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VISION 2015: ARIZONA’S INTERNATIONAL PORT OF ENTRY SYSTEM Prepared for: Arizona-Mexico Commission Prepared by: Ramírez Advisors Inter-National, LLC

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Page 1: Arizona-Mexico Commission Ramírez Advisors Inter-National, LLC VISION 2015: ARIZONA’S INTERNATIONAL PORT OF ENTRY SYSTEM Prepared for: Arizona-Mexico Commission

VISION 2015: ARIZONA’S INTERNATIONAL PORT OF ENTRY SYSTEM

Prepared for:Arizona-Mexico Commission

Prepared by:Ramírez Advisors Inter-National, LLC

Page 2: Arizona-Mexico Commission Ramírez Advisors Inter-National, LLC VISION 2015: ARIZONA’S INTERNATIONAL PORT OF ENTRY SYSTEM Prepared for: Arizona-Mexico Commission

“Our ports of entry with Mexico are a critical component of Arizona’s economy and security. We must do all we can to make them the best they can be to foster the growth, development and security of the region.”

Governor Janice K. BrewerState of Arizona

Arizona’s POE’s – 2003 to 2008

Cars ↓ -22%

Pedestrian ↑ 14.8%

Trucks ↑

19.9%

Buses ↑ 16.7%

Total People ↓ -15.6%

Arizona’s POE System Today

380,000 Trucks

640 Trains

7.7 million cars

29.2 Million People

2015 POE System

Handle 2X to 3X traffic

Strong on security AND

facilitate trade and tourism

Improve quality of life and

protect the environment

Make AZ-MX region more competitive

Ramirez Advisors Inter-National, LLC

Page 3: Arizona-Mexico Commission Ramírez Advisors Inter-National, LLC VISION 2015: ARIZONA’S INTERNATIONAL PORT OF ENTRY SYSTEM Prepared for: Arizona-Mexico Commission

3

Key factors impacting the borderBorder wait times increasing, in excess of 45

minutes in 24-hour cycle2 to 3 hour wait times are common!

Increased documentary requirementsWestern Hemisphere Travel Initiative

Outdate infrastructure with enhanced requirements

Southbound inspections and SIAVE Program“Negative perception” of the borderEconomic slowdown disincentive to travel

Ramirez Advisors Inter-National, LLC

Page 4: Arizona-Mexico Commission Ramírez Advisors Inter-National, LLC VISION 2015: ARIZONA’S INTERNATIONAL PORT OF ENTRY SYSTEM Prepared for: Arizona-Mexico Commission

4 *Data Source: US Bureau of Transportation Statistics Ramírez Advisors Inter-National, LLC

Arizona’s border in 2008Mode of Transportation (2008)*

Trucks POVs Pedestrians Buses Bus Pass. Trains Total People

Douglas 25,062 1,690,545 1,172,023 2,536 14,805 - 4,752,546

Lukeville 432 409,766 122,264 1,426 46,106 - 1,356,701

Naco 2,446 264,220 89,175 47 1,337 - 795,190

Nogales 303,757 3,026,767 6,568,207 11,585 195,741 640 15,238,781

San Luis 43,791 2,313,661 2,564,499 64 1,725 - 6,983,673

Sasabe 362 30,305 1,314 - - - 80,105

Totals 375,850 7,735,264 10,517,482 15,658 259,714 640 29,206,996

Page 5: Arizona-Mexico Commission Ramírez Advisors Inter-National, LLC VISION 2015: ARIZONA’S INTERNATIONAL PORT OF ENTRY SYSTEM Prepared for: Arizona-Mexico Commission

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Arizona POE’s: 6-year Trends

