feili hong mark lynch almin ramic. texas & the trans-texas corridor

Feili Hong Mark Lynch Almin Ramic

TEXAS & THE TRANS-TEXAS CORRIDOR

Introduction Background: Networks and NAFTA The Trans-Texas Corridor TTC-35 and TTC-69 Financing Trade Corridors, Inland Ports, and Texas Conspiracy? Conspiracy! Discussion

Trans-Texas Corridor: Background and History NAFTA is working, working for you and working for the American people. --- President Bill Clinton May 7, 1997

East-West Pattern Canadian Pacific Railway It was Canada's first transcontinental railway, now primarily a freight railway. The railway was originally built between eastern Canada and British Columbia between 1881 and 1885 Source: Canadian Pacific Railroad Factbook 2006

Canadian National Railway Spanning Canada from the Atlantic coast in Nova Scotia to the Pacific coast in British Columbia TransCanada Highway The system was approved by the Trans-Canada Highway Act of 1948 and officially opened in 1962.

East-West Pattern 1916 Federal Highway Act & 1956 Defense Interstate Highway Act Interstate Highway System

North-South Pattern Mexican-American War of 1848 Mexico ignored the northern border states to limit its contact and interaction with the US. National railway system in late 19 th century Highway system in 20 th century enhanced the pattern

The North American Free Trade Agreement eliminated the majority of tariffs between products traded among the United States, Canada and Mexico, and gradually phases out other tariffs over a 15- year period. North American Agreement on Environmental Cooperation and the North American Agreement of Labor Cooperation

Freight transportation between the U.S., Canada, and Mexico grew at a strong pace 8 percent annual growth in both current and inflation adjusted terms During the past decade, U.S. trade with Canada and Mexico has increased at a faster rate than U.S. GDP. (U.S. Department of Transportation, 2006) Higher levels of international freight movement and a demand for expanded freight transportation services

In 2005, land modes of transportation carried the great majority (88 percent) of goods traded with Canada and Mexico In 2006, land modes of transportation (truck, rail, and pipeline) carried the bulk, $760 billion worth of U.S. freight with Canada and Mexico. Trucks remain the dominant mode for transporting U.S.- North American freight, carrying 62 percent of the total value in 2006. Rail accounted for 15 percent and pipeline 7 percent. Value of Goods Exchanged in U.S. Trade with Canada and Mexico by Mode U.S. Department of Transportation, Research and Innovative Technology Administration

In 2005, Texas surpassed Michigan as the top state for value of NAFTA trade by land modes. Laredo, El Paso, and Hidalgo, in Texas, accounted for 22 percent of all U.S.-NAFTA land trade

Inadequate Infrastructure Lack of Redundancy

Trans-Texas Corridor: Logistics Our view is, you can run from the corridor if you want to, but that's eventually what we'll build. Because that's where the fricking people live! Ric Williamson, Texas Transportation Commissioner

- Long term 50-year plan for infrastructure expansion - Some call in a Super Highway - Car lanes, truck lanes, high-speed passenger and freight railways, and utility distribution channels. - 4000 miles long and 1200 feet wide with 200-foot wide utility zone - TTC 35 & I-69 TTC

http://www.kwtx.com/breakingnews/5374096.html

For the past 25 years Texas: - 57% increase in population - 95% increase use of our roads - 8% increase in Texas road capacity Source: Russell, 2007

Advances on two separate paths Environmental Study Comprehensive Development Agreement (CDA) Source: Russell, 2007

In 2005, CDA signed with Cintra-Zachry Fall 2005: Master Development Plan delivered May 2006: Environmental impact studies July- August 2006: Public hearings May 18,2007: Governor Perry vetoed a bill that would have placed significant limitations on future Trans Texas Corridor June 11, 2007: Governor Rick Perry signed Senate Bill 792, will provide Texans with many new and important protections. Source: Russell, 2007

Late 2007: choose a partner and sign (CDA) Late 2007: Public Hearings continued Beginning 2008: Request for Detailed Proposals Summer 2008: Selection of Developer Fall 2008: Draft Environmental Impact Statement (DEIS) Source: Russell, 2007

Public-private partnerships (PPP) refers to contractual agreements formed between a public agency and private sector entity that allow for greater private sector participation in the delivery of transportation projects. www.fhwa.dot.gov/ppp/defined.htm#1

Accelerated completion Project cost savings Improved quality Improved performance Use of cutting edge technologies Better management techniques Access to more capital.

