THE FRANK HAWKINS KENAN INSTITUTE OF PRIVATE ENTERPRISE Creating a Competitive Logistics Infrastructure for Monterrey-Villa XXI Dr. John D. Kasarda, Director The Kenan Institute of Private Enterprise The Kenan-Flagler Business School The University of North Carolina at Chapel Hill Monterrey, Mexico February 24, 2000

Changing Competitive Priorities 1970s Cost 1980s Quality 1990s Delivery Speed 2000 Agility

New Industrial Strategies for New Global Realities Integration of world markets Global sourcing predominates Production flexibility and mass customization Response replaces inventory, flows replace stocks SURVIVAL OF THE FASTEST AND MOST AGILE

To Create Speed & Agility Manufacturing Transportation Information Agile Logistics Integrating Manufacturing, Information and Transportation

Villa XXI Inland Port A New Infrastructure for Agile Logistics Manufacturing & distribution facilities located on or accessible to Inland Port site Multimodal transportation (air, road, rail, with links to sea) Central Cargo Facility (for sorting and consolidating) Automated materials handling Advanced ISDN and fiber optic communications (for EDI and materials tracking) Logistical support Commercial and knowledge support

VILLA XXI INLAND PORT MULTIMODAL TRANSPORTATION INTEGRATED Information Systems Management Multimodal Management MULTIMODAL TRANSPORTATION INTEGRATED TELECOMMUNICATIONS Airports Highways Information Superhighway Digitalized Teleport Seaports Rail Materials Handling Systems Communications Satellites Fiber Optics & Harmonized EDI VILLA XXI INLAND PORT Sourcing Distribution Production CS Management KNOWLEDGE SUPPORT KS Management COMMERCIAL SUPPORT Customs Facilitation Foreign Trade Zone Distance Education Training Facilities Universities, Community Colleges & Schools Commercial Services Marketing, Empl. Agencies ... Government & Legal Services Market Research R & D Labs Financial Services Expo Centers & Trade Associations Strategic Planning Technology Transfer Consultancy

Intermodal Interfaces at the Global TransPark CTS Automated Materials Handling Container Storage Area (SLOT) Trucks Loading Unloading Off-Ramp JIT Manufacturing Facility On-Ramp JIT Factory and/ or Distribution Facility Automated Materials Handling Systems Customs CENTRAL CARGO FACILITY CTS - Rail Link Intermodal Rail Facility

Linking Monterrey- Villa XXI to Global Commerce Networks THE FRANK HAWKINS KENAN INSTITUTE OF PRIVATE ENTERPRISE Linking Monterrey- Villa XXI to Global Commerce Networks

Developing Global Network Europe North Carolina Philippines Thailand Brazil

Illustrative Global Link System for Mexico with Dual Hubs MEXICALI TIJUANA GLOBAL LINK SYSTEM GATEWAY REGIONAL TRANSPORTATION HUB INTERNATIONAL ACCESS SATELLITE FEEDER ACCESS MEXICO CITY HUB LINK JUAREZ GLOBAL ACCESS HERMOSILLO CHIHUAHUA FIDENOR NUEVO LAREDO TORREÓN MONTERREY TAMAULIPAS LA PAZ DURANGO MERIDA GUADALAJARA MEXICO CITY VERACRUZ PUEBLO GLOBAL ACCESS OAXACA GUERRERO SALINA CRUZ

Illustrative Global Link System for Mexico with Dual Hubs and Local Multimodal Webs GLOBAL LINK SYSTEM GATEWAY REGIONAL TRANSPORTATION HUB INTERNATIONAL ACCESS SATELLITE FEEDER ACCESS MEXICO CITY HUB LINK LOCAL MULTIMODAL WEBS GLOBAL ACCESS MONTERREY MEXICO CITY GLOBAL ACCESS

Villa XXI Inland Port Summary Targets global markets and time-based competition as the keys to business success Features full integration of air, road, rail and sea transportation modes Links Monterrey into an emerging international network what will give the region’s manufacturers quick and efficient access to suppliers and customers around the world Can make Nuevo León a major hub for multimodal commerce and catapult the state into global leadership in JIT manufacturing and distribution

Proposed Next Steps Public-private team formation for the regional Master Plan Identify financial sources for the Master Plan Continuing the Inland Port Villa XXI Business Plan (2nd.Phase) Start up the free trade zone study Involvement of major companies for the master planning

THE FRANK HAWKINS KENAN INSTITUTE OF PRIVATE ENTERPRISE 5 Minute GTP Video