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M M I I D D - - C C O O N N T T I I N N E E N N T T C C O O R R R R I I D D O O R R I I N N L L A A N N D D P P O O R R T T S S E E M M I I N N A A R R Prepared for: Manitoba Department of Transportation & Government Services NOVEMBER 2002 UNIVERSITY OF MANITOBA TRANSPORT INSTITUTE
Transcript

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Prepared for: Manitoba Department of Transportation &

Government Services

N O V E M B E R 2 0 0 2

U N I V E R S I T Y O F M A N I T O B A T R A N S P O R T I N S T I T U T E

MID-CONTINENT CORRIDOR INLAND PORT SEMINAR

Report

November 2002

Prepared for:

Manitoba Transportation &

Government Services

Prepared by:

Transport Institute Connie van Rosmalen, Research Associate

Erica Vido, Research Associate

_____________________________

631 – 181 Freedman Crescent. University of Manitoba. Winnipeg, MB R3T 5V4 . Tel: 204-474-9842 .

Fax: 204-474-7530 . www.umti.ca

MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

OOvveerrvviieeww On September 26, 2002, the Manitoba Department of Transportation & Government Services (TGS) hosted a Mid-Continent Corridor Inland Port Seminar in conjunction with the board meeting of North America’s Superhighway Coalition (NASCO) and a trade mission from Texas. NASCO is a non-profit, public and private partnership focused on improving the I-35/I-29/I-94 corridor as an engine of economic growth for America's heartland. Members come from the states of Texas, Oklahoma, Kansas, Missouri, Iowa, South Dakota, and the province of Manitoba. NASCO works toward innovative national and regional planning, coordination and funding that will benefit businesses and communities along the corridor. The aim of the seminar was to share information on the nature and history of the inland port facilities along the Mid-Continent Trade and Transportation Corridor. The seminar served as an opportunity for inland port representatives to review the developmental/planning and implementation phases of their facilities, highlight the services their facility provides, and bring to light future development plans. Representatives from Monterrey Inland Port Villa XXI, Port Des Moines, Kansas City SmartPort, Inland Port San Antonio, and Winnipeg Airport Area Development Corporation (WAADC) made presentations identifying critical points in the development of their inland ports. Central to each port’s development was:

• A vision of an inland port facility; • Industry and governmental support; • In-depth feasibility studies; and • Ongoing and dynamic planning by a designated planning committee.

The second objective of the seminar was addressed through a workshop that identified key issues facing the Mid-Continent Corridor’s Inland Port facilities. These key issues are identified in descending priority as follows:

• Border Issues • Trucking Regulations Uniformity • Harmonized security and trade facilitation systems • Establishment of Security; and • Infrastructure Capital

For each of these critical issues, action steps were identified for further discussion and follow-up.

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

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WELCOMING REMARKS 4

INLAND PORT PRESENTATIONS – KEY POINTS/Q&A 5

I. Monterrey Inland Port Villa XXI 5

II. Port Des Moines 7

III. Kansas City SmartPort 10

IV. Inland Port San Antonio 12

V. Winnipeg Airport Area Development Corporation 15

KEY ISSUES WORKSHOP 17

Discussion Of Key Issues 18

Summary of Action Plan 21

APPENDICES – INDEX 22

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

WWeellccoommiinngg RReemmaarrkkss Don Norquay – Vice President, NASCO; Assistant Deputy Minister, TGS On behalf of Manitoba Transportation, I would like to take this opportunity to welcome everyone to today’s session. I would especially like to thank our guests representing inland port facilities along the Mid-Continent corridor for agreeing to participate in today’s session. I am hopeful that we will all find the afternoon informative and a good foundation for future cooperative action.

A meeting of this nature has taken place before (January 2001), led by Doug Luciani and the Greater Kansas City Chamber of Commerce. This meeting is in reality an overdue follow-up to Doug’s kind overtures toward more cooperative efforts. Since that time, the inland port facilities have grown and the concept itself has taken hold in different forms, and in other cities along the corridor. The Mid-Continent Corridor has become a valuable initiative for the facilitation of trilateral trade between Canada, the U.S. and Mexico. The intermodal transportation facilities in our corridor region are key to efficient continental distribution and international market access. Here in Winnipeg, as a community, we have been endeavouring to develop a vision as a transportation gateway and global logistics and distribution centre for some time now. I am hopeful that today’s meeting will be of significant value in shaping this vision. Our goals today are:

To share information on the nature and history of the inland port facilities of our corridor, the logistics services they provide, and future development plans; and

Most importantly, to have a dialogue as to whether and how we should work

together to develop the concept of an integrated network of Inland Ports, in order to strengthen the competitiveness of the Mid-Continental regional economy.

We have engaged our University of Manitoba Transport Institute and Robert Andriulaitis of InterVISTAS Consulting to facilitate our discussion and provide a report of the proceedings and recommendations/outcomes. Through this support, we anticipate having a final document that we will share with all participants, as a guide toward undertaking and prioritizing future cooperative activities.

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

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I. Monterrey Inland Port Villa XXI David Eaton – Developer - Monterrey Inland Port Villa XXI KEY POINTS

Monterrey, Mexico - a key manufacturing platform in NAFTA

Staying Competitive: Manufacturers depend on access to modern multimodal infrastructure to

compete with other global manufacturing markets. Lack of modern multimodal facilities are limiting economic growth in the

region

Strategy: In 1995 a public consultation formed the idea of a “Vision for 2020” The need for an Inland Port was recognized Work commenced on the Villa XXI Multimodal Project

Advantages of Monterrey Metropolitan Area (MMA)

MMA has a unique location: • Direct routing to majority of large economic centres • Access to the centre of Mexico • Short distance from sea ports • Rapid access to U.S. (3 hours to border)

MMA is a large urban centre – 3.5 million people

Villa XXI Multimodal Project Location and Details 760 hectares close to Monterrey Airport Villa XXI is a mixed land use development project

• Employee training centre • Low income housing • 215 hectare port – Foreign Trade Zone

• Rail terminal • Cold storage • Customs Brokers • Regional trucking centre (33 hectares)

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

Conclusions

Urban land experts to develop a business plan for the Inland Port ADDITIONAL INFORMATION

Appendix 4: Villa XXI Multimodal Project – Executive Summary Appendix 5: Villa XXI Multimodal Project – Ppt. presentation

QUESTIONS & ANSWERS Q1: Has the Partnership established a timeline to break the ground on this project? A1: Permits and zoning are scheduled to be complete in 8 months. Q2: Has there been any problems getting more than one railway involved in the project? A2: There has not been a great amount of support from Ferromex and TFM. The project members are working on establishing a rail terminal, however they do not expect to be operational with TFM or Ferromex in the short term. Q3: Is the site serviced? If not, how will the servicing be financed? A3: There is a major power plant and sewer plant relatively close to the project site. It will be a relatively simple undertaking to run a gas line to the site. In addition, the project has received a commitment from the State government to pave road as soon as a major tenant is signed.

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

II. Port Des Moines Tom Kane – Executive Director, Des Moines Area Metropolitan Planning Organization KEY POINTS

Exploring the Concept of Creating an Inland Port In 1998, Greater Des Moines Partnership explores concept of creating an

inland, intermodal port for international and domestic commerce in Central Iowa.

Used other successful intermodal facilities to serve as model for Port Des Moines (PDM).

Belief that inland port could save money by consolidating trade and transportation services in one central location

Port Des Moines Vision

To develop and construct a major multimodal transportation, customs, and distribution facility, serving Iowa and the Upper Midwest.

Key elements for the proposed port included • Transportation centre – with regional traffic management function

and customer service point for the Iowa DOT. • Business centre – with meeting facilities and exhibit space

Facility would act as port of entry and customs centre for Mid-U.S. Intermodal operations would primarily be truck and air freight/cargo. Automated inspections, licensing, permits, and e-customs clearance would

be executed at port.