•Annual truck traffic grew from 313,374 in 2003to 375,850 in 2008

•Over 62,000 trucks more than in 2003

Trucks19.9% ↑

•POV’s experienced decrease - from 9.9 million in ‘03 to 7.7 million in ’08

•Peaked at 10,074,501 in ‘05

Cars (POV’s)-22% ↓

•Pedestrian traffic increased – from 9.2 million in ‘03 to 10.5 million in ’08

•Peaked at 11.8 million in ‘07

Pedestrians14.8% ↑

•Bus traffic increased - from 13,407 in ‘03 to 15,658 in ’08

•Peaked at 18,536 in ‘06

Buses16.7% ↑

•Bus passengers increased - from 209,897 in ‘03 to 259,714 in ’08

•Peaked at 378,829 in ’06

Bus Passengers23.7% ↑

•Total incoming people: decreased from 33.8 million in ’03 to 29.32 million in ’08

•Peaked at 34,510,828 in ‘04

Total People-15.6% ↓

Ramirez Advisors Inter-National, LLC

Page 6: Arizona-Mexico Commission Ramírez Advisors Inter-National, LLC VISION 2015: ARIZONA’S INTERNATIONAL PORT OF ENTRY SYSTEM Prepared for: Arizona-Mexico Commission

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Statistical HighlightsPOVs

• All ports experienced decrease in POV traffic over the last 6 years• Naco, Nogales, San Luis and Sasabe peaked by ’04, Douglas peaked in '05 and Lukeville peaked in ’07• San Luis processed more cars than Nogales in '04 and '05

Trucks• Only mode that grew each year• Nogales accounted for close to 97% of the growth in truck traffic (60,392 additional trucks per year at

Nogales of the 62,600 for the entire Arizona border)

Pedestrian• All POEs experienced increases in pedestrian traffic except for San Luis and Sasabe• First decrease in pedestrian traffic occurred in ’07 - ’08 timeframe• Arizona POEs processed 5.3 million pedestrians more in '04 than in in ’08

Total People• Arizona’s ports of entry processed 4.58 million less people in '08 than in '03• 5.3 million less in ‘08 than the peak of '04

Ramirez Advisors Inter-National, LLC

Page 7: Arizona-Mexico Commission Ramírez Advisors Inter-National, LLC VISION 2015: ARIZONA’S INTERNATIONAL PORT OF ENTRY SYSTEM Prepared for: Arizona-Mexico Commission

OVERVIEW OF PORT OF ENTRY PROJECTS:

• San Luis I • San Luis II• Lukeville• Nogales West (Mariposa)• Douglas

Page 8: Arizona-Mexico Commission Ramírez Advisors Inter-National, LLC VISION 2015: ARIZONA’S INTERNATIONAL PORT OF ENTRY SYSTEM Prepared for: Arizona-Mexico Commission

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San Luis I

Ramirez Advisors Inter-National, LLC

Page 9: Arizona-Mexico Commission Ramírez Advisors Inter-National, LLC VISION 2015: ARIZONA’S INTERNATIONAL PORT OF ENTRY SYSTEM Prepared for: Arizona-Mexico Commission

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San Luis I

The situation• GSA has contracted architectural firm to begin the formal design process for the

Reconfiguration of San Luis I - $7 million secured in FY ‘08 to pay for this phase• Funding Request for FY ‘11 for approximately $80 million

• GSA is currently working on Environmental Impact Statement for the project• City of San Luis working with ADOT to complete analysis of related transportation

issues • CBP has secured the funding necessary to start a new SENTRI lane at San Luis I once

commercial operations are relocated to San Luis II – early 2010• City of San Luis is providing office space to CBP to establish SENTRI application

processing center outside of POE• Municipality of San Luis Rio Colorado has committed to installing the necessary

signage to designate SENTRI access lane for 2 kilometers on the Mexican side

Ramirez Advisors Inter-National, LLC

Page 10: Arizona-Mexico Commission Ramírez Advisors Inter-National, LLC VISION 2015: ARIZONA’S INTERNATIONAL PORT OF ENTRY SYSTEM Prepared for: Arizona-Mexico Commission

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San Luis I – The Solution

Ramirez Advisors Inter-National, LLC

Page 11: Arizona-Mexico Commission Ramírez Advisors Inter-National, LLC VISION 2015: ARIZONA’S INTERNATIONAL PORT OF ENTRY SYSTEM Prepared for: Arizona-Mexico Commission

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San Luis II

The Situation• Expect ribbon cutting ceremony in Q-1 2010 – $42 million

• Construction on Mexican side moving very quickly• All commercial operations will be taken out of San Luis I• Anticipate simultaneous start up of operations on both US and

Mexican sides• Latest in design and technology will make San Luis II a state of

the art inspection facility• ADOT Safety Inspection almost complete ($11 Million)• RAV Expressway to I-8 ($92 million, 26.2 miles) operational on

September 15.

