parts; vacuum cleaners and parts thereof; and industrial or laboratory electric furnaces and parts thereof. • Mineral products include crude oil from petroleum and bituminous minerals; petroleum gases and other gaseous hydrocarbons; petroleum jelly, mineral waxes, and other similar projects; bitumen and asphalt, shale and tar sands; and electrical energy. • Transportation commodities include rail locomotives: railway or tramway freight cars; motor vehicles; tractors; aircraft, spacecraft, and parts thereof; and ships, boats, and floating structures. • Chemicals and allied industries include inorganic chemicals, precious and rare earth metals, and radioactive compounds; organic chemicals, pharmaceutical products; fertilizers; and tanning and dye extracts, dye, paint, and putty. • Miscellaneous commodities include clocks and watches and parts thereof; musical instruments, parts, and accessories thereof; toys, games, sports equipment and parts and accessories; furniture, bedding, and lamps; and arms and ammunition, parts and accessories thereof.

Figure ES2. Texas’ Top Five Traded Commodities

Texas Exports to Its Top Trading Partners

Mexico . Texas exported $108.6 billion in goods to Mexico in 2019 - an 11 percent ($10.9 billion) increase from 40% 2017. OF EXPORTS are machinery/electrical products . Machinery/electrical products have been the most 30% exported commodity (in terms of value) since 2008 increase in mineral product and, at $42.9 billion, far surpasses all other export exports since 2017 commodities to Mexico.

Canada . Texas exported $28.4 billion in goods to Canada in 2019 - a 24 percent ($5.5 billion) increase from 2017.

. Texas’ largest export to Canada was mineral products, which increased sharply to $9.6 billion in 2019.

China . Texas exported $11.0 billion in goods to China in 2019 - a 33 percent ($5.4 billion) decrease5 from 34% 2017. OF EXPORTS are machinery/electrical products . The largest Texas export to China was machinery/electrical products at $3.7 billion—an 60% decrease in mineral product almost 10 ($0.3 billion) percent increase since exports since 2017 2017.

Japan . Texas exported $11.3 billion in goods to Japan in 53% 2019 - a 27 percent ($2.4 billion) increase from OF EXPORTS 2017. are mineral products . The largest export to Japan was mineral products at 11% $6.0 billion - a 90 percent ($2.9 billion) increase Increase in chemicals and allied from 2017. products since 2017

South Korea . Texas exported $16.9 billion in goods to South 56% Korea in 2019 - a 73 percent ($7.1 billion) OF EXPORTS are mineral products increase in exports since 2017. 362% . Texas’ primary export to South Korea was mineral increase in mineral product products at $9.5 billion in 2019 - a 362 percent exports since 2017 ($7.5 billion) increase from 2017.

5 The reduction in Texas’ exports to China can be attributed to the Trump Administration’s trade policies (specifically, the implementation of tariffs).

Texas Imports from Its Major Trading Partners

Mexico . Texas imported $104.3 billion in goods from Mexico in 2019 - a 16 percent ($14.5 billion) $50.9B increase over imports in 2017. OF IMPORTS are machinery/electrical products . Texas’ primary imports from Mexico were 32% machinery/electrical products. These imports, increase in transportation which reached $50.9 billion in 2019, have been product imports since 2017 increasing since 2010.

Canada . Texas imported $18.9 billion in goods from Canada in 2019 - a 3 percent ($0.6 billion) increase in imports since 2017.

. Texas’ largest import category from Canada was mineral products at $6.7 billion—an increase of almost one percent ($0.1 billion) since 2017.

China . Texas imported $33.4 billion in goods from China in 2019, a 22 percent (-$9.3 billion) decrease $19.7B from 2017. OF IMPORTS are machinery/electrical products . Texas’ largest import category was machinery 29% and electrical products at $19.7 billion, which decrease in machinery/electrical imports reflects a decrease of 29 percent ($8.2 billion) since 2017 since 2017.

Japan . Texas imported $24.1 billion in goods from Japan in 2019 - a 275 percent ($17.7 billion) increase 76% from 2017. OF IMPORTS are transportation products . Texas’ largest import from Japan was 1,835% transportation products, which reached $18.2 increase in transportation billion in 2019 – an increase of 94 percent ($881 products since 2017 million) since 2017.

South Korea . Texas imported $9.1 billion in goods from South 5.4 B OF IMPORTS Korea in 2019 - a 0.2 percent (-$20 million) are machinery/electrical products decrease from 2017. 8.8% increase in . Machinery and electrical products were Texas’ machinery/electrical products largest import product from South Korea at $5.4 since 2017 billion - a 9 percent ($441 million) increase from 2017.

Trade Benefits International trade, including exports and imports, supported 3,539,600 Texas jobs in 2018. Texas-Mexico trade supports more than 382,000 jobs in Texas. In Texas, it is estimated that nearly 1 in 5 jobs depend on international trade. Further, Texas trade-related employment increased 85 percent between 1992 and 2018, suggesting trade jobs will have a growing share of employment. Jobs in export-related industries also pay around 16 percent more than jobs in less export-intensive industries (see Figure ES3. Texans Benefit from International Trade).

Figure ES3. Texans Benefit from International Trade

In 2018, an estimated 40,932 Texas companies exported goods or services. Approximately 93 percent of these companies are small and medium-sized businesses. Texas’ position as

an exporting state also serves as an incentive for many foreign companies to open or expand facilities in the state. It is estimated that foreign-owned companies employ 622,700 Texas workers across various industries, including manufacturing, wholesale trade profession, science, and technology services, information, finance and insurance, and retail trade (see Figure ES4. Texas’ Economy Benefits from International Trade).

Figure ES4. Texas’ Economy Benefits from International Trade

Finally, trade with Mexico is especially important for Texas’ border regions, which have historically had some of the highest rates of unemployment and poverty in the nation. The Texas border region employment grew 76 percent from 660,000 to 1.2 million between 1990 and 2019.

Texas’ Transportation System Facilitates U.S. and Texas Trade Texas’ multimodal transportation system is essential to facilitating U.S. and Texas trade with the world (see Figure ES5. Texas’ Multimodal Transportation System). In 2019, Texas’ highways, railways, pipelines, and ports of entry moved the state’s $625.3 billion in goods trade. In 2019, three times more trucks entered the U.S. at Texas ports of entry than California ports of entry and Texas ports of entry processed almost 15 times more loaded rail containers than Arizona. Texas marine ports processed 597 million short tons of cargo and Texas airports processed 11.0 billion pounds of landed weight in 2018.

Figure ES5. Texas’ Multimodal Transportation System

. 313,000 centerline public . 14 commercial vehicle roadway miles crossings on Texas-Mexico . > 3,200 interstate miles border . . > 12,000 U.S. highway miles 84 percent of Texas-Mexico . 21,861 Texas Highway trade ($176.7 billion) Freight Network miles moved by truck and rail (2019) . 10,000 rail track miles . 12 deep draft and 9 shallow . 5 out of 7 rail crossings on draft ports Texas-Mexico border . 597 million tons of cargo . 3 Class I railroads (2018) . 49 Shortline railroads . Port Houston is second larges US marine port (tonnage) . 15 cross-border pipelines . Two inland ports: (Texas-Mexico border) AllianceTexas and Port San . $4.6 billion in Texas mineral Antonio . fuels, oils, and products of Alliance Global Logistics their distillates, oils, and Hub and Port San Antonio waxes exported via pipelines contributed $15.7 billion to to Mexico (2019) Texas economy and supported 113,300 jobs

Investing in Texas’s Transportation System

Highway Trade Corridors U.S. and Texas trade move along well-established trade corridors. To be consistent with the Texas-Mexico Border Transportation Master Plan, the corridors included in this report were classified as follow:

. International Corridors: I-10, I-20, I-35, I-37, I-45, I-69, Ports-to-Plans (I-27), and . Regional Corridors: I-40; US 87 from the Texas-New Mexico state line to I-10, US 69 from Beaumont to I-20, US 281 from San Antonio to Wichita Falls, US 67 linking Presidio to Dallas/Fort Worth, and I-30.

In addition to these corridors, TxDOT is working with various stakeholders on the development of an east-west corridor along the Texas-Mexico border to connect Brownsville to Laredo and Laredo to Del Rio.

An analysis of TxDOT’s let data showed that TxDOT let 528 trade corridor projects at a total cost of $4.1 billion in 2019 and 2020. This amounted to:

. 371 preservation projects at a cost of $1.1 billion. . 28 added capacity projects at a cost of $2.0 billion. . 97 bridge projects at a cost of $187 million. . 32 safety/operational projects at a cost of $790 million.

TxDOT’s 2021 Unified Transportation Program (UTP)6 includes 919 planned highway projects on Texas’ trade corridors. These 919 planned highway trade corridor projects are estimated to cost $41.3 billion. Of these 919 planned highway trade projects, 762 are fully funded ($26.7 billion) and 46 projects are partially funded with $2.6 billion in funding needed. In addition, 111 projects at an estimated cost of $9.8 billion had no identified funding source in 2020 (see Figure ES6. Funding ($ billions) for Planned Projects on Texas’ Trade Corridors (2021 UTP)).

Figure ES6. Funding ($ billions) for Planned Projects on Texas’ Trade Corridors (2021 UTP)

$9.8 $2.6

$4.8

$26.7 $2.2

Fully Funded No Funding Funded Funding Needed

The 919 planned highway trade projects consist of 454 preservation projects at a cost of $2.0 billion, 189 added capacity projects at an estimated cost of $32.5 billion, 129 bridge projects at an estimated cost of $1.5 billion, and 147 safety/operational projects at an

6 Planned project information was extracted from TxDOT’s new online database, TxDOTCONNECT, by the Unified Transportation Program (UTP) Section on September 23, 2020.

estimated cost of $5.4 billion (see Table ES1. Planned Texas Trade Corridor Projects by Type (2021 UTP).

Table ES1. Planned Texas Trade Corridor Projects by Type (2021 UTP)

Project Cost Project Type Number of Projects ($ billion) Preservation 454 2.0 Mobility 189 32.5 Bridge 129 1.5 Safety/Operational 147 5.4 Total 919 41.3 Numbers do not total because of rounding. TxDOT identified 167 project needs at a total estimated cost of $23.0 billion on Texas’ trade corridors that are in the UTP development process and beyond the 10-year UTP window. The 167 project needs consist of 28 preservation projects at an estimated cost of $414 million, 104 added capacity projects at an estimated cost of $21.2 billion, and 31 safety/operational projects at an estimated cost of $1.4 billion, and four bridge projects at an estimated cost of $29 million.

Finally, the BTMP included 37 projects that were not included in the TxDOT UTP dataset. The 37 projects consist of 25 added capacity projects at an estimated cost of $6.2 billion, one preservation project at an estimated cost of $141 million, and 11 safety/operational projects at an estimated cost of $1.3 billion. It should also be noted that cost estimates are not yet available for four of the added capacity projects identified on the Ports-to-Plains corridor. Table ES2. Future Texas’ Trade Corridor Needs summarizes project needs on Texas’s trade corridors that are in the UTP development process and beyond the 10-year UTP window, as well as projects included in the BTMP that were not included in the TxDOT UTP dataset.

Table ES2. Future Texas’ Trade Corridor Needs

Project Cost Project Type Number of Projects ($ million) Preservation 29 555 Mobility* 129 27,408 Bridge 4 29 Safety/Operational 42 2,653 Total 204 30,645 * Excludes four projects for which cost estimates were not available.

Texas Rail Trade Corridors The BTMP includes $39 million in planned improvements to the railroad mainline by Texas Pacifico Railroad between 2021 and 2027 once the new rail crossing at the Presidio International Bridge has opened for business. The BTMP also includes three long term projects by Kansas City Southern in Laredo:

. New double-track at Laredo. . Second span international railroad bridge (LNL2) in Laredo - Nuevo Laredo. . Laredo-Nuevo Laredo cross- border rail crossing fluidity, security, and traffic congestion relief grade separation public private partnership project through downtown Laredo.

No project cost estimates are available at this time.

Border Crossings Figure ES7. Planned International Border Crossing Projects summarizes the planned border crossing projects that were included in the BTMP for which cost information was available. These projects cover short, medium, and long term priorities as defined in the BTMP.

Figure ES7. Planned International Border Crossing Projects

25 1,200 Number of Projects Cost of Project ($ million) 1,000 20

800 15 600 10 400

5 200

0 0

The BTMP includes a number of proposed new international bridges on the Texas-Mexico border. Table ES3. Proposed New International Bridges on Texas-Mexico Border provides additional information about the proposed international bridges.

Table ES3. Proposed New International Bridges on Texas-Mexico Border

Completion Project Cost Project Description Date ($ million) Laredo IV/V new border crossing in Webb County 2030 303 (feasibility studies underway). Proposed project would be located between the cities of Rio Bravo and El Cenizo in Webb County. New Acuña II International Bridge 2024 132 Third international bridge at Piedras Negras (border with 2040 TBD Eagle Pass)

Texas Border Airports Figure ES8. Planned Border Airport Projects summarizes the planned border airport projects that were included in the BTMP for which cost information was available. These projects cover short, medium, and long term priorities as defined in the BTMP.

Figure ES8. Planned Border Airport Projects

6 400

350 5 300 4 250

3 200

150 2 100 1 50

0 0 Brownsville McAllen International El Paso International Del Rio International Laredo International International Airport Airport Airport* Airport* Airport * Information was provided by these airports for the purpose of developing the International Trade Corridor Plan

Texas-Mexico Pipelines The BTMP also includes three planned pipeline projects that facilitate trade:

. The Rio Bravo pipeline project will supply feedstock to the Rio Grande liquefied natural gas (LNG) project. The project will run from just northwest of Agua Dulce hub to Brownsville. The cost of the project is estimated at $2.2 billion. . The Agua Dolce/Banquette hub project is a planned long-term natural gas pipeline that will start in South Texas near Agua Dulce and cross into Mexico at Progreso. . The Jupiter pipeline project is a planned short-term crude oil pipeline between Gardendale/Three Rivers and Brownsville.

Concluding Remarks Texas’ transportation infrastructure is essential to facilitating goods trade. Thus, it is important to understand what is traded and which modes are used to transport goods trade. Projected increases in goods trade will require continued investments in Texas’ trade transportation system to ensure the efficient movement of U.S. and Texas’ goods trade. Investment in Texas’ international trade corridors will continue to support U.S.-Mexico and Texas-Mexico trade that generates $169.6 billion annually in U.S. gross domestic product and 1.4 million U.S. jobs.

1. Introduction

The International Trade Corridor Plan report is a biannual report required by the Texas Transportation Code in sections §201.114 and §201.6011. Section §201.6011 states (1): “(a) To the extent possible, the department shall coordinate with appropriate entities to develop an integrated international trade corridor plan. The plan must: (1) include strategies and projects to aid the exchange of international trade using the system of multiple transportation modes in this state; (2) assign priorities based on the amount of international trade, measured by weight and value, using the transportation systems of this state; (3) address implementation of the recommendations of the Border Trade Advisory Committee under Section 201.114.”

In compliance with the requirements set out in the Texas Transportation Code, this document includes information on:

. Texas’ global trade, including information on the state’s major commodities traded and major trading partners. . Texas’ trade with its top five trading partners, . Texas’ infrastructure facilitating trade, including an overview of Texas’ major trade corridors and Texas’ gateways (e.g., commercial vehicle and rail border crossings, marine ports, pipelines, and inland ports). . Planned investments in major highway trade corridors that facilitate trade. . Planned non-highway investments that facilitate trade.

The International Trade Corridor Plan is relevant to Texas as trade is important to both the United States (U.S.) and Texas economies. In 2019, the United States (U.S.) traded $4.1 trillion in goods—$2.5 trillion were imports and $1.6 trillion were exports. This trade value represents an approximately 7 percent ($257.2 billion) increase from the total goods trade value in 2017. In 2019, Texas’ goods trade represented 15 percent of all U.S. goods trade at $625.3 billion. Texas had the largest goods trade value followed by California. In 2019, Texas has led the country in exports for 17 consecutive years. The export value of Texas goods reached $330.5 billion in 2019 (2).

Texas’ transportation infrastructure is essential to facilitating trade. It is necessary to understand what is traded and which modes are used to transport trade to allow the Texas Department of Transportation (TxDOT) to better plan for current and future investments in Texas’ transportation system that facilitates trade.

2. Trade Helps Drive the Texas Economy

This section includes information on:

. U.S. and Texas trade. . Texas’ trade with its top five trading partners. . Major commodities7 traded by Texas. . The benefits of trade.