Action Plan to Make the Port a Reality Approached Congressional delegation in 1998 for seed money in the

amount of US $20 million. The delegation requested a feasibility study to determine trade-related

activity of Central Iowa.

Feasibility Study Congress awarded Partnership $75,000 for study. Partnership also assumed further funding from US Department of

Congress and from other organizations to complete study. Iowa State University College of Business, Transport and Logistics

Department spearheaded the study.

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

Study was designed to assess the potential of Central Iowa’s international commercial activity.

Study Results

The study revealed that Central Iowa was currently not ready for a full-scale inland, intermodal port facility.

Only moderate level of support for the Port concept. Business leaders believe Partnership should focus on existing facilities

through application of advanced information technology systems. Researchers recommend that PDM’s development focus on need for

information and technology – virtual E-port to eventually expand to a physical port.

ADDITIONAL INFORMATION

Appendix 6: Port Des Moines – Ppt. presentation & notes

QUESTIONS & ANSWERS Q1. How closely is the Partnership working with the Iowa DOT in trying to have Port Des Moines eventually integrate with the Traffic Emergency Information Centre once funding has been approved? A1. The Partnership does try and work very closely with the Iowa DOT. In fact, on our last trip to Washington [where the partnership and the MPO go to meet with our Congressional delegation], we proposed, as one of our major projects for federal assistance, a $3 million Transportation Management Centre that would answer that particular point of trying to coordinate those information systems. Q2. Do you see that as a good selling point for the Port Des Moines project? A2. Absolutely. It goes back to the recommendation made by Iowa State University about information and technology. The Partnership’s challenge is to arouse the interest in international trade and export among Iowa businesses. As the study has pointed out, this is clearly one of the struggles we [the Partnership] face, and we will continue to pursue it. Again, the Management Centre, E-port, sharing of information, etc., all show that smaller companies can get into international business and exports.

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

Q3. How large does Des Moines have to be before it is feasible to invest in an actual physical inland, multimodal port facility? A3. Phase II of the study will focus on that very question. The Partnership is working very closely with the railroad system, the road people, and the trucking companies to get people/companies more involved in international trade. The Partnership must convince businesses of the benefit of international trade through education and information and ease of access to exporting information. As this is achieved - as things develop, as trade grows, as the economy grows, the need to make improvements will manifest itself. Apart from saying that, I do not have a hard number to give you. One of the common ideas is that our metropolitan area is not large enough that we need to necessarily have everything in one place. We are looking at a railhead for containers 30 miles away. Our airport has an extremely good road access system or a major point of access for UPS. Therefore, we [the Partnership] believe that this port will develop in nodes. Where this Management Centre is located and where we eventually build a physical plant – this is what Phase II of the study is about.

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

III. Kansas City SmartPort Lorie Whitaker – President, Kansas City SmartPort KEY POINTS

What is Smart Port? 1992 – joint effort between Chamber of Commerce and KC to develop KC

as a high-tech inland port.

Economic Impact of Transportation Industry Economic impact study determined that the transportation and logistics

industry creates $ 1 billion revenue/year and provides 40,000 jobs to KC area.

Feasibility Study of International Trade Processing Centre

1999 – study to determine feasibility of International Trade Processing Centre. (Mid-Continent Trade-Way Study).

Business survey of carriers, freight forwarders, related businesses and stakeholders

• What is most valuable to them in an inland port? o Ability to clear customs in KC o Access to an information centre

Developing Information Centre

To provide customs and export information to businesses Focused IC around KC SmartPort website – www.kcsmartport com

Why KC area?

Strategic location US Customs Port Excellent air, rail, road and river infrastructure Transportation entrepreneurship (.com and engineer companies) Abundant Foreign Trade Zone space

Why Develop Inland Port Now?

Freight tonnage is expected to double in 20 years Importers/exports having major problems with border congestion and

delays North American Trading block needs to compete with efficiencies

achieved by EU and others

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

SmartPort’s Goal Make it cheaper, easier, faster, and safer for importers/exporters to move

goods Grow transportation and logistics industry in KC region Assist smaller companies in entering global market

ADDITIONAL INFORMATION

Appendix 7: Kansas City – SmartPort – Ppt. presentation QESTIONS & ANSWERS

No questions were raised.

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

IV. Inland Port San Antonio Blake Hastings – Executive Director, Free Trade Alliance – San Antonio KEY POINTS

Inland Port San Antonio Inherited facility from US Department of Defence In the process of redeveloping Inland Port strategy is a city-wide concept

Free Trade Alliance – San Antonio

Non-profit corporation that brings most of San Antonio’s economic institutes into one organization that focused primarily on trade.

Alliance deals with 3 – 4 different categories • Business development • Recruitment – attracting foreign investment to San Antonio • Advocacy infrastructure efforts

Alliance identified as lead organization to spearhead San Antonio’s development as an inland port

Inland Port San Antonio Model

Several facilities make up inland port • International airport • Several business parks

Why the Inland Port Concept?

Strategic location 50 - 60% of trade between US and Mexico flows through San Antonio Serviced based industry (70% of economy is service based) – therefore

opportunity to service trade through an inland port. Excellent highway infrastructure – logical consolidation point for products

exported to Mexico. Rail infrastructure – one of major North-South staging yards adjacent to

Kelly Air Force Base Air cargo infrastructure – currently served by international airport,

however Kelly USA has the potential of becoming a larger air cargo centre

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

Kelly USA Former US Air force base

• 4.5 million sq ft of warehouse space • 2.5 million sq ft industrial space • Kelly has direct highway access • 11,500 ft runway

Advantages: • Readily available for operation

Disadvantages: • Designed by military to have limited access • Only one runway with no possibility of expanding

Future Vision for Kelly

Make it a trade processing centre Working on International Trade Data System (ITDS)

• Critical to success of inland port

Developing Customer Base for Inland Port Focus on service rather than manufacturing For 3 years running incubator program to assist foreign companies in

entering US market. ADDITIONAL INFORMATION

Appendix 8: Inland Port San Antonio – Ppt. presentation QUESTIONS & ANSWERS Q1. Has there been support from Mexican trucking firms and customs brokers to improve cross-border trucking services? A2. The lack of cross-border trucking has been a major issue and it is key to the success of the inland port. The incubator program has served as an aid to several Mexican trucking companies to ensure all regulations are being met. Yes there has been significant interest from both the Mexican customs brokers and the trucking companies.

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

Q2. Being that the air force base is close to downtown, is there a curfew on air traffic noise? A1. There are some issues with the neighbourhoods surrounding the base, however this base has been in operation for almost seventy years. Therefore the noise from air traffic is nothing new, and in fact the amount of air traffic has slowed due to the closure of the air force base.

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

V. Winnipeg Airport Area Development Corporation

Michael Crockatt – Marketing Manager, Winnipeg Airports Authority KEY POINTS

Background Information Airport area activity accounts for over 7000 jobs Home to aerospace industry and logistics industry

Winnipeg Airport Area Development Corporation (WAADC)

Winnipeg Airport Authority (WAA) saw the success of Winnipeg International Airport (WIA) as opportunity to leverage success into new economic development entity

WAADC modelled on City of Winnipeg’s Centre-Venture • Began as Partnership between Centre-Venture and Winnipeg

Airports Authority • Mission of Partnership:

To facilitate airport economic development, in partnership with the City of Winnipeg, by targeting industry clusters, expediting approval processes, and by meeting the specific development requirements of our clients.

