john baird, general manager, freightwatch mexico

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Page 2: John Baird, General Manager, Freightwatch Mexico

COUNTRY HIGHLIGHTS

•A large number of hijackings continue to occur in Mexico. • In addition, the northbound flow of contraband represents an additional cargo threat. •It is estimated that 70% of Mexican Cargo crime involves some form of employee collusion.• Most often these employees have access to sensitive shipment information. •Corrupt Police Officers may be part of organized gangs targeting trucks with high value merchandise such as computers, pharmaceuticals and clothing.

Page 3: John Baird, General Manager, Freightwatch Mexico

STATISTICS BY STATE

 

STATE % STATE %

Distrito FederalState of MexicoJaliscoPueblaMorelosGuanajuatoHidalgoQuintana RooTlaxcalaVeracruzMichoacánQuerétaroSinaloaGuerreroChiapasOaxacaNuevo León

44.5520.425.815.533.272.742.021.861.781.691.691.291.13.93.69.69.52

TabascoSan Luis PotosíSonoraTamaulipasBaja California NorteAguascalientesNayarit ChihuahuaDurangoColima CampecheYucatánBaja California SurCoahuila

.48

.44

.44

.36

.32

.28

.24

.20

.16

.12

.12

.12

.04

.04

Page 4: John Baird, General Manager, Freightwatch Mexico

Mexico-Queretaro

Mexico-Puebla

Mexico-VeracruzMexico-Guadalajara

Distrito Federal

State of Mexico

DANGEROUS NATIONAL ROUTES

Page 5: John Baird, General Manager, Freightwatch Mexico

DANGEROUS MEXICO CITY AND STATE OF MEXICO ROUTES

NAUCALPAN

TLALNEPANTLA

MEXICO CITY

Iztapalapa:

-Rojo Gómez y Tezontle

-Zaragoza y Amador Salazar

-Periférico y Ermita Iztapalapa

-Tláhuac y 5 de Mayo

Gustavo A. Madero:

-Vallejo y Poniente 146

-100 Metros y Montevideo

-Margarita M. y Montevideo

-Río Consulado y Misterios

Venustiano Carranza:

-Cto. Interior y Gran Canal

-Bellas Artes y Agricultura

-Zaragoza y Economía

-Tipografía y Estaño

-Peñón de los Baños

STATE OF MEXICO

Tlalnepantla:

-Gustavo Baz y Abraham Lin.

-Periférico y Gustavo Baz

-Ceylán y Periférico

-Oro y Toltecas

Naucalpan:

-Ingeniero Militares y 16 de Sep.

-Minas Palacio e Izcalli Chamapa

-San Bartolo e Ingenieros Militares

Page 6: John Baird, General Manager, Freightwatch Mexico

MEXICO CITY

Page 7: John Baird, General Manager, Freightwatch Mexico

STATE OF MEXICO

Page 8: John Baird, General Manager, Freightwatch Mexico

GUADALAJARA, JALISCO

• In comparison to Mexico City, Guadalajara generally has a lower level of cargo crime and hijacking, however the product value in general due to the technology centered business will continue to be an attraction to cargo thieves.

•Considered the third most important city in Mexico, Guadalajara is Mexico’s “Silicon Valley” as well as the home of many tequila producers making it a very profitable area for cargo thieves.

• Due to the proximity of southern coastline, Guadalajara and Jalisco are major origins for northbound contraband on board transport vehicles.

•As Guadalajara continues to grow and prosper due to foreign investment, export shipments as well as import and local distribution will grow as a direct result, ensuring that cargo security will be a concern for businesses operating in the state of Jalisco.

Page 9: John Baird, General Manager, Freightwatch Mexico

PUEBLA, PUEBLA

•The state of Puebla which lies just to the southeast of Mexico City lies along a major Mexican east/west highway has long been a cargo crime problem area.• Puebla currently occupies 4th place in cargo crime statistics. •Puebla has a history of cargo crime dating back to the 1940’s and remains a choice area of operation due to the proximity to Mexico City and the heavy flow of European inbound freight from Veracruz. •Current modus operandi is to hijack the (unescorted) shipment at stopping points or toll booths on Hwy 150 and proceed along the route, not setting off any GPS alarms until arriving at location where tractors can be changed.

Page 10: John Baird, General Manager, Freightwatch Mexico

NUEVO LAREDO, TAMAULIPAS

•85% of the NAFTA trade crosses through the Laredo, Texas and Nuevo Laredo, Tamaulipas border corridor, with a high percentage of the southbound (finished goods) import trade going to Mexico City for distribution throughout the country.

•Within this lane, there are three critical areas: Matehuala, San Luis Potosi, Palmillas, Queretaro and the 50km “Ring” surrounding the Mexico City metroplex.

•The criticality determination is a result of freight drivers repeated tendency to use these areas as rest stops. Security awareness amongst drivers is almost non-existent and often facilitates theft incidents.

• Current modus operandi includes utilization of “spotter vehicles” as far north as San Luis Potosi for southbound freight headed to Mexico City. Once close enough, shipments is hijacked.

Page 11: John Baird, General Manager, Freightwatch Mexico

Security MeasuresSecurity Measures

1) GPS Tracking / Control1) GPS Tracking / Control

2) Zone Escorts2) Zone Escorts

3) Combination3) Combination

4) Standard Escorts4) Standard Escorts

5) Armed /Armored Escorts5) Armed /Armored Escorts

Page 12: John Baird, General Manager, Freightwatch Mexico

RecommendationsRecommendations

Evaluate and Measure Risk (theft, Evaluate and Measure Risk (theft, contraband)contraband)

Enlist experienced personnel to assistEnlist experienced personnel to assist

Investigate best optionsInvestigate best options

Adjust to meet ThreatAdjust to meet Threat

Viable Security PlanViable Security Plan

Page 13: John Baird, General Manager, Freightwatch Mexico

Socioeconomic Factors (2009)Socioeconomic Factors (2009)

Decrease in RemittancesDecrease in Remittances

Lower Immigration northLower Immigration north

Increase in Unemployment Increase in Unemployment

Returning nationalsReturning nationals

Scarcity in Job MarketScarcity in Job Market

Alternate EmploymentAlternate Employment

Page 14: John Baird, General Manager, Freightwatch Mexico