2.1 U.S. and Texas Trade In 2019, the U.S. traded $4.1 trillion in goods and Texas traded $625.3 billion (or 15 percent of all U.S. trade). Figure 1. U.S. and Texas Trade shows a 1.5 percent ($63.2 billion) decrease in U.S. total trade value between 2018 and 2019. Between 2010 and 2019, however, U.S. total trade value increased 30 percent ($951.2 billion) (2). Figure 2. U.S. Exports and Imports shows that the U.S. imported $2.5 trillion and exported $1.6 trillion in goods in 2019 (3).

Figure 1. U.S. and Texas Trade

Source: U.S. Census (USA Trade Online: https://usatrade.census.gov/)

7 A commodity is defined as a basic good or product of trade or commerce.

Figure 2. U.S. Exports and Imports8

Source: U.S. Census (USA Trade Online: https://usatrade.census.gov/)

Texas, California, and New York are the states with the highest value of exports in the U.S. Texas leads the country in export value, having exported $330.5 billion in 2019 (Figure 3. Texas, California, and New York Goods Export Values) (2).

Figure 3. Texas, California, and New York Goods Export Values shows that Texas has been the U.S. state with the highest value of goods exports for more than a decade. While Texas’ export values decreased between 2014 and 2016, Texas has seen increases since 2016. California’s Texas has been the U.S. state export values increased by almost one percent with the highest value of exports since 2010. Between between 2017 and 2019 to reach $173.3 billion in 2017 and 2019, Texas saw a 2019. During this same timeframe, New York’s 25 percent increase in exports export values decreased by 6 percent to reach to $330.5 billion. $73.3 billion in 2019. Between 2017 and 2019, Texas saw a 25 percent increase in exports (2).

8 In 2019, the U.S. saw increases in both export and import values from 2017. A closer inspection of the increase of U.S. international trade reveals that, while both exports and imports increased in 2019, imports increased at a slightly higher rate. The increase in imports led to a 59 billion increase (approximately 7 percent) in the trade deficit from 2017. (2).

Figure 3. Texas, California, and New York Goods Export Values

Source: U.S. Census (USA Trade Online: https://usatrade.census.gov/)

In terms of goods import value, California has seen a steady rise in its import value since 2010, reaching $441.0 billion in 2018 (Figure 4. Texas, California, and New York Import Goods Values). California’s import value decreased to $408.1 billion in 2019. Texas’ imports declined between 2012 and 2016 but increased 33 percent to $304.5 billion in 2018. Texas imports declined 3.2 percent to $294.8 billion in 2019 from 2018. New York’s imports remained relatively constant between 2011 and 2017 but increased 8 percent to $137.1 billion from 2017 to 2018. New York’s imports decreased 3 percent to $132.9 billion in 2019 (2). The reduction in goods imports starting in 2018 can be attributed to the Trump Administration’s trade policies (specifically, the implementation of tariffs).

Figure 4. Texas, California, and New York Import Goods Values

Source: U.S. Census (USA Trade Online: https://usatrade.census.gov/)

In 2019, the U.S. traded $614.5 billion with Mexico—a 10 percent ($57.5 billion) increase from 2017. Texas trade with Mexico increased 14 percent from 187.1 billion in 2017 to 212.9 billion in 2019. Texas represented over a third of the value of U.S. trade with Mexico at $212.9 billion in 2019. Since 2010, U.S. trade with Mexico has increased 56 percent ($220.9 billion), while Texas trade with Mexico has increased 40 percent ($61.2 billion) during the same period (see Figure 5. U.S. and Texas Trade with Mexico) (4).

Figure 5. U.S. and Texas Trade with Mexico

Source: U.S. Bureau of Transportation Statistics (BTS) (https://www.bts.gov/transborder)

Texas’ ports of entry9 processed $441.9 billion of U.S.-Mexico trade in 2019. Nearly 70 percent of this value ($310.1 billion) crossed the Texas-Mexico border by truck, while $74.8 billion (or 17 percent) of this value crossed by rail (4).

2.2 Texas’ Trading Partners Texas’ five largest trading partners in 2019 were Mexico, Canada, China, Japan, and South Korea (see Figure 6. Texas' Trading Partners by Percentage of Total Trade Value (2019)). In 2019, Texas traded $212.9 billion with Mexico. Mexico represented 34 percent of all Texas international trade at $212.9 billion. Texas’ second largest trading partner in 2019 was Canada at $47.2 billion, followed by China at $44.5 billion, Japan at $35.4 billion, and South Korea at $25.9 billion (2). China dropped from Texas’ second largest trading partner in 2017 at $59.0 billion to third in 2019. Canada moved up from third in 2017 at $41.1 billion to second in 2019. South Korea dropped from fourth in 2017 to Texas’ fifth largest trading partner in 2019. Japan rose from fifth in 2017 to Texas’ fourth largest trading partner in 2019.

9 The terms “port” and “port of entry” refer to any place designated by Executive Order of the President, by order of the Secretary of the Treasury, or by Act of Congress, at which a U.S. Customs and Border Protection (“CBP”) officer is authorized to accept entries of merchandise goods to collect duties, and to enforce the various provisions of the customs and navigation laws. The terms “port” and “port of entry” incorporate the geographical area under the jurisdiction of a port director. A port of entry may encompass an area that includes several border crossings, as well as some air and sea ports. Not every border crossing is a port of entry (Source: Code of Federal Regulations, Title 19, Chapter I, Part 101, Section 101.1).

Figure 6. Texas' Trading Partners by Percentage of Total Trade Value (2019)

Source: U.S. Census (USA Trade Online: https://usatrade.census.gov/)

While trade values with these countries have fluctuated, especially between 2011 and 2016, trade increased in 2019 with four out of the five countries (see Figure 7. Texas’ Largest Trading Partners). Specifically, since 2017, Texas’ trade with:

. Mexico increased by 14 percent ($25.7 billion). . Canada increased by 15 percent ($6.1 billion). . China decreased by 25 percent (-$14.6 billion). . Japan increased by 131 percent ($20.1 billion). . South Korea increased by 38 percent ($7.1 billion) (2).

Figure 7. Texas’ Largest Trading Partners

Source: U.S. Census (USA Trade Online: https://usatrade.census.gov/)

2.3 What Commodities Does Texas Trade? In 2019, Texas’ most traded commodity10 with the world by value were machinery/electrical products at $205.9 billion, followed by mineral products at $163.3 billion. Other highly traded commodities were transportation products ($68.8 billion), chemicals and allied industry products at $41.4 billion, and miscellaneous products ($31.3 billion) (see Figure 8. Texas' Five Most-Traded Commodities with the World (2019)) (2).

Figure 8. Texas' Five Most-Traded Commodities with the World (2019)

Source: U.S. Census (USA Trade Online: https://usatrade.census.gov/)

2.3.1 Texas Exports to Its Top Trading Partners This section provides an overview of Texas’ largest export commodities by value to Mexico, Canada, China, Japan, and South Korea.

10 According to the U.S. Census: • Machinery/electrical commodities include electrical motors and generators; parts of electrical motors, generators, and sets; electromagnets, permanent magnets, and parts; vacuum cleaners and parts thereof; and industrial or laboratory electric furnaces and parts thereof. • Mineral products include crude oil from petroleum and bituminous minerals; petroleum gases and other gaseous hydrocarbons; petroleum jelly, mineral waxes, and other similar projects; bitumen and asphalt, shale and tar sands; and electrical energy. • Transportation commodities include rail locomotives: railway or tramway freight cars; motor vehicles; tractors; aircraft, spacecraft, and parts thereof; and ships, boats, and floating structures. • Chemicals and allied industries include inorganic chemicals, precious and rare earth metals, and radioactive compounds; organic chemicals, pharmaceutical products; fertilizers; and tanning and dye extracts, dye, paint, and putty. • Miscellaneous commodities include clocks and watches and parts thereof; musical instruments, parts, and accessories thereof; toys, games, sports equipment and parts and accessories; furniture, bedding, and lamps; and arms and ammunition, parts and accessories thereof.

Texas exported $108.6 billion in goods to Mexico in 2019, an 11 percent ($10.9 billion) increase from 2017. Machinery/electrical products have been the most exported commodity (in terms of value) since 2008 and, at $42.9 billion, far surpasses all other export commodities to Mexico. The second largest export category was mineral products at $24.6 billion. Other exports include transportation products, plastics/rubbers, chemicals/allied industries, and metals (2).

Texas exported $28.4 billion in goods to Canada in 2019, a 24 percent ($5.5 billion) increase from 2017. Texas’ largest export to Canada was mineral products, which increased sharply to $9.6 billion in 2019. The second largest export category was machinery/electrical products at $6.4 billion followed by transportation products at $3.5 billion. Other exports included plastics/rubber, chemicals and allied industries, and miscellaneous products (2).

Texas exported $11.0 billion in goods to China in 2019, a 33 percent ($5.4 billion) decrease from 2017.11 The largest Texas export to China was machinery/electrical products at $3.7 billion—an almost 10 percent ($0.3 billion) increase since 2017. The second largest export product was minerals at $2.6 billion (a 60 percent (-$3.9 billion) decrease from 2017). Other exports included /chemicals and allied industries and plastic/rubber products (2).

11 The reduction in Texas’ exports to China can be attributed to the Trump Administration’s trade policies (specifically, the implementation of tariffs).

Texas exported $11.3 billion in goods to Japan in 2019, a 27 percent ($2.4 billion) increase from 2017. The largest export to Japan was mineral products at $6.0 billion - a 90 percent ($2.9 billion) increase since 2017. The second largest export to Japan was chemicals and allied industry products, which increased to $2.0 billion in 2019. Other exports included machinery/electrical, transportation, and miscellaneous products (2).

Texas exported $16.9 billion in goods to South Korea in 2019, a 73 percent ($7.1 billion) increase in exports since 2017. Texas’ primary export to South Korea was mineral products at $9.5 billion in 2019, a 362 percent ($7.5 billion) increase from 2017. Other exports included machinery/electrical at $3.8 billion, chemicals and allied industries at $1.8 billion, and animal and animal products at $0.4 billion (2).

2.3.2 Texas Imports from Its Major Trading Partners This section provides an overview of Texas’ largest import commodities by value from Mexico, Canada, China, Japan, and South Korea.

Texas imported $104.3 billion in goods from Mexico in 2019—a 16 percent ($14.5 billion) increase over imports in 2017. Texas’ primary imports from Mexico were machinery/electrical products. These imports, which reached $50.9 billion in 2019, have been increasing since 2010. Texas’ second largest imports from Mexico were transportation products at $16.4 billion. Other imports included mineral products, miscellaneous products, and vegetable products (2).

Texas imported $18.9 billion in commodities from Canada in 2019—a 3 percent ($0.6 billion) increase in imports since 2017. Texas’ largest import category from Canada was mineral products at $6.7 billion—an increase of almost one percent ($0.1 billion) since 2017. The next three largest import categories from Canada: metals increased 306 percent ($2.4 billion), chemicals and allied industries increased 109 percent ($1.2 billion), and miscellaneous products increased 120 percent ($0.9 billion) since 2017. Import of transportation products decreased by almost 53 percent (-$1.2 billion) to $1.1 billion in imports since 2017(2).

Texas imported $33.4 billion in goods from China in 2019, a 22 percent (-$9.3 billion) decrease12 from 2017. Texas’ largest import category was machinery and electrical products at $19.7 billion, which reflects a decrease of 29 percent ($8.2 billion) since 2017. Texas’ second largest import category from China was miscellaneous products at $4.3 billion. Other imports included metals and plastic/rubber products (2).

Texas imported $24.1 billion in goods from Japan in 2019, a 275 percent increase ($17.7 billion) from 2017. Texas’ largest import from Japan was transportation products, which reached $18.2 billion in 2019 - a 94 percent ($881 million) increase since 2017. Texas’ second largest import from Japan was machinery and electrical products at $3.5 billion. Other imports included chemicals and allied industry products, miscellaneous products, and metals (2).

12 The reduction in Texas’ imports from China can be attributed to the Trump Administration’s trade policies (specifically, the implementation of tariffs) that resulted in retaliatory tariffs on imported products.

Texas imported $9.1 billion in goods from South Korea in 2019, which is a 0.2 percent (-$20 million) decrease from 2017. Machinery and electrical products were Texas’ largest import product from South Korea at $5.4 billion – a 9 percent ($441 million) increase since 2017. This represents 59 percent of Texas’ total import value from South Korea in 2019. This was a 9 percent increase ($0.4 billion) since 2017. Other imports included metals, chemicals and allied industries, and mineral products (2).

2.4 Trade Benefits

2.4.1 Local Economies Mexico represented a large share of trade by dollar value for five Texas metropolitan statistical areas (MSAs)13 in 2018. Table 1. 2018 Exports to Mexico by Metropolitan Statistical Area shows that in 2018, the El Paso MSA was Texas’ largest exporter to Mexico with $26 billion in goods. The second largest exporter was the Houston-The Woodlands- Sugarland MSA with $21 billion in goods, followed by the Laredo MSA with $8 billion, Dallas- Fort Worth-Arlington MSA with $6 billion, and the Beaumont-Port Arthur MSA with $4 billion (5). The data, however, does not reflect the production origin of U.S. exports but rather the address recorded in export documentation (6). The high values for El Paso and Laredo, therefore, reflect the departure points of export goods rather than the production origins.

Table 1. 2018 Exports to Mexico by Metropolitan Statistical Area

Metropolitan Statistical Area 2018 Exports ($ Billions) El Paso 26 Houston-The Woodlands-Sugarland 21 Laredo 8 Dallas-Fort Worth-Arlington 6 Beaumont-Port Arthur 4 Source: U.S. Census, U.S. International Trade Administration6

13 Measurements of substate exports to Mexico are limited to the state’s largest export regions.

2.4.2 Regional Economies Trade with Mexico is an economic engine for growth and opportunity for Texas, and is especially important for Texas’ border regions, which have historically had some of the highest rates of unemployment and poverty in the nation. The Texas border region employment grew 76 percent from 660,000 to 1.2 million between 1990 and 2019 (7). Analyzing data from 1990 to 2006 showed that a 10 percent increase in maquiladora14 production led to a 0.5 to 0.9 percent increase in employment in U.S. border cities. Most of this employment growth occurred in the services sector in industries such as legal and accounting (8).

Since the implementation of NAFTA, Texas border cities’ share of national per-capita income has also grown. Laredo has experienced the most dramatic improvement; the region’s per- capita income at $12,916 was 54 percent of the nation’s overall per-capita income in 1995 but at $31,635 increased to 58 percent of the U.S. per-capita income in 2018 (9, 10).

2.4.3 Statewide Economy International trade, including exports and imports, supported 3,539,600 Texas jobs in 2018 (11). Texas-Mexico trade supports more than 382,000 jobs in Texas (7). In Texas, it is estimated In Texas, it is estimated that that nearly 1 in 5 jobs depend on international trade. nearly 1 in 5 jobs depend on Further, Texas trade-related employment increased international trade. Further, 85 percent between 1992 and 2018, suggesting Texas trade-related employment trade jobs will have a growing share of employment. increased 85 percent between Jobs in export-related industries also pay around 16 1992 and 2018. percent more than jobs in less export-intensive industries (11).

In 2018, an estimated 40,932 Texas companies exported goods or services. Approximately 93 percent of these companies are small and medium sized businesses. While some of these companies export directly, some export indirectly by selling goods and services to large exporters (11).

Texas’ position as an exporting state serves as an incentive for many foreign companies to open or expand facilities in the state. It is estimated that foreign-owned companies employ 622,700 Texas workers across various industries, including manufacturing, wholesale trade profession, science, and technology services, information, finance and insurance, and retail trade in 2017 (11).

14 A maquiladora is a foreign-owned plant or factory in Mexico at which imported products are assembled into products for export.

2.4.4 National Economy It is estimated that Texas-Mexico trade supports 6.1 million jobs in the U.S. and Mexico (of which 1.4 million are U.S. jobs) as of 2019. It is also estimated that U.S.-Mexico and Texas- Mexico trade generates $169.6 billion annually in U.S. gross domestic product (11).

3. Role of Texas’ Transportation System in Facilitating Texas’ Trade

Texas’ multimodal freight transportation system is essential to facilitating U.S. and Texas trade with the world. In 2019, Texas’ highways, railways, pipelines, and ports of entry moved the state’s $625.3 billion in goods traded. In 2019, three times more trucks entered the U.S. at Texas ports of entry compared to California’s ports of entry and Texas ports of entry processed almost 15 times more loaded rail containers than Arizona‘s ports of entry (4). Texas marine ports processed 597 million short tons of cargo and Texas airports processed 11.0 billion pounds of landed weight in 2018 (12, 13). This section of the report provides information about Texas’ freight transportation system that facilitates trade.