• WAADC created Development Team and Working Group • Developed Business plan report

Outcome of Report

City council approved the creation of Winnipeg Airport Area Development Corporation

City council provided funding to fully develop the business plan and marketing program

Land Development

2000 acres • 670 acres on airport • 1100 within city

Secondary plan for area – infrastructure and land use plan to ensure development in area be compatible with airport operations

WAADC will implement land use plan Stage I Development: 295 acres on airport and 400 acres outside

airport

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

Target Industries Aerospace and composites are number 1 target Other target industries include Transportation & logistics, Intermodal,

Air cargo, Export manufacturing, Export Distribution Centres program (similar to FTZ), Warehousing and distribution, E-Commerce, Support Industries

Aerospace Industry

Large industry in MB Strong support from Aerospace industries An organization like WAADC will make development more

streamline WAADC is partly aimed at developing Winnipeg as the composites

manufacturing centre both within and outside Canada

Community Benefits Development will create jobs, wealth and tax revenues for community Targeted sectors – aerospace and composites – are highly skilled and

high paying jobs ADDITIONAL INFORMATION

Appendix 9: WAADC – Ppt. Presentation QUESTIONS & ANSWERS

No questions were raised.

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

KKeeyy IIssssuueess WWoorrkksshhoopp The key issues workshop was held to identify issues that were viewed as important to the development of inland port strategies, and to progressing the Mid-Continent Corridor. The issues raised were ranked through a voting process and have been listed in descending priority as follows:

Table 1 - Ranking of IssuesRank Issue

1 Border Issues2 Trucking Regulations Uniformity3 Harmonized Security and Trade Facilitation Systems4 Establishment of Security5 Infrastructure Capital6 Develop and Maintain Security Along Corridor7 Free Trade in Transportation8 Eliminating State/Province Institutional Barriers9 Commercial Vehicle Information Systems Network Program10 Communication Links Between Stakeholders Along Corridor11 U.S. Reauthorization Issues12 Corridor Marketing13 Mexico Development14 Efficient Transportation Systems15 Green Corridor16 Sharing Information and Data Between Parties17 Inclusion of all Participants in Decision Making18 Mexican Internal Politics19 E-W vs. N-S Travel Routes

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

Discussion Of Key Issues The top five issues were briefly discussed in the workshop and potential ‘Action Plans’ were identified and documented to address each issue. 1. Border Issues

Drug Inspections • Slows cross-border trade/traffic – thousands of agents dealing with drug

intervention issues at border • Since 9/11 there has been increased push for technology that is accurate

and fast (i.e. gamma ray equipment), development of risk assessment programs, and increased utilization of aggressive systems (i.e. CTPAT)

Action Plan: Encourage expenditures on high tech equipment to speed up

inspections process and develop an automated customs system.

Mexican Trucking Regulations • Current Mexican trucking regulations are inadequate. • Increased inspections of Mexican trucks are needed, creating a disruption

in the flow of cross-border traffic. • Communities are inundated with higher inspections and issuing citations. • Diligent border inspections of Mexican trucks will likely lead to improved

truck regulations.

Action Plan: Additional customs inspectors at inland ports to remove border congestion.

Action Plan: Pre-screen and preauthorize trucks. Action Plan: System to facilitate harmonized security and trade facilitation.

Harmonized Security and Trade Facilitation Systems

• Needs to be implemented. • Once Mexico/U.S. border opens begin CVSA inspections. • Deployment needs to be adopted on all sides.

Action Plan: Demonstration project of harmonized security and trade

facilitation systems at inland facilities. Action Plan: Lobbying within individual communities and to federal

governments to ensure that initial demonstrations are deployed within Mid Continent Corridor and coordinated by NASCO.

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

2. Trucking Regulations Uniformity

NAFTA Land Transportation Standards Subcommittee • Implementation of Land Transportation Standards Subcommittee

recommendations is slow. Lack of Consensus on Trucking Regulations.

Action Plan: NASCO should lead the consensus building process. Action Plan: Identify truck systems – is there a “NAFTA truck?”

3. International Trade Data Systems

Organize Demonstration Projects

Action Plan: NASCO and other stakeholders need to organize demonstration projects at one or all inland ports.

Needs an integrated data collection system encompassing all elements including

safety.

Action Plan: Deploy technology at all inland ports. Action Plan: Formalize “Inland Port Group” within NASCO. Action Plan: Using NAFTA corridor as a feeder corridor, develop a

coalition of inland ports.

Mexico • Important to include Mexican representation to ensure cooperation

between all three countries. • Inland port groups good starting point.

Action Plan: Formalize Inland Port Group within NASCO. Action Plan: Reach out to Mexican inland ports.

4. Establish Security of Mid-Continent Corridor

Security of Mid-Continent Corridor as a Marketing Tool • Integration of inland ports to U.S. “Homeland Security”

Action Plan: Promote security aspect of Mid-Continent Corridor as a

marketing tool and a means to obtain government funding. Action Plan: Lobby government to delegate coordination facilitation to

NASCO.

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

5. Infrastructure Capital

Designated Capital • Need to emphasize multimodal approach – highway trucks cannot cope

with expected growth forecasts. • Investments in rail infrastructure to accommodate anticipated growth in

Mexican rail traffic. • Capital for transportation infrastructure investments is inadequate in

Canada and Mexico.

Action Plan: NASCO efforts to advocate specific multimodal infrastructure investments.

Action Plan: Ongoing and informal lobbying of government on all sides by all NASCO members.

Action Plan: Lobbying efforts to include funding for infrastructure in Transport Canada’s Blueprint.

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

Summary of Action Plan The following is a summary of action items proposed during the key issues discussion.

ISSUE ACTION ITEMBorder Issues

Drug Inspection Encourage expenditure on high tech equipment to speed up inspection process and develop automated customs system.Lobby for additional customs inspectors at inland ports to alleviate border congestion.Promote pre-screening and preauthorizing of trucks.Implement systems to facilitate harmonized security and trade facilitation.Conduct demonstration projects of harmonized security and trade facilitation systems at inland facilities.

Lobby within individual communities and to federal governments to ensure that initial demonstrations are deployed within the Mid Continent Corridor and are coordinated by NASCO.

Trucking Regulations Uniformity

Lead inland ports in the consensus building process. - (NASCO)

Identify truck systems - is there a "NAFTA truck?"

Harmonized Security and Trade Facilitation Systems

Demo Projects Organize demonstration projects at one or all inland ports.Deploy technology at all inland ports.Formalize "Inland Port Group" within NASCO.Develop a coalition of inland ports using NAFTA corridor as feeder corridor.

Mexico Reach out to Mexican inland ports.

Establish Mid-Continent Corridor Security

Promote security aspect of Mid-Continent Corridor as marketing tool and as means to obtain government funding.

Lobby government to delegate coordination facilitation to NASCO.

Infrastructure CapitalPut forth efforts to advocate specific multimodal infrastructure investments. - (NASCO)Lobby government on all sides in a continuous effort. - (all NASCO members)Lobbying efforts to include funding for infrastructure in Transport Canada's Blueprint.

Designated Capital

Security as Marketing Tool

Mexican Trucking Regulations

Harmonized Security and Trade Facilitation Systems

Lack of consensus on regulations

Integrated Data Collection System

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

AAppppeennddiicceess –– IInnddeexx Appendix 1: Inland Port Seminar Agenda 23 Appendix 2: Inland Port Seminar Attendance 24 Appendix 3: Monterrey Inland Port Villa XXI – Executive Summary 25 Appendix 4: Inland Port Presentations – Slides 31 4.1: Monterrey Inland Port Villa XXI 31 4.2: Port Des Moines 35 4.3: Kansas City SmartPort 46 4.4: Inland Port San Antonio 50 4.5: Winnipeg Airport Area Development Corporation 54

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

Appendix 1: Inland Port Seminar - Agenda

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AGENDA

Thursday, September 26, 2002 Fairmont Hotel, Summit Room

12:00 noon – Informal Luncheon 12:00 noon Informal Luncheon 1:15 Welcoming Remarks (Don Norquay) 1:20 Presentations (David Eaton, Blake Hastings, Tom Kane,

Lorie Whitaker, Mike Crockatt) Discussion Session 2:15 Identifying Key Issues (open forum) 2:50 Voting Process 3:00 Coffee Break / Ranking over coffee 3:15 Identify High/Medium/Low/drop off Potential Items 3:20 Discussion of High Potential Action Items 4:15 Closing Comments (Province)