Open for Business, TxDOTs plan getting private sector investments in Texas transportation system. CDA focuses on new ways of financing Calls for the partnerships between the agency(TxDOT), local officials and the private sector A CDA may also include, right of way acquisition, maintenance and/or operation of a transportation facility

1. design/build 2. pre-development agreements 3. concession agreement

Achieve set deadlines Reviews by independent engineers Observe federal requirements Provide funding In return developer gets up to 50 years of control over tolls

Texas Turnpike Authority Division,Phillip E. Russell www.keeptexasmoving.org

No Toll Boots No waiting and traffic congestions Make tolling compatible with other toll roads in state Use TX Tag Source: Russell, 2007

The Trans-Texas Corridor in Action: We know the way this chicken-and-egg works. The chicken is the big industrial area that lays a lot of highway eggs, not necessarily the other way around. --- John McCray, Associate Professor of Management University of Texas at San Antonio

The North American trade corridors are bi- or tri-national channels for which various cross- border interests have grouped together in order to develop or consolidate the infrastructures. The North American corridors are considered multimodal in the sense that they bring into play different modes of transport in succession. The infrastructures may include roads, highways, transit routes, airports, pipelines, railways and train stations, river canal systems and port facilities, telecommunications networks and teleports. --North American Forum on Integration www.fina-nafi.org/eng/integ/corridors.asp graphic from ciscoportcom

Source: I-35 Corridor Executive Summary Source: www.nascocorridor.com/naipn/

Source: I-35 Corridor Executive Summary

http://ops.fhwa.dot.gov/freight/freight_analysis/freight_story/congest.htm

TEXAS CONGESTION 1998TEXAS CONGESTION 2020

Connects: Denver Amarillo Lubbock Midland/Odessa San Angelo Del Rio Border Crossing: Laredo, Texas Nuevo Laredo, Tamaulipas Maritime Port: None Source: Ports to Plains website: www.portstoplains.com

Connects: Midland/Odessa (hub) Lubbock Amarillo Wichita Falls Dallas-Fort Worth Chihuahua Border Crossing: Presidio, Texas Ojinaga, Chihuahua Maritime Port: Topolobampo Source: www.la-entrada-al-pacifico.com

The Relief Valve Is everyone going to want to go that way? No. If everybody wanted to go that way could we handle it? No. --- James Beauchamp, president of the Midland-Odessa Transportation Alliance

Two kinds: Those by rivers or lakes that can use barges and such Interior ports: Air, rail, highway All are intermodal Inland ports are not a new concept Front Royal, Virginia

Trucks are most cost- effective at distances up to 400 miles: West Texas to Dallas Trucks are usually most cost- effective at distances from 400 to 700 miles: El Paso to Houston Distances for miles: Kansas City to Laredo or Lazaro Cardenas

Hubbing creates an economy of scale, using the same technologies and capital improvements. Airports Maritime ports Started as small ports, consolidated to larger ports

Hinterlands: The market region that a port serves. For Kansas City: No. Dakota So. Dakota Nebraska Iowa Illinois Indiana Michigan Kansas Missouri Minnesota Wisconsin

1900 acres former air force base 11,500-foot runway Foreign Trade Zone Two class I railroads Access to I-35, I-10, I-37, TTC-35 On NASCO corridor 90 million people within two days drive Five major ports easily accessible: Houston Corpus Christi Manzanillo Veracruz Lazaro Cardenas Source: Ports San Antonio

Top preferences for Iowa: internet website port of entry/customs transportation center for licensing and compliance activities an intermodal transport facility information clearinghouse for transportation and trade publications location for federal and state trade agencies Suggestion to minimize financial risk: build non-capital improvements first Biggest beneficiaries: Those who participate in international trade ?