3.1 Texas’ Highway and Rail Corridors Texas serves as a critical gateway for the nation’s strategic trade relationships with Mexico, Central America, and South America. The state is ideally positioned to benefit from the continued increase in trade among the U.S., Mexico, and Canada (see Figure 9. Texas’ Corridors Supports Trade with Mexico and Canada). Several highway and rail corridors connect these countries. U.S. and Texas trade rely on efficient highway and rail corridors in Texas to move freight destined for the state and freight moving through the state to other U.S. markets.

Figure 9. Texas’ Corridors Supports Trade with Mexico and Canada

Source: Texas-Mexico Border Transportation Master Plan

3.1.1 Texas’ Highway Freight Network The 2018 Texas Freight Mobility Plan (TFMP) reported that highways are the predominant mode for freight movement within the state. Highways provide the first and last mile connection to rail facilities, ports, and airports as well as serve long haul trips with destinations throughout the state and beyond. Texas has the most extensive highway network of any state with over 313,000 centerline miles of public roadways, more than

3,200 miles of interstate and over 12,000 miles of U.S. highways. Figure 10. Texas’ Highway Freight Network shows the final updated Texas Highway Freight Network of 21,861 miles (14).

Figure 10. Texas’ Highway Freight Network

Source: Texas Freight Mobility Plan 2018

3.1.2 Texas’ Rail Freight Network Texas has more miles of rail than any other state, with over 10,000 track miles. Texas has 47 percent more freight rail miles than the next state (Illinois), making Texas a rail hub for North America. Railroads are also critical connections for trade between the U.S. and Mexico. Texas has five of the seven rail crossings between the two countries. Texas is served by three major (Class I) railroad companies: Burlington Northern Sante Fe (BNSF) Railway, Kansas City Southern (KCS), and Union Pacific (UP). These railroads support significant freight movement through and throughout Texas (see Figure 11. Texas’ Rail Freight Corridors). Additionally, Texas has 49 short line railroads (local line haul and switching railroads) that are of strategic importance to the state and serve as first or last mile railroads for Class I railroads, Texas’ ports, and many of the state’s rail-served industries (14).

Figure 11. Texas’ Rail Freight Corridors

Source: Texas Freight Mobility Plan 2018

3.2 Texas’ Pipelines Texas is well enriched with natural energy resources. Several current shale plays are mined in the state, resulting in Texas being the largest producer of oil and natural gas in the U.S. (15). Significant investments have been made in pipelines to efficiently move Texas’ production of natural gas and crude oil. Figure 12. Texas’ Pipeline Network (2017) shows Texas’ pipeline network.

Figure 12. Texas’ Pipeline Network (2017)

Source: Texas Freight Mobility Plan 2018

According to the Texas Freight Mobility Plan (TFMP), 15 pipelines crossed the Texas-Mexico border in 2016. They were located at Brownsville, Alamo City, Rio Bravo, Laredo, Hidalgo, Penitas (two pipelines), Rio Grande, Roma, Eagle Pass, Del Rio, Clint, and El Paso (three pipelines). Of these 15 pipelines, four moved refined products and 11 moved natural gas. The natural gas pipelines had the capacity to transport 4,438 million cubic feet per day. In 2019, $4.6 billion of mineral fuels, mineral oils, and products of their distillates, oils, and waxes were exported from Texas to Mexico via pipelines (14).

3.3 Transportation Gateways As mentioned earlier, ports of entry are officially designated areas at U.S. land borders, seaports, and airports that are approved by U.S. Customs and Border Protection (CBP) (16). Texas has 28 ports of entry (see Figure 13. Texas’ Ports of Entry) that handle millions of tons of domestic and international cargo, including produce and agriculture products, oil and gas, manufacturing goods, and technology products (17).

Figure 13. Texas’ Ports of Entry

Source: https://gov.texas.gov/uploads/files/business/portsofentry-map.pdf

3.3.1 Land Border Crossings Texas’ 1,254-mile border with Mexico, and more specifically Texas’ border infrastructure, is a critical component in facilitating U.S. and Texas trade with Mexico. Texas has 28 international bridges and border crossings, which include two dam crossings and one hand-

drawn ferry (18). Fourteen of the border crossings process commercial vehicles (see Figure 14. Texas’ Commercial Vehicle Border Crossings).

Figure 14. Texas’ Commercial Vehicle Border Crossings

In 2019, 84 percent ($176.7 billion) of Texas’ $211.0 billion in trade with Mexico moved by truck and rail (4). Figure 15. Texas Land Border Crossing Value by Truck and Rail (2010– 2019) shows that the trade value by truck and rail crossing in Texas increased 58 percent ($64.9 billion) between 2010 and 2019. The truck trade value increased 60 percent ($61.4 billion) while the rail value increased 36 percent ($3.5 billion). From 2013 to 2017, the U.S.- Mexico trade value moved by these two modes that crossed in Texas remained relatively constant. However, the trade by these two modes increased by $24.7 billion between 2017 and 2019.

Figure 15. Texas Land Border Crossing Value by Truck and Rail (2010–2019)

180 160 140 120 100 80 $ Billion $ 60 40 20 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Truck Rail

Source: Bureau of Transportation Statistics, North American Transborder Freight Data (https://transborder.bts.gov/programs/international/transborder/TBDR_QA.html)15

3.3.2 Truck Trade Texas’ 14 commercial vehicle border crossings handled the largest number of northbound truck crossings on the southern border in 2019 at 4.5 million northbound truck crossings (see Figure 16. Northbound Truck Crossings by State). California handled the second most northbound truck crossings at 1.4 million, followed by Arizona (416,604 northbound truck crossings) and New Mexico (150,681 northbound truck crossings) (4).

15 BTS only provides northbound data.

Figure 16. Northbound Truck Crossings by State

5.0 4.5 4.0 3.5 Texas 3.0 2.5 California 2.0 Arizona 1.5 New Mexico 1.0

Number Number Trucks of (millions) 0.5 0.0

Source: Bureau of Transportation Statistics, North American Transborder Freight Data (https://transborder.bts.gov/programs/international/transborder/TBDR_QA.html)

Texas’ top 5 commodities16 moved by truck across the Texas-Mexico border in 2019 were: electrical machinery with 43 percent ($134.0 billion) of Texas’ truck trade share, followed by transportation equipment at almost 17 percent ($51.1 billion), miscellaneous products at almost 9 percent ($26.9 billion), metals at 6 percent ($19.6 billion), and plastics and rubbers at 6 percent ($18.7 billion) (see Figure 17. Texas’ Top 5 Commodities Moved by Truck (2019)). These five commodities account for 81 percent of Texas’ total trade by truck (4).

16 According to the Bureau of Transportation Statistics: • Machinery/electrical commodities include machinery and mechanical appliances; electrical equipment and parts thereof; sound recorders and reproducers; television image and sound recorders and reproducers, and parts and accessories of such articles. • Transportation commodities include rail locomotives: railway or tramway freight cars; motor vehicles; tractors; aircraft, spacecraft, and parts thereof; and ships, boats, and floating structures. • Miscellaneous commodities include clocks and watches and parts thereof; musical instruments, parts, and accessories thereof; toys, games, sports equipment and parts and accessories; furniture, bedding, and lamps; and arms and ammunition, parts and accessories thereof. • Metals include iron and steel; articles of iron or steel; copper and articles thereof; nickel and articles thereof; and aluminium and articles thereof. • Plastics and rubber include polymers; epoxide resins; polyurethanes; chemical derivatives of natural rubber; and tubes, pipes and hoses and fittings therefor. • Other include live animals and animal products; vegetable products; mineral products; wood and articles of wood; and textiles and articles of textiles.

Figure 17. Texas’ Top 5 Commodities Moved by Truck (2019)

Other 19%

Plastics / Rubbers 6% Machinery / Electrical Metals 43% 6%

Miscellaneous 9% Transportation 17%

Source: Bureau of Transportation Statistics, North American Transborder Freight Data, Port and Commodity Data Query (https://www.bts.gov/transborder)

3.3.3 Trade by Rail Texas’ five operational rail-only bridges handled the largest number of total rail car crossings on the southern border in 2019 at 1,2020,921 northbound rail cars, followed by Arizona (69,651 northbound rail cars) and California (9,262 rail cars). No rail cars crossed in New Mexico in 2019 (see Figure 18. Northbound Loaded and Empty Rail Cars by State (2010– 2019).

Figure 18. Northbound Loaded and Empty Rail Cars by State (2010–2019)

1,200,000

1,000,000

800,000

Texas

Cars 600,000 Arizona California 400,000

200,000 Number Number Empty of and Loaded Rail

0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Source: Bureau of Transportation Statistics, Border Crossing/Entry Data (https://explore.dot.gov/views/BorderCrossingData/Annual?:isGuestRedirectFromVizportal=y&:embed=y)

In 2019, the top five Texas commodities17 moved across the Texas-Mexico border by rail were: transportation equipment at almost 56 percent ($41.2 billion) of Texas’ rail trade, followed by electrical machinery at 12 percent ($9.1 billion), foodstuffs at 6 percent ($4.7 billion), vegetable products at 6 percent ($4.4 billion), and mineral products at 5 percent ($3.8 billion) (see Figure 19. Texas Top 5 Commodities Moved by Rail (2019)). The five commodities account for almost 86 percent of Texas’ trade by rail (2).

Other 14.5% Mineral Products 5.2%

Vegetable Products 5.9%

Foodstuffs 6.3% Transportation 55.8%

Machinery / Electrical 12.3%

Source: Bureau of Transportation Statistics, North American Transborder Freight Data, Port and Commodity Data Query (https://www.bts.gov/transborder) Figure 19. Texas Top 5 Commodities Moved by Rail (2019)

Figure 20. Number of Rail Cars Crossing the Texas – Mexico Border (2010–2019) shows that the Laredo port of entry consistently had the highest number of northbound rail car crossings since 2010. In 2019, 464,371 rail cars crossed at Laredo, followed by Eagle Pass (336,540), El Paso (120,699), and Brownsville (99,311). Eagle Pass saw an 84 percent increase in the number of northbound rail car crossings between 2010 and 2019. Between

17 According to the Bureau of Transportation Statistics: • Transportation commodities include rail locomotives: railway or tramway freight cars; motor vehicles; tractors; aircraft, spacecraft, and parts thereof; and ships, boats, and floating structures. • Machinery/electrical commodities include machinery and mechanical appliances; electrical equipment and parts thereof; sound recorders and reproducers; television image and sound recorders and reproducers, and parts and accessories of such articles. • Foodstuffs include preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates; sugars and sugar confectionery; cocoa and cocoa preparations; preparations of cereals, flour, starch or milk; preparations of vegetables, fruit, nuts or other parts of plants; and miscellaneous edible preparations. • Vegetable products include live trees and other plants; bulbs, roots and the like; cut flowers and ornamental foliage; edible vegetables and certain roots and tubers; edible fruit and nuts; peel of citrus fruit or melons; coffee, tea, maté and spices; and cereals. • Mineral products include salt; sulfur; earths and stone; plastering materials, lime and cement; ores, slag and ash; and mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes. • Other include plastics, rubbers and articles thereof; live animals and animal products; wood and articles of wood; metals; and textiles and articles of textiles.

2018 and 2019, however, rail car crossings at Eagle Pass decrease by 6 percent (-22,548 rail cars) (4).

Figure 20. Number of Rail Cars Crossing the Texas – Mexico Border (2010–2019)

500,000

450,000

400,000

350,000

300,000 Laredo

250,000 Eagle Pass El Paso 200,000 Brownsville 150,000

100,000 Number of Empty and Loaded Rail Cars Rail Loaded and Empty of Number 50,000

0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Source: Bureau of Transportation Statistics, Border Crossing/Entry Data (https://explore.dot.gov/views/BorderCrossingData/Annual?:isGuestRedirectFromVizportal=y&:embed=y)

3.3.4 Texas’ Maritime Ports The Gulf Intracoastal Waterway in Texas (GIWW-T) is a component of the 1,100-mile-long shallow-draft GIWW system. The GIWW-T covers 379 miles of Texas coast18 and serves 11 deep-draft ports (25 ft or deeper) and eight shallow-draft channels. The GIWW-T has an important role in facilitating trade moving petroleum or petroleum related products, chemicals and chemical related products, agricultural products, food, and manufactured goods. In 2018, it moved more than 77.7 million short tons—70 percent of all GIWW traffic. Of this total, petroleum and petroleum products represented more than 60 percent of all commodity tonnage moved through the GIWW-T (19).

Figure 21. Texas Seaports shows the 12 deep draft ports and nine shallow draft ports in Texas that were included in the 2018 Texas Freight Mobility Plan.

18 The navigable portion of the GIWW-T begins at Texaco Island in Port Arthur and ends at the Brazos Island Harbor Ship Channel near Brownsville, Texas, a length of 379 miles.

Figure 21. Texas Seaports

Source: Texas Freight Mobility Plan 2018

Figure 22. Weights at Texas Maritime Ports (Top 6 Deep Draft Ports) and Figure 23. Weights at Texas Maritime Ports (Remaining Deep Draft Ports) show the tonnage moved through Texas’ top six and remaining deep draft ports between 2013 and 2018, respectively. A total of 597 million tons of cargo was moved through Texas ports in 2018. Port Houston is the

largest gulf coast port in terms of annual tonnage, and the second largest U.S. marine port (after the port of South Louisiana) in terms of tonnage, handling 268.9 million short tons in 2018. The Ports of Beaumont and Corpus Christi ranked 2nd and 3rd, respectively, among U.S. ports in terms of total cargo volume moved in 2018.

Figure 22. Weights at Texas Maritime Ports (Top 6 Deep Draft Ports)

300

250 Houston 200 Beaumont Corpus Christi 150 Texas City 100 Port Arthur Freeport Total Tonnage(millions) 50

Source: U.S. Army Corps of Engineers, Waterborne Commerce Statistics Center (http://www.navigationdatacenter.us/wcsc/wcsc.htm)

Figure 23. Weights at Texas Maritime Ports (Remaining Deep Draft Ports)

14 Matagorda Port 12 Lavaca Point Comfort 10 Galveston

8 Brownsville

6 Victoria 4

Total Tonnage(millions) Aransas Pass 2

Orange 0

Source: U.S. Army Corps of Engineers, Waterborne Commerce Statistics Center (http://www.navigationdatacenter.us/wcsc/wcsc.htm)

3.3.5 Inland Ports An inland port has been defined as “a site located away from traditional land and coastal borders with the vision to facilitate and process international trade through strategic investments in multi‐modal transportation assets and by promoting value added services as goods move through the supply chain” (20). By this definition, Texas has two inland ports: AllianceTexas and Port San Antonio (Figure 24. Texas Inland Ports).

Figure 24. Texas Inland Ports

AllianceTexas The Alliance Global Logistics Hub is one of Texas’ two intermodal logistics facilities connecting air, road and rail and allowing businesses to take advantage of and provide services for trade arriving via all transportation modes (see Table 2. AllianceTexas Access and Infrastructure). Hub facilities have immediate access to an airport with a long runway, rail facilities and major highways. Alliance Global Logistics Hub includes Alliance Airport, Burlington Northern Santa Fe (BNSF) Railway’s Alliance Intermodal Facility, FedEx Southwest Regional Sort Hub and access to Class I BNSF and Union Pacific rail lines. Alliance Airport is the world’s first industrial airport, and it houses the world’s largest cantilever aircraft hangar. AllianceTexas also houses several data centers that comprise 2.5 million square feet.

Table 2. AllianceTexas Access and Infrastructure

Transport Mode Key Feature Capabilities Air Two parallel runways at 11,000 • Ability to handle largest aircraft feet • Control tower operates 24/7 Rail 376 acres, with 5,000 spaces of • BNSF Intermodal Rail Facility parking capacity • Direct access to BNSF and Union Pacific (both Class I) rail lines Ground Tenants offer 24-hour operations, • Direct access to SH 114 and SH with direct travel to Dallas and Fort 170 Worth • Direct access to I-35W

AllianceTexas has created more than 61,600 jobs, with 37,600 directly attributed to the Alliance Global Logistics Hub and related activities (e.g., industrial and transportation industry development). Direct employment attributed to the logistics hub includes the following:

. 300 employed by the facility itself. . 1,300 employed by companies utilizing Foreign Trade Zone #196. . 6,800 employed in and around Alliance Airport. . 7,300 employed in and around the intermodal facility.