Manitoba Transportation & Government Services Transportation Policy & Regulation 15th Floor, 215 Garry Street Winnipeg, MB R3C 3Z1 CANADA Tel: (204) 945-6701 Fax: (204) 945-5539

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

Appendix 2: Inland Port Seminar Attendance Maurice Steele AVL Inc. Mike Klassen Booz Allen Hamilton Consulting Jim Thomson City of Winnipeg Russ Tychonick City of Winnipeg Dale VanderSchaaf Department of Transportation – Iowa Ed Wueste Department of Transportation - Texas Tom Kane Des Moines Area Metropolitan Planning Organization Blake Hastings Free Trade Alliance – San Antonio Rob Andriulaitis InterVISTAS Consulting Inc. Barry Mitchell Manitoba Industry, Trade and Mines Tim Brown NASCO Jim Francis NASCO Jennifer Lawrence NASCO Glenn LeMunyon NASCO Mercurio Martinez NASCO Ken Miller NASCO Ann Patten Scrub Oak Technologies Inc. Victor DeBrunner Scrub Oak Technologies Inc. Doug Scott Stantec Consulting Lynn Cabak MB Transportation & Government Services Lucille McLaughlin MB Transportation & Government Services Don Norquay MB Transportation & Government Services John Spacek MB Transportation & Government Services Gord Tufts MB Transportation & Government Services Doug Duncan U of M Transport Institute Al Phillips U of M Transport Institute Barry Prentice U of M Transport Institute Connie van Rosmalen U of M Transport Institute Erica Vido U of M Transport Institute Mike Crockatt WAA Sandy Hopkins WAA Alex Robinson WAA Brent DePape Western Economic Diversification Bob Stalker Western Economic Diversification Bruce MacLoed Winnipeg Airport Lands Corporation

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

Appendix 3: Villa XXI – Executive Summary

Villa XXI Multimodal District

Executive Summary Monterrey, Nuevo León, México: Hub of Globalization The city of Monterrey, located approximately 150 miles due south of Laredo, Texas, isMexico’s industrial capital and one of the most important manufacturing platforms in the NAFTA regional economy. Since the enactment of NAFTA, the Monterrey MetropolitanArea (MMA) has experienced tremendous growth and this trend is expected to continue. However, Monterrey’s manufacturers depend on rapid access to world-class multimodal infrastructure to stay competitive. Despite the long list of attributes, which make theMMA one of North America’s most important industrial hubs, the lack of modernmultimodal infrastructure has begun to limit growth. In an attempt to reverse this trend, the public, private and academic sectors of the State of Nuevo León have joined forces todevelop the Villa XXI Multimodal District (Villa XXI). Villa XXI seeks to provide the MMA with a state-of-the-art Inland Port and integrated mixed-use development all contained within a special infrastructure district that will allow Nuevo León toaggressively continue its march towards a high value added manufacturing economy. In order to stay competitive, the MMA must meet the demands of global manufacturers who require, among other things, speed and agility in the entire supply and value chains.Increasingly, multinational companies from a variety of industries depend upon theintegration of various modes of transportation as well as “customs friendly” infrastructure to meet the needs of international commerce in the areas of freight consolidation, storageand distribution. In this regard, Mexico still lacks the necessary infrastructure andIntelligent Transportation Systems (ITS), particularly with respect to a genuine multimodal transportation network. The Villa XXI Multimodal District will be an integrated, multi-stage project strategically located on the outskirts of the MMA in the state of Nuevo León. The heartand economic engine of the 10,000 acre mixed-use development will be the Villa XXI Inland Port that will utilize a design and operating approach similar to those found in theworld’s most advanced cargo handling and agile manufacturing facilities. This documentfocuses primarily on the Villa XXI Inland Port. The Villa XXI Inland Port will be a freight consolidation and distribution center that willpermit the efficient movement of products through distinct transportation modes and,using state-of-the-art infrastructure, operating systems, and technology, will permit companies to rapidly serve a large segment of national and international markets all ofwhich will bring important economic and social benefits to the State of Nuevo León.

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

Strategic Location / Global Accessibility Villa XXI is strategically located just outside the MMA along Mexico’s principalnational and international trade routes. The project will provide rapid access to rail,highway, marine and air modes of transportation as well as to abundant supplies ofground water and wastewater suited for industrial use. The project is located in the cityPesqueria, approximately seven miles from the recently privatized Monterrey International Airport and has three miles of rail frontage on major lines running to theU.S. border, Mexico City and to the ports of Brownsville and Altamira. Major highwaysalso criss-cross the area and allow for convenient access to all points in North America.Villa XXI will help provide the infrastructure that will allow Nuevo León to take advantage of its strategic geographic location, entrepreneurial spirit and business-friendly environment. Villa XXI’s privileged location, modern design and low land prices make it ideal to serve as one of Mexico’s first true inland ports. The majority of Mexico’s cargo terminals are located in the center of urban areas. As a result, not only are theylandlocked, but high land prices coupled with public opposition effectively prohibitexpansion of the facilities. In Monterrey, the presence of a poorly designed 100-year-old rail terminal in the center of the urban area has caused problems ranging from trafficcongestion, accidental deaths, air and noise pollution as well as the inefficient movementof containerized cargo. Villa XXI offers a viable solution. First, the project is located outside the urban area in anatural gateway to the border and to Mexico City. Consequently, the bulk of NAFTA-related cargo will pass through the Villa XXI impact zone on its way to and from theTexas border without crossing the MMA. Also, land prices are considerable lower in theVilla XXI district and the property has an envious supply of surface and ground water. Inbrief, Villa XXI will offer a logistics-based comparative advantage for Mexican and international companies located on competitively priced real estate. Villa XXI´s strategic location:

1. Intermodal access to both the Ferromex and TFM rail systems 2. Close proximity to the Monterrey International Airport 3. Current and programmed highways 4. Easy access to the ports of Altamira, Tampico, Brownsville, Corpus Christi and

Houston 5. Comparatively low land prices 6. Access to an abundant supply of wastewater 7. Facilitated rail and highway access to the U.S. border 8. Geographic proximity to the MMA´s fastest-growing industrial concentration in

the municipality of Apodaca 9. Access to a major natural gas pipeline passing in front of the property

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

Villa XXI – key to regional development The importance of Villa XXI for the NAFTA region as a whole can be highlighted by thefact that it is situated in the center of one of North America’s most important industrialregions- Northeast Mexico. The project is favorably located at strategic access points tomajor rail and trucking routes between the United States and Mexico. As a result, Villa XXI will increase Mexico’s international competitiveness and help make the country aneven more attractive destination for foreign direct investment. The project contemplates an unprecedented combination of air, sea, rail and trucktransportation supported by advanced logistics infrastructure, modern information andtelecommunications systems as well as automated materials handling facilities. This willmake cargo transportation in Northeast Mexico more efficient, safe and agile. The Villa XXI Inland Port The Villa XXI Inland Port is modeled after North Carolina’s innovative Global TransPark (GTP). In fact, the originator of the GTP concept, Dr. John Kasarda, isdirecting the Villa XXI implementation team. Villa XXI is envisioned to be one of the best logistical facilities in North America for modern supply chain management. Villa XXI´s strategic location and world-class design will make it one of Mexico’s premier transportation hubs, offering sophisticated logistical systems that meet the demands of the global marketplace. The heart of this multimodal district will be the Villa XXI InlandPort. The Inland Port will consist of a large rail terminal, a customs facility, bondedwarehouses, cold storage facilities (Villa XXI Cold Store) and a regional trucking center,much of which will be contained within a Foreign Trade Zone (FTZ). With its proximity to the Monterrey International Airport and important gulf-coast ports such as Altamira and Brownsville, Villa XXI will provide excellent trucking and rail connections to marine, rail and air modes of transportation. The Inland Port will be made up of the following four sub-projects:

• Customs Facility 20 hectares • Bonded Warehouses in the FTZ 82 hectares • Railroad Terminal 80 hectares • Villa XXI Regional Trucking Center 33 hectares

The Villa XXI Regional Trucking Center The Villa XXI Trucking Center will serve as a distribution node and an inland trade-processing center for the NAFTA community. It will help lower transportation costs,increase industrial competitiveness, provide new opportunities for logistics providers andcustoms brokers as well as encourage more expeditious and predictable cross-border movement of goods.

