Border Trade Alliance

Border Trade Alliance

Maria Luisa O’ConnellMaria Luisa O’ConnellBTA PresidentBTA President

March 11, 2008March 11, 2008

About the BTAAbout the BTAFounded in 1986, the Border Trade Alliance (BTA) Founded in 1986, the Border Trade Alliance (BTA) is a tri-national, grassroots, non-profit organization is a tri-national, grassroots, non-profit organization that serves a forum for participants to address key that serves a forum for participants to address key issues affecting trade and economic development issues affecting trade and economic development in North America. in North America.

Who We AreWho We Are

•The BTA represents, through our members and sponsors, a network of 1.8 million The BTA represents, through our members and sponsors, a network of 1.8 million public and private sector representatives, including:public and private sector representatives, including:

•Business leaders, chambers of commerce and industry, academic institutions, Business leaders, chambers of commerce and industry, academic institutions, economic development corporations, industrial parks, transport companies, custom economic development corporations, industrial parks, transport companies, custom brokers, manufactures, and federal, state, and local government officials and agencies. brokers, manufactures, and federal, state, and local government officials and agencies.

Our MissionOur Mission

Our core values include a commitment to improving the Our core values include a commitment to improving the quality of life in border communities through the quality of life in border communities through the development of trade and commerce, and a commitment development of trade and commerce, and a commitment to work as a community-based grassroots organization. to work as a community-based grassroots organization.

Border InfrastructureBorder InfrastructureTransportation and Ports of EntryTransportation and Ports of Entry

Challenges:Challenges:

•Increased inspection activity and security requirements at Increased inspection activity and security requirements at POEsPOEs

•Increased wait-times and delaysIncreased wait-times and delays

•Traffic volumes down at many crossingsTraffic volumes down at many crossings

•Demand for federal and state investment far exceeds Demand for federal and state investment far exceeds appropriated fundsappropriated funds

•Multiple federal and state agencies involvedMultiple federal and state agencies involved

Increased inspection activity Increased inspection activity and security requirements at and security requirements at

POEsPOEs

Security Requirements: ACE e-manifest, Security Requirements: ACE e-manifest, WHTI, US-VISIT, and terrorism watch listsWHTI, US-VISIT, and terrorism watch lists

Wait-times and delays Wait-times and delays increasing…increasing…

Blue Water Bridge*Blue Water Bridge*St. Clair, MISt. Clair, MI

0

10

20

30

40

50

60

70

Jan Feb Mar Apr May Jun Jul Aug

Percent of Days BackedUp at least 1 Hour (2007)

*Based upon BWBA Toll

Supervisors

log

……yet volume of crossings downyet volume of crossings down

Peace Bridge Port Authority - Buffalo, NYPeace Bridge Port Authority - Buffalo, NYData shows that processing time at the primary US Customs booth has increased by 32% for the first 2 weeks of August in 2007 compared to the same period of 2006…

…(resulting in) more frequent and longer delays entering the US even though traffic volume declined some 4% for the period analyzed.

Border CrossingsBorder CrossingsPersonal Passenger VehiclesPersonal Passenger Vehicles

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

199519961997199819992000200120022003200420052006

AZCANMTX\

Source: Bureau of Transportations Statistics

Demand for federal and state Demand for federal and state investment far exceeds investment far exceeds

appropriated fundsappropriated funds

Estimated cost for construction of ONE new Estimated cost for construction of ONE new POE (Otay Mesa East): $550-660 MillionPOE (Otay Mesa East): $550-660 Million

Total GSA FY08 Appropriations for Border Total GSA FY08 Appropriations for Border Infrastructure/POEs: $339.5 MillionInfrastructure/POEs: $339.5 Million

Demand for federal and state Demand for federal and state investment far exceeds investment far exceeds

appropriated fundsappropriated fundsA 2004 study* conducted by the Joint Working A 2004 study* conducted by the Joint Working Committee of US-DOT and MX-SCT found that the Committee of US-DOT and MX-SCT found that the funding shortfall on the U.S. side for border funding shortfall on the U.S. side for border transportation infrastructure was $10.6 billion (the transportation infrastructure was $10.6 billion (the same study estimated a funding shortfall of $846 same study estimated a funding shortfall of $846 million on the Mexican side)…million on the Mexican side)…

… … FHWA’s Coordinated Border Infrastructure program FHWA’s Coordinated Border Infrastructure program provides $833 million over 6 years (2005-09).provides $833 million over 6 years (2005-09).

*The Binational Border Transportation Infrastructure Needs *The Binational Border Transportation Infrastructure Needs Assessment StudyAssessment Study

Multiple federal and state Multiple federal and state agencies involvedagencies involved

DHS, CBP, DOT, FHWA, EPA, Dept. of State, DHS, CBP, DOT, FHWA, EPA, Dept. of State, various state agenciesvarious state agencies

Differing funding mechanisms: multiyear Differing funding mechanisms: multiyear funding for federal highways, annual funding for federal highways, annual

appropriations for GSAappropriations for GSA

Lack of coordination between federal Lack of coordination between federal agenciesagencies

Border Infrastructure/ POE Border Infrastructure/ POE Investment: StatusInvestment: Status

Last new border crossing - World Trade Last new border crossing - World Trade Bridge in Laredo in 2000Bridge in Laredo in 2000

Improvements in existing ports episodic at Improvements in existing ports episodic at bestbest

Border Infrastructure/ POE Border Infrastructure/ POE Investment: OptionsInvestment: Options

Public/Private PartnershipsPublic/Private Partnerships•Consider private-sector investments to Consider private-sector investments to accelerate deliveryaccelerate delivery•Must involve state governmentsMust involve state governments•To-date 23 states have passed legislation To-date 23 states have passed legislation to permit PPPsto permit PPPs•Private investors will prioritize investments Private investors will prioritize investments based on expected returnbased on expected return

Near-term Alternatives to Near-term Alternatives to Financing:Financing:

Leveraging Existing Leveraging Existing InfrastructureInfrastructure

•Conduct assessments of congested portsConduct assessments of congested ports•Identify efficiency improvements in Identify efficiency improvements in inspection procedures and flow of traffic in inspection procedures and flow of traffic in approach lanesapproach lanes•Consider alternative hours of service, lower Consider alternative hours of service, lower fees for non-peak hours at toll facilities fees for non-peak hours at toll facilities

Border Trade AllianceBorder Trade Alliance•Working with Congress and FHWA to conduct Working with Congress and FHWA to conduct wait-time studies at land portswait-time studies at land ports•Partnering with GSA leadership by providing Partnering with GSA leadership by providing input and feedback on best practices to enhance input and feedback on best practices to enhance current and future border infrastructurecurrent and future border infrastructure•Advocating for the Dept. of State to develop a Advocating for the Dept. of State to develop a more streamlined process for Presidential Permits more streamlined process for Presidential Permits as they impact the ability to modify existing as they impact the ability to modify existing POEsPOEs

Questions?Questions?