Staff from the Texas Comptroller’s Office applied data obtained from various sources as inputs using the REMI (Regional Economic Models Inc.) model for the state of Texas to generate estimates of the Alliance Global Logistics Hub’s contributions to state-level employment, gross domestic product (GDP), output and disposable personal income. It was estimated that the operation at the Alliance Global Logistics Hub at AllianceTexas contributed $12.2 billion to the Texas economy and supported 81,300 jobs in 2018 (see Table 3. Estimated Contributions of the AllianceTexas to the Texas Economy, 2018).

Table 3. Estimated Contributions of the AllianceTexas to the Texas Economy, 2018

Contribution Value Total employment* 81,300 Output** $12.2 billion Gross domestic product*** $7.3 billion * “Total employment” refers to both direct and indirect employment. **“Output” refers to the total value of all goods and services (both final and intermediate) produced in Texas. *** “Gross domestic product” refers to the total value of all final goods and services produced in Texas.

Port San Antonio Port San Antonio is the second intermodal logistics facility in the state of Texas that offers air, ground and rail connections, allowing businesses to take advantage of trade via all three transportation modes. Port San Antonio also functions as a technology campus, in addition to acting as a trade gateway. Logistics is just a part of the port’s growing business activities, which include aerospace, cybersecurity, and applied technology employers as well as the U.S. Department of Defense (21).

Port San Antonio is located on the southwestern side of the city of San Antonio. It was created in 1995 as a result of the federal government’s decision to close Kelly Air Force Base. The city created the port as a separate special authority to redevelop the former base, which included 15 million square feet of former Air Force facilities. Port San Antonio has become part of a larger complex composed of Lackland Air Force Base (south), Kelly Field (center) and Port San Antonio (north). Lackland AFB and Kelly Field are part of Joint Base San Antonio (JBSA), which also is a large tenant at Port San Antonio (see Table 4. Port San Antonio Access and Infrastructure).

Table 4. Port San Antonio Access and Infrastructure

Transport Mode Key Feature Capabilities Air The region’s longest runway at • Ability to handle the largest 11,500 feet, with 24/7 access aircraft • Operated by the U.S. Air Force’s JBSA- Lackland • Joint use agreement in effect Rail 350 acres • Rail logistics operated by WATCO Companies • Direct access to BNSF and Union Pacific Ground Access to US 90, I-10, I-35, and I-37 • Connecting to Mexico, Canada, and U.S. coasts

More than 100 direct employees manage the Port San Antonio facility and it houses more than 80 public- and private-sector tenants that employ about 13,400 people (see Table 5. Overall Port San Antonio Workforce, 2018).

Table 5. Overall Port San Antonio Workforce, 2018

Job Sector Number of employees Department of Defense 6,100 Aerospace 3,215 Business Services 1,300 Logistics 1,050 Cybersecurity (private sector) 775 Manufacturing/Applied Technology 530 Other 180 Education 110 Port Authority 104 Total 13,364

Since the port’s inception, public and private-sector partners have invested more than $800 million in redevelopment. The port has grown significantly in recent years. In 2018, project investments totaled $49 million. In 2019 through August, these investments totaled $55 million.

Staff from the Texas Comptroller’s Office applied data obtained from various sources as inputs and used the REMI (Regional Economic Models Inc.) model for the state of Texas to generate estimates of Port San Antonio’s contributions to state-level employment, gross domestic product (GDP), and output. It was estimated that the operation at Port San Antonio contributed $5.6 billion to the Texas economy and supported about 32,000 jobs in 2018 (see Table 6. Estimated Contributions of Port San Antonio to the Texas Economy, 2018).

Table 6. Estimated Contributions of Port San Antonio to the Texas Economy, 2018

Contribution Value Total employment* 32,000 Output** $5.6 billion Gross domestic product*** $3.5 billion * “Total employment” refers to both direct and indirect employment. **“Output” refers to the total value of all goods and services (both final and intermediate) produced in Texas. *** “Gross domestic product” refers to the total value of all final goods and services produced in Texas.

4. Enhancing Texas’ Trade Transportation System

Texas’ transportation system (i.e., 14 border crossings that process commercial vehicles, six international rail bridges, rail and highway corridors, inland ports, and ports) is a critical component in facilitating U.S. and Texas trade with Mexico. This section provides available information on the recent and planned investments in Texas’ transportation system that facilitates trade.

4.1 Highway Trade Corridors U.S. and Texas trade move along well- established trade corridors. To be The Texas-Mexico Border Transportation consistent with the Texas-Mexico Border Master Plan includes four corridor Transportation Plans, the corridors classifications: included in this report were classified as follows: . International corridors. . Emerging international corridors. . International Corridors: I-10, I-20, I-35, . Regional corridors. I-37, I-45, I-69, and Ports-to-Plains (I- . Local corridors. 27), and . Regional Corridors: I-40; US 87 from International corridors are the key highways that connect through the the Texas-New Mexico state line to I- Texas-Mexico border to directly support 10, US 69 from Beaumont to I-20, US binational movement of people and 281 from San Antonio to Wichita Falls, goods. An emerging international US 67 connecting Presidio to corridor is defined as a future binational Dallas/Fort Worth (DFW), and I-30. corridor that is currently a local or regional corridor and requires additional In addition to these corridors, TxDOT is investments. Only one corridor in Mexico working with various stakeholders on the was classified as an emerging development of an east-west corridor international corridor. Regional corridors along the Texas-Mexico border to connect are key highways that connect regionally Brownsville to Laredo and Laredo to Del and provide vital nationwide connectivity Rio. to and from the international corridors. Local corridors primarily provide The data used in the development of the connections to and from international and regional corridors, and also often International Trade Corridor Plan were provide first- and last-mile multimodal obtained from TxDOT and border network connectivity to and from the stakeholders. Project information was then border crossings and to and from compared and verified against the project warehouses and distribution centers. information included in the Texas-Mexico Local corridors were not included in the Border Transportation Master Plan (BTMP) International Trade Corridor Plan. as of October 22, 2020. Specifically, data on projects let were obtained from

TxDOT’s Finance Division (FIN) and planned project information was extracted from TxDOT’s new online database, TxDOTCONNECT19, by the Unified Transportation Program (UTP) Section on September 23, 2020. This section summarizes the recent investments (i.e., projects let in 2019 and 2020), planned highway infrastructure projects on the corridors included in TxDOT’s 2021 Unified Transportation Program (UTP)20, as well as future needs that TxDOT has identified and is evaluating with plan and development authority. All project costs were rounded to the nearest $1 million. This resulted in some numbers not totaling in the tables.

Finally, project information (i.e., number of projects and project types) in this section are grouped by project type: preservation, mobility, bridge, and safety/operational. These project type categories differ slightly from the project categories included in the BTMP.21 Finally, the International Trade Corridor Plan includes all trade projects – as defined by TxDOT’s Internal Border Task Force - on the international and regional corridors, as well as the east-west corridor, while the focus of the BTMP is on all designated BTMP corridors (including the local corridors) in TxDOT’s three border districts: El Paso, Laredo, and Pharr.

4.1.1 International Corridors

I-10 Corridor The I-10 Corridor (see Figure 25. I-10 Corridor in Texas) is a major west-east interstate trade corridor linking California to Florida. In Texas, I-10 links El Paso to Houston before continuing to the Texas border with Louisiana. I-10 serves the Ysleta-Zaragosa Bridge and the Bridge of the Americas in El Paso.

19 In 2019, TxDOT’s Districts were directed to verify and update all their project data in TxDOTCONNECT. TxDOTCONNECT is TxDOT’s custom-built web-based system for automating the delivery of transportation programs, projects, and right of way. The system is improving and transforming the way the department manages transportation projects while replacing functionality in up to 40 systems. The project information functionality in the Design/Construction Information System (DCIS) was deployed in TxDOTCONNECT in Spring 2019. 20 TxDOT uses the UTP as a 10-year plan to guide transportation project development. The UTP is developed in accordance with the Texas Administrative Code (TAC §16.105) and is approved by the Texas Transportation Commission annually prior to August 31, or the end of the state fiscal year. The UTP authorizes projects for construction, development and planning activities and includes projects involving highways, aviation, public transportation, and state and coastal waterways. It lists all known projects (mainly for roadway and bridges) in the 10-year window and ranks projects. 21 The BTMP includes four project categories: asset preservation, mobility and reliability, connectivity, and safety. Bridge projects included in the International Trade Corridor Plan are included in the asset preservation category in the BTMP. Connectivity projects in the BTMP are included in the mobility category in the International Trade Corridor Plan.

Figure 25. I-10 Corridor in Texas

Let Projects on I-10 (2019/2020) Table 7. Let Projects on I-10 by Type (2019 and 2020) shows the number and cost of projects that were let on I-10 in 2019 and 2020. Table 7. Let Projects on I-10 by Type (2019 and 2020) shows that TxDOT let 63 projects at a total cost of $621 million on the I-10 Corridor in 2019 and 2020. This amounted to 47 preservation projects at a cost of $84 million, five added capacity projects at a cost of $441 million, eight bridge projects at a cost of $45 million, and three safety/operational projects at a cost of $51 million.

Table 7. Let Projects on I-10 by Type (2019 and 2020)

Project Cost Project Type Number of Projects ($ million) Preservation 47 84 Mobility 5 441 Bridge 8 45 Safety/Operational 3 51 Total 63 621

Planned Highway Projects on I-10 Corridor Table 8. Planned I-10 Projects by Type (2021 UTP) shows the planned highway infrastructure projects on I-10 that are included in TxDOT’s 2021 UTP. Table 8. Planned I-10 Projects by Type (2021 UTP) shows 121 planned highway projects22 on the I-10 Corridor at a total estimated cost23 of $4.4 billion. Of these 121 planned highway projects, 97 are fully funded ($2.3 billion), and 8 projects are partially funded with $252 million in funding needed. In addition, 16 projects at an estimated cost of $1.8 billion had no identified funding source in 2020.

The 121 planned highway projects consist of 61 preservation projects at a cost of $184 million, 23 added capacity projects at an estimated cost of $3.4 billion, 26 bridge projects at an estimated cost of $375 million, and 11 safety/operational projects at an estimated cost of $522 million.

22 The number of projects was determined by counting the individual CSJ numbers. 23 The estimated construction costs were used as a proxy for project costs.

Table 8. Planned I-10 Projects by Type (2021 UTP)

Project Cost Project Type Number of Projects ($ million) Preservation 61 184 Mobility 23 3,354 Bridge 26 375 Safety/Operational 11 522 Total 121 4,435 Numbers do not total because of rounding.

Future I-10 Corridor Needs The TxDOT UTP dataset also included four future project needs on the I-10 Corridor that are in the UTP development process and beyond the 10-year UTP window. These projects entail investments in additional capacity at an estimated cost of $676 million. Finally, the BTMP included 18 projects that were not included in the TxDOT UTP dataset. The 18 projects consist of 12 added capacity projects at an estimated cost of $2.5 billion, one preservation project at an estimated cost of $141 million, and five safety/operational projects at an estimated cost of $373 million.

I-20 Corridor Traveling east from El Paso, I-20 (see Figure 26. I-20 Corridor in Texas) splits off from I-10 past Van Horn, Texas. I-20 runs parallel to I-10 to the north, traversing the Dallas-Fort Worth metroplex before continuing to the Texas-Louisiana border.

Figure 26. I-20 Corridor in Texas

Let Projects on I-20 (2019/2020) Table 9. Let Projects on I-20 by Type (2019 and 2020) shows the number and cost of projects that were let on I-20 in 2019 and 2020. Table 9. Let Projects on I-20 by Type (2019 and 2020) shows that TxDOT let 91 projects at a total cost of $238 million on the I-20 Corridor in 2019 and 2020. This amounted to 69 preservation projects at a cost of $162 million, two added capacity projects at a cost of $33 million, 16 bridge projects at a cost of $40 million, and four safety/operational projects at a cost of $4 million.

Table 9. Let Projects on I-20 by Type (2019 and 2020)

Project Cost Project Type Number of Projects ($ million) Preservation 69 162 Mobility 2 33 Bridge 16 40 Safety/Operational 4 4 Total 91 238 Numbers do not total because of rounding.

Planned Highway Projects on I-20 Corridor Table 10. Planned I-20 Projects by Type (2021 UTP) shows the planned highway infrastructure projects on I-20 that are included in TxDOT’s 2021 UTP. Table 10. Planned I- 20 Projects by Type (2021 UTP) shows 150 planned highway projects on the I-20 at a total estimated cost of $3.5 billion. Of these 150 planned highway projects, 132 are fully funded ($2.5 billion), and eight projects are partially funded with $279 million in funding needed. In addition, 10 projects at an estimated cost of $419 million had no identified funding source in 2020.

The 150 planned highway projects consist of 59 preservation projects at a cost of $332 million, 24 added capacity projects at an estimated cost of $2.5 billion, 47 bridge projects at an estimated cost of $164 million, and 20 safety/operational projects at an estimated cost of $501 million.

Table 10. Planned I-20 Projects by Type (2021 UTP)

Project Cost ($ Project Type Number of Projects million) Preservation 59 332 Mobility 24 2,460 Bridge 47 164 Safety/Operational 20 501 Total 150 3,457

Future I-20 Corridor Needs The TxDOT UTP dataset also included 14 future projects on the I-20 Corridor that are in the UTP development process and beyond the 10-year UTP window. Table 11. Future I-20 Corridor Needs shows the future I-20 Corridor needs that have been identified. TxDOT identified 14 project needs at a total estimated cost of $1.7 billion on the I-20 Corridor. The 14 project needs consist of five added capacity projects at an estimated cost of $959 million and nine safety/operational projects at an estimated cost of $705 million.

Table 11. Future I-20 Corridor Needs

Project Cost Project Type Number of Projects ($ million) Preservation - - Mobility 5 959 Bridge - - Safety/Operational 9 705 Total 14 1,664

I-35 Corridor The I-35 Corridor (see Figure 27. I-35 Corridor in Texas) serves the World Trade Bridge and the Colombia Solidarity Bridge in Laredo via FM-1472, SH-255, and SL-20. US-277 and US- 57 connect the Camino Real International Bridge (in Eagle Pass) to the I-35 Corridor. The I- 35 Corridor—also known as the NAFTA Corridor—connects Mexico, the U.S., and Canada. I-35 connects three of the four largest cities in Texas before continuing north and ending in Duluth, Minnesota. I-35 also links to I-29 in Kansas City, which connects to Winnipeg, Manitoba, in Canada. This corridor serves the Midwest manufacturing centers.

Figure 27. I-35 Corridor in Texas

Let Projects on I-35 (2019/2020) Table 12. Let Projects on I-35 by Type (2019 and 2020) shows the number and cost of projects that were let on I-35 in 2019 and 2020. Table 12. Let Projects on I-35 by Type (2019 and 2020) shows that TxDOT let 68 projects at a total cost of $957 million on the I-35 Corridor in 2019 and 2020. This amounted to 40 preservation projects at a cost of $184 million, 6 added capacity projects at a cost of $475 million, 12 bridge projects at a cost of $35 million, and 10 safety/operational projects at a cost of $263 million.

Table 12. Let Projects on I-35 by Type (2019 and 2020)

Project Cost Project Type Number of Projects ($ million) Preservation 40 184 Mobility 6 475 Bridge 12 35 Safety/Operational 10 263 Total 68 957

Planned Highway Projects on I-35 Corridor Table 13. Planned I-35 Projects by Type (2021 UTP) shows the planned highway infrastructure projects on I-35 that are included in TxDOT’s 2021 UTP. Table 13. Planned I- 35 Projects by Type (2021 UTP) shows 132 planned highway projects on the I-35 Corridor at a total estimated cost of $13.2 billion. Of these 132 planned highway projects, 97 are fully funded ($10.0 billion) and 10 projects are partially funded with $346 million in funding needed. In addition, 25 projects at an estimated cost of $1.8 billion had no identified funding source in 2020.

The 132 planned highway projects consist of 61 preservation projects at a cost of $170 million, 26 added capacity projects at a cost of $11.4 billion, 14 bridge projects at an estimated cost of $303 million, and 31 safety/operational projects at an estimated cost of $1.3 billion.