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

The current system for cross-border trucking of goods between the U.S. and Mexico is cumbersome and outdated. The existing bifurcated system increases costs and causestransport delays. While vehicles are waiting to cross the border, drivers must be paid,cargo must be insured, pollution is generated by idling vehicles and payments made after delivery are delayed. NAFTA was designed to slowly phase-out these antiquated practices and Villa XXI stands ready to be the vanguard of inland trucking centers oncethe treaty’s provisions are fully implemented. Laredo, Texas has become a funnel for the movement of goods between the U.S. andMexico. The city’s location on the border and the bifurcated nature of the two countries´legal systems have combined to create entrenched business practices for shipping goodsthrough the two Laredos. However, assuming open borders under NAFTA, Laredo is notthe most efficient location for the consolidation and distribution of goods traded betweenthe U.S. and Mexico. Inland staging and distribution centers more integrated withinternal transportation routes should be developed in each country. Under NAFTA,trucks will eventually have the right to transport goods between interior locations thusminimizing lengthy delays, increased costs and uncertainties associated with changingtrucking companies at the border. The concept of a “multi-hub” transportation and distribution system incorporating strategically located cities such as Monterrey, SanAntonio, Fort Worth and Kansas City, is part of the solution to these inefficiencies. Villa XXI stands to be one of the most important trucking links in the NAFTA SuperhighwayCorridor. The Villa XXI Cold Store Strong demand exists for a regional cold storage consolidation and distribution facility inNortheast Mexico. The Villa XXI Cold Store will increase exportation of U.S. products, reduce spoilage of Mexican tropical fruits and vegetables, create economies of scale thatreduce the per-unit costs of moving products, increase Mexican exports and improve thequality of perishable items. A substantial amount of cross-border trade of perishable food products exists between the U.S. and Mexico. Villa XXI´s unique location as a distribution center of the import/export of perishable items will ensure the efficient movement of goods and thecost-effective handling of products. Additionally, proper refrigeration and quality controlwill be provided for the product before being exported and upon arrival. Perishableitems coming from the U.S. such as beef, poultry and processed foods, will be on-site inspected by Mexican authorities, therefore avoiding costly delays at the border andreducing the risk of spoilage. Likewise, Northbound products from Mexico such asoranges, bananas, papayas, mangos and limes will be pre-inspected at Villa XXI by the USDA to guarantee safety and better public health. The Villa XXI Cold Store will be a refrigerated terminal operation providing cooling,packing, consolidation, palletizing, inspection, quality control and documentationservices for both North and Southbound products. Furthermore, Nuevo León’s high

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

Environmental Impact Villa XXI will have a positive impact on the local environment by making Monterrey acleaner and a safer place to live and work. Villa XXI will help alleviate severe traffic problems by diverting large numbers of trucks and trains around the urban area that willhelp minimize noise and air pollution while reducing train-automobile accidents in the MMA. The project will also lead to a more efficient use of scarce water resources. Villa XXI´s strategic location to the MMA´s main water treatment plants will allow the projectto make more effective use of scarce water resources by utilizing wastewater. The Villa XXI Preliminary Business Plan In June 2000, the project sponsors, supported by the state of Nuevo León, commissionedthe University of North Carolina (UNC) and the Technological Institute of Monterrey (ITESM) to perform a preliminary business plan. Through these two researchinstitutions, the Villa XXI Multimodal District Preliminary Business Plan was completed. The study demonstrates that when Mexico is compared to the United States, Asia and Europe—where truly advanced multimodal hubs exist—Mexico’s deficiencies become painfully evident. The recent process of privatization of Mexico’s railroads,ports and airports has begun to stimulate private investment in multimodal transportation, but much remains to be done. The Preliminary Business Plan shows economic and political conditions are in place for Villa XXI to become a reality. The study also demonstrates that Villa XXI´s location provides excellent access to all transportation modes, the price of the land is extremelycompetitive, the project has notable social benefits and the design is world-class. In brief, Mexico needs this project. The Villa XXI Business Strategy for the Inland Port In order to make Villa XXI a reality, the project sponsors have formed a real estate holding company comprised of three groups of shareholders: i) 64 peasant farmers(ejidatarios), ii) adjoining landowners and iii) developers. The alliance has joined forceswith academic institutions as well as state and municipal authorities to both plan andimplement the project. The project sponsors have agreed to donate 90 hectares to apublic-private trust mechanism for the development of the train and truck terminals. Together, the public and private sectors will grant BOT concessions to multinationalcorporations for the rail and trucking components of the Inland Port. In essence, thispublic-private partnership makes it possible to carry out the project in an orderly mannerand to ensure that a “vertical integration” of land values model is used.

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

The Villa XXI Multimodal District Master Plan - 1st Phase In May 2002, the public, private and academic sponsors of Villa XXI will begin a comprehensive master plan for the entire Multimodal District. One of the main objectives of the master plan will be to plan the various different land use priorities within the approximately 10,000 acre special infrastructure district. The project sponsors will engage experts to determine the best way to finance several basic infrastructure needs inside the district. Given the large size of the district, impressive economies of scale and legally binding land use restrictions should increase the financial viability of the basic infrastructure projects. The first task will be to carry out the master plan for the Villa XXI Inland Port. The various basic infrastructure projects that will be studied in the master plan include:

Access highways: two 30 mile-highways will be build leading into the inland port. These highways will serve as the principal roadways for the entire district Water: two large municipal wastewater treatment plants are located close to Villa XXI. The master plan will determine how to finance the extension of water and wastewater services to the Inland Port Electrical power: the construction of approximately 16 miles of power lines to the Inland Port from the large combined cycle power plant in adjoining city of Huinala will be studied

Telecommunications: a fiber optic network will be extended to Villa XXI from the near-by airport

Natural gas: Villa XXI has three miles of frontage with a large 16 inch natural gas pipeline operated by PEMEX. The master plan will determine how best to connect to the PEMEX pipeline for both industrial and domestic purposes

Low-income housing: Mexico suffers from an acute shortage of low-income housing. The master plan will layout a strategy for the inclusion of housing as an integral part of the development.

The Different levels of the Villa XXI Multimodal District

1. The Special Infrastructure District 4,000 hectares 2. The Villa XXI Mixed – Use Development 760 hectares 3. The Villa XXI Inland Port 215 hectares 4. The Villa Regional Trucking Center 33 hectares 5. The Villa XXI Research and Design Park 4 hectares

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

Appendix 4: Inland Port Presentations - Slides Appendix 4.1: Monterrey Inland Port Villa XXI Slide 1

Slide 2

Slide 3

Villa XXI

Kansas City Smart Port

CostaEste

Canadá

Costa Oeste

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

Slide 4

Slide 5

Slide 6

Public-Private Partnership

Public-Private Partnership

BOT - rail terminal & trucking center

Ejido Francisco Villa

R x R to US

Villa XXI

Mixed – Use Development

730 hectares

Housing

INDUSTRIAL

Housing

Inland Port

TruckingcenterTraining

center

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

Slide 7

Villa XXI Inland Port215 Hectares

Escala gráfica

Slide 8

Motor Freight Cargoand Service Center

Truck Yard A

Transfer Patio

Regional Cold Storageand Perishables Facility

Offices

Truck Stop

Truck Yard B

Escala gráfica

Slide 9

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

Slide 10

Slide 11

Slide 12

NORTENORTE

Area metropolitana de Monterrey

Pesquería

Juárez

CadereytaPEMEX

A Reynosa (cuota)

A Reynosa (libre)

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

Appendix 4.2: Port Des Moines Slide 1

NASCO Inland Port Presentation 9/26/02

Iowa’s inland, intermodal port for domestic and international commerce

In today’s economy, time is money. We all understand that businesses need to reach their customers as quickly and as cost-effectively as possible, regardless of their location.

