1. Virtual Trade Mission to Mexico
December 12, 2011
Michael Winter
Senior Program Analyst, Federal Transit Administration
Jeff Wharton
President, IMPulse NC LLC
Chair, APTA Business Member International Business Development Subcommittee
Alicia Herrera
Senior Commercial Specialist, U.S. Commercial Service, Mexico
Keith Eischeid
Country Manager, Mexico and Central America, U.S. Trade and Development Agency

2. PASSENGER TRANSPORTATION PROJECTS IN MEXICO
ALICIA HERRERA
Commercial Specialist for Passenger Transportation
U.S. COMMERCIAL SERVICE MEXICO
Mexico City/Mexico

3. U.S. Commercial Service Agency of the U.S. Department of Commerce
Focusing in supporting exporters of U.S. products & services
Different programs to help U.S. companies in identifying potential distributors or representatives
Market research
International Delegations to U.S. shows
107 offices in the U.S.
Presence in almost all countries in the world
Buyusa.gov/mexico

4. The Mexican Market
• Mexico is the United States’ 3rd largest trade partner and 2nd largest export market for U.S. products
• Mexico’s population is over 112 million people with 74% urban; 44% under 20 years of age; 23% wealthy/upper middle class; and 37% middle class, and offers a large market with a GDP of approximately USD $1 trillion. Per capita income is $13, 800
• Abundant market opportunities for U.S. firms
• Mexico uses many U.S. technical standards
Geographical proximity makes easy to be in contact, negotiate and follow up

5. Mexican Transportation Systems
Urban transportation organization is decided by each state
31 states and one Federal District
Most states have a mixed organization with public and private transportation systems
Private organizations must obtain a concession to operate and manage certain routes or transportation systems
Multiple micro-concessionaires that operate 1-5 transportation units
Most states are in the process of modernizing transportation systems and replacing old units

6. Mexico City Metropolitan Area (MCMA)
Comprises Mexico City and several municipalities of the State of Mexico
19.2 million people in 7,815 square kilometers
23 million passenger/trips per day
80 % use public transportation and 6 % use private cars
Average of 4.5 million cars circulating daily
One public transportation unit per 132 private cars
Transportation systems connect Mexico City with different regions of the States of Mexico and Morelos

7. Mexico City’s Transportation Systems
Mexico City has a mixed transportation structure:
Public systems:
Subway system (METRO) : 177 kilometers, 11 lines and 175 stations. Moves 1.4 million passengers per day
RTP or Bus System : 1475 buses, drivers, covering 101 routes
STE (trolleys) : 383 trolleys, 20 light trains , 11 routes over 460 kilometers
Metrobus : three BRT routes, 67 kilometers, articulated buses , moving 620 ,000 passengers per day
Private transportation systems:
- 25,000 units including buses and micro buses
- 108,000 taxis

8. State of Mexico’s Transportation Systems
All private, operated by multiple concessionaires
30,000 buses and micro-buses operated by 119 different groups
116,000 taxis
Suburban Train:
- Inaugurated in July 2008
- 27 kilometers connecting several towns in the State of
Mexico to the subway and bus transfer station in Mexico
City
- Operated by the Spanish company CAF

9. Important projects in Mexico City
Subway Line 12 currently under construction:
km, with 20 stations
- Estimated investment of US $ 2 billion in infrastructure
and 1.2 billion in equipment
RTP: pilot programs with hybrid buses.
STE: two “zero emissions” routes of trolleys:
54.6 km. and 49 stations, with 150 trolleys
Project in the bid process for building infrastructure
Replacing 194 trolleys between 10 and 30 years old
Metrobus: two more BRT corridors in the next two years. Possibilities for hybrid units

10. Projects in other states
State of Mexico:
Two more suburban trains
Replacing micro-buses per year
More BRT corridors. One articulated bus will replace 4-5 micro-buses
All new units will need to be diesel operated and include GPS & GPRS systems, panic buttons, automated passenger counters and vehicle monitoring systems