Ramirez Advisors Inter-National, LLC

Page 12: Arizona-Mexico Commission Ramírez Advisors Inter-National, LLC VISION 2015: ARIZONA’S INTERNATIONAL PORT OF ENTRY SYSTEM Prepared for: Arizona-Mexico Commission

12Ramirez Advisors Inter-National, LLC

San Luis II

Picture taken April, 09

US

MX

CBP Inspection Facilities

ADOT/FMCSA Safety

Inspection

Page 13: Arizona-Mexico Commission Ramírez Advisors Inter-National, LLC VISION 2015: ARIZONA’S INTERNATIONAL PORT OF ENTRY SYSTEM Prepared for: Arizona-Mexico Commission

13Ramirez Advisors Inter-National, LLC

San Luis II

Page 14: Arizona-Mexico Commission Ramírez Advisors Inter-National, LLC VISION 2015: ARIZONA’S INTERNATIONAL PORT OF ENTRY SYSTEM Prepared for: Arizona-Mexico Commission

14 Ramirez Advisors Inter-National, LLC

Lukeville

The Situation• $2.5 million has been secured to pay for 2 additional lanes

• ADOT is providing $1.5 million• Sonora private sector is providing $1 million

• GSA is working with ADOT to manage the design, permitting and construction of the project

• Expect project completion in approximately 6-9 months • Possibly Summer 2010.

• Major improvements are needed on the Sonoyta side of the border• Improvements to the Mexican inspection facilities operated by both Mexican

Customs and Immigration• Widening of the access road that connects to Carretera 2 from 2 lanes to four lanes,

including a frontage road

Page 15: Arizona-Mexico Commission Ramírez Advisors Inter-National, LLC VISION 2015: ARIZONA’S INTERNATIONAL PORT OF ENTRY SYSTEM Prepared for: Arizona-Mexico Commission

15 Ramirez Advisors Inter-National, LLC

Lukeville

Page 16: Arizona-Mexico Commission Ramírez Advisors Inter-National, LLC VISION 2015: ARIZONA’S INTERNATIONAL PORT OF ENTRY SYSTEM Prepared for: Arizona-Mexico Commission

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Lukeville – The Solution

Ramirez Advisors Inter-National, LLC

Page 17: Arizona-Mexico Commission Ramírez Advisors Inter-National, LLC VISION 2015: ARIZONA’S INTERNATIONAL PORT OF ENTRY SYSTEM Prepared for: Arizona-Mexico Commission

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Nogales West “Mariposa”

The Situation• $199.48 million secured as part of American Recovery Act to pay for

construction phase• Groundbreaking ceremony on October 22, 2009 • Project should take approximately 40 months to complete• Primary inspection capacity will increase 50% during construction phase!• At completion will have double if not triple throughput capacity for

inspection• From 4 to 12 POV lanes• From 4 to 8 Cargo lanes• Dedicated lanes for pedestrians and buses

• Major improvements are being planned on Mexican side to both inspection facilities and to Fiscal Corridor

Ramirez Advisors Inter-National, LLC

Page 18: Arizona-Mexico Commission Ramírez Advisors Inter-National, LLC VISION 2015: ARIZONA’S INTERNATIONAL PORT OF ENTRY SYSTEM Prepared for: Arizona-Mexico Commission

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Nogales West “Mariposa”

Ramirez Advisors Inter-National, LLC

Mexican Inspection

US Inspection

N

MX

US

Southbound

ADOT

Northbound

Cattle Pens

FAST Lanes

Page 19: Arizona-Mexico Commission Ramírez Advisors Inter-National, LLC VISION 2015: ARIZONA’S INTERNATIONAL PORT OF ENTRY SYSTEM Prepared for: Arizona-Mexico Commission