Slide 2

NASCO Inland Port Presentation 9/26/02

• Inland Port Model: – WHAT is it?– HOW will it be

developed?

• WHAT we learned from our study.

• WHAT is the current status?

In 1998, the Greater Des Moines Partnership began exploring the concept of creating an inland, intermodal port for international and domestic commerce in Central Iowa. During today’s presentation, I hope to take you through our early vision for the inland port – what we learned from our feasibility study - and update you on the status of our project.

Port Des Moines:

Port Des Moines:

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

Slide 3

NASCO Inland Port Presentation 9/26/02

Before I begin – I want to help you understand a little about the organizations that are involved in the “Port Des Moines” effort. The Greater Des Moines Partnership is Central Iowa’s leading business advocacy and economic development organization. The Partnership boasts more than 2000 business members, 17 local Chambers of Commerce, and more than 30 other affiliated government and business development organizations. The Partnership’s Government and International Relations Group is home to the Iowa Export Assistance Centre. This centre houses three trade officers of the United States Department of Commerce’s Commercial Service. This centre also houses two Partnership trade specialists who manage the Midwest Agribusiness Trade Research and Information Centre, or MATRIC for short. Personnel from these two groups provide export assistance to a full range of small and medium sized Iowa-based businesses. The Iowa Export Assistance Centre is home to the Partnership’s work on the Port Des Moines Project.

Slide 4

NASCO Inland Port Presentation 9/26/02

Huntsville, Alabama

1. International Intermodal Center

2. International Airport

3. Jetplex Industrial Park

4. Trade Agencies: FTZ, USDA, customs brokers, freight forwarders

Early on, the Partnership’s staff looked to examples of successful intermodal facilities that could serve as a model for “Port Des Moines”. We believed that an inland port could save businesses time and money by consolidating trade and transportation services in one central location. We looked to Huntsville, Alabama’s Jetplex Industrial Park as a realistic and suitable model.

Who’s Who?

Original Port Des Moines Model:

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

Slide 5

NASCO Inland Port Presentation 9/26/02

• A transportation, manufacturing and distribution facility serving Iowa and the upper Midwest.

What did we envision for Port Des Moines? In 1998, our business leaders believed that a major multimodal transportation, customs, and distribution facility, serving Iowa and the Upper Midwest should be developed and be constructed. We knew that the time was right to build an inland transportation port serving trade and commerce along the Interstate 35 International Trade Corridor.

Slide 6

NASCO Inland Port Presentation 9/26/02

• Traffic management center (ITS)• Iowa DOT processing center

– License, inspection and permit

• Iowa Highway Patrol• Local emergency response

The Partnership’s business leaders identified several essential elements for the proposed “Port Des Moines”. We believed that Port Des Moines should include a transportation centre – with a regional traffic management function and a point of customer service for the Iowa Department of Transportation.

Slide 7

NASCO Inland Port Presentation 9/26/02

• Meeting facilities and exhibit space– Equipped for the needs of international

business– Host training seminars for businesses

involved in international trade– Host trade events for targeted audiences

We believed that Port Des Moines should also include a Business Centre, with meeting facilities and exhibit space – particularly suitable for small and mezzanine businesses involved in international trade.

Multi-modal:

Transportation Center:

Business Center:

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

Slide 8

NASCO Inland Port Presentation 9/26/02

• Customs clearance– Secure shipments moving

across borders for clearance

– US Department of Agriculture - bonded warehouse facility

• Offices of Canadian and Mexican customs

• Location of Des Moines Foreign Trade Zone

The facility, as we imagined it, would be a port of entry and a customs centre for the middle United States, with officers from Canada, Mexico, and the United States housed at the facility, with the United States having both United States Customs and United States Department of Agriculture officers present.

Slide 9

NASCO Inland Port Presentation 9/26/02

• FTZ #107 would expand– Current warehouse in

Northwest Des Moines would remain a part of the zone

The Partnership also manages the Iowa Foreign Trade Zone Corporation - FTZ 107 – the Grantee of the Zone. The Partnership would expect to expand the Foreign Trade Zone into Port Des Moines, and continue to utilize the existing Foreign Trade Zone warehousing facility in Northwest Des Moines.

Slide 10

NASCO Inland Port Presentation 9/26/02

• Privately financed facilities– House operations for manufacturers– Producing light weight, high value

products– Bound for the export market

We expected the synergy of facilities and of resources in and surrounding the inland port to be a magnet for private investment that would make Port Des Moines a hub of activity 24 hours a day, 7 days a week. Certainly, light manufacturing would be part of the mix.

Port of Entry:

Foreign Trade Zone:

Light Manufacturing:

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

Slide 11

NASCO Inland Port Presentation 9/26/02

• Cargo, warehousing and distribution centers – serving companies

operating in the “Port” and FTZ

– Bonded warehouses

Warehousing and distribution would be at the heart of the Port.

Slide 12

NASCO Inland Port Presentation 9/26/02

• A modern complex to provide support services to commercial vehicles including fueling stations, food and personal services.

And we expected the Port to be an attractive location for a modern, full service travel plaza.

Slide 13

NASCO Inland Port Presentation 9/26/02

All of this – we believed – could come into place in Central Iowa – creating a facility that could bring the vision of seamless, paperless commerce to reality. Regarding intermodal operations – we expected Central Iowa's niche to be primarily truck and air freight/air cargo. Automated inspections, licensing, permits, and international electronic customs clearance all would be possible.

Warehousing and Distribution:

Travel Plaza:

Seamless Commerce:

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

Slide 14

NASCO Inland Port Presentation 9/26/02

Grassley

Ganske

Harkin

Boswell

You have seen what was envisioned. How did the Partnership propose to make it happen? Four years ago, we went to our Congressional delegation and asked for federal seed money to begin the project. Iowa Congressional delegation members – U.S. Senators Chuck Grassley and Tom Harkin – and Representatives Greg Ganske and Leonard Boswell, all suggested that before they would commit to securing the $20 million we requested we needed to design and to implement a study to determine if Iowa had enough trade-related economic activity that would lend itself to using the inland port as we envisioned it. So rather than pursuing a “build it and they will come” strategy, we set our sights on a comprehensive “feasibility” study.

Slide 15

NASCO Inland Port Presentation 9/26/02

• The Partnership– $75,000 congressional grant to fund a

$200,000 feasibility study– Assumed management and support

responsibilities for the Iowa Foreign Trade Zone Corporation

– United States Department of Commerce co-located offices in Des Moines

Congress awarded the Partnership $75,000 in federal transportation funds as part of the United States’ last transportation legislation reauthorization in 1997. The $75,000 was used to aid in performing a feasibility study. In addition, the Partnership assumed the responsibility for the Iowa Foreign Trade Zone Corporation and negotiated an agreement with the United States Department of Commerce to house the Department’s Export Assistance Office staff in the Partnership’s offices.

Greater Des Moines Congressional Delegation:

First Steps:

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

Slide 16

NASCO Inland Port Presentation 9/26/02

The Partnership’s members, and other organizations, stepped up to fill the funding gap so that the feasibility study could be fully implemented and the results meaningful. The Iowa State University College of Business, Transportation and Logistics Department supplied the research team, headed by Professor Mike Crumm. The principal researchers were Professors Richard Poist, Jr., and Clyde (Skip) Walter. The Des Moines Area MPO served as the fiscal agent, managing the resources for the study. The Des Moines Area MPO provided local funding upfront to get the project started.

