Nogales: Donation Acceptance Program

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1 Nogales: Donation Acceptance Program

2 Regional Competitiveness Nogales is Arizona s principle gateway for trade, tourism and Innovation $250 million of investment in modernizing port of entry Close to $2 billion being invested on MX15 connecting Arizona with Mexico City ADOT investing $70 million in Phase I modernization of Mariposa Road Community exploring ways to advance Phase II in partnership with ADOT. Committed to promoting Nogales and the region to attract new trade and investment Home-base for the testing of Unified Inspections Grateful for the support from TTCA on this effort and the expansion of the program

3 Nogales by the Numbers 10,500,000 10,000,000 9,500,000 9,000,000 8,500,000 8,000,000 Total People (NB) Personal Vehicles (NB) In 2015, Nogales processed approximately 21 million people and 6.9 million cars (two way traffic) 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000, , Growth in cars and people means greater regional economic activity in tourism, retail, real estate and professional services sectors Source: US Department of Transportation

4 Nogales by the Numbers Trucks (Northbound) 320, , , , , , , , , , , Source: US Department of Transportation In 2015 Nogales processed more than 639,000 trucks in two-way traffic. Up from 624,000 in 2014 According to USDOC this represents close to $30 billion of trade between US and Mexico $3+ billion in produce $25+ billion in manufactured products Expect trend to continue for foreseeable future

5 Nogales by the Numbers Temperature sensitive commodities include Grapes, Corn, Broccoli, Asparagus, Berries, Herbs, Spinach, Celery, Radishes, Collard Greens, Radishes All the products that are on the lower portion of the table and offer the greatest opportunity for growth Cold rooms ensure that loads that require testing are not lost due to spoilage

6 What we had! Cattle Pens Mexican Inspection Northbound Southbound MX US FAST Lanes US Inspection ADOT

7 What we got!!

8 Investment in Nogales Since the completion of the Mariposa Reconfiguration project, there has been a local boom of investment in industrial real estate Approximately 1.2 million SF of state of the art warehouses and distribution centers have been built Estimate that this represents close to $20 million of investment primarily from Mexico 8

9 Rail at the border Working to offer an alternative to move produce and manufactured commodities by rail to and from Central Mexico $30 million invested in rail inspection yard at Rio Rico UP has invested $15 million on replacing all wooden bridges along the entire Tucson-Nogales Corridor Ferromex constructing new rail yard on Mexican side 25 km south of the border 9

10 Nogales DAP Proposal Location of Proposed Refrigerated Dock Spaces Port Authority submitted proposal to CBP under Small Scale provisions of Section 559 Convert 6 docks to refrigerated docks in order to handle any temperature sensitive commodity On September 11, 2016, CBP announced the approval of the submittal. Initial cost estimate +/- $500,000 Technical team working on design

11 Conclusions Cold Rooms open up our corridor to a broad spectrum of commodities Commodities that used to cross through Nogales that started crossing through other locations in Texas and California With such a high volume of produce at Nogales the facility should have included cold inspection facilities but private sector is stepping up to address the situation State of Arizona has confirmed $100,000 grant towards design and acquisition of equipment Asking for support from TTCA as the Port Authority seeks out other grant applications from agencies like NADBank, EPA, Department of Energy, and US Department of Agriculture

12 Thank You! Bruce Bracker Treasurer and Past Chairman Greater Nogales Santa Cruz County Port Authority (520)