11. Projects in other states
State of Nuevo Leon:
New Subway system lines in Monterrey
Several BRT corridors using the best technologies. They will start with 80 articulated low bed buses. Opportunities for urban equipment, street furniture, IT systems, hybrid buses and related products
State of Jalisco:
Pilot program with 10 hybrid buses. Plans to buy 100 more
Security and monitoring systems for the night transportation services
Automatic systems for fare collection , passenger counting, fleet monitoring and management, and GPS

12. Projects in other states
State of Puebla:
Will open concessions for four BRT corridors in the City of Puebla. Plans to start with 45 articulated high bed buses. In the bid process for building infrastructure for fist corridor
Will need automatic fare collection systems, security systems, and fleet management and monitoring systems
Many other states have also important projects to modernize their transportation systems
Opportunities to sell parts to bus manufacturers in Mexico

13. Trends and Best Prospects
More BRT systems
Substitution of old units
Use of simulators
More automated systems for fare collection, fleet monitoring, maintenance managing, passenger information and others that can improve services and save money to operators
Use of security and CCTV systems
Better signaling systems
Strict control of emissions and polluting sources
Use of electronic advertisement and entertainment systems.

14. Procurement Public institutions must comply with regulations:
Purchases under US$3,100 awarded directly to selected providers
Purchases over that amount must be through public tenders
Private concessionaires:
Select suppliers by requesting quotations
Decide a purchase based on price, financing and delivery conditions

15. How to do business in Mexico
Having a Mexican distributor/representative
Spanish speaking technical staff
Inviting potential clients to visit manufacturing facilities in the U.S.
Adapting to market conditions/being flexible
Getting familiar with Mexican culture
Time to follow up and make presentations to different levels of decision makers

16. Sources of Information
Mexico City:
Some states:

17. FOR MORE INFORMATION Thanks!!!!!!!! U.S. Commercial Service Mexico
Alicia Herrera
Senior Commercial Specialist
Tel: ( )
Buyusa.gov/mexico
Thanks!!!!!!!!

18. USTDA: Advancing U.S. Exports to Mexico
Keith M. Eischeid
Country Manager, Mexico and Central America
U.S. Trade and Development Agency
APTA Virtual Trade Mission to Mexico
December 12, 2011

19. Key Points
USTDA helps U.S. companies expand their international footprint.
USTDA helps U.S. transportation companies create jobs through the export of U.S. technologies and services.
USTDA prioritizes the transportation sector.
Mexico is a priority market for USTDA support.

20. USTDA’s Mission
Helping companies create U.S. jobs through the export of U.S. goods and services for priority development projects in emerging economies.
Linking U.S. businesses to export opportunities while creating sustainable infrastructure and economic growth in partner countries.
The U.S. Trade and Development Agency’s mission is based on two central principles:
Supporting sustainable infrastructure and economic growth in partner countries
Helping companies create U.S. jobs through the export of U.S. goods and services for priority development projects in emerging economies

21. Regions www.ustda.gov East Asia and Eurasia
Middle East, North Africa and Europe
South and Southeast Asia
Latin America and the Caribbean
Sub-Saharan Africa

22. USTDA Highlights
Independent agency of the U.S. Government, established in 1981.
USTDA invested over $44 million in grants and contracts in FY 2011.
USTDA has facilitated over $40 billion in U.S. exports to emerging markets.
Key number:
$1 to $58 (export multiplier)

23. Inter-Agency Cooperation
USTDA coordinates with other USG agencies to carry out our assistance:
Trade Agencies:
Commerce Dept., SBA, USTR
Technical Agencies:
DOT, FAA, DOE
Finance Agencies:
Ex-Im Bank, OPIC
Foreign Aid Agencies:
State Dept., USAID, MCC

24. National Export Initiative
NEI was launched in 2010, with the goal of doubling of U.S. exports by 2015.
Increased Trade Advocacy
USTDA Launched the International Business Partnership Program
As you probably know, President Obama recently launched the National Export Initiative with the challenge of doubling U.S. exports over the next five years.
As a member of the Export Promotion Cabinet, USTDA is working hard to realize these goals of increasing trade and expanding international business partnerships.
President Obama Announcing the Export Promotion Cabinet as part of the National Export Initiative