Slide 17

NASCO Inland Port Presentation 9/26/02

Objective of feasibility study

To study transportation practices of Central Iowa firms engaged in trade to determine the feasibility of implementing the “Port Des Moines Concept”.

The feasibility study was designed to address if Central Iowa has the market and sufficient international commercial activity to implement “an inland, intermodal port that would facilitate international and domestic commerce?” The study was structured to clearly delineate the “Port Des Moines Concept” as a concept supporting import and export opportunities by consolidating all services related to trade, licensing, loading, storage, light assembly and bonding in one central location—at or near the Des Moines International Airport.

Study Sponsors:

Port Des Moines:

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

Slide 18

NASCO Inland Port Presentation 9/26/02

Partnership Focus Groups

• Manufacturing• Carriers and Shippers• Transportation and logistics services• Agribusiness

– Current practices and problem areas • exporters• importers• service providers

The Partnership initiated a series of Focus Group meetings of manufacturers, shippers, logistics service providers and agricultural businesses. Focus Group participants were engaged to help determine current export and import practices and to identify the “problem areas” that an inland port might help address.

Slide 19

NASCO Inland Port Presentation 9/26/02

Partnership Focus Groups

• Identified needed services – single source directory– comprehensive import/export data– cargo insurance provider– food and drug administration inspector– international banking services– freight consolidators

• Provided survey suggestions

From the Focus Groups, we gathered a significant amount of new information, which helped to identify several needed services. We used that information to help the Iowa State University research team to design their survey instrument.

Slide 20

NASCO Inland Port Presentation 9/26/02

Study shows

1. “A moderate level of business support for pursuing the concept rather than maintaining the status quo”

2. “A degree of caution and the need for an educational and promotional program to bolster support”

3. Development based upon information, technology and coordination of existing facilities and services

The Port Des Moines study results reveal that Central Iowa is not ready, at this time, for a full-scale, inland, intermodal port facility like the one we imagined. The study showed only a moderate level of support for the Port concept – and the respondents suggested a cautious and conservative approach. The survey results give us a clear message that business leaders believe we should focus on linking existing facilities through application of advanced information technology systems.

Port Des Moines Study:

Port Des Moines Study:

Port Des Moines Study Results:

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

Slide 21

NASCO Inland Port Presentation 9/26/02

Potential users and service providers agree

• International trade growth will continue in Central Iowa

• NAFTA trade will grow faster than other international trade

• Central Iowa facilities favor domestic trade

• There is a general need for improvements at Port Des Moines

There were some areas of agreement among the respondents. Users and service providers agree that international trade will rise, especially among NAFTA countries. They also agree that the Central Iowa business climate is highly favourable for domestic business. Both groups revealed that their long-term growth strategies focus on domestic commerce.

Slide 22

NASCO Inland Port Presentation 9/26/02

Potential users’ vision of the port facility

• Trade Information Center

• Transportation Center

Among the laundry list of potential “Port Des Moines” services - potential users listed access to a consolidated source of international trade information and listed transportation services as their highest priorities.

Slide 23

NASCO Inland Port Presentation 9/26/02

Service providers’ vision of port facility

• House state and federal trade agencies

• Intermodal transportation center

Potential Port Des Moines service providers, on the other hand, want the Port to feature a transportation centre with a consolidated source of state and federal transportation agencies and intermodal facilities. The service providers group echoed the wishes of the users group by stating their second most important feature is a consolidated source of information from state and federal trade support agencies.

Results (cont.):

Port Des Moines Results:

Port Des Moines Results:

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

Slide 24

NASCO Inland Port Presentation 9/26/02

Port Development Matrix

Traditional Port•Handling and Moving Shipments•Web integration

Basic E-port•Static Web pages•Basic trade info•Limited interactivity

Low Information Technology Capability

Modern Port facility•Handling and Moving Shipments•Interactive Transactions

Advanced E-port•Electronic gateway•On-line interaction•E-transactions

High Information Technology Capability

High Physical Asset Requirements

Low Physical Asset Requirements

The Iowa State University researchers recommend that Port Des Moines’ development focus on the need for information and for technology. Based on the Port Des Moines feasibility study results, the Iowa State University research team offered this grid as a visual to explain four possible Port Des Moines configurations to lead Iowa from a virtual E-port to an expanded physical, inland, intermodal port facility.

Slide 25

NASCO Inland Port Presentation 9/26/02

Development Continuum

Basic E-port•Static Web pages•Basic trade information•Limited interactive elements•www.exportpartnership.com/iport Modern Port

•Handling and Moving Shipments•Interactive Transactions

Traditional Port•Handling and Moving Shipments•Web-based integration

Advanced E-port•Electronic gateway•On-line interaction•E-transactions

Year 1-3 Year 3-7 Year 7- 10

The Partnership’s staff translated the researchers’ recommendations and the grid we just saw in to a linear visualization. Here we see an implementation guideline the Partnership is using to advance the Port Des Moines concept while reflecting the study’s recommendations. Through the E-port, the Partnership seeks to help Iowa businesses act globally. And, as international commerce grows, so will the need for a full-scale, inland, intermodal port facility. We believe this gradual process will enable Iowa’s businesses to take advantage of its geographical location at the interchange of Interstates 80 and 35, to prepare for the future of globalization of trade.

Port Des Moines:

Port Des Moines:

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

Slide 26

NASCO Inland Port Presentation 9/26/02

Phase II

• Design and layout an informational website focused on intermodal developments in Central Iowa (Des Moines I-Port)

• Work to integrate Port Des Moines, the Iowa Foreign Trade Zone, and transportation service providers, into a more cohesive network for intermodal cargo movements.

We remain hopeful that we can keep the Port Des Moines concept and possibilities for expanded international commerce alive although Port Des Moines will be considerably different than first envisioned. According to the United States Chamber of Commerce, trade will triple over the next two decades. Congress is expected to appropriate billions of dollars in 2003 as part of the next transportation legislation for transportation system projects in the United States that will enhance trade infrastructure. In order for Central Iowa businesses to go global and to move forward, we must integrate the Port Des Moines concept to the needs of our business partners.

Slide 27

NASCO Inland Port Presentation 9/26/02

Phase II Sponsors

• Warren County Economic Development Corporation

• RDG Bussard Dikis• IDED• Terrus Real Estate Group

Some of our business partners have invested additional resources to help finance the on-going activities related to Port Des Moines.

Slide 28

NASCO Inland Port Presentation 9/26/02

Iowa’s inland, intermodal port for domestic & international commerce

For more information contact: Tom Rial at (515) 286-4935 [email protected]

For more information, or a complete copy of the Port Des Moines feasibility study, please contact Tom Rial, his contact information is listed here. Thank you for your attention to our presentation.

Port Des Moines:

Port Des Moines:

Port Des Moines:

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

Appendix 4.3: Kansas City SmartPort

46

Slide 1 BRIDGE TO THE FUTURE

Slide 2 What is SmartPort?

Non-profit organizationMission: develop the Kansas City region as a high-tech inland portBegan as a joint effort by Chamber of Commerce, Kansas City Area Development Council, Mid-America Regional Council

Slide 3 Why the Kansas City region?

Historic trade hubInfrastructure resourcesTransportation and logistics industryBusiness, political and academic leadership

MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

Slide 4 Kansas City’s Strategic Location

As you can see from this beautiful map, Kansas City is the centre of the universe

Slide 5

Strategic location

U.S. Customs Port

Air, rail, road, and river infrastructure

Major freight distribution facilities

Transportation entrepreneurs

Abundant Foreign Trade Zone space

Kansas City Has the Resources

-Kansas City is strategically located right in the middle of the United States, along major north-south and east-west road and rail corridors -Kansas City is a Customs port -Kansas City’s airport processes more cargo than any other airport in a six-state area -Kansas City has abundant foreign trade zone, warehousing, and distribution facilities -and Kansas City is home to you – its leaders and entrepreneurs – and its biggest advantage -We have the infrastructure resources, the studies say “go for it”, and our political leaders are supportive -Isn’t that enough reason to do this?