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Mariposa – Groundbreaking

Ramirez Advisors Inter-National, LLC

October 22, 2009

Page 20: Arizona-Mexico Commission Ramírez Advisors Inter-National, LLC VISION 2015: ARIZONA’S INTERNATIONAL PORT OF ENTRY SYSTEM Prepared for: Arizona-Mexico Commission

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Mariposa – Construction

Ramirez Advisors Inter-National, LLC

Page 21: Arizona-Mexico Commission Ramírez Advisors Inter-National, LLC VISION 2015: ARIZONA’S INTERNATIONAL PORT OF ENTRY SYSTEM Prepared for: Arizona-Mexico Commission

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Mariposa – The Solution

Ramirez Advisors Inter-National, LLC

Page 22: Arizona-Mexico Commission Ramírez Advisors Inter-National, LLC VISION 2015: ARIZONA’S INTERNATIONAL PORT OF ENTRY SYSTEM Prepared for: Arizona-Mexico Commission

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Mariposa – AARA Impacts

GSA Estimates of economic impacts

• Estimated Job Creation: 5,384 • Estimated Impact to GDP $677,960,000• Personal Wealth Creation $219,340,000

Ramirez Advisors Inter-National, LLC

Page 23: Arizona-Mexico Commission Ramírez Advisors Inter-National, LLC VISION 2015: ARIZONA’S INTERNATIONAL PORT OF ENTRY SYSTEM Prepared for: Arizona-Mexico Commission

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Douglas

The Situation

• Douglas International Port Authority has been established• GSA working with Mexican counterpart to finalize location for port

improvements• Expect to seek funding in FY ‘12 to pay for design and construction of

Phase I at an estimated cost of approximately $20 million• Phase II will require approximately $80 million

• Working with Mexico to confirm location of port expansion

Ramirez Advisors Inter-National, LLC

Page 24: Arizona-Mexico Commission Ramírez Advisors Inter-National, LLC VISION 2015: ARIZONA’S INTERNATIONAL PORT OF ENTRY SYSTEM Prepared for: Arizona-Mexico Commission

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Douglas – The Solution

Ramirez Advisors Inter-National, LLC

Page 25: Arizona-Mexico Commission Ramírez Advisors Inter-National, LLC VISION 2015: ARIZONA’S INTERNATIONAL PORT OF ENTRY SYSTEM Prepared for: Arizona-Mexico Commission

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Southb0und Inspections/SIAVEEvery border community is reporting increasing wait

times for southbound traffic in excess of 30 minutesChallenges:

Lack of adequate facilitiesInsufficient staffing Need to address increased traffic congestion and downtown

traffic and pedestrian safetyAduanas is about to deploy SIAVE program at all Sonora

ports of entryDouble inspection of vehicles within a few yards of each

other

Ramirez Advisors Inter-National, LLC

Page 26: Arizona-Mexico Commission Ramírez Advisors Inter-National, LLC VISION 2015: ARIZONA’S INTERNATIONAL PORT OF ENTRY SYSTEM Prepared for: Arizona-Mexico Commission

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Southbound Delays - Douglas

Ramirez Advisors Inter-National, LLC

30 min.

Page 27: Arizona-Mexico Commission Ramírez Advisors Inter-National, LLC VISION 2015: ARIZONA’S INTERNATIONAL PORT OF ENTRY SYSTEM Prepared for: Arizona-Mexico Commission

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Southbound Delays – San Luis

Ramirez Advisors Inter-National, LLC

MX

US

Southbound delays

Page 28: Arizona-Mexico Commission Ramírez Advisors Inter-National, LLC VISION 2015: ARIZONA’S INTERNATIONAL PORT OF ENTRY SYSTEM Prepared for: Arizona-Mexico Commission

ARIZONA-MEXICO COMMISSION

1700 West Washington, 1st FloorPhoenix, Arizona 85007

(602) 542-1345www.azmc.org