PHOENIX – Nearly 8,000 more trucks, 400,000 more passenger vehicles and 900,000 more people entering the U.S. in 2015 through Arizona’s international ports of entry speak to numbers critical to this state’s economy: 

• $30 billion in imports and exports passing through Arizona’s ports during the year, including much of the produce consumed in the U.S. during the winter.
• $16.8 billion in Arizona exports to Mexico during 2015.
• 100,000 Arizona jobs supported by trade with Mexico.
• $7.8 million spent daily by those visiting Arizona from Mexico.

“The impact of our ports of entry is far reaching,” said Governor Doug Ducey. “The increase in cross-border traffic is another example of Arizona’s flourishing business climate and growing opportunities for economic development.”

 

U.S. Department of Transportation figures for northbound traffic at Arizona ports of entry showed commercial trucks up 2.1 percent (388,657 total), passenger vehicles up 4.5 percent (8.9 million total) and people visiting Arizona up 4.1 percent (23.8 million total).

U.S. DOT data show that traffic has increased steadily through the years at ports of entry in Nogales, San Luis, Douglas, Lukeville, Naco and Sasabe: 

“This amount of cross-border traffic and the continual upward trend in volume means we must continue to make smart investments at the border and ensure that our ports of entry have the necessary staffing and resources to operate effectively, efficiently and safely,” said John Halikowski, director of the Arizona Department of Transportation. “ADOT is working to improve transportation infrastructure at the border, along with traffic flows, with projects slated for State Route 189 and Interstate 19, and ongoing efforts to study how to build Interstate 11 from Nogales to the Hoover Dam Bypass Bridge.”

David Farca, president of the Arizona-Mexico Commission, noted that the figures don’t reflect the fact that ports handle southbound traffic as well.

“In reality, our ports of entry processed close to 800,000 trucks, 17 million cars, 48 million people and 1,600 trains,” Farca said. “The ports of entry that connect Arizona to Mexico are of great significance to our economy.”

Arizona also sees considerable sales tax revenue from people who pass through ports of entry to shop, not only in the border communities but the Tucson and Phoenix areas as well.

“A vibrant business relationship with Mexico is key to the growth of Arizona’s economy,” said Sandra Watson, president and CEO of the Arizona Commerce Authority. “Our region shares many assets and strengths in areas such as advanced manufacturing, aerospace, optics, agriculture and much more. Continuing to link resources and leverage assets such as infrastructure and transportation will diversify our economy and enhance our region’s overall competitive position.”

ADOT, the Arizona Commerce Authority, the Arizona-Mexico Commission and the Arizona Office of Tourism promote trade and quality infrastructure as members of the Transportation and Trade Corridor Alliance. The group, which also includes community leaders in transportation and international trade, was created in 2012 to help boost economic development and create jobs.

PHOENIX – Arizona and Mexico will further their collaboration on developing the key trade corridor connecting them under an agreement signed this week by Arizona Department of Transportation Director John Halikowski and Raul Murrieta Cummings, undersecretary of infrastructure for Mexico’s Ministry of Communications and Transport.

The memorandum of understanding, signed Tuesday in Mexico City, establishes a joint planning committee that will produce a study of ways to improve the corridor along Interstate 19 in Arizona and Highway 15 in Mexico. The primary north-south route in western Mexico and the western United States, the corridor feeds into Arizona’s port of entry system along with Arizona’s and Mexico’s highway systems.

The Arizona portion of the corridor will also serve as part of the anticipated route of Interstate 11, a multimodal transportation corridor from Nogales to the Hoover Dam bypass bridge. From there, I-11 will expand into northern Nevada, potentially reaching as far as Canada.

“Our efforts to strengthen the Arizona-Mexico relationship are already resulting in great success, including the signing of this agreement between ADOT and the Mexican federal Ministry of Communications and Transport,” Governor Doug Ducey said. “These efforts will grow our binational trade and make our freight and trade corridor one of the most competitive in the global market.”

Mexico is Arizona’s largest international trading partner, with $16 billion annually in imports and exports. By working together to invest in transportation infrastructure on both sides of the border, Arizona and Mexico will realize opportunities for connectivity, economic development and job growth.

“This is the culmination of years of building the right relationships and a continuation of Governor Ducey’s commitment to fostering a closer working relationship with Mexico,” Halikowski said. “Governor Ducey has challenged us to think big, to think as a business, and with this study we will push our sphere of influence beyond the border, helping Arizona companies tap into new business opportunities in Mexico. This will also help us position our corridor as a viable, cost-effective alternative to the corridors connecting Mexico to the Texas border.”

Mexico has pledged $100,000 and ADOT $200,000 toward the first phase of the multiyear Arizona-Mexico Corridor Study, which will identify priority transportation projects, solutions to congestion and backups along the Arizona-Mexico border, ideas to make the corridor more efficient for multimodal transportation, and technologies to improve efficiency and reliability. The study will also focus on identifying clusters for job creation and economic development along the entire corridor.