The Trans-Texas Corridor Conspiracy: When we talk about the super-corridor, we're basically talking about how do we make best efforts in terms of the existing infrastructure. We're not part of any super-plan that's going to have this four-football-field-wide corridor with no regulatory controls on it. -- Andy Horosko, Manitoba Deputy Minister of Transportation

China-US (via Texas) trade West coast ports have lost their lock on Texas trade. Strike in 2002, ability to freeze freight flow High cost of union dockworkers Congestion at LA/Long Beach Beneficiary: East Coast ports, and to a lesser extent Gulf ports West Coast ports are reaching their land-side limits In the early 2000s, East Coast ports began seeing signs of congestion as well Mexican ports will not have capacity without serious investments West Coast ports have the ability to retain their dominance through gains in efficiency, such as flexible scheduling

While it may be the case that increasing competition from Mexican ports will eventually erode the negotiating power of West Coast dockworkers, in the near term such a change is very unlikely because of high and growing Pacific volume. Rather, the current trend toward internationalization and integration of terminal operations provides an historic opportunity for unionists on both sides of the border to collaborate and coordinate their efforts. Evans and McNichol (2006) from the International Longshore and Warehouse Union website

not building or encouraging the creation of a NAFTA Superhighway. I-35, not to mention other interstates that cross it, exist. Collectively they can approximate a NAFTA Superhighway because of increased trade activity since NAFTA was passed. NASCO does not influence immigration policy or advocate for the elimination of borders. nascocorridor.com

I think the rumor going around was that this map was a blueprint and it was drawn to scale. -- Tiffany Melvin NASCO executive director

The loss of whole communities is almost certain, as planners cannot wind the highway around every quaint town, historic building, or senior citizen apartment for thousands of miles. --- U.S. Rep. Ron Paul, R-TX

The loss of whole communities is almost certain, as planners cannot wind the highway around every quaint town, historic building, or senior citizen apartment for thousands of miles. --- U.S. Rep. Ron Paul, R-TX Graphic from rst.gsfc.nasa.gov/

Completely utilize existing rail Texas has the most rail mileage of any state: 14,192 miles. Rail corridors are being built Three corridors out of Houston from the seaport Only 179 out of the 752 rail crossings in Houston have separate grades http://www.texaspolicy.com/index.php Are other possibilities really being considered?

One thing is for certain: If this is a conspiracy a big if its now getting plenty of public discourse.

Weighing the costs and benefits and the long-term transportation needs of Texas, is the Trans-Texas Corridor worth building? Are tolling and PPPs a good mechanism for financing? Ric Williamson is quoted in the Everythings Bigger in Texas article as saying about leaving significant decision to the private sector, like potential tolls, as: Thats not our business. Its exactly what government shouldnt be involved in. Do you agree? Do you think the Trans-Texas Corridor is the 21 st centurys equivalent of the Interstate system? If not TTC, then what?

