virtual trade mission to mexico december 12, 2011 michael winter senior program analyst, federal...

Virtual Trade Mission to MexicoDecember 12, 2011

Michael WinterSenior Program Analyst, Federal Transit Administration

Jeff WhartonPresident, IMPulse NC LLC Chair, APTA Business Member International Business Development Subcommittee

Alicia HerreraSenior Commercial Specialist, U.S. Commercial Service, Mexico

Keith EischeidCountry Manager, Mexico and Central America, U.S. Trade and Development Agency

PASSENGER TRANSPORTATION PROJECTS IN MEXICO

ALICIA HERRERACommercial Specialist for Passenger

TransportationU.S. COMMERCIAL SERVICE MEXICO

Mexico City/Mexico

U.S. Commercial Service

– Agency of the U.S. Department of Commerce

– Focusing in supporting exporters of U.S. products & services

– Different programs to help U.S. companies in identifying potential distributors or representatives

– Market research

– International Delegations to U.S. shows

– 107 offices in the U.S.

– Presence in almost all countries in the world

– Buyusa.gov/mexico

The Mexican Market

• Mexico is the United States’ 3rd largest trade partner and 2nd

largest export market for U.S. products • Mexico’s population is over 112 million people with 74%

urban; 44% under 20 years of age; 23% wealthy/upper middle class; and 37% middle class, and offers a large market with a GDP of approximately USD $1 trillion. Per capita income is $13, 800

• Abundant market opportunities for U.S. firms

• Mexico uses many U.S. technical standards

• Geographical proximity makes easy to be in contact, negotiate and follow up

Mexican Transportation Systems

• Urban transportation organization is decided by each state

• 31 states and one Federal District

• Most states have a mixed organization with public and private transportation systems

• Private organizations must obtain a concession to operate and manage certain routes or transportation systems

• Multiple micro-concessionaires that operate 1-5 transportation units

• Most states are in the process of modernizing transportation systems and replacing old units

Mexico City Metropolitan Area (MCMA)

• Comprises Mexico City and several municipalities of the State of Mexico

• 19.2 million people in 7,815 square kilometers

• 23 million passenger/trips per day

• 80 % use public transportation and 6 % use private cars

• Average of 4.5 million cars circulating daily

• One public transportation unit per 132 private cars

• Transportation systems connect Mexico City with different regions of the States of Mexico and Morelos

Mexico City’s Transportation Systems

• Mexico City has a mixed transportation structure:

• Public systems:– Subway system (METRO) : 177 kilometers, 11 lines and 175 stations.

Moves 1.4 million passengers per day

– RTP or Bus System : 1475 buses, 3422 drivers, covering 101 routes

– STE (trolleys) : 383 trolleys, 20 light trains , 11 routes over 460 kilometers

– Metrobus : three BRT routes, 67 kilometers, 290 articulated buses , moving 620 ,000 passengers per day

Private transportation systems:

- 25,000 units including buses and micro buses

- 108,000 taxis

State of Mexico’s Transportation Systems

• All private, operated by multiple concessionaires

• 30,000 buses and micro-buses operated by 119 different groups

• 116,000 taxis

• Suburban Train:

• - Inaugurated in July 2008

- 27 kilometers connecting several towns in the State of

Mexico to the subway and bus transfer station in Mexico

City

- Operated by the Spanish company CAF

Important projects in Mexico City

• Subway Line 12 currently under construction:

- 24.5 km, with 20 stations

- Estimated investment of US $ 2 billion in infrastructure

and 1.2 billion in equipment

• RTP: pilot programs with hybrid buses.