“This one-of-a-kind study will set us apart from the rest and help us market our region throughout the world,” Halikowski said.

ADOT is a member of the Transportation and Trade Corridor Alliance, which includes the Arizona-Mexico Commission, the Arizona Commerce Authority and the Arizona Office of Tourism, along with other partner agencies. The alliance focuses on creating economic development opportunities for Arizona and Mexico through investment in transportation infrastructure, partnerships and strategic planning.

“The Arizona-Mexico Corridor Study promises to bring greater understanding of the economic opportunities that exist for our region,” said David Farca, president of the Arizona-Mexico Commission. “In addition, it will help us raise awareness of Arizona’s strategic geographic position in the heart of an economically powerful mega-region that gives us a competitive advantage in the global market and makes Arizona a prime location to do business.”

Over the last few years, ADOT and the Federal Highway Administration, along with the U.S. General Services Administration and U.S. Customs and Border Protection, have invested more than $250 million in improvements at the Mariposa Port of Entry in Nogales ‒ improvements that benefit the overall corridor. Plans are moving forward to improve State Route 189 to enhance the flow of commercial truck traffic and to ensure international commerce can efficiently and safely travel between Arizona and Mexico.

During the meeting preceding the signing ceremony, Halikowski pushed for additional improvements to the Mexican side of Arizona’s ports of entry. Mexico’s Ministry of Communications and Transport reaffirmed its commitment of $2.2 billion for improvements to the Highway 15 corridor from Mexico City to the Arizona-Mexico border.

This week’s agreement promises to add not only needed infrastructure, but global opportunities.

“Arizona’s relationship with Mexico continues to grow and strengthen thanks to Governor Ducey’s efforts and ambitious trade agenda,” said Sandra Watson, president and CEO of the Arizona Commerce Authority. “In 2015 alone, Mexico accounted for more than $9 billion in Arizona exports. Conducting this study is an excellent step in enhancing the competitiveness of the Arizona-Mexico Corridor. Doing so will facilitate increased cross-border trade and advance Arizona’s position in the global economy.”

The Arizona-Mexico Corridor Study is expected to begin later this year.

PHOENIX – Governor Janice K. Brewer, together with four state agencies and several southern Arizona border communities, has announced the release of the Border Communities Roadmap.

Announcing the Roadmap’s release, Gov. Brewer said, “Expanding the capacity of our commercial ports of entry, strengthening our trade corridors, and developing a focused trade and transportation strategy for Arizona will foster job creation and attract new business and investment that will benefit the entire state.”

The Border Communities Roadmap is an initiative of Gov. Brewer that examined and developed a strategic action plan with economic development priorities and policy direction to foster economic prosperity for Arizona’s border communities. The Roadmap process involved a collaborative effort between the Arizona-Mexico Commission, the Arizona Commerce Authority, the Arizona Department of Transportation, and the Arizona Office of Tourism working closely with the communities of Douglas, Nogales, San Luis, Somerton and Yuma.

As gateways, the Arizona border communities enable the flow of billions of dollars of trade and millions of cross-border travelers each year.

“As we work toward strengthening Arizona’s economic vitality and solidifying our position in the global marketplace, we view our partnership with Mexico as one element that must be appropriately integrated into Arizona’s future,” said ADOT Director John Halikowski. “By investing in transportation infrastructure and expanding our ports of entry while looking at the opportunities for importing and exporting, we can ensure job creation and economic growth for Arizona.”

Five game-changers or significant shifts that are catalysts for new opportunities are presented:

1. Build upon Arizona border community assets
2. Form new strategic alliances
3. Harness Mexican economic shifts
4. Leverage key commercial corridors for market connectivity
5. Support emerging business development opportunities

The document discusses each of the game-changers in depth and presents a five-pronged action response for border communities:

1. Build a border business case. Arizona’s strategic position to Mexico’s growing economy is a major economic asset for each border community. Understanding the bi-national economy and communicating a strong business case is imperative for Arizona’s border communities to be successful.
2. Enhance border economic viability. The Roadmap discusses building on community assets, developing the labor force needed to meet industry demand, and focusing on business sectors that align with the economic vision.
3. Improve border community image. Marketing and communicating about the economic opportunity of Arizona’s border communities can help change the dialogue from its current focus on security to strategic positioning of the region for business development.
4. Strengthen relationships and foster collaborations. A concerted and coordinated public/private relationship-building effort must occur at every level – local, regional, state, and national. The Roadmap calls for the establishment of a “Border Brain Trust” – state agencies in partnership with the border communities – to move the strategic action plan forward.
5. Focus on border infrastructure that links border communities to key commerce corridors and promotes global connectivity. Enhancing competitiveness and sustainable economic growth requires an efficient multi-modal transportation system and adequate infrastructure to meet current and projected demand.

View the Border Communities Roadmap.