Allpolitics. (1997). Clinton Defends NAFTA, Heads To Costa Rica Tonight. Retrieved October 14, 2007, from the CNN/TIME Allpolitics website: http://www.cnn.com/ALLPOLITICS/1997/05/07/clinton.mexico/ http://www.cnn.com/ALLPOLITICS/1997/05/07/clinton.mexico/ Bradbury, S. (2002). Planning transportation corridors in post-NAFTA North America. APA journal, Vol. 68, No. 2: 137150. Bomba, M. (2004). Shifting U.S-China maritime logistical patterns: The potential impacts On U.S. Gulf Coast ports. Center for Transportation Research, University of Texas Austin. Brooks, M. (2005) NAFTA and short sea shipping corridors. AIMS Commentary. 14. Butler, D. (2006, February 24). Fears of Canada-Mexico superhighway driving U.S. critics loco. The National Post. Retrieved October 7, 2007, from the Free Republic website: http://www.freerepublic.com/focus/f-news/1790572/postshttp://www.freerepublic.com/focus/f-news/1790572/posts Cambridge Systematics, Inc. (2007). Trans-Texas Corridor Rural Development Opportunities: Ports-to-Plains Case Study. Texas Department of Transportation Government and Business Enterprises Division. Retrieved October 7, 2007, from the Ports to Plains website: http://www.portstoplains.com/FR1_TxDOT%20TTC%20Rur%20Dev%20Ops_ Final.pdf http://www.portstoplains.com/FR1_TxDOT%20TTC%20Rur%20Dev%20Ops_ Final.pdf Canadian Pacific Railroad. (2006). 2006 Factbook. Retrieved October 15, 2007, from the Canadian Pacific Railroad website: http://www8.cpr.ca/cms/English/Investors/Fact+Book/default.htm http://www8.cpr.ca/cms/English/Investors/Fact+Book/default.htm CISCOR Smart Inland Port Network. (2007). What is CISCOR? Retrieved October 7, 2007, from the CISCOR Smart Inland Port Network website: http://www.ciscorport.com/ http://www.ciscorport.com/ Corridor Watch. (2007). Crossroads of the Americas: Trans Texas corridor plan. Retrieved October 7, 2007, from the CISCOR Smart Inland Port Network website: http://www.corridorwatch.org/ttc/cw-plan0206- 02summary.htmhttp://www.corridorwatch.org/ttc/cw-plan0206- 02summary.htm Evans, R., and J. McNichol. (2006). The Global Company: Consolidation and Integration in the Maritime Cargo-Handling Industry. Retrieved October 15, 2007, from the International Longshore and Warehouse Union website: http://www.ilwu.org/longshore/upload/SSA%20Final%202006-2-22.pdf http://www.ilwu.org/longshore/upload/SSA%20Final%202006-2-22.pdf European Navigator. (2007). The European Communities. Retrieved October 15, 2007, from the European Navigator website http://www.ena.lu/mce.cfmhttp://www.ena.lu/mce.cfm Federal Highway Administration. (2007). Freight Management and Operations: Key Freight Transportation Challenges. Retrieved October 12, 2007, from the Federal Highway Adminstration Webpage: http://ops.fhwa.dot.gov/freight/freight_analysis/freight_story/congest.htm http://ops.fhwa.dot.gov/freight/freight_analysis/freight_story/congest.htm Harrison, R., C. Bhat, J. Prozzi, S. Roop, C. Morgan, & J. Warner. (2005.) Diverting containerized freight from key Texas corridors. Center for Transportation Research, University of TexasAustin. Hayes, C. (2007, August 27). The NAFTA superhighway. The Nation. Retrieved October 11, 2007, from The Nation website: http://www.thenation.com/doc/20070827/hayes http://www.thenation.com/doc/20070827/hayes Informa Maritime Trade and Transport. (2007, September 21.) Lazaro Cardenas gets a makeover. The Financial Times Limited. Retrieved October 11, 2007, from the TMC Net website: http://ipcommunications.tmcnet.com/news/2007/09/21/328824.htm http://ipcommunications.tmcnet.com/news/2007/09/21/328824.htm HNTB Corporation. (1996). Interstate 35 trade corridor study: Executive summary. FHWA, U.S. Department of Transportation. Retrieved October 6, 2007, from the TxDOT Waco District website: http://www.i35waco.com/documents/execsumm.pdf http://www.i35waco.com/documents/execsumm.pdf KTWX. (2007). Lawmaker Files Bill To Kill Trans-Texas Corridor Project. Retrieved October 16, 2007, from the KTWX website: http://www.kwtx.com/breakingnews/5374096.html http://www.kwtx.com/breakingnews/5374096.html La Entrada al Pacifco. (2007). La Entrada al Pacifico: Corridor to the Pacific. Retrieved October 11, 2007, from La Entrada al Pacifco website: http://www.la-entrada-al- pacifico.com/http://www.la-entrada-al- pacifico.com/ Levinson, M. (2006). The box: how the shipping container made the world smaller and the world economy bigger. Princeton, New Jersey: Princeton University Press. Lewis, B., A. Erera, and C. White. (2006). Impact of temporary seaport closures on freight supply chain costs. Transportation Research Record, 1963, 6470. Lunday, E. (2005). Everythings bigger in Texas. Planning, 71 (5), 10. Morris, J. (2003). Freight capacity for the 21st century. TR news 227: 32-35.

