Brownsville (Texas) Economic Journal Summer 2013 by Brownsville Economic Development Council

PORT OF BROWNSVILLE

SHOVEL READY CERTIFIED

INTERNATIONAL CROSSINGS

POSITION

SPACEX

MEDICAL SCHOOL

MANUFACTURE SH 550 CORRIDOR

ECONOMIC DEVELOPMENT

PARKS

MOBILITY

WORKFORCE PROGRAMS

BORDERPLEX

COMPETITIVE READY

PROJECT STARGATE

RESACA RESTORATION PROJECT

INDUSTRIAL CORRIDOR

SERVICES SHIP CHANNEL DREDGING

PORT OF MATAMOROS

I-69 CORRIDOR

EAST LOOP CORRIDOR

OVERWEIGHT CORRIDOR DROUGHT-PROOF TRANSFORMING INDUSTRIAL DESTINY

MATAMOROS BUSINESS

UNIVERSITY MERGER

NORTH BROWNSVILLE INDUSTRIAL PARK SUSTAINABILITY

WATER SUPPLY

FIBER OPTICS EXTENSION PROJECT OPPORTUNITY

GOODS

PROGRESS

HUMAN TRANSPORT CAPITAL CONTRACT

AIRPORT RUNWAY EXTENSION

INFRASTRucTuRE

LOGISTICS STRATEGIC PLANNING

HEAVY INDUSTRY

GLOBAL ECONOMY

17,000 INTERNATIONAL ACRE RAILROAD MASTER MEXICAN SUPERVIA PLAN

TEXAS

COMMERCIAL LAUNCH SITE

ACCESS TO GLOBAL MARKETS

FREE TRADE

AEROSPACE INDUSTRY

DESALINATION PLANT

DEEP-SEA PORT

AIR CARGO

800 MW POWER PLANT ALL IN

PARTNERSHIP

BROWNSVILLE

Vol. 2, No. 1 / Summer 2013

COMMERCIAL LANES FOR CARGO CROSSING

Airport infrastructure aiming new heights

Three major industrial corridors taking shape

Cover story:

Brownsville welcomes I-69 Corridor

Foreign direct investment

Tenaska power plant gives a competitive edge

SpaceX

Cover design and illustration: Jorge I. Montero

Brownsville, a drought-proof city

Project clears major hurdle after authorities host public hearing

Brownsville recognized for its market strategy 4

New international railroad bridge set to open

Pages: 10-34

Deepening of the channel a top priority for Port

WHAT’S INSIDE

SH 550 offers direct access to markets

Build it, and they will come. That is what local and regional authorities are hoping a series of major infrastructure projects in the Brownsville Borderplex region will help do once they are complete: position the area for global competition. From new roads, a railroad bridge, and industrial corridors, to utility infrastructure and human capital, Brownsville has never seen these types of endeavors being developed at the same time, all with one objective in mind: economic progress. This anniversary issue includes a series of articles about these projects that are transforming Brownsville’s destiny.

Brownsville Economic Journal Summer 2013

Making progress

Mayor invites investment and touts the abilities of Brownsville’s human capital in first ever State of the City Address

Initiatives improving human capital and education

COMMENTARY

Guest editorial: Mexico’s telecom reform, the more the merrier

Local Industry Corner: Human capital, a vital part of a community’s infrastructure

BEDC.com

PRESIDENT’ScORNER

Positioning ourselves for global competition

t’s no secret what we’re trying to do – recruit Foreign Direct Investment.

Jason Hilts

President & CEO

And the objective is to position the Borderplex for global competition. We’ve taken the first major step in that direction with the planning, coordination and execution of the 17,000-Acre Industrial Plan & Corridor. Allow me to explain. In 2012, our local municipally-owned utility (Brownsville Public Utilities Board) and the port authority, (Port of Brownsville), together with us (Greater Brownsville Incentives Corp. & Brownsville EDC) invested in a mixed land-use plan specifically for placement and recruitment of industry. For the first time ever in this region, we’re interconnecting an array of structural projects and capital accumulation in support of overall mission – ability to grow and trade in the global economy. Investment in infrastructure is critical for economic development, which in turn has a direct impact and correlation on socioeconomic welfare, in other words, generating wealth The deliverable is enhancing supply chain and growth for business, especially those in the manufacturing sector, in turn generating primary jobs. The list of projects, a combination of completed, under construction and in planning phase, include: Real Estate & Infrastructure n GBIC Large Industrial User Site, 350acre development ready industrial park n North Brownsville Industrial Park, a 75acre certified shovel-ready industrial park n SH 550 Corridor-Industrial Zone, proximate to the Port n East Loop Corridor-Industrial Zone, proximate to the Port n Commercial Rocket Launch Site, alas Cape Canaveral n Aerospace Park, proximate to the proposed Rocket Launch Site