25. USTDA by Sector: FY 2006 – FY 2010

26. USTDA Activities How We Accomplish Our Mission
International Business Partnership Program
Reverse Trade Missions
Conferences & Workshops
Project Development Program
Feasibility Studies & Pilot Projects
Technical Assistance
As USTDA carries out its program, we work to match U.S. commercial interests with overseas development opportunities through:
International Business Partnerships, including Reverse Trade Missions, Conferences, and Training Grants; and
Project Development, including Feasibility Studies, Pilot Projects, and Technical Assistance

27. Reverse Trade Missions
USTDA brings foreign project sponsors to the United States to gain exposure to U.S. products and services.
Examples from Mexico:
Multimodal Transportation RTM
Intelligent Transportation Systems RTM
March 11-22, 2012
Business Briefing
Brazil ITS Delegates at the Utah State Traffic Center
October 2011
Each year, USTDA sponsors numerous reverse trade missions, bringing foreign project sponsors to the United States to gain exposure to U.S. products and services.
USTDA funded a reverse trade mission in October 2010 to familiarize Mexican government officials and Mexican companies with U.S. multimodal terminals and related U.S. technologies and equipment. The development of multimodal transportation corridors in Mexico would support more efficient trade-related transportation in Mexico. Met with. Exports.
The third of three visits to be carried out as part of USTDA's Intelligent Transportation Systems Initiative for Latin America, this Reverse Trade Mission will be comprised of leading Mexican private and public sector decision makers in the ITS field. The goal of the initiative is to familiarize senior Latin American officials and project sponsors with U.S. technologies and best practices with respect to intelligent transportation systems through three separate visits to the United States for delegates from Brazil, Colombia, and Mexico, respectively. Each visit schedule will include meetings with U.S. industry, financial institutions, and U.S. government agencies to exchange information with regard to the commercial, technological, regulatory, and financial aspects associated with intelligent transportation systems.
For example, USTDA will host a 10-day Reverse Trade Mission that will bring Mexican government officials to the United States to meet and discuss business opportunities with U.S. ITS technology and equipment providers in California, Nevada and Washington, D.C. in March.

28. Conferences and Workshops
Highlights near-term infrastructure projects.
Introduces U.S. company representatives to senior officials responsible for project implementation.
Example from Mexico:
U.S. and Mexico: Building Partnerships in Infrastructure Conference
In addition to sponsoring reverse trade mission like the one I just described, USTDA sponsors conferences and workshops, which also introduce foreign project sponsors to U.S. business and leading U.S. products and services.
The “U.S. and Mexico: Building Partnerships in Infrastructure” conference was held in Mexico City in 2008 to highlight priority infrastructure projects in Mexico. The projects were selected from the list of 300 projects within Mexico’s National Infrastructure Program. The conference highlighted projects in the transportation, energy, and environmental sectors that have potential for advancing Mexico's economic development and improving commercial competitiveness. So far, USTDA has tracked $17 million in U.S. exports linked to the conference.

29. Feasibility Studies Infrastructure Project Assessment Technical
Financial / Economic
Legal / Regulatory
Environmental
Pilot Projects
USTDA project development activities provide the evaluation and analysis necessary for projects to move forward and receive financing.
In December 1998, USTDA approved a grant of $240,000 to Transportación Ferroviaria Mexicana, S.A de C.V. (TFM). TFM, a private operator of the North East Rail Line in Mexico, proposed to develop an intermodal system consisting of a network of terminals that would be strategically located near markets and closely integrated to one another through interconnecting line haul links. The terminal network plan was founded on the concept of integrated, multi-user regional and local hubs that would be connected to one another by scheduled, dedicated or express train operations. The proposed terminals would be well positioned to expand TFM's steamship and domestic volumes, as well as NAFTA trade. The proposed sites included Monterrey, San Luis Potosí, Querétaro, Nuevo Laredo, and Toluca. Export potential for this project was estimated at $32 million, with possible exports of overhead cranes, forklifts, hardware and software, and track materials. The prime contractor, Hanson Wilson, submitted a final draft of the feasibility study in Recorded $156 million in exports.
For example, USTDA provided a $427,861 feasibility study grant to assist the City of Tijuana and SNL Logistics, S.A. de C.V., in the design and development of the proposed Tijuana Intermodal Terminal in northwest Mexico. USTDA’s support of this project is in line with bilateral efforts to support the development of physical infrastructure and overall regional competitiveness.
For example, USTDA funded a study to.
Results:
Pilot projects: 1) Demonstrate U.S. sellers’ goods and services.
2) Provide analysis and evaluation needed for future projects to secure funding.
Examples from Mexico:
Northeast Rail Intermodal
Tijuana Intermodal Terminal