North America Inland Ports Network. (2007). Inland port participants. Retrieved October 8, 2007, from the North America Inland Ports Network website: http://www.nascocorridor.com/naipn/pages/participants.html http://www.nascocorridor.com/naipn/pages/participants.html The NAFTA Secretariat. (2007). Legal Texts. Retrieved October 8, 2007, from the NAFTA Secrtariat website: http://www.nafta-sec- alena.org/DefaultSite/index_e.aspx?DetailID=80http://www.nafta-sec- alena.org/DefaultSite/index_e.aspx?DetailID=80 The Port Authority of Virginia. (2007). Virginia Inland Port. Retrieved October 7, 2007, from The Port of Authority of Virginia website: http://www.vaports.com/Facilities/FAC-term-vip.htm http://www.vaports.com/Facilities/FAC-term-vip.htm Paul, Ron. (2006, October 30). The NAFTA Superhighway. Ron Pauls Texas straight talk: A weekly column. Retrieved October 11, 2007, from Rep. Ron Pauls website: http://www.house.gov/paul/tst/tst2006/tst103006.htmhttp://www.house.gov/paul/tst/tst2006/tst103006.htm Perry, F. (2004). Trucking laws in Mexico and changes after the NAFTA: A paradigm for the FTAA? The Transportation Law Journal, 31(2/3), 95. Ports San Antonio. (2007). Ports San Antonio. Retrieved October 8, 2007, from Ports San Antonio website: http://www.portsanantonio.ushttp://www.portsanantonio.us Russell, P. (2007). Transportation Forum: Trans-Texas corridor. Retrieved October 15, 2007, from the Texas Department of Transportation website: http://www.dot.state.tx.us/publications/ government_and_public_affairs/netmob_russell.pdf http://www.dot.state.tx.us/publications/ government_and_public_affairs/netmob_russell.pdf Short, N. (2007). The Remote Sensing Tutorial. Retrieved October 15, 2007, from Remote Sensing Tutorial website: http://rst.gsfc.nasa.gov/Sect14/Sect14_1d.html http://rst.gsfc.nasa.gov/Sect14/Sect14_1d.html Texas Department of Transportation. (2007). Texas: the next fifty years. Texas Department of Transportation. Retrieved October 7, 2007, from the Keep Texas Moving website: http://www.keeptexasmoving.com/var/files/File/TXDOTSM.wmv http://www.keeptexasmoving.com/var/files/File/TXDOTSM.wmv Texas Department of Transportation. (2007). Overview. Texas Department of Transportation. Retrieved October 9, 2007, from the Keep Texas Moving website: http://ttc.keeptexasmoving.com/about/http://ttc.keeptexasmoving.com/about/ Texas Department of Transportation. (2007). I-69/TTC (Northeast Texas to Mexico). Texas Department of Transportation. Retrieved October 10, 2007, from the Keep Texas Moving website: http://ttc.keeptexasmoving.com/projects/i69/http://ttc.keeptexasmoving.com/projects/i69/ Texas Department of Transportation. (2007). Why Texas needs the TTC. Texas Department of Transportation. Retrieved October 10, 2007, from the Keep Texas Moving website: http://ttc.keeptexasmoving.com/projects/ rapid_growth.aspxhttp://ttc.keeptexasmoving.com/projects/ rapid_growth.aspx Texas Department of Transportation. (2007). Trans-Texas Corridor. Texas Department of Transportation. Retrieved October 10, 2007, from the Keep Texas Moving website: http://www.keeptexasmoving.com/index.php/trans-texas_corridorhttp://www.keeptexasmoving.com/index.php/trans-texas_corridor Texas Department of Transportation. (2007). Comprehensive development agreement: Oklahoma to Mexico/Gulf Coast - TTC-35. Texas Department of Transportation. Retrieved October 10, 2007, from the Keep Texas Moving website: ttp://ttc.keeptexasmoving.com/pdfs/ projects/ttc35/final%20cda%20overview.pdf ttp://ttc.keeptexasmoving.com/pdfs/ projects/ttc35/final%20cda%20overview.pdf TTC-35 Corridor Engineering Team. (2007). IH-35 expansion options cost estimates & analysis. Texas Department of Transportation. U.S. Department of Transportation. (2006). North American freight transportation: U.S. trade with Canada and Mexico. Research and Innovative Technology Administration, Bureau of Transportation Statistics. U.S. Department of Transportation. (2007). Increased Trade Spurs Growth in North American Freight Transportation Research and Innovative Technology Administration, Bureau of Transportation Statistics. Villa, J. (2006). Status of the U.S.Mexico commercial border crossing process: Analysis of recent studies and research. Transportation Research Record, 1966, 1015. Waterhouse Commerce Statistics Center. (2003). Top 20 Inland U.S. Ports for 2003. Retrieved October 7, 2007, from the U.S. Army Corps of Engineers Institute for Water Resources website: http://www.iwr.usace.army.mil/ndc/wcsc/pdf/inlandport03f.pdf http://www.iwr.usace.army.mil/ndc/wcsc/pdf/inlandport03f.pdf

feili hong mark lynch almin ramic. texas & the trans-texas corridor

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