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Port of Entry Agua Prieta – Douglas II

Port of Entry Agua Prieta – Douglas II. Arizona State Sister Cities Conference October 6 – 7, 2017. Background

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Port of Entry Agua Prieta – Douglas II

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  1. Port of Entry Agua Prieta – Douglas II Arizona State Sister Cities Conference October 6 – 7, 2017

  2. Background • The current Raul Hector Castro Port of Entry was built in 1933. At the time, Franklin Roosevelt was president of the United States, Arizona’s population was near half a million. The most recent improvements made to the port were completed nearly 20 years ago. • The capacity of the current Port of Entry Raúl H. Castro is insufficient to attend both commercial and private traffic. Limitations occur in both directions. • To address this problem, in 2007, the sister cities of Agua Prieta and Douglas agreed to build a new port. After analyzing several proposals, it was concluded that the best option was to locate it at approx. 6 - 8 miles west of the urban area. • In 2010, the federal government’s General Services Administration called the crossing “wholly inadequate" for Customs and Border Protection’s mission requirements. There has been a push for several years to renovate the Douglas port of entry because it is unable to handle its current level of traffic.

  3. Renovating and/or Constructing Port of Entry ? • The Port of Entry is currently landlocked on both sides, does not significant room for expansion. • According to a 2017 study conducted by Sierra Vista Metropolitan Planning Organization, the main reason for crossing into the US is shopping, with an average expenditure of $196 USD per person. • This brings over $740 million into the City of Douglas and Cochise County each year. • This provides a significant opportunity for economic development to be captured in Cochise County while bringing attention to the need of a new Port or Entry or to “expand”/modernize the current one. • But, the construction of a new Port of Entry is gaining national attention by the state and federal governments and their agencies. • Plans are being identified that would provide these improvements within the next 3 – 5 years. • The main reason for the low economic growth in the region is the lack of roads. The construction of a Port of Entry that combines pedestrian crossings, vehicles and railroad cars will revitalize the economy of this region as a whole.

  4. Current Situation • The Raul Castro Port of Entry is one of Arizona’s principle gateways for trade and tourism. In 2016, Douglas was the gateway for more than $4 billion worth of goods, more than 7.6 million people, 62,000 trucks and 3.2 million cars in two-way traffic. In 2017 this figures will be similar. • The port of entry is outdated, overburdened and inefficient.  In addition, trucks are forced to use the same roads and inspection facilities as cars, buses and pedestrians. • The PoE is the gateway for many shipments of hazardous materials that are currently being shipped through the heart of Douglas and Agua Prieta.   • It is imperative that trucks and all hazardous materials have been taken out of the heart of the population centers.

  5. There is no path to export cattle pens Insufficient physical space

  6. The Project • Involves the construction of a new international Port of Entry, 6 – 8 miles west of the existing one, purely commercial vocation thus freeing urban transit freight. This would also allow the extension of Port I, whose vocation would be tourism. • The New Gate contemplate enable transfer of cargo, industrial and commercial lots on both sides of the border, with access to major roads in the two countries. • Detour of commercial cargo to the new PoEwould release the traffic, protecting the infrastructure of both cities, ensuring the security of its population . • Expansion of the Port of Guaymas in Sonora ensures the traffic needed to boost the economy of the region. • The land for the construction of the gate in the US is owned by the city of Douglas, while on the Mexican side, the owner is an individual and is willing to donate it.

  7. In July 2015, USCBP rejected the request for donations from the city of Douglas due to the public-private financing to the project. • Following this, the proposal is re-evaluated and concluded that the best alternative for the success of the project is to combine vehicular traffic railway, linking it to the extensions that are currently made at the Port of Guaymas. • Mexico is making a $123 million seaport expansion in Guaymas with one of two primary routes of distribution going directly into Douglas. There is also significant expansion going on in Agua Prieta to include a desired new rail corridor. • Inthe Mexican case, the member of the Intersectorial Commission stated positively, although Mexico is awaiting the approval by the US authority – Presidential Permission.

  8. Substantiation

  9. Positive trend in private, commercial and pedestrian transport • Increase in rail traffic resulting from the expansion of the Port of Guaymas • Boost in Cross Flow • Respect for the San Pedro River shoal • Contingency plan in case of toxic spills • Environment

  10. Renovation of the local port and Construction of a new one will have a significant economic impact on the community and the county. The port handles between 350 and 450 commercial trucks a day and recorded more than 1.3 million vehicles crossing the border. • The projects to modernize our existing port and to build a new one are but tools in the long-term development of Douglas and the entire region. These projects will help us attract new investment in manufacturing, warehousing, distribution centers, retail, lodging, restaurants and much more. This will also help us expand our tax base, create jobs and diversify our economy. Mark Levy/Sierra Vista Herald

  11. Border Crossing Stats 2017 U.S. Customs and Border Protection- Douglas Port of Entry

  12. Border Crossing Stats 2017 U.S. Customs and Border Protection- Douglas Port of Entry

  13. Where we are • Three applications by Douglas for federal funding to build a new Port of Entry have been denied by the U.S. Customs and Border Protection agency. • The most recent application, submitted in December, 2015 and rejected June 2016, offered the government a shovel-ready site, with the donation of utilities and a connector road between the proposed port and Arizona SR 80. • This support has been joined by Congresswoman Martha McSally (R-AZ) and the Committee on Transportation, Infrastructure and Border Crossings of the Arizona-Mexico Commission. • Authorities in Cochise County, AZ, expressed their willingness to lead the promotion of this project in the USA. • CBP and GSA will be conducted a feasibility study, in FY 2018, to discuss the proposal to relocate the business operations a second PoE.

  14. According to the Sonora Government, the owner of the land, that would be required to develop the new port (405 thousand m2), is willing to donate them. • Sonora would be willing to make improvements in the Port of Entry, which would depend on the relocation of the commercial operations to a second international crossing Douglas - Agua Prieta. • TheMexican authorities that have contemplated the construction of the New Port of Entry, as a matter of priority, have not pronounced on the documents transmitted by both cities, they mentioned the importance of having the Presidential Permit in the USA. • The National Assets Administration and Valuation Institute (INDAABIN) * has yet to redefine when the executive project could be integrated for the reorganization of this port according to the new budgetary provisions. In addition, the land donation process is ongoing. • * General ServicesAdministration (GSA)

  15. Suggesting Convince all stakeholders to work as a team to pull this effort together and push this up through state and federal channels quickly. This is the perfect opportunity for all our elected officials to Show the interest of the development of this important border area.

  16. THANK YOU

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