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

Slide 6

Freight tonnage will double over the next 20 yearsCongestion at the border will get worseNorth American Trading block cannot compete in that environment

Inefficiency Will Worsen Unless We Act

The inefficiency at the border will worsen unless we act -Freight tonnage is expected to double over the next 20 years -Everyone has heard horror stories about the long lines of trucks at the border -Unless we begin using our inland infrastructure in new ways, congestion at the border will get worse -In today’s global environment, where competition occurs between trading blocs, we cannot afford to have our North American bloc function less than efficiently

Slide 7

Agents at the border only look at 1-2% of shipments

Border crossings and transportation methods are low tech

Resources are not maximized

The Current Trading System is Insecure

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

Slide 8

Inland Ports and Technology

The Problems are Different, but the Answer is the Same

The problem is different, but the answer is the same: inland ports and technology

Slide 9 SmartPort’s Goals

Make it cheaper, easier and faster for regional importers and exporters to move goodsGrow the regional transportation and logistics industryHelp small and medium size companies to enter the global market

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

Appendix 4.4: Inland Port San Antonio Slide 1

MISSION

A public-private partnership dedicated to the development of San Antonio as an Inland Port and

International Trade Center.

BexarMet Water District

Free Trade Alliance San Antonio

Slide 2

Slide 3 Strategic Location

• More than 50% of all goods flowing between the United States and Mexico travel through San Antonio

• Centrally located approximately 1,400 miles from Los Angeles, Baltimore, Philadelphia and Detroit

• Distance to Monterrey, Nuevo Leon is 300 miles and 900 miles to Mexico City

• San Antonio has direct access to the ports of Long Beach, Houston, and Corpus Christi

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

Slide 4 Highway Infrastructure

• San Antonio serves as the hub for the South Texas highway system

• Interstate Highways 10, 35, and 37 converge in San Antonio connecting the city with Dallas, Houston, Laredo, Austin, Corpus Christi and Monterrey, Nuevo Leon

• San Antonio is the southern most intersection of major East-West and North-South U.S. Interstates (I35 and I10)

Slide 5 • Union Pacific Railroad provides rail

service to San Antonio with direct access to both U.S. coasts and Mexico.

• The Union Pacific Railroad also provides direct rail connection to Monterrey, Mexico City and Guadalajara

• Union Pacific operates a rail intermodal facility immediately adjacent to KellyUSA which handles over 20,000 truck-to-rail and rail-to-truck transitions per month

Rail Infrastructure

Slide 6 Air Cargo Infrastructure

• San Antonio has three airports less than 15 minutes from the central business district

• Both San Antonio International Airport (SAIA) and KellyUSA offer air cargo capabilities and services

• SAIA offers over 1 million square feet of air cargo warehousing space – all of which is designated for foreign trade zone use.

• KellyUSA offers over 4 million square feet of warehousing space – all of which is designated for foreign trade zone use.

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

Slide 7 Cost Competitive FacilitiesKellyUSA offers very competitive logistics distribution facilities

• 4.5 million square feet of warehouse• Cross-dock capabilities• Direct highway access• Intermodal Rail Facilities• Foreign Trade Zone• 11,500 Foot Runway

Slide 8

International Business Development Center(IBDC)

at KellyUSA

Slide 9 Program Description

The IBDC is a program designed to assist small and medium sized foreign based companies in penetrating the U. S. and Mexican markets.

It helps companies test the market potential of their products in the U. S. and Mexico

The IBDC offers a low cost center of operation which includes a series of integrated services designed to create knowledge andsupport to develop a product market.

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

Slide 10 IBDC Clients Receive Office Space

Furniture Meeting RoomAccess to Copier Communications

Marketing AssistanceResearch Assistance in Implementing PlanMarketing Plan Assistance with Trade Shows

Professional Support Services (Included in Price of Program)Accounting - Tax Consultation Legal - Labor LawsLegal - Incorporation Financial - PlanningLegal – Visa/Immigration

Training Program (How to Do Business in the U.S. & Mexico)

Slide 11 Program Qualifications

Must be based outside of the United StatesProduce or distribute a productMust be export readyMust have a product viable for the U.S./Mexico marketMust be in good financial standingMust have a minimum of 3 years in operation

Application ProcessSubmit program application form

Program Cost$3,500 U.S. Dollars for the year (12 months)

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

Appendix 4.5: WAADC Slide 1

Winnipeg Airport Area Development Corporation

Inland Ports Conference

September 26, 2002Winnipeg, Manitoba

Slide 2 WAADC

Economic growth areasBackgroundTerminal RenewalNew Agency’s MissionVisionApproachTask ForceRecommendation

Land AreaPhase IStaged DevelopmentNew Agency’s MandateEssential FunctionsGovernanceBusiness PlanTargeted IndustriesCommunity Benefits

Slide 3 Downtown & Airport

2 key areas for economic growth

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

Slide 4 Background

98% of Winnipeggers think YWG is very (87%) or somewhat (11%) important to the City’s economy

Slide 5 Terminal Renewal

Slide 6 New Agency’s Mission

To facilitate airport economic development, in partnership with the City of Winnipeg, by targeting industry clusters, expediting approval processes

and by meeting the specific development requirements of our clients

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

Slide 7 Vision

To be recognized as North America’s most innovative airport development agency

Slide 8 Approach

CentreVenture and WAA modelsAutonomousProfessional ManagementPartnerships

Slide 9 Task Force

Co-chairsGlen Murray, Murray SiglerDeputy ChairsPeter De Smedt, Alex RobinsonImplementation Task ForceDavid Angus, Gail Stephens, Annitta Stenning,Paul Soubry, Klaus Thiessen, Angela Mathieson

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

Slide 10 Task Force

Development TeamAlex Robinson, Mike Crockatt, Russ Tychonick, Leonard Strijack, Michael Ruta, Linda Black, John McNairnayWorking GroupSandy Hopkins, Dennis McKnight, Robert Gabor

Slide 11 Task Force Membership

City of WinnipegWinnipeg Airports AuthorityWinnipeg Chamber of CommerceCentreVentureManitoba Aerospace AssociationEconomic Development WinnipegProvince of Manitoba

Slide 12 Recommendation

That City Council approve the creation of the Winnipeg Airport Area Development Corporation and provide the required funding to fully develop and implement the Business Plan

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

Slide 13 Land Area

Slide 14 Phase 1

The 295 acres of airport land and approximately 400 acres in the southern half of the development zone bounded on the north by the proposed Airport Expressway.

Slide 15 Staged Development

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

Slide 16 New Agency’s Mandate

Encourage investment and development on airport and lands west of the airportFacilitate the necessary approvalsManage the bank of landProvide short term financial assistanceRecommend infrastructure requirements

Slide 17 Essential Functions

Global marketingFacilitate / fast track zoning and development approvalsRecommend tax credits for projectsShort term gap financingLoan guaranteesGrants

Slide 18 Governance

Not-for-profit, non-shareholder corporationAutonomous organizationPartnership

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

Slide 19 Governance

7 person Board– 1 CEO– 1 appointed by City of Winnipeg – 1 appointed by Provincial Government– 1 appointed by Federal Government– 1 appointed by WAA– 1 appointed by Winnipeg’s Economic

Development Agency– 1 appointed by Winnipeg Chamber

Slide 20 Business Plan

Land AssemblyMarketingEnvironmentalFinancialOrganizationalLegal Issues

Slide 21 Targeted Industries

Aerospace / CompositesTransportation (air cargo, intermodal, trucking)Export manufacturingWarehouse and distributione-Commerce activitiesSupport services

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MID-CONTINENT CORRIDOR INLAND PORT SEMINAR November 2002

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Slide 22 Aerospace Industry

Slide 23 Community Benefits

Job creationOverall economic developmentNew tax revenuesLinks to post-secondary education

Slide 24

Thank You!


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