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 D evelopment 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’ 3 rd largest trade partner and 2 nd 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, 3422 drivers, covering 101 routes –STE (trolleys) : 383 trolleys, 20 light trains, 11 routes over 460 kilometers –Metrobus : three BRT routes, 67 kilometers, 290 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: - 24.5 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 1000-1500 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: www.setravi.df.gob.mx www.stc.df.gob.mx www.ste.df.gob.mx www.metrobus.df.gob.mx www.rtp.df.gob.mx Some states: www.portal2.edomex.gob.mx/stransporte www.st.pue.gob.mx www.nl.gob.mx/?P=cons_transporte www.jalisco.gob.mx/svt

17. FOR MORE INFORMATION U.S. Commercial Service Mexico Alicia Herrera Senior Commercial Specialist Tel: (011-52-55) 5140-2629 Alicia.herrera@trade.gov 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. www.ustda.gov

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. www.ustda.gov

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

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) www.ustda.gov

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 www.ustda.gov

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 President Obama Announcing the Export Promotion Cabinet as part of the National Export Initiative www.ustda.gov

25. USTDA by Sector: FY 2006 – FY 2010 www.ustda.gov

26. USTDA Activities International Business Partnership Program  Reverse Trade Missions  Conferences & Workshops Project Development Program  Feasibility Studies & Pilot Projects  Technical Assistance How We Accomplish Our Mission www.ustda.gov

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 www.ustda.gov

28.  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 Conferences and Workshops www.ustda.gov

29. Feasibility Studies  Infrastructure Project Assessment  Technical  Financial / Economic  Legal / Regulatory  Environmental  Pilot Projects www.ustda.gov 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 www.ustda.gov

31. Requesting USTDA Funding: How to Work with USTDA  No formal application procedure, guidelines can be found at www.USTDA.gov.  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. www.ustda.gov

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. www.ustda.gov

33. Using USTDA’s Resources Visit our website at www.USTDA.gov  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. www.ustda.gov

34. www.USTDA.gov

35. Contact USTDA Main Office: Main Office: Arlington, Virginia Telephone:(703) 875-4357 Fax:(703) 875-4009 Website:www.USTDA.gov Keith M. Eischeid USTDA Country Manager for Mexico KEischeid@ustda.gov www.ustda.gov Thank You!

36. Gracias! Additional Questions? Please contact: Julia Walker APTA Program Manager – International Programs JWalker@apta.com +1 (202) 496-4833