30. Technical Assistance
Development of sector strategies, industry standards, and legal and regulatory regimes that are necessary for successful project implementation.
Helps a country adopt market-opening policies and procedures that promote a favorable business and trade environment.
Examples from Mexico:
SCT Multimodal National Plan
National ITS Architecture
USTDA funded a $1,323,900 technical assistance grant to assist Mexico's Secretaría de Comunicaciones y Transportes (SCT) in the development and deployment of a comprehensive national plan for modernizing Mexico's multimodal trade transportation infrastructure. Implementation of this technical assistance will promote trade competitiveness in Mexico by advancing efficiency and investments in vital trade transportation links throughout the country.
Mexico ITS Architecture TA for SCT. In 2003, USTDA approved a $431,000 grant to provide technical assistance (TA) surrounding a trade capacity building project for the Secretariat of Communications and Transportation (SCT) of Mexico. The assistance was designed to support the development and implementation of SCT’s planned National Intelligent Transportation Systems Architecture, and would integrate the resulting system with existing transportation architecture. U.S. export potential was estimated to exceed $100 million in materials and services related to intelligent transportation systems. Wilbur Smith Associates completed the TA in 2006.

31. Requesting USTDA Funding: How to Work with USTDA
No formal application procedure, guidelines can be found at
Requests can be made year-round.
Requests can come from a local entity or a U.S. company working with a local partner (sole source).
Public and private overseas enterprises are eligible for assistance.

32. USTDA’s Funding Criteria
USTDA evaluates project proposals based on the following criteria:
Developmental priority in the partner country.
Likelihood of receiving implementation financing.
Mutual benefits for the United States and partner, including commercial and export opportunities for U.S. firms.
USTDA evaluates projects for funding support based on the following criteria:
1) Whether the project is a developmental priority for the project sponsor and host country;
2) The likelihood that the project will receive implementation financing; and
3) Whether the project offers mutual economic benefits for the United States and Mexico, including opportunities for commercial cooperation with U.S. firms.

33. Using USTDA’s Resources
Visit our website at
Check current business opportunities with USTDA and our overseas grant recipients.
Sign-up for our eNewsletter to learn about our upcoming events.
Obtain copies of USTDA-funded studies.
I encourage you to visit our website to check current business opportunities around the globe and upcoming events here in the U.S. On our website you can also see examples of past projects and sign up for automatic updates.

34.
Our website, USTDA.gov, is the best place to find up to date information about opportunities to get involved. “USTDA Events” is a great first stop to find upcoming reverse trade missions or business briefings that will be bringing prepared overseas buyers to the U.S. to learn about goods and technologies in your industry. Additionally, you can:
Perform a feasibility study or definitional mission, by looking at contract opportunities with USTDA
Find viable project opportunities with demonstrated export potential, by working with our grant recipients

35. USTDA Country Manager for Mexico
Contact USTDA
Main Office: Arlington, Virginia
Telephone: (703)
Fax: (703)
Website:
Keith M. Eischeid
USTDA Country Manager for Mexico
Thank You!

36. APTA Program Manager – International Programs
Gracias!
Additional Questions?
Please contact:
Julia Walker
APTA Program Manager – International Programs
+1 (202)