Juan Carlos Villa

1
Fifth Annual North American Agrifood Market
Integration Consortium Workshop New Generation
of NAFTA Standards
OPTIONS FOR REDUCING CONGESTION AT THE MEXICAN
BORDER
Juan Carlos Villa Texas Transportation
Institute Texas A M University System
2
Agenda

• Background
• Commercial Vehicle Border Crossing Process
• Agricultural Truck Movement Process
• Opportunities and Recommendations
• Concluding Remarks

3
Background

• Land Trade between U.S. and Mexico has tripled
  from 86 billion in 1994 to 262 billion in 2006
• Two very different phases

Source Bureau of Transportation Statistics,
Transborder Surface Freight Data
4
Background

• Mexican exports of agricultural products -10
  AAGR
• Seasonality
• Tomatoes - largest horticultural export

Source USDA, Foreign Agricultural Trade of the
United States Database.
Source Servicio de Información Agroalimentaria y
Pesquera-SAGARPA, Mexico.
5
Background

• Mexican vegetable exports are primarily done by
  truck
• Concentration
• Production
• Ports of entry

Source Servicio de Información Agroalimentaria y
Pesquera-SAGARPA, Mexico.
Source USDA, Foreign Agricultural Trade of the
United States Database.
6
Background

• Elements for a potential storm
• High growth in US/MX trade
• Infrastructure not keeping pace
• Concentration
• Transportation mode
• Ports of entry

7
Commercial Vehicle Border Crossing Process
US/Mexico NAFTA Trucking Provisions
8
Commercial Vehicle Border Crossing Process
Drayage
Nogales
Nogales
Culiacan
Chicago
9
Commercial Vehicle Border Crossing Process
At least 3 potential inspections
10
Commercial Vehicle Border Crossing Process

• Border Security Programs
• Free and Secure Trade
• FAST
• Segregation of Vehicles based on previously
  obtained information
• C-TPAT

11
Agricultural Truck Movement Process

• Agricultural exports have additional steps

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Agricultural Truck Movement Process

• Military Roadside Inspections
• At least in 3 inspection points before reaching
  Nogales
• Delays could double the transit time
• Inspections performed by military personnel
• Contamination
• Seal breaking

13
Agricultural Truck Movement Process

• Quality Inspections
• Some products require mandatory quality
  inspection by USDA officials
• Tomatoes
• Grapes
• Onions
• oranges

14
Agricultural Truck Movement Process
Driver and Cross Docking

• Cruzadores Drivers
• Require U.S. issued visas
• Truck reload to comply with US truck weight

15
Opportunities and Recommendations

• Number of Inspections
• Stops delay shipments, increase chances for
  contamination and hamper security programs
• Recommendations
• Increase coordination
• U.S.-Mexico
• Fed-State
• Public-Private
• Coordination Areas
• Procedures
• Hours of operation
• Sharing data

16
Opportunities and Recommendations

• FAST/C-TPAT Participation
• Low participation
• Underutilized infrastructure
• Increase delays
• Recommendation
• Modify FAST to accommodate particular
  requirements of the agricultural products supply
  chain
• Work with CBP/Aduanas/SAGARPA developing a pilot
  project

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Opportunities and Recommendations

• Lack of Capacity
• Physical Capacity
• Human Capacity
• Recommendations
• Promote development of compliant carriers
  (truckers)
• Sufficient drivers that can cross into the U.S.
• Training programs (vehicle safety, security
  requirements)
• Increase throughput modifying hours of operation
  during peak seasons, smoothing demand curve
• Add FAST traffic lanes at crossings all the way
  to Mexico

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Opportunities and Recommendations

• Inefficient Procedures within Mexico
• Military inspections
• Security procedures at origin
• Recommendations
• SENASICA to define non-intrusive inspection
  protocols and train inspectors
• Work with CBP to C-TPAT certify producers
• Create a seal protocol from origin

19
Concluding Remarks

• Identify low hanging fruit
• Institutional framework already exists
• Key stakeholders need to participate

20
GraciasThank you
Juan Carlos Villa Manager Economics, Trade and
Logistics Program Texas Transportation
Institute 979-862-3382 j-villa_at_tamu.edu