Table 13. Planned I-35 Projects by Type (2021 UTP) Project Cost Project Type Number of Projects ($ million) Preservation 61 170 Mobility 26 11,409 Bridge 14 303 Safety/Operational 31 1,336 Total 132 13,218

Future I-35 Corridor Needs The TxDOT UTP dataset also included 46 future projects on the I-35 Corridor that are in the UTP development process and beyond the 10-year UTP window. Table 14. Future I-35 Corridor Needs shows the future I-35 Corridor needs that have been identified. TxDOT identified 46 project needs at a total estimated cost of $10.8 billion on the I-35 Corridor.

The 46 project needs consist of 38 added capacity projects at an estimated cost of $10.4 billion and eight safety/operational projects at an estimated cost of $352 million.

Table 14. Future I-35 Corridor Needs

Project Cost Project Type Number of Projects ($ million) Preservation - - Mobility 38 10,407 Bridge - - Safety/Operational 8 352 Total 46 10,759

Finally, the BTMP included four projects that were not included in the TxDOT UTP dataset. The four projects consist of one added capacity project at an estimated cost of $4 million and three safety/operational projects at an estimated cost of $97 million.

I-37 Corridor The I-37 Corridor (see Figure 28. I-37 Corridor in Texas) serves the Port of Corpus Christi. I- 37 links Corpus Christi to San Antonio, where it connects to the I-35 and I-10 Corridors.

Figure 28. I-37 Corridor in Texas

Let Projects on I-37 (2019/2020) Table 15. Let Projects on I-37 by Type (2019 and 2020) shows the number and cost of projects that were let on I-37 in 2019 and 2020. Table 15. Let Projects on I-37 by Type (2019 and 2020) shows that TxDOT let four preservation projects at a total cost of $11 million on the I-37 Corridor in 2019 and 2020.

Table 15. Let Projects on I-37 by Type (2019 and 2020)

Project Cost Project Type Number of Projects ($ millions) Preservation 4 11 Mobility - - Bridge - - Safety/Operational - - Total 4 11

Planned Highway Projects on I-37 Corridor Table 16. Planned I-37 Projects by Type (2021 UTP) shows the planned highway infrastructure projects on I-37 that are included in TxDOT’s 2021 UTP. Table 16. Planned I-

37 Projects by Type (2021 UTP) shows 25 planned highway projects on the I-37 Corridor at a total estimated cost of $73 million. Of these 25 planned highway projects, 22 are fully funded ($37 million) and three projects at an estimated cost of $36 million had no identified funding source in 2020.

The 29 planned highway projects consist of 14 preservation projects at a cost of $11 million, two added capacity projects at a cost of $25 million, six bridge projects at an estimated cost of $1 million, and three safety/operational projects at an estimated cost of $36 million.

Table 16. Planned I-37 Projects by Type (2021 UTP)

Project Cost Project Type Number of Projects ($ million) Preservation 14 11 Mobility 2 25 Bridge 6 1 Safety/Operational 3 36 Total 25 73 Numbers do not total because of rounding.

Future I-37 Corridor Needs

No additional project needs have been identified on the I-37 Corridor in the UTP development process and beyond the 10-year UTP window.

I-45 Corridor The I-45 Corridor (see Figure 29. I-45 Corridor in Texas) serves Port Houston. I-45 links Houston to the Dallas-Fort Worth metroplex.

Figure 29. I-45 Corridor in Texas

Let Projects on I-45 (2019/2020) Table 17. Let Projects on I-45 by Type (2019 and 2020) shows the number and cost of projects that were let on I-45 in 2019 and 2020. Table 17. Let Projects on I-45 by Type (2019 and 2020) shows that TxDOT let 33 projects at a total cost of $533 million on the I-45 Corridor in 2019 and 2020. This amounted to 21 preservation projects at a cost of $9 million, four added capacity projects at a cost of $473 million, six bridge projects at a cost of $20 million, and two safety/operational projects at a cost of $32 million.

Table 17. Let Projects on I-45 by Type (2019 and 2020)

Project Cost Project Type Number of Projects ($) Preservation 21 9 Mobility 4 473 Bridge 6 20 Safety/Operational 2 32 Total 33 533

Planned Highway Projects on I-45 Corridor Table 18. Planned I-45 Projects by Type (2021 UTP) shows the planned highway infrastructure projects on I-45 that are included in TxDOT’s 2021 UTP. Table 18. Planned I- 45 Projects by Type (2021 UTP) shows 60 planned highway projects on the I-45 Corridor at a total estimated cost of $6 billion. Of these 60 planned highway projects, 55 are fully funded ($4.5 billion) and five projects at an estimated cost of $1.5 billion had no identified funding source in 2020.

The 60 planned highway projects consist of 23 preservation projects at a cost of $41 million, 14 added capacity projects at a cost of $4.9 billion, 10 bridge projects at an estimated cost of $40 million, and 13 safety/operational projects at an estimated cost of $999 million.

Table 18. Planned I-45 Projects by Type (2021 UTP)

Project Cost ($ Project Type Number of Projects million) Preservation 23 41 Mobility 14 4,948 Bridge 10 40 Safety/Operational 13 999 Total 60 6,027

Future I-45 Corridor Needs The TxDOT UTP dataset also included 23 future projects on the I-45 Corridor that are in the UTP development process and beyond the 10-year UTP window. Table 19. Future I-45 Corridor Needs shows 23 project needs at a total estimated cost of $2.3 billion on the I-45 Corridor. The 23 project needs consist of one preservation project at an estimated cost of $10 million, 18 added capacity projects at an estimated cost of $2.2 billion, and four safety/operational projects at an estimated cost of $94 million.

Table 19. Future I-45 Corridor Needs

Project Cost Project Type Number of Projects ($ million) Preservation 1 10 Mobility 18 2,160 Bridge - - Safety/Operational 4 94 Total 23 2,264

I-69 Corridor The I-69 Corridor (see Figure 30. I-69 Corridor in Texas) connects Laredo and the Lower Rio Grande Valley with Corpus Christi and Houston before continuing east. The I-69 Corridor consists of three highways: I-69C (US 281) and I-69E (US 77) that run parallel and north from the Lower Rio Grande Valley, and US-59 (future I-69W), which runs northeast from Laredo. The I-69 Corridor serves the World Trade Bridge and the Colombia Solidarity Bridge in Laredo and several bridges in the Lower Rio Grande Valley, including the Pharr-International Bridge on the Rise and Veterans International Bridge at Los Tomates.

Figure 30. I-69 Corridor in Texas

Let Projects on I-69 (2019/2020) Table 20. Let Projects on I-69 by Type (2019 and 2020) shows the number and cost of projects that were let on I-69 in 2019 and 2020. Table 20. Let Projects on I-69 by Type (2019 and 2020) shows that TxDOT let 107 projects at a total cost of $811 million on the I-69 Corridor in 2019 and 2020. This amounted to 85 preservation projects at a cost of $215 million, five added capacity projects at a cost of $479 million, 11 bridge projects at a cost of $6 million, and 6 safety/operational projects at a cost of $111 million.

Table 20. Let Projects on I-69 by Type (2019 and 2020)

Project Cost Project Type Number of Projects ($ millions) Preservation 85 215 Mobility 5 479 Bridge 11 6 Safety/Operational 6 111 Total 107 811

Planned Highway Projects on I-69 Corridor Table 21. Planned I-69 Projects by Type (2021 UTP) shows the planned highway infrastructure projects on I-69 that are included in TxDOT’s 2021 UTP. Table 21. Planned I- 69 Projects by Type (2021 UTP) shows 158 planned highway projects on the I-69 Corridor at a total estimated cost of $5.2 billion. Of these 158 planned highway projects, 138 are fully funded ($3.3 billion) and four projects are partially funded with approximately $397 million in funding needed. In addition, 16 projects at an estimated cost of $1.5 billion had no identified funding source in 2020.

The 158 planned highway projects consist of 80 preservation projects at a cost of $258 million, 48 added capacity projects at a cost of $4.6 billion, six bridge projects at an estimated cost of $138 million, and 24 safety/operational projects at an estimated cost of $226 million.

Table 21. Planned I-69 Projects by Type (2021 UTP)

Project Cost Project Type Number of Projects ($ million) Preservation 80 258 Mobility 48 4,601 Bridge 6 138 Safety/Operational 24 226 Total 158 5,223

Future I-69 Corridor Needs The TxDOT UTP dataset also included 19 future projects on the I-69 Corridor that are in the UTP development process and beyond the 10-year UTP window. Table 22. Future I-69 Corridor Needs shows 19 project needs at a total estimated cost of $1.7 billion on the I-69 Corridor. The 19 project needs consist of five preservation projects at an estimated cost of $35 million, 13 added capacity projects at an estimated cost of 1.7 billion, and one bridge project at an estimated cost of $3 million.

Table 22. Future I-69 Corridor Needs

Project Cost Project Type Number of Projects ($ million) Preservation 5 35 Mobility 13 1,683 Bridge 1 3 Safety/Operational - - Total 19 1,721

Finally, the BTMP included four projects that were not included in the TxDOT UTP dataset. The four projects consist of two added capacity projects at an estimated cost of $510 million and two safety/operational projects at an estimated cost of $506 million.

Ports-to-Plains Corridor The Ports-to-Plains Corridor (see Figure 31. Ports-to-Plains Corridor in Texas) links Laredo to Eagle Pass via I-35, US 83, and US 277, which connects Eagle Pass to Del Rio. From Del Rio, the corridor travels north via US 277 to San Angelo, then via US 87 to Lubbock, where it joins with I-27, which connects Lubbock to Amarillo. SH 158 and SH 349 link Midland and Odessa to US 87 at Sterling City and Lamesa, respectively. The Ports-to-Plains Corridor serves the Del

Rio–Ciudad Acuña International Bridge, the Camino Real International Bridge (Eagle Pass), and the World Trade and Colombia Solidarity Bridges in Laredo.

Figure 31. Ports-to-Plains Corridor in Texas

Let Projects on the Ports-to-Plains Corridor (2019/2020) Table 23. Let Projects on the Ports-to-Plains Corridor by Type (2019 and 2020) shows the number and cost of projects that were let on the Ports-to-Plains Corridor in 2019 and 2020. Table 23. Let Projects on the Ports-to-Plains Corridor by Type (2019 and 2020) shows that TxDOT let 36 projects at a total cost of $316 million on the Ports-to-Plains Corridor in 2019 and 2020. This amounted to 22 preservation projects at a cost of $186 million, eight bridge projects at a cost of $9 million, four safety/operational projects at a cost of $111 million, and two added capacity projects at a cost of $10 million.

Table 23. Let Projects on the Ports-to-Plains Corridor by Type (2019 and 2020)

Project Cost Project Type Number of Projects ($ millions) Preservation 22 186 Mobility 2 10 Bridge 8 9 Safety/Operational 4 111 Total 36 316

Planned Highway Projects on the Ports-to-Plains Corridor Table 24. Planned Ports-to-Plains Projects by Type (2021 UTP) shows the planned highway infrastructure projects on the Ports-to-Plains Corridor that are included in TxDOT’s 2021 UTP. Table 24. Planned Ports-to-Plains Projects by Type (2021 UTP) shows 85 planned highway projects on the Ports-to-Plains Corridor at a total estimated cost of $1.2 billion. Of these 85 planned highway projects, 63 projects are fully funded ($635 million), and 22 projects at an estimated cost of $610 million had no identified funding source in 2020.

The 85 planned highway projects consist of 50 preservation projects at a cost of $233 million, 10 added capacity projects at a cost of $481 million, nine bridge projects at an estimated cost of $170 million, and 16 safety/operational projects at an estimated cost of $361 million.

Table 24. Planned Ports-to-Plains Projects by Type (2021 UTP)

Project Cost Project Type Number of Projects ($ million) Preservation 50 233 Mobility 10 481 Bridge 9 170 Safety/Operational 16 361 Total 85 1,245

Future Ports-to-Plains Corridor Needs The TxDOT UTP dataset also included eight future projects on the Ports-to-Plains Corridor that are in the UTP development process and beyond the 10-year UTP window. Table 25. Future Ports-to-Plains Corridor Needs shows eight project needs at a total estimated cost of $1.1 billion on the Ports-to-Plains Corridor. The eight project needs consist of five

preservation projects at an estimated cost of $15 million and three added capacity projects at an estimated cost $1.1 billion.

Table 25. Future Ports-to-Plains Corridor Needs

Project Cost Project Type Number of Projects ($ million) Preservation 5 15 Mobility 3 1,074 Bridge - - Safety/Operational - - Total 8 1,089

Finally, the BTMP included eight mobility projects that were not included in the TxDOT UTP dataset. The estimated cost of four of the eight mobility projects are almost $3 billion. Cost estimates are not yet available for the remaining four projects.

4.1.2 Regional Corridors

I-30 Corridor The I-30 Corridor (see Figure 32. I-30 Corridor in Texas) links the Dallas-Fort Worth metroplex to the Texas-Arkansas border.

Figure 32. I-30 Corridor in Texas

Let Projects on I-30 (2019/2020) Table 26. Let Projects on I-30 by Type (2019 and 2020) shows the number and cost of projects that were let on I-30 in 2019 and 2020. Table 26. Let Projects on I-30 by Type (2019 and 2020) shows that TxDOT let 23 projects at a total cost of $105 million on the I-30 Corridor in 2019 and 2020. This amounted to 14 preservation projects at a cost of $14 million, eight bridge projects at a cost of $2 million, and one safety/operational project at a cost of $89 million.

Table 26. Let Projects on I-30 by Type (2019 and 2020)

Project Cost Project Type Number of Projects ($ millions) Preservation 14 14 Mobility - - Bridge 8 2 Safety/Operational 1 89 Total 23 105

Planned Highway Projects on I-30 Corridor Table 27. Planned I-30 Projects by Type (2021 UTP) shows the planned highway infrastructure projects on I-30 that are included in TxDOT’s 2021 UTP. Table 27. Planned I- 30 Projects by Type (2021 UTP) shows 72 planned highway projects on the I-30 Corridor at a total estimated cost of $3.5 billion. Of these 72 planned highway projects, 58 are fully funded ($1.2 billion) and six projects are partially funded with $964 million in funding needed. In addition, eight projects at an estimated cost of $955 million had no identified funding source in 2020.

The 72 planned highway projects consist of 25 preservation projects at a cost of $159 million, 17 added capacity projects at a cost of $2.8 billion, eight bridge projects at an estimated cost of $17 million, and 22 safety/operational projects at an estimated cost of $540 million.

Table 27. Planned I-30 Projects by Type (2021 UTP)

Project Cost Project Type Number of Projects ($ million) Preservation 25 159 Mobility 17 2,795 Bridge 8 17 Safety/Operational 22 540 Total 72 3,511

Future I-30 Corridor Needs The TxDOT UTP dataset also included seven future projects on the I-30 Corridor that are in the UTP development process and beyond the 10-year UTP window. Table 28. Future I-30 Corridor Needs shows seven project needs at a total estimated cost of $1.8 billion on the I- 30 Corridor. The seven project needs consist of four added capacity projects at an estimated cost of $1.7 billion, and three safety/operational projects at an estimated $102 million.

Table 28. Future I-30 Corridor Needs

Project Cost Project Type Number of Projects ($ million) Preservation - - Mobility 4 1,695 Bridge - - Safety/Operational 3 102 Total 7 1,797

I-40 Corridor The I-40 Corridor (see Figure 33. I-40 Corridor in Texas) runs west–east through the Texas panhandle from the New Mexico-Texas State line to the Oklahoma-Texas State line.

Figure 33. I-40 Corridor in Texas

Let Projects on I-40 (2019/2020) Table 29. Let Projects on I-40 by Type (2019 and 2020) shows the number and cost of projects that were let on I-40 in 2019 and 2020. Table 29. Let Projects on I-40 by Type (2019 and 2020) shows that TxDOT let 49 projects at a total cost of $109 million on the I- 40 Corridor in 2019 and 2020. This amounted to 24 preservation projects at a cost of $79 million and 25 bridge projects at a cost of $30 million.

Table 29. Let Projects on I-40 by Type (2019 and 2020)

Project Cost Project Type Number of Projects ($ millions) Preservation 24 79 Mobility - - Bridge 25 30 Safety/Operational - - Total 49 109

Planned Highway Projects on I-40 Corridor Table 30. Planned I-40 Projects by Type (2021 UTP) shows the planned highway infrastructure projects on I-40 that are included in TxDOT’s 2021 UTP. Table 30. Planned I- 40 Projects by Type (2021 UTP) shows 10 planned highway projects on the I-40 Corridor at a total estimated cost of $61 million. Of these 10 planned highway projects, nine projects are fully funded ($26 million) and one project at an estimated cost of $35 million had no identified funding source in 2020.