• STE: two “zero emissions” routes of trolleys:

• 54.6 km. and 49 stations, with 150 trolleys

• Project in the bid process for building infrastructure

– Replacing 194 trolleys between 10 and 30 years old

• Metrobus: two more BRT corridors in the next two years. Possibilities for hybrid units

Projects in other states

• State of Mexico:

– Two more suburban trains

– Replacing 1000-1500 micro-buses per year

– More BRT corridors. One articulated bus will replace 4-5 micro-buses

– All new units will need to be diesel operated and include GPS & GPRS systems, panic buttons, automated passenger counters and vehicle monitoring systems


• State of Nuevo Leon:

– New Subway system lines in Monterrey

– Several BRT corridors using the best technologies. They will start with 80 articulated low bed buses. Opportunities for urban equipment, street furniture, IT systems, hybrid buses and related products

• State of Jalisco:

– Pilot program with 10 hybrid buses. Plans to buy 100 more

– Security and monitoring systems for the night transportation services

– Automatic systems for fare collection , passenger counting, fleet monitoring and management, and GPS


• State of Puebla:

– Will open concessions for four BRT corridors in the City of Puebla. Plans to start with 45 articulated high bed buses. In the bid process for building infrastructure for fist corridor

– Will need automatic fare collection systems, security systems, and fleet management and monitoring systems

• Many other states have also important projects to modernize their transportation systems

• Opportunities to sell parts to bus manufacturers in Mexico

Trends and Best Prospects

• More BRT systems

• Substitution of old units

• Use of simulators

• More automated systems for fare collection, fleet monitoring, maintenance managing, passenger information and others that can improve services and save money to operators

• Use of security and CCTV systems

• Better signaling systems

• Strict control of emissions and polluting sources

• Use of electronic advertisement and entertainment systems.

Procurement

• Public institutions must comply with regulations:

– Purchases under US$3,100 awarded directly to selected providers

– Purchases over that amount must be through public tenders

• Private concessionaires:

– Select suppliers by requesting quotations

– Decide a purchase based on price, financing and delivery conditions

How to do business in Mexico

• Having a Mexican distributor/representative

• Spanish speaking technical staff

• Inviting potential clients to visit manufacturing facilities in the U.S.

• Adapting to market conditions/being flexible

• Getting familiar with Mexican culture

• Time to follow up and make presentations to different levels of decision makers

Sources of Information

Mexico City:

• www.setravi.df.gob.mx

• www.stc.df.gob.mx

• www.ste.df.gob.mx

• www.metrobus.df.gob.mx

• www.rtp.df.gob.mx

• Some states:• www.portal2.edomex.gob.mx/stransporte

• www.st.pue.gob.mx• www.nl.gob.mx/?P=cons_transporte

• www.jalisco.gob.mx/svt

FOR MORE INFORMATION

U.S. Commercial Service Mexico

Alicia Herrera

Senior Commercial Specialist

Tel: (011-52-55) 5140-2629

[email protected]

Buyusa.gov/mexico

Thanks!!!!!!!!

USTDA: Advancing USTDA: Advancing U.S. Exports to U.S. Exports to

MexicoMexico

Keith M. EischeidKeith M. EischeidCountry Manager, Mexico and Central Country Manager, Mexico and Central

AmericaAmericaU.S. Trade and Development AgencyU.S. Trade and Development Agency

APTA Virtual APTA Virtual Trade Mission to Trade Mission to

MexicoMexico

December 12, December 12, 20112011

Key PointsKey PointsUSTDA helps U.S. companies expand

their international footprint.

USTDA helps U.S. transportation companies create jobs through the export of U.S. technologies and services.

USTDA prioritizes the transportation sector.

Mexico is a priority market for USTDA support.

www.ustda.govwww.ustda.gov

USTDA’s MissionUSTDA’s Mission Helping companies

create U.S. jobs through the export of U.S. goods and services for priority development projects in emerging economies.

Linking U.S. businesses to export opportunities while creating sustainable infrastructure and economic growth in partner countries.


RegionsRegions

www.ustda.gov

Latin America and Latin America and the Caribbeanthe Caribbean Sub-Saharan AfricaSub-Saharan Africa

Middle East, North Middle East, North Africa and EuropeAfrica and Europe

South and Southeast South and Southeast AsiaAsia

East Asia and EurasiaEast Asia and Eurasia


USTDA HighlightsUSTDA Highlights Independent agency of the U.S.

