1. The Border at Nogales Terry Shannon, Jr. Chairman Greater Nogales and Santa Cruz County Port Authority

2. Who We Are Greater Nogales and Santa Cruz County Port Authority: Created in December 2004 Main purpose is to foster the economic growth of the region, to improve the POE’s at Nogales and to enhance the quality of life for the residents of the region Nogales has four POE’s: Morley Avenue - Pedestrian DeConcini (“Grand Ave.”) – Pedestrian, train, buses and POV’s Nogales West (“Mariposa”) – Commercial, POV’s, Pedestrian, Buses Nogales International Airport

3. Board of Directors Membership Membership City of Nogales; Santa Cruz County; Fresh Produce Association of the Americas Maquila Association of Sonora; Nogales Alliance: Port of the Future; Nogales Community Development Corporation; Nogales Santa Cruz County Chamber of Commerce; Nogales U.S. Customs Brokers Association; and Santa Cruz Tourism Council. Ex-Officio Members US Customs and Border Protection; US General Services Administration; Arizona Department of Transportation; Consejo Empresarial de Nogales, Sonora; Municipality of Nogales, Sonora; Mexican Consulate General – Nogales, Arizona; and US Consulate – Nogales, Sonora.

4. www.nogalesport.org Morley Grand Ave./Rail Nogales 1936

5. TODAY: DeConcini POE US MX Secondary Southbound Primary Rail Morley SENTRI Aduanas Pedestrian

6. Mariposa POE Mexican Inspection US Inspection N MX US Southbound ADOT Northbound Cattle Pens FAST Lanes

7. Nogales By The Numbers (Source: Customs and Border Protection) (*) Includes Morley

8. Untenable Situation Complaints by truck drivers resulted in a blockade of Mariposa that caused multi- day delays for crossing, back ups of several miles on the Mexican side, diversion of produce to other ports of entry, shortage of trucks in Northwestern Mexico and delays in delivery of product. Key reasons for complaints: Implementation of ACE during Peak season Insufficient infrastructure Need additional staffing Need to improve Mexico access

9. Mariposa Reconfiguration POE completed in 1979 Not designed for Pedestrians Not designed for Pedestrians Close to 500,000/year Designed truck throughput: 400/day Designed truck throughput: 400/day Average Daily Truck Crossings: 1,500+/day (Oct – May) Average Daily Truck Crossings: 1,500+/day (Oct – May) Effective Inspection Docks: 20-23 Effective Inspection Docks: 20-23 No Refrigerated Dock space No Refrigerated Dock space 4 Billion Pounds of Fresh Produce each season 4 Billion Pounds of Fresh Produce each season Estimated value: $2 billion Estimated value: $2 billion 47% of Fresh Winter produce in entire US!! 47% of Fresh Winter produce in entire US!! Approximately $20 billion in Maquila Trade Approximately $20 billion in Maquila Trade

10. Mariposa Reconfiguration

11. Reconfiguration Project Border Station Funding in FY ’07 Budget $13.694 Million as part of the Federal Buildings Fund in FY’07 Jones Studio selected as design firm FY ‘09 Request for approx. $174 million for construction GSA and CBP confirmed that Mariposa project is a National Priority Working with ADOT on new interconnector road between POE and I-19 ADOT and CANAMEX consider interconnector #2 priority on the border

12. GSA Reconfiguration Concept Latest Conceptual Drawing of Mariposa Reconfiguration Project (as of April 3, 2008) Construction Timeline: Approx. 36 months GSA, CBP, ADOT and other stakeholders working on final revisions to concept Latest Conceptual Drawing of Mariposa Reconfiguration Project (as of April 3, 2008) Construction Timeline: Approx. 36 months GSA, CBP, ADOT and other stakeholders working on final revisions to concept

13. Other Initiatives Nogales is Gateway for CANAMEX Trade Corridor Connecting State of Jalisco all the way to Province of Alberta, with Arizona/Sonora as the principal gateway for the corridor ASU Received DHS Grant: “Vulnerability Assessment and Reduction of Economic Impact for the Fruit and Vegetable Industry: A Food Defense Assessment for border Communities in the Southwestern United States” U of A Received National Center of Excellence for Border Security and Immigration To be co-lead with UTEP

14. Other Initiatives Organized visit to ASU’s National Center of Excellence on SMART (Sustainable Materials and Renewable Technologies) Incorporate SMART technologies, materials and processes into design and construction of Mariposa Organized a demonstration for GSA, Jones Studio, CBP, ADOT, CANAMEX and border communities Jones committed to finding ways to leverage space and facilities to include i.e.: solar panels Find ways to make POE’s more durable, lower maintenance cost, and integrate better into environment Examples: Fibers in pavement that increase weight bearing capacity Paints that help reduce heat retention

15. Other Initiatives Tucson-Guaymas Corridor Study ADOT, Sonora and SCT partnership GNSCCPA member of Technical Advisory Committee Feasibility study for container traffic at Guaymas Phase I completed Principle conclusion includes: Source: Logistics Capacity Study of the Guaymas-Tucson Corridor

16. Short Term Solution: FAST Lanes C-TPAT program based on voluntary participation by low risk shippers, but requires dedicated lanes ADOT and Cyberport funds $4.3 million (US Side) State of Sonora Approx. $1.0 million (MX Side) ADOT, Cyberport, BTA, GNSCCPA, DHS/CBP form strategic partnership to secure: Presidential Permit (August 2005, 1 st at-grade permit!!) FAST Inaugural Ceremony August 15, 2006 First POE expansion in past 5 years!

17. FAST Expansion View into Mexico Existing PSANew Lanes August 15, 2006

18. Q & A Terry Shannon, Jr. Chairman Greater Nogales and Santa Cruz County Port Authority www.nogalesport.org (520) 287-2707 tshannons@mchsi.com