The 10 planned highway projects consist of six preservation projects at a cost of $59 million and four bridge projects at an estimated cost of $2 million.

Table 30. Planned I-40 Projects by Type (2021 UTP)

Project Cost Project Type Number of Projects ($ million) Preservation 6 59 Mobility - - Bridge 4 2 Safety/Operational - - Total 10 61

Future I-40 Corridor Needs The TxDOT UTP dataset also included 19 future projects on the I-40 Corridor that are in the UTP development process and beyond the 10-year UTP window. Table 31. Future I-40 Corridor Needs shows 19 project needs at a total estimated cost of $435 million on the I-40 Corridor. The 19 project needs consist of 15 preservation projects at an estimated cost of $318 million and four added capacity projects at an estimated cost of $117 million.

Table 31. Future I-40 Corridor Needs

Project Cost Project Type Number of Projects ($ million) Preservation 15 318 Mobility 4 117 Bridge - - Safety/Operational - - Total 19 435

US 87 Corridor The US 87 Corridor (see Figure 34. US 87 Corridor in Texas) connects I-10 to the Texas-New Mexico State line. Figure 34. US 87 Corridor in Texas

Let Projects on US 87 (2019/2020) Table 32. Let Projects on US 87 by Type (2019 and 2020) shows the number and cost of projects that were let on US 87 in 2019 and 2020. Table 32. Let Projects on US 87 by Type (2019 and 2020) shows that TxDOT let 32 projects at a total cost of $73 million on the US 87 Corridor in 2019 and 2020. This amounted to 22 preservation projects at a cost of $59 million, seven bridge projects at a cost of $8 million, one added capacity project at a cost of $1 million, and two safety/operational projects at a cost of $5 million.

Table 32. Let Projects on US 87 by Type (2019 and 2020)

Project Cost Project Type Number of Projects ($ millions) Preservation 22 59 Mobility 1 1 Bridge 7 8 Safety/Operational 2 5 Total 32 73

Planned Highway Projects on US 87 Table 33. Planned US 87 Projects by Type (2021 UTP) shows the planned highway infrastructure projects on US 87 that are included in TxDOT’s 2021 UTP. Table 33. Planned US 87 Projects by Type (2021 UTP) shows 53 planned highway projects on the US 87 Corridor at a total estimated cost of $686 million. Of these 53 planned highway projects, 41 are fully funded ($363 million) and one project is partially funded with $12 million in funding needed. In addition, 11 projects at an estimated cost of $291 million had no identified funding source in 2020.

The 53 planned highway projects consist of 39 preservation projects at a cost of $178 million, six added capacity projects at a cost of $340 million, four bridge projects at an estimated cost of $14 million, and four safety/operational projects at an estimated cost of $154 million.

Table 33. Planned US 87 Projects by Type (2021 UTP)

Project Cost Project Type Number of Projects ($ million) Preservation 39 178 Mobility 6 340 Bridge 4 14 Safety/Operational 4 154 Total 53 686

Future US 87 Corridor Needs The TxDOT UTP dataset also included eight future projects on the US 87 Corridor that are in the UTP development process and beyond the 10-year UTP window. Table 34. Future US 87 Corridor Needs shows eight project needs at a total estimated cost of $712 million on the US 87 Corridor. The eight project needs consist of six preservation projects at an estimated cost of $16 million and two added capacity projects at an estimated cost of $696 million.

Table 34. Future US 87 Corridor Needs

Project Cost Project Type Number of Projects ($ million) Preservation 6 16 Mobility 2 696 Bridge - - Safety/Operational - - Total 8 712

US 69 Corridor The US 69 Corridor (see Figure 35. US 69 Corridor in Texas) connects I-20 to Beaumont.

Figure 35. US 69 Corridor in Texas

Let Projects on US 69 (2019/2020) Table 35. Let Projects on US 69 by Type (2019 and 2020) shows the number and cost of projects that were let on US 69 in 2019 and 2020. Table 35. Let Projects on US 69 by Type (2019 and 2020) shows that TxDOT let 27 projects at a total cost of $81 million on the US 69 Corridor in 2019 and 2020. This amounted to 21 preservation projects at a cost of $56 million, one added capacity project at a cost of $22 million, three bridge projects at a cost of $1 million, and two safety/operational projects at a cost of $2 million.

Table 35. Let Projects on US 69 by Type (2019 and 2020)

Project Cost Project Type Number of Projects ($ millions) Preservation 21 56 Mobility 1 22 Bridge 3 1 Safety/Operational 2 2 Total 27 81

Planned Highway Projects on US 69 Corridor Table 36. Planned US 69 Projects by Type (2021 UTP) shows the planned highway infrastructure projects on US 69 that are included in TxDOT’s 2021 UTP. Table 36. Planned US 69 Projects by Type (2021 UTP) shows 35 planned highway projects on the US 69 Corridor at a total estimated cost of $675 million. Of these 35 planned highway projects, 31 are fully funded ($487 million) and three projects are partially funded with $136 million in funding needed. In addition, one project at an estimated cost of $11 million had no identified funding source in 2020.

The 35 planned highway projects consist of 20 preservation projects at a cost of $34 million, 10 added capacity projects at a cost of $523 million, one bridge project at an estimated cost of $0.3 million, and four safety/operational projects at an estimated cost of $118 million.

Table 36. Planned US 69 Projects by Type (2021 UTP)

Project Cost Project Type Number of Projects ($ million) Preservation 20 34 Mobility 10 523 Bridge 1 0.3 Safety/Operational 4 118 Total 35 675 Numbers do not total because of rounding.

Future US 69 Corridor Needs The TxDOT UTP dataset also included two future projects on the US 69 Corridor that are in the UTP development process and beyond the 10-year UTP window. Table 37. Future US 69 Corridor Needs shows two project needs at a total estimated cost of $9 million on the US 69 Corridor. The two project needs consist of one preservation project at an estimated cost of $5 million and one safety/operational project at an estimated cost of $4 million.

Table 37. Future US 69 Corridor Needs

Project Cost Project Type Number of Projects ($ million) Preservation 1 5 Mobility - - Bridge - - Safety/Operational 1 4 Total 2 9

US 67 Presidio to Dallas/Fort Worth (DFW) Corridor The US 67 Presidio to Dallas/Fort Worth (DFW) Corridor (see Figure 36. US 67 Presidio to DFW Corridor in Texas) links Presidio to Marfa via US 67 and Marfa to I-10 near Balmorhea and Pecos via US 17. At Pecos, US 17 links to I-20, which connects to Midland-Odessa and eventually to DFW. This section provides information for planned projects on the segment between Presidio and the connection to I-20.

Figure 36. US 67 Presidio to DFW Corridor in Texas

Let Projects on US 67 Presidio to DFW Corridor (2019/2020) No projects were let on the US 67 Presidio to DFW Corridor on the segment between Presidio and I-20 in 2019 and 2020. Let projects on the I-20 segment were included in the I- 20 Corridor section.

Planned Highway Projects on US 67 Presidio to DFW Corridor Table 38. Planned US 67 Presidio to DFW Corridor Projects by Type (2021 UTP) shows the planned highway infrastructure projects on the US 67 Presidio to DFW Corridor that are included in TxDOT’s 2021 UTP. Table 38. Planned US 67 Presidio to DFW Corridor Projects by Type (2021 UTP) shows 13 planned highway projects on the US 67 Presidio to DFW Corridor at a total estimated cost of $47 million. Of these 13 planned highway projects, 12 are fully funded ($7 million), and one project at an estimated cost of $40 million had no identified funding source in 2020.

The 13 planned highway projects consist of 12 preservation projects at a cost of $7 million and one safety/operational project at an estimated cost of $40 million.

Table 38. Planned US 67 Presidio to DFW Corridor Projects by Type (2021 UTP)

Project Cost Project Type Number of Projects ($ million) Preservation 12 7 Mobility - - Bridge - - Safety/Operational 1 40 Total 13 47 Note: The US 67 Presidio to DFW Corridor links Presidion to DFW, but the table only includes let projects on the segment between Presidio and I-20.

Future US 67 Presidio to DFW Corridor Needs The TxDOT UTP dataset also included four future safety projects on the US 67 Presidio to DFW Corridor between Presidio and I-20 that are in the UTP development process and beyond the 10-year UTP window. The four safety projects have an estimated cost of $63 million.

US 281 Corridor The US 281 Corridor (see Figure 37. US 281 Corridor in Texas) runs parallel to I-35 to the north and connects San Antonio to the Texas-Oklahoma border.

Figure 37. US 281 Corridor in Texas

Let Projects on US 281 (2019/2020) Table 39. Let Projects on US 281 by Type (2019 and 2020) shows the number and cost of projects that were let on US 281 in 2019 and 2020. Table 39. Let Projects on US 281 by Type (2019 and 2020) shows that TxDOT let 11 projects at a total cost of $39 million on the US 281 Corridor in 2019 and 2020. This amounted to eight preservation projects at a cost of $15 million, two added capacity projects at a cost of $23 million, and one safety/operational project at a cost of $1 million.

Table 39. Let Projects on US 281 by Type (2019 and 2020)

Project Cost Project Type Number of Projects ($ millions) Preservation 8 15 Mobility 2 23 Bridge - - Safety/Operational 1 1 Total 11 39

Planned Highway Projects on US 281 Corridor Table 40. Planned US 281 Projects by Type (2021 UTP) shows the planned highway infrastructure projects on US 281 that are included in TxDOT’s 2021 UTP. Table 40. Planned US 281 Projects by Type (2021 UTP) shows 31 planned highway projects on the US 281 Corridor at a total estimated cost of $369 million. Of these 31 planned highway projects, 22 are fully funded ($220 million) and six projects are partially funded with approximately $21 million in funding needed. In addition, three projects at an estimated cost of $93 million had no identified funding source in 2020.

The 31 planned highway projects consist of 17 preservation projects at a cost of $38 million, seven added capacity projects at an estimated cost of $205 million, one bridge project at an estimated cost of $11 million, and six safety/operational projects at an estimated cost of $115 million.

Table 40. Planned US 281 Projects by Type (2021 UTP) Project Cost Project Type Number of Projects ($ million) Preservation 17 38 Mobility 7 205 Bridge 1 11 Safety/Operational 6 115 Total 31 369

Future US 281 Corridor Needs The TxDOT UTP dataset also included 13 future projects on the US 281 Corridor that are in the UTP development process and beyond the 10-year UTP window. Table 41. Future US 281 Corridor Needs shows 13 project needs at a total estimated cost of $549 million on the US 281 Corridor. The 13 project needs consist of 11 added capacity projects at an estimated cost of $536 million, one bridge project at an estimated cost of $100,000, and one safety/operational project at an estimated cost of $13 million.

Table 41. Future US 281 Corridor Needs

Project Cost Project Type Number of Projects ($ million) Preservation - - Mobility 11 536 Bridge 1 0.1 Safety/Operational 1 13 Total 13 549 Numbers do not total because of rounding. 4.1.3 Other

East-West Corridor The East-West Border Corridor (see Figure 38. East-West Corridor in Texas) runs parallel to the border and connects Brownsville to Del Rio. Brownsville is connected to Laredo via I-69, I- 2, and US 83. Traveling north from the Veteran’s International Bridge in Brownsville, I-69E connects to I-2 in Harlingen. Traveling west from Harlingen, I-2 passes through McAllen and end near Mission, and the corridor continues via US 83 to Laredo. Laredo is connected to Eagle Pass via I-35, US 83, and US 277. US 277 connects Eagle Pass to Del Rio. The highways that connect Del Rio to Brownsville serve five major ports of entry along the Texas- Mexico border—Brownsville, Hidalgo, Laredo, Eagle Pass, and Del Rio.

Figure 38. East-West Corridor in Texas

Let Projects on East-West Corridor (2019/2020) Table 42. Let Projects on the East-West Corridor by Type (2019 and 2020) shows the number and cost of projects that were let on the East-West Corridor in 2019 and 2020. Table 42. Let Projects on the East-West Corridor by Type (2019 and 2020) shows that TxDOT let 20 projects at a total cost of $591 million on the East-West Corridor in 2019 and 2020. This amounted to 14 preservation projects at a cost of $148 million, two added capacity projects at a cost of $102 million, and four safety/operational projects at a cost of $340 million.

Table 42. Let Projects on the East-West Corridor by Type (2019 and 2020)

Project Cost Project Type Number of Projects ($ millions) Preservation 14 148 Mobility 2 102 Bridge - - Safety/Operational 4 340 Total 20 591 Numbers do not total because of rounding.

Planned Highway Projects on the East-West Corridor Table 43. Planned East-West Corridor Projects by Type (2021 UTP) shows the planned highway infrastructure projects on the East-West Corridor that are included in TxDOT’s 2021 UTP. Table 43. Planned East-West Corridor Projects by Type (2021 UTP) shows 61 planned highway projects on the East-West Corridor at a total estimated cost of $871 million. Of these 61 planned highway projects, 45 are fully funded ($407 million) and 16 projects at an estimated cost of $464 million had no identified funding source in 2020.

The 61 planned highway projects consist of 36 preservation projects at a cost of $130 million, 12 added capacity projects at a cost of $411 million, three bridge projects at an estimated cost of $154 million, and 10 safety/operational projects at an estimated cost of $176 million.

Table 43. Planned East-West Corridor Projects by Type (2021 UTP)

Project Cost Project Type Number of Projects ($ million) Preservation 36 130 Mobility 12 411 Bridge 3 154 Safety/Operational 10 176 Total 61 871 Numbers do not total because of rounding.

Future East-West Corridor Needs The TxDOT UTP dataset also included nine future projects on the East-West Corridor that are in the UTP development process and beyond the 10-year UTP window. Table 44. Future East- West Corridor Needs shows nine project needs at a total estimated cost of $787 million on the East-West Corridor. The nine project needs consist of six added capacity projects at an estimated cost of $741 million, two bridge projects at an estimated cost of $26 million, and one safety/operational project at an estimated $20 million.

Table 44. Future East-West Corridor Needs

Project Cost Project Type Number of Projects ($ million) Preservation - - Mobility 6 741 Bridge 2 26 Safety/Operational 1 20 Total 9 787

Finally, the BTMP included three projects that were not included in the TxDOT UTP dataset. The three projects consist of two added capacity projects at an estimated cost of $139 million and one safety/operational project at an estimated cost of $300 million.

4.2 Texas Rail Trade Corridors Texas’ rail trade corridors connect Texas to Mexico and the rest of the U.S. (see Figure 11. Texas’ Rail Freight Corridors). Class I Railroads24 were asked to provide information regarding their modal investment in the border districts as well as planned investments. This section summarizes the information received from the Union Pacific Railroad and the planned railroad projects and needs submitted as part of the development of the BTMP as of October 22, 2020.

4.2.1 Union Pacific Railroad From 2010-2019, Union Pacific invested more than $1 billion in its border corridors or subdivisions as referred to by the industry. The primary corridors are the Brownsville, Harlingen, Laredo, Eagle Pass, Del Rio, and International Industrial Lead (El Paso) Subdivisions. The railroad’s substantial investments will continue to enhance safety and improve train movements to and from the Texas – Mexico border

Brownsville Brownsville is home to the first rail bridge linking the U.S. and Mexico constructed in over 100 years. The West Rail Bridge, or Brownsville International Bridge as designated by Union Pacific, was inaugurated in 2015 after more than thirty years of planning, development, and construction, totaling a combined investment of $100+ million. The new alignment provides Union Pacific a more direct route to Mexico, with half a dozen less at grade road crossings.

Laredo Within the last 5 years, Union Pacific has implemented no less more than a half dozen projects in Laredo to support cross border freight movements. These include the recent

24 Only Union Pacific Railroad responded to the request.

$100 million project to grow the capacity and improve the efficiency of the Union Pacific Port Laredo Intermodal Terminal. Serving as Union Pacific’s only intermodal terminal on the Texas–Mexico border, the expanded facility includes an improved entrance, new buildings, an automated gate system, new tracks, and more container parking/staging spaces. Together, the enhancements provide greater capacity (i.e., more tracks and staging spaces), improved efficiency (i.e., faster throughput), and enhanced safety (new grade separated entrance).

Another key project is the installation of Failsafe Audible Signal - Power Assisted Switch (FAS-PAS) switches at Union Pacific’s downtown yard, which allow train crews to switch tracks without having to stop or exit the train. Union Pacific also instituted a Remote-Control Locomotive operation at the downtown yard to help expedite local switching. As expected, the result of these projects has been enhanced employee safety and train fluidity (i.e., less blocked crossings).