Government, established in 1981. USTDA invested over $44 million in

grants and contracts in FY 2011. USTDA has facilitated over $40

billion in U.S. exports to emerging markets. Key number:

$1 to $58 (export multiplier)


Inter-Agency Inter-Agency CooperationCooperation

USTDA coordinates with other USG agencies to carry out our assistance:

Trade Agencies: Trade Agencies: Commerce Dept., SBA, USTR

Technical Agencies: Technical Agencies: DOT, FAA, DOE

Finance Agencies:Finance Agencies:Ex-Im Bank, OPIC

Foreign Aid Agencies:Foreign Aid Agencies: State Dept., USAID, MCC


National Export National Export InitiativeInitiative

NEI was launched NEI was launched in 2010, with the in 2010, with the goal of doubling goal of doubling of U.S. exports by of U.S. exports by 2015.2015.

Increased Trade Increased Trade AdvocacyAdvocacy

USTDA Launched USTDA Launched the International the International Business Partnership Business Partnership ProgramProgram

President Obama President Obama Announcing the Export Announcing the Export

Promotion Cabinet as part Promotion Cabinet as part of the National Export of the National Export

InitiativeInitiative


USTDA by Sector:USTDA by Sector:FY 2006 – FY 2010FY 2006 – FY 2010


USTDA ActivitiesUSTDA Activities

International International Business Business

Partnership Partnership ProgramProgram

Reverse Trade MissionsConferences & Workshops

Project Project Development Development

ProgramProgram

Feasibility Studies & Pilot Projects

Technical Assistance

How We Accomplish Our MissionHow We Accomplish Our Mission


Reverse Trade MissionsReverse Trade Missions USTDA brings foreign

project sponsors to the United States to gain exposure to U.S. products and services.

Examples from Mexico: Multimodal

Transportation RTM Intelligent

Transportation Systems RTM March 11-22, 2012 Business Briefing

Brazil ITS Delegates at Brazil ITS Delegates at the Utah State Traffic the Utah State Traffic

CenterCenterOctober 2011October 2011


Highlights near-term infrastructure projects.

Introduces U.S. company representatives to senior officials responsible for project implementation.

Example from Mexico: U.S. and Mexico: Building

Partnerships in Infrastructure Conference

Conferences and Conferences and WorkshopsWorkshops


Feasibility StudiesFeasibility StudiesInfrastructure Project

AssessmentTechnicalFinancial / EconomicLegal / RegulatoryEnvironmentalPilot Projects


Examples from Mexico:Northeast Rail IntermodalTijuana Intermodal Terminal

Technical AssistanceTechnical Assistance Development of sector strategies, industry

standards, and legal and regulatory regimes that are necessary for successful project implementation.

Helps a country adopt market-opening policies and procedures that promote a favorable business and trade environment.

Examples from Mexico:SCT Multimodal National PlanNational ITS Architecture


Requesting USTDA Requesting USTDA Funding: How to Work Funding: How to Work

with USTDAwith USTDA No formal application procedure,

guidelines can be found at www.USTDA.gov.

Requests can be made year-round. Requests can come from a local entity or

a U.S. company working with a local partner (sole source).

Public and private overseas enterprises are eligible for assistance.


USTDA’s Funding USTDA’s Funding CriteriaCriteria

USTDA evaluates project proposals USTDA evaluates project proposals based on the following criteria:based on the following criteria:

Developmental priority in the partner country.

Likelihood of receiving implementation financing.

Mutual benefits for the United States and partner, including commercial and export opportunities for U.S. firms.


Using USTDA’s Using USTDA’s ResourcesResources

Visit our website at www.USTDA.gov

Check current business opportunities with USTDA and our overseas grant recipients.

Sign-up for our eNewsletter to learn about our upcoming events.

Obtain copies of USTDA-funded studies.


www.USTDA.govwww.USTDA.gov

Contact USTDAContact USTDA

Main Office: Main Office: Arlington, VirginiaTelephone: (703) 875-4357Fax: (703) 875-4009Website: www.USTDA.gov

Keith M. EischeidKeith M. EischeidUSTDA Country Manager for USTDA Country Manager for

[email protected]@ustda.gov


Thank Thank You!You!

Gracias!

Additional Questions?Please contact:

Julia WalkerAPTA Program Manager – International Programs

[email protected]+1 (202) 496-4833

virtual trade mission to mexico december 12, 2011 michael winter senior program analyst, federal...

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