PHOENIX — At less than four miles long, State Route 189 in Nogales is one of the shortest routes on the state’s highway system, but it is one of the most critical when it comes to commerce and trade due to its close proximity to the U.S.-Mexico border.

The highway serves as a bypass route for commercial truck traffic to and from Mexico. Much of the produce that comes through Nogales ends up making its way throughout Arizona and the rest of the country. It’s an essential corridor and it’s only going to get busier, according to the Arizona Department of Transportation.

Traffic volumes are expected to spike in the future, now that the Mariposa Port of Entry, one of the busiest cargo ports along the U.S.-Mexico border, is nearing the completion of a four-year, $225 million reconstruction and modernization project in 2014. For instance, the port of entry currently processes between 1,200 and 2,400 trucks per day and this number is expected to climb to 3,000 trucks by 2014.

With additional traffic on a roadway that is already congested, ADOT is exploring options for a new or expanded highway to handle the increased volume of traffic.

Beginning in early 2011, shortly after the federal government accelerated the Mariposa Port of Entry project after receiving American Recovery and Recovery Act funds, ADOT began evaluating long-term improvements to the SR 189 (locally known as Mariposa Road) corridor.  

ADOT, along with the Federal Highway Administration, launched an engineering and environmental study for the SR 189 corridor. The goal of the study was to evaluate alternatives to handle the projected increased volume of traffic and relieve congestion on SR 189. Initial estimates range from $50 to $215 million to complete the improvements.

While no funding has been identified to pay for any of the long-term improvements at this time, ADOT understands the improvements are critical to Nogales and the trade industry, and is looking into potential funding sources, which may include local, state, federal and Public-Private Partnerships (P3).

The agency is moving forward with some interim improvements that will begin this fall. The work is expected to accommodate the additional truck traffic expected following the completion of the Mariposa Port of Entry.

This week, ADOT launched a $1.5 million project that includes signal timing synchronization at the Interstate 19 interchange and throughout the entire SR 189 corridor. The upgraded traffic signal system, which uses a microwave technology to interconnect to the traffic signal controllers, will share traffic data in real time. The signals will continuously adapt to traffic demands, thus reducing congestion and travel times along the corridor.

Additional enhancements include the construction of dual eastbound left-turn lanes at the SR 189 to northbound I-19 entrance ramp intersection and widening the northbound I-19 entrance ramp on the departure side of the intersection. The work is expected to be completed by the end of the year.

 

PHOENIX – In a series of meetings with Mexican leaders in Mexico City this month, Arizona Department of Transportation Director John Halikowski and other state officials strengthened relationships and discussed ways to improve cross-border traffic, supporting enhanced commercial corridors.

In an unprecedented meeting with an Arizona delegation, a joint meeting of both senators and deputies in a Mexican senate conference room served to ensure a fully coordinated approach to issues of key interest. From that meeting, Mexican officials pledged to initiate a meeting in Sonora in the coming weeks to review the various projects needed for the Mexican side of the corridor to match improvements made or underway to the U.S. side of the ports of entry. This meeting will also include discussion of the need to provide more efficient enforcement within key trade corridors that improves security without unnecessarily discouraging trade.

The partnership with Mexico extends beyond the border. In meetings with Mexican leaders in Mexico City, Halikowski and the Governor’s Policy Advisor for Mexico Margie Emmermann, who is also the executive director of the Arizona-Mexico Commission, stressed the need for binational cooperation and coordination on issues such as security, shared investments, rail, commercial enhancements and deep-water port expansion.

The group had meetings with some of the top leaders in Mexico City, including the senator Ernesto Gandara Camou, who chairs the Senate’s Commerce and Industrial Development Committee, and Manlio Fabio Beltrones, the deputy who leads the coalition of ruling parties in the Chamber of Deputies and is the former Governor of the state of Sonora.

“We extended the level of understanding and cooperation between our two countries. We wanted to meet with the decision makers, those leaders who will be instrumental in helping to advance the cause of cross-border coordination, investment and trade,” Halikowski said. “Forging working relationships with key members of the administration of President Enrique Peña Nieto was one of our key objectives and I know we accomplished that.”

Mexico is a critical partner with Arizona, with $13.2 billion in bilateral trade occurring annually. That translates to 754,000 commercial trucks and 1,300 trains crossing the border each year – in addition to 15 million cars and 42.4 million people who crossed the border in 2012. As a result, mobility between Arizona and Mexico, as well as security, are critical issues.

Over the past six years, $450 million has been invested in improving border infrastructure in Arizona, including improvements to the ports of entry and adjacent roadways that support the efficient movement of commercial and non-commercial traffic. Currently, a $225 million project is underway by the U.S. General Services Administration to modernize and expand the Mariposa Port of Entry to speed the processing of commercial traffic between Mexico and the United States. These improvements include 12 vehicle lanes, eight commercial vehicle lanes, and facilities for buses and pedestrians. In addition to improvements at the port of entry, ADOT has invested $20 million in the area’s transportation infrastructure and is continuing to make additional improvements.