Union Pacific has completed new siding tracks and extended existing ones on the Laredo Subdivision as part of its strategy to increase velocity. Longer sidings allow trains to meet and pass each other closer to the Laredo and San Antonio terminals, ultimately improving transportation efficiency and customer service. It is important to note that Union Pacific’s strategy will also benefit Eagle Ford Shale operations in Webb, Frio, and La Salle Counties.

Union Pacific, the City of Laredo, Webb County, and the State of Texas also have regionally significant Public-Private-Partnership opportunities to enhance train and vehicular traffic flow. The construction of overpasses between Scott and Jefferson Streets in downtown Laredo could result in an 8,000+-foot sealed corridor for trains free of at grade road crossings at the border. Local residents would benefit by being able to traverse rail tracks more safely and without interruption.

Public Private Partnerships in Laredo take on additional importance as expected growth may require a second main track from the rail bridge to Union Pacific’s intermodal terminal. Union Pacific’s intermodal terminal and the Unitech Industrial Park at Port Laredo would also benefit from a new overpass at Uniroyal Road.

Eagle Pass The Eagle Pass gateway has been the fastest growing rail port of entry on the U.S.–Mexico border over the last ten years. As such, Union Pacific has invested more than $130 million on the Eagle Pass Subdivision from 2010-2019. The investment includes the installation of Centralized Traffic Control to help trains move in either direction in a more consistent manner.

Union Pacific has increased capacity at Clark’s Park Yard, which serves the Eagle Pass gateway from just outside of town and off of public grade crossings. From 2010 to 2020, track capacity at the yard increased from roughly 15,000-feet to nearly 80,000-feet of track. This effort consolidates rail operations at one location and helps improve the quality of life

for downtown residents. Moreover, the expansion includes a facility that allows CBP officers to perform secondary, detailed inspections on rail cars off of the main track. This component of the project enhances border security and helps improve train fluidity by removing main track obstacles.

Another key project was the construction of a “south slot,” which is a track leading south from Clark’s Park Yard to help facilitate train meets closer to the border. The south slot, which currently stops just short of the town center, is compatible with the expected construction of a second main track connecting the yard to the bridge. The second main track, when constructed, will allow trains to move in both directions off and onto the bridge. This ability to meet trains at the border will increase rail bridge capacity.

Union Pacific’s focus on the border is not strictly limited to new track infrastructure. The company has been able to develop a mutually beneficial relationship with CBP, resulting in a new process that reduced average train delays by up to 30 minutes. In 2009, the railroads constructed a new building at Eagle Pass for CBP officers at a cost of nearly $1 million.

In 2015, Union Pacific inaugurated the Kinney County Railport. This $40 million investment facilitated the acquisition of nearly 500 acres of land, and more importantly, created 120 new jobs in an economically distressed area. The Kinney County Railport provides shippers rail car services such as cleaning, washing, and mechanical repairs. This project helps highlight the positive impact that the rail industry can have on a region.

El Paso Union Pacific invested more than $400 million to construct a new, state-of-the-art intermodal terminal in Santa Teresa, New Mexico. Although the Santa Teresa Intermodal Terminal & Refueling Station is in the State of New Mexico, it is only 15 miles west from downtown El Paso. As such, the facility serves the El Paso-Ciudad Juarez area. Union Pacific recently invested $30 million to construct a new block swap yard, the Santa Teresa Intermodal Terminal and Refueling Station. The block swap yard will allow containers to move “between the modes” of trucks, rail, and ships, creating a major competitive advantage for the greater El Paso region.

Union Pacific also constructed an additional track at its River Yard, which coupled with TxDOT’s grade separation of Delta Drive, improves train movements into Mexico.

4.2.2 Planned Kansas City Southern Investments

The BTMP included three long term projects by Kansas City Southern. Table 45. Planned Kansas City Southern Projects provides project descriptions for the three planned projects. No project cost estimates are available at this time.

Table 45. Planned Kansas City Southern Projects

Project Description Implementation Term New double-track at Laredo Long Second Span International Railroad Bridge Long (LNL2) in Laredo - Nuevo Laredo Laredo-Nuevo Laredo cross- border rail crossing Long fluidity, security, and traffic congestion relief grade separation public - private partnership project through downtown Laredo

4.2.3 Planned Texas Pacifico Railroad Investments On May 30, 2017, the Department of State issued a Presidential permit authorizing Texas to construct a new two-lane bridge span, operate, and maintain the Presidio-Ojinaga International Bridge on the border between Texas and Mexico. The BTMP lists the letting of various planned improvements to the railroad mainline once the new rail crossing at the Presidio International Bridge has opened for business as follows: . $8 million in 2021. . $8 million in 2022. . $8 million in 2023. . $15 million between 2024 and 2027.

4.3 Border Crossings25

4.3.1 Ysleta-Zaragoza Bridge and Bridge of the Americas (BOTA) The City of El Paso provided information about the Winn Road project and several infrastructure improvements and technology upgrades at the Bridge of the Americas and Ysleta/Zaragoza bridges.

The Winn Road project began in April 2019 near the Ysleta/Zaragoza bridge and is nearing completion (see Figure 39. Ysleta-Zaragoza Bridge: Winn Road Project Limits). This project will greatly help reduce traffic and congestion along Loop 375 near the port of entry. It will separate vehicle and commercial truck traffic by creating a new separate access point to the cargo lot at the port of entry. During peak times, southbound vehicle and commercial truck traffic backs up into Zaragoza Road and along Loop 375, preventing local thru traffic from using nearby ramps as well as traveling along the highway. This new connection will help mitigate this congestion and create additional vehicle storage capacity, which is critical during peak times, for commercial traffic entering and exiting the port of entry. The project cost is an estimated $12 million.

25 This section summarizes the information received from stakeholders and the planned border crossing projects and needs submitted as part of the development of the BTMP as of October 22, 2020.

Figure 39. Ysleta-Zaragoza Bridge: Winn Road Project Limits

In addition, the City of El Paso is currently in the planning and development phase of several infrastructure improvements and technology upgrades (see Figure 40. Intelligent Transportation System (ITS) Project Boundaries) at the Bridge of the Americas (BOTA) and Ysleta-Zaragoza bridges with the objective of increasing security measures, help with cross- border traffic management, as well as facilitating and expediting trade. Specifically, the project will consist of the design, construction, and installation of ITS to include dynamic message signs, traffic cameras, wait-time collection devices, fiber optic cable and conduit, geometric improvements at BOTA and traffic management facilities and tolls systems upgrades. The project cost is an estimated $32 million. Some of the key benefits associated with deploying these technologies include:

. Improved ability to communicate real-time traffic conditions to the traveling public. . Improve traffic operations at the ports, increasing reliability and efficiency. . Strengthen bi-national multiagency collaboration. . Reduce traffic congestion. . Enhance security measures and enable close coordination with federal, state, and local law enforcement to address current and anticipated future security needs. . First responders will be able to identify and monitor traffic incidents and port closures that can cause delays, understand incident locations and severity, and improve response times. . Video feeds will enable remote monitoring to view traffic queues, incidents, port closures and suspicious activity.

Figure 40. Intelligent Transportation System (ITS) Project Boundaries

The City of El Paso’s International Bridges Department is developing this project in coordination with the Texas Department of Transportation and several other key stakeholders, including CBP, the Texas A&M Transportation Institute, and the Texas Department of Public Safety. In addition, coordination with Fideicomiso de Puentes Fronterizos de Chihuahua (MX bridge tolling authority) is critical to ensure that new ITS equipment on both sides of the border is inter-operable to allow for data sharing and compatible RFID tags for electronic payments. Once completed, these improvement projects, in conjunction with the City of El Paso’s ongoing P3 program with CBP, will help with the objectives of reducing or stabilizing wait times, facilitating and expediting trade safely and securely, and promoting economic development opportunities.

In addition to the above projects, the BTMP also includes the following planned projects included in the CBP 5-year plan at Bridge of the Americas:

. Site and Design Phase 1 (scheduled to let in 2024) at a cost of $114 million and Phase II (scheduled to let 2030) at a cost of $644 million (CBP 5-year plan). . Secondary inspection area improvements to address traffic flow conflicts within secondary inspection areas at a cost of $25 million (medium term project).

The BTMP includes a project identified by CBP El Paso Field Office to install permanent lighting at the top of the Paso Del Norte and BOTA bridges over the long term at an estimated cost of $500,000.

The BTMP also includes the following planned projects at the Ysleta-Zaragoza International Bridge:

. Increase the number of lanes without increasing bridge with. This redesign at the Bridge will result in the commercial bridge having five lanes (i.e., two southbound, two

northbound and one FAST lane). This is regarded as a short-term project, but the cost is unknown at this stage. . Add lighting to the Exit Canopy facing the commercial traffic, add light poles at the same location, up to the exit gate over the long term at a cost of $156,046. . Add additional high mast lighting throughout the port over the long term at a cost of $500,000.

Over the long term, CBP has identified plans to redesign CBP facilities to add more primary inspection booths (increase capacity) at both Ysleta and BOTA at a cost of $150 million. Multiple government agencies are also planning for the widening/connection of both bridges at BOTA to add capacity over the long term at a cost of $50 million.

4.3.2 Del Rio-Ciudad Acuna International Bridge The BTMP includes a planned Cargo/Sentri Lane Expansion project that comprises a lane expansion (for cargo) at the current bridge from Mexico to Del Rio. The two expansion lanes will also be Sentri lanes for POV traffic. The project will be completed in 2021, but the cost is still undetermined.

4.3.3 Camino Real International Bridge (International Bridge 2) The BTMP includes a number of planned projects at the Camino Real International Bridge as follows:

. Adding directional signage for commercial truck traffic to be completed by 2025 at a cost of $200,000. . Creation of additional commercial and passenger toll lanes to be completed by 2025 at an estimated $6 million. . Creation of at least one additional lane for commercial traffic approaching the Customs inspection booths to be completed by 2025 at an estimated cost of $6 million. . Upgrade of the toll system to include RFID card readers to increase mobility to be completed by 2025 at an estimated cost of $2 million. . Realignment of International Bridge 2 to facilitate traffic patterns particularly for commercial vehicles to be completed by 2030 at an estimated cost of $15 million.

4.3.4 World Trade Bridge The City of Laredo International Bridge System is working on finalizing the design for the FAST Lanes Relocation Project for the World Trade Bridge and the northbound weigh-in- motion (WIM) and curve paving project at the World Trade Bridge Port facilities. Both projects are scheduled for completion in 2021 at an estimated cost of $10 million and $5 million, respectively.

4.3.5 Anzalduas International Bridge The BTMP includes a number of planned projects to facilitate commercial truck crossings south and northbound over the bridge. Table 46. Planned Projects at the Anzalduas

International Bridge shows that most of the identified planned projects are long term projects.

Table 46. Planned Projects at the Anzalduas International Bridge

Completion Project Cost Project Description Date ($ million) Inbound Commercial Dock Expansion 2045 10 Infrastructure for Cold Storage Addition 2033 65 Roadway Network and Modernization Improvement 2035 TBD Construction of two additional northbound 2050+ 5.3 Bridge Expansion for Additional SB/NB Lane 2040 50 Expansion to Bridge (US) Infrastructure to support Rail 2035 5

4.3.6 The Pharr-Reynosa International Bridge Starting in 2018, a number of major projects have been initiated for bridge expansion to reduce wait times, increase capacity, maximize space, create local and international jobs and improve commercial truck and trade, as well as support regional trade industries and tourism. The following projects are currently under construction/in progress:

. Two northbound commercial entry lanes/booths to mediate the flow of commercial traffic and allow a faster commute due to larger capacity and increase the ability to inspect more trucks at a time and two commercial exit lanes/booths to expand and relocate the exit booth (second Border Safety Inspection Facility (BSIF) exit) to help the flow of traffic. This project is scheduled for completion in 2022 at an estimated cost of $7.4 million. . Two phases of dock expansion, one for the dry block and one for the cold storage facility, as well as a Regional Agriculture Laboratory & Training Center, will be built for a fully equipped training and development center for agriculture specialists, entomologists and insect identifiers to keep up with the exponential growth of perishables and produce importations that is being expected within the coming years. The project is scheduled for completion in 2024 at an estimated cost of $26 million. . Planning for adding a “twin” bridge with four lanes additional lanes for the U.S. and Mexico next to the existing Pharr-Reynosa International Bridge at an estimated cost of $100 million. The bridge expansion/second span is scheduled for completion in 2023.

Table 47. Planned Projects at the Pharr Reynosa International Bridge lists additional planned projects at the Pharr Reynosa International Bridge that were included in the BTMP.

Table 47. Planned Projects at the Pharr Reynosa International Bridge

Completion Project Cost Project Description Date ($million) Dedicated northbound FAST lane and former import 2021 3 lot expansion (truck transfer, unified cargo processing) Second story expansion to existing administration 2022 2 building with catwalk and 360 view tower Traffic electronic control system for commercial and 2023 1 non-commercial traffic (Intelligent Transportation/Traffic Systems (ITS)/Dynamic Message Sign (DMS)) Control tower for 360 views/line of sight to control 2024 2 flow of traffic and expedite truck movement (Import Lot Control Tower/Command Center) 8 northbound and southbound dedicated lanes for 2023 6 full cargo, certified cargo and empties with overpass for in/out service to industrial park and bypass for non-commercial vehicles (modernization of access corridor to Mexico customs at Reynosa-Pharr) Upgrade and augment current infrastructure to meet 2025 15 public safety standards and for process improvements/streamlining (modernization of existing POE infrastructure an technology) Extend existing docks to match DAP16 dock depth 2026 2 from 50' to 80' (north-side and east-side import lot dock extensions) Truck pre-inspection station prior to entering import 2025 3 lot Southbound truck staging for export lot with WIM and 2026 5 wide load dedicated lane Toll system upgrade and interlocal commercial toll 2027 2 agreement between Pharr Bridge and Cameron County Regional Mobility Regional Authority (CCRMA) C-TPAT/Empties exclusive lane through northbound 2028 3 POV primaries Multimodal logistics center/trade zone/industrial 2029 250 park with northbound pre-inspection facility and truck service center (Reynosa North Park and Logistics Center)

Completion Project Cost Project Description Date ($million) New import and export lots with all new infrastructure 2050 55 and technology (Pharr POE 2.0) Export lot phase II expansion (in-bond) 2030 3 Northbound grain silos and processing center (2-3) 2025 3 Truck parking/staging (Secure Yard #2) 2040 7 Truck parking/staging (Secure Yard #3) 2040 7 IBTC/Overweight truck parking pockets (3) 2040 5

Airport (air cargo facility) 32

IBTC expansion/overweight corridor to Cameron 150 County freight connection Rail spur 2040 130 Complete import lot expansion phase II 2030 30

4.3.7 Donna-Rio Bravo International Bridge In 2019, the City of Donna started construction of the commercial facilities project. The first project (i.e., Southbound Commercial Empties Project) includes a paved outbound commercial road, a fully equipped processing lane and additional pavement for future lane expansion, a return lane to the U.S., and a canopied inspection/processing area with toll booth and other operationally required infrastructure. The cost of the project is estimated at $5 million.

Table 48. Planned Projects at Donna International Bridge provides information for two additional planned projects at the Donna International Bridge as included in the BTMP.

Table 48. Planned Projects at Donna International Bridge

Completion Project Cost Project Description Date ($ million) Construction of commercial facilities northbound 2022 37 loaded/empty and southbound loaded trucks Northbound inspection facility improvements will 2022 48 include non-intrusive inspection technology (NII), command center, secondary inspection loading docks with 15 bays and canopy cargo processing offices, truck staging area, exit control booths, training center, concrete roadway, site illumination and drainage improvements. Southbound upgrade will consist of adding the following: a secondary Inspection loading dock with 10 bays, southbound cargo processing offices and exit booth.

4.3.8 Progreso International Bridge The BTMP referenced two planned projects at the Progreso International Bridge that will facilitate the movement of trade. Table 49. Planned Projects at the Progreso International Bridge provides information about the planned projects.

Table 49. Planned Projects at the Progreso International Bridge

Completion Project Cost Project Description Date ($million) Expand the existing Federal import inspection dock to 2021 28 increase the capacity, add a refrigerated room, and FDA inspection office for processing of perishable cargo. Construct a new export dock and FMCSA inspection station. Construct second commercial span for two commercial 2024 5 lanes allowing the existing span to be utilized for inbound traffic and the proposed span to be utilized for outbound traffic. Change the approach to the inbound lanes and widen the Long 30 turn at the Presidio POE, as well as create off-loading zone and parking area for commercial passenger busses and SENTRI inbound traffic applicants over the long term at an estimated cost of one million dollars. Plans also exist for unified cargo processing infrastructure over the long term.

4.3.9 Free Trade International Bridge at Los Indios In 2018, a cold-storage unit was constructed to increase produce shipping through the port. This is to extend the shelf-life of perishable goods. It has three docks for produce trucks at secondary inspections.

4.3.10 Veterans International Bridge at Los Tomates To improve commercial traffic on the bridge, a Free and Secure Trade (FAST) lane expansion (initially constructed in 2004) was completed in March of 2019. The project was funded by Cameron County through the CBP Donations Acceptance Program (DAP) and in partnership with the General Services Administration. The project ran over-budget by around $875,000. The over-run will be funded from toll revenues and bond proceeds issued by the county. In addition, CBP invested $7 million in two new X-ray machines.

4.3.11 Proposed New International Bridges The BTMP includes a number of proposed new international bridges on the Texas-Mexico border. Table 50. Proposed New International Bridges on Texas-Mexico Border provides additional information about the proposed international bridges.

Table 50. Proposed New International Bridges on Texas-Mexico Border

Completion Project Cost ($ Project Description Date million) Laredo IV/V new border crossing in Webb County 2030 303 (feasibility studies underway). Proposed project would be located between the cities of Rio Bravo and El Cenizo in Webb County. New Acuña II International Bridge 2024 132 Third international bridge at Piedras Negras (border with 2040 TBD Eagle Pass)

4.3 Texas Border Airports This section summarizes the information received from stakeholders and the planned airport projects and needs submitted as part of the development of the BTMP as of October 22, 2020.

4.3.1 Brownsville International Airport The BTMP includes a number of planned projects at the Brownsville International Airport that facilitate trade. Table 51. Planned Brownsville International Airport Projects provides information about the planned projects.

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Table 51. Planned Brownsville International Airport Projects

Completion Project Cost Project Description Date ($ million) Redesign and construct a new terminal building 2023 56 Design, rehabilitate, and extend runway 18-36 2023 31 Pavement maintenance, extension of runway 13-31 2024 - 2028 79 Development of cargo buildings, hangars, and new 2024 - 2028 4 shed (Cargo Area Development Phase I) Development of cargo buildings, hangars, and new 2029 - 2038 17 shed (Cargo Area Development Phase I)

4.3.2 McAllen International Airport The BTMP includes a number of planned projects at the McAllen International Airport that facilitate trade. Table 52. Planned McAllen International Airport Projects provides information about the planned projects.

Table 52. Planned McAllen International Airport Projects

Completion Date Project Cost Project Description ($ million) Cargo apron reconstruction phases 1 and 2 2023 - 2024 9 Runway 14-32 (and Taxiway A) safety 2019 - 2022 22 improvements phases I to IV Widen U.S. customs apron taxiway to 50 feet 2025 - 2029 1 (runway improvement) Construct parallel runway 14R-32L (runway 2030 - 2039 253 improvement) Design and construction of terminal expansion 2030 - 2039 73

4.3.3 El Paso International Airport The El Paso International Airport identified a number of projects at the El Paso International Airport as follows:

. Reconfiguring the taxiway and connectors, and adding a fixed base operators (fbo) ramp that will be let in 2020 at a cost of $12 million; . Replacing general aviation ramp paving in 2022 at a cost of $3 million; . Replacing and relocating failing and out-of-spec taxiways and upgrade terminal ramp lighting in 2022 at a cost of $20 million and one million dollars, respectively;

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. Rehabilitating the pavement runway and reconfiguring the multi-node taxiway intersection in 2023 at a cost of $12 million and $18 million, respectively; . Rehabilitating the taxiway pavement in 2024 at a cost of $2 million; . Rehabilitating terminal ramp paving in 2025 at a cost of $10 million.

4.3.4 Del Rio International Airport The Del Rio International airport spent during FY2019 $2 million as Minimum Revenue Guarantee to American Airlines to provide connectivity of the region to the world through the airline’s network. This investment produced 23 new direct jobs and transported 42,000 passengers during the first year. The investment for FY2020 was $1 million for the same purpose.

The Del Rio International airport is also starting a project through TXDOT Aviation Division to rehabilitate the asphalt surfaces at the airport in an effort to improve the durability of the runway and aircraft parking areas. This will benefit the cargo and corporate airplanes that fly in and out doing business with the maquilas in Mexico. The project cost is estimated at $1 million and the plan is to execute the project in FY2021.

4.3.5 Laredo International Airport The Laredo International Airport has been working on the Cargo Apron Rehabilitation Program for the last 10 years. This program has been phased in multiple projects and it has been funded by the Federal Aviation Administration (FAA). The rehabilitation of the cargo apron will provide an adequate concrete apron pavement section, meeting FAA requirements, to maximize cargo aircraft parking area.

During the last two years, the Airport has been working on the last five phases of the Rehabilitation Program and has a projected construction completion in 2022 (see Figure 41. Laredo International Airport Cargo Apron Rehabilitation Program). The Construction of Phase 11 and 12 of the Cargo Apron Rehabilitation started in late 2018 and was completed in February of 2020. This project included the rehabilitation of over 44,000 square yards of Cargo Apron with a final construction cost of approximately $11 million. In January 2019, while Phases 11 and 12 were under construction, the Airport started the design of Phase 13 of the Cargo Apron Rehabilitation. The project consisted of the rehabilitation of 39,500 square yards of cargo apron and included safety and security improvements for cargo operations such as apron lighting and security fencing. Construction of Phase 13 started in December 2019, and it is projected to be completed by the end of 2020 with a construction cost of nearly $10 million. The last phases of the cargo apron rehabilitation, Phase 14 and 15, started design in January 2020 and are scheduled to begin construction in December 2020. This project will consist of the rehabilitation of more than 54,000 square yards of cargo apron, also includes apron lighting and security fencing, and has a construction budget of approximately $15 million.

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Overall, the rehabilitation of the cargo apron provides the Airport and the City of Laredo the opportunity to provide ample cargo apron area to meet the demand for cargo activity and improve operations and ultimately offer up additional relations with international carriers. In fact, this cargo apron is currently utilized by UPS and multiple charter cargo airlines which primarily operate at LRD to support shipments to and from Mexico – particularly related to automotive parts.

Figure 41. Laredo International Airport Cargo Apron Rehabilitation Program

In June 2020, the Laredo International Airport (LRD) initiated Phase 1 of an Air Cargo Development project with the consulting firm, Hubpoint Strategic Advisors, LLC. This assessment was completed in August 2020 and identified opportunities for the growth of air cargo at LRD. Several opportunities relate to the facilitation of trade with Mexico, including the following:

. Refinements to the LRD Dual U.S.-Mexico Customs Inspection Program to include additional industries and commodities; . Development of LRD as a hub for e-commerce shipments moving between the U.S. and Mexico; and

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. Potential for LRD to expand its air cargo trade activities with Mexico related to the anticipated reshoring of manufacturing capabilities from Asia to Mexico.

Also, in June 2020, LRD initiated a Request for Proposal process related to the development of multiple land parcels on Airport property. Several of these parcels are expected to focus on air cargo activities. In October 2020, the Laredo City Council approved the selection of Aviation Facilities Company Management, LLC (AFCO) to lease, develop and/or manage various parcels at LRD. AFCO is a leader in on-airport facility investment, development, financing, leasing and management throughout the U.S. and specializes in air cargo facilities development. The development of modern air cargo infrastructure and facilities at LRD will enable the Airport’s strategies to expand air cargo trade activities with Mexico as well as other international and domestic points.

Finally, in October 2020, the Laredo City Council approved the award of a professional services contract to Hubpoint Strategic Advisors, LLC to conduct Phase 2 of the Air Cargo Development project, which focuses on implementing the recommended Action Plan from Phase 1. Work will begin immediately on the items related to the facilitation of air cargo trade with Mexico. This work will involve interaction with representatives and government officials from both the U.S. and Mexico aimed at further streamlining processes governing the movement of goods by air between the countries. Further, LRD will work with airlines to expand direct cargo air services to/from Mexico, which will increase efficiencies and meet the needs of shippers and consumers in both countries.

The BTMP also includes a number of planned projects at LRD that facilitate trade. Table 53. Planned Laredo International Airport Projects provides information about the planned projects.

Table 53. Planned Laredo International Airport Projects

Completion Project Cost Project Name Date ($ million) Runway extension 2021 - 2025 19 Taxiway reconstruction 2021 - 2025 12 Apron reconstruction 2021 - 2025 17 Terminal expansion 2021 - 2025 3 Terminal expansion 2026 - 2035 29

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4.4 Texas-Mexico Pipelines The BTMP also includes a number of planned pipeline projects that facilitate trade. Table 54. Planned Texas-Mexico Pipelines provides information about the planned projects submitted as part of the development of the BTMP as of October 22, 2020.

Table 54. Planned Texas-Mexico Pipelines

Completion Project Cost Project Name Project Description Date ($ million) Rio Bravo Feedstock supply to Rio Grande 2023 2,173 Pipeline Project LNG project; runs from area northwest of Agua Dulce hub to Brownsville Agua Natural gas pipeline to start in Long Dolce/Banquette South Texas near Agual Dulce to Hub cross into Mexico at Progreso Jupiter Pipeline Proposed crude oil pipeline 2020 between Gardendale/Three Rivers to Brownsville

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5. Summary

The International Trade Corridor Plan is relevant to Texas as goods trade is important to both the U.S. and Texas economies. In 2019, the U.S. traded $4.1 trillion in goods--$2.5 trillion were imports and $1.6 trillion were exports. Texas’ goods trade represented 15 percent of all U.S. trade at $625.3 billion in 2017. Texas had the largest goods trade value, followed by California. Texas also leads the country in goods export value, having exported $330.5 billion in 2019 (2).

Texas’ transportation infrastructure is essential to facilitating goods trade. Thus, it is important to understand what is traded and which modes are used to transport goods trade. Projected increases in goods trade will require continued investments in Texas’ trade transportation system to ensure the efficient movement of U.S. and Texas goods trade. This report provides information on recent investments in Texas’ major highway trade corridors and non-highway investments that facilitate goods trade.

The analysis showed that TxDOT let 528 trade corridor projects at a total cost of $4.1 billion in 2019 and 2020. This amounted to 371 preservation projects at a cost of $1.1 billion, 28 added capacity projects at a cost of $2.0 billion, 97 bridge projects at a cost of $187 million, and 32 safety/operational projects at a cost of $790 million.

Furthermore, TxDOT’s 2021 UTP includes 919 planned highway projects on Texas’ trade corridors. These 919 planned highway trade corridor projects are estimated to cost $41.3 billion. Of these 919 planned highway trade projects, 762 are fully funded ($26.7 billion) and 46 projects are partially funded with $2.6 billion in funding needed. In addition, 111 projects at an estimated cost of $9.8 billion had no identified funding source in 2020 (see Figure 42. Funding ($ billions) for Planned Projects on Texas’ Trade Corridors (2021 UTP)).

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Figure 42. Funding ($ billions) for Planned Projects on Texas’ Trade Corridors (2021 UTP)

$9.8 $2.6

$4.8

$26.7 $2.2

Fully Funded No Funding Funded Funding Needed

Table 55. Planned Texas Trade Corridor Projects by Type (2021 UTP)

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safety/operational projects at an estimated cost of $1.4 billion, and four bridge projects at an estimated cost of $29 million.

Finally, the BTMP included 37 projects that were not included in the TxDOT UTP dataset. The 37 projects consist of 25 added capacity projects at an estimated cost of $6.2 billion, one preservation project at an estimated cost of $141 million, and 11 safety/operational projects at an estimated cost of $1.3 billion. It should also be noted that cost estimates are not yet available for four of the added capacity projects identified on the Ports-to-Plains corridor. Table 56. Future Texas’ Trade Corridor Needs summarizes project needs on Texas’ trade corridors that are in the UTP development process and beyond the 10-year UTP window, as well as projects included in the BTMP that were not included in the TxDOT UTP dataset.

Table 56. Future Texas’ Trade Corridor Needs

These investments in Texas’ international trade corridors will continue to support U.S.- Mexico and Texas-Mexico trade that generates $169.6 billion annually in U.S. gross domestic product and 1.4 million U.S. jobs (7).

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References

1. Texas Constitution and Statutes. Transportation Code, Title 6. Roadways, Subtitle A. Texas Department of Transportation, Chapter 201. General Provisions and Administration, Subchapter A. General Provisions. Available at: https://statutes.capitol.texas.gov/Docs/TN/htm/TN.201.htm, accessed November 2018. 2. U.S. Census. USA Trade Online. Available at: https://usatrade.census.gov/, accessed October 2018. 3. U.S. Census Bureau. U.S. International Trade in Goods and Services, https://www.census.gov/foreign-trade/Press- Release/current_press_release/exh1.pdf, accessed October 2018. 4. Bureau of Transportation Statistics, North American Transborder Freight Data https://transborder.bts.gov/programs/international/transborder/TBDR_QA.html. 5. International Trade Administration. Exports from U.S. Metropolitan Areas. Available at: https://www.trade.gov/mas/ian/metroreport/index.asp, accessed October 2016. 6. International Trade Administration: http://tse.export.gov/METRO/MetroChartDisplay.aspx?ReportID=7&Referrer=Select Reports.aspx&DataSource=Metro&ReportOption=Chart 7. Texas Department of Transportation, Texas-Mexico Border Transportation Master Plan. November 11, 2020 (Final Report Forthcoming). 8. Cañas, J., R. Coronado, R.W. Gilmer, and E. Saucedo. 2013. “The Impact of the Maquiladora Industry on U.S. Border Cities.” Growth and Change: A Journal of Urban and Regional Policy. Volume 44, Issue 3, September. Available at: https://onlinelibrary.wiley.com/toc/14682257/2013/44/3 9. Federal Reserve Bank of St. Louis. Per Capita Income in Laredo, TX MSA. Available at: https://fred.stlouisfed.org/series/LARE748PCPI, accessed October 2018. 10. Federal Reserve Bank of St. Louis. Personal Income per Capita. Available at: https://fred.stlouisfed.org/series/A792RC0A052NBEA, accessed October 2018. 11. How Texas' economy benefits from trade & investment: https://s3.amazonaws.com/brt.org/BRT_General_Trade_TX_2020.pdf 12. U.S. Army Corps of Engineers, Waterborne Commerce Statistics Center. Available at: http://www.navigationdatacenter.us/wcsc/wcsc.htm, accessed August 2018.

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13. Federal Aviation Administration, Passenger Boarding (Enplanement) and All-Cargo Data for U.S. Airports, October 2, 2018. Available at: https://www.faa.gov/airports/planning_capacity/passenger_allcargo_stats/passeng er/, accessed October 2018. 14. Texas Department of Transportation TxDOT. Texas Freight Mobility Plan 2018. [Online] March 7, 2018 [Cited: July 23, 2018] Available at: https://www.dot.state.tx.us/move-texas-freight/studies/freight-plan.htm, accessed October 2018. 15. U.S. Energy Information Administration. New Maps Highlight Geologic Characteristics of U.S. Tight Oil, Shale Plays. April 17, 2015. Available at https://www.eia.gov /todayinenergy/detail.php?id=20852, accessed November 2016. 16. Office of the Texas Governor. Texas U.S. Ports of Entry. Available at: https://gov.texas.gov/uploads/files/business/portsintexas.pdf, accessed October 2018. 17. Office of the Texas Governor. Ports of Entry. Available at: https://gov.texas.gov/uploads/files/business/portsofentry-map.pdf, accessed October 2018. 18. Texas Department of Transportation, Texas-Mexico International Bridges and Border Crossings, Existing and Proposed 2015. Available at http://www.txdot.gov/inside- txdot/projects/studies/statewide/border-crossing.html, accessed November 2016. 19. Texas Department of Transportation. Gulf Intracoastal Waterway, ND. Available at: https://www.txdot.gov/inside-txdot/division/maritime/gulf-intracoastal- waterway.html, accessed October 2020. 20. Prozzi, J., R. Henk, J. McCray, and R. Harrison. 2002. Inland Ports: Planning Successful Developments. Austin, Texas: Center for Transportation Research at the University of Texas at Austin, Report 0‐4083‐2, October. 21 Port of Entry: Port San Antonio. Available at: https://comptroller.texas.gov/economy/economic-data/ports/port-san-antonio.php

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For more information: Caroline A. Mays, AICP Director, Freight, International Trade, and Connectivity Section Texas Department of Transportation (512) 936-0904 [email protected]