EJ EDITOR IN CHIEF Gilberto Salinas gsalinas@bedc.com

DESIGN COORDINATOR & EDITORIAL CONTENT Jorge I. Montero jmontero@bedc.com COPY EDITOR Sylvia Rodriguez srodriguez@bedc.com

EDITORIAL OFFICE Brownsville Economic Development Council 301 Mexico Boulevard, Suite F1 (ITEC Campus) Brownsville, Texas 78520 Tel. (956) 541-1183 Fax: (956) 546-3938 VISIT US ONLINE www.BEDC.com

PHOTOGRAPHY BEDC Editorial Team Brad Doherty

FROM YOUR MOBILE DEVICE

CORPORATE CONTACT Lizzy Putegnat lputegnat@bedc.com

PUBLIC RELATIONS Michelle Lopez mlopez@bedc.com

CIRCULATION Sylvia Rodriguez srodriguez@bedc.com

The Economic Journal of the Brownsville Borderplex is published on a quarterly basis and distributed according to the fair-use doctrine of U.S.

Turn To Page 7

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Summer 2013

Brownsville Economic Journal

GuESTEDITORIAL

Mexico’s telecommunications reform, the more the merrier

Ernesto Velarde Danache

President & Founder of Ernesto Velarde-Danache, Inc. Mexican & International Lawyers

or so many years important sectors of the telecommunications industry were under the control of the Mexican government or in the hands of a few private investors. This practice was systematically denounced as oligopolistic by Mexican and foreign entrepreneurs who were frustrated by the lack of opportunities within the sector. Fortunately, this practice has come to a most anticipated end. Indeed, the Mexican lawmakers recently approved a bill that was thereafter approved in record time of two weeks by 18 of the states’ legislatures and promulgated by Mexican President Enrique PeñaNieto and thus published on June 11, 2013 edition of the Official Gazette of the Federation (effective of as June 12, 2013), which results in an unprecedented opportunity for Mexican and foreign investors that had been waiting for this very dramatic and most welcome breakthrough. Foreign investors are now allowed to invest up to 100% in the telecom industry, except in radio where foreign investment may not exceed 49% of the corporate capital, unless a higher percentage is available to Mexican nationals in the country of origin of the investor. The telecom sector is now open to competition and guarantees the Mexican people access to services that have historically been very expensive and thus prohibitive for many. Broad-band and internet access, elevated to the range of a constitutional right, will have to be made available to all by the federal authorities. The “must carry and must offer” mechanism is being implemented and will become a legal obligation for the carriers. As a result and as evidence of the very important and positive impact that this reform will have, the bidding process for two new private television chains will soon commence. In order to make the telecom industry more effective and its operation less bureaucratic, the Federal Institute of Telecommunications was created, autonomous and independent, and will be the agency in charge of regulating, promoting and supervising the telecom industry. This Constitutional Reform regarding Telecommunications, Broadcasting and Economic Competition highlights the following six main areas: n First: Strengthening fundamental rights. Freedom of expression and access to information are reinforced, together with the rights of telecommunications and broadcasting service users.

Brownsville Economic Journal Summer 2013

As a result of this reform, telecommunications are services of general interest, meaning that the state will guarantee that they are provided in conditions of competitiveness, quality, diversity, universal coverage, networking, convergence, free access and continuity. n Second: Updating the legal framework of the telecommunications sector. To reinforce legal certainty, a single order will be issued to ensure the convergent regulation of the spectrum, networks and services under the single concession system. The asymmetric regulation to which the prevailing economic agents will be subject following a declaration by the regulatory body will also be implemented. n Third: Strengthening the institutional framework. The decree establishes the Federal Institute for Telecommunications and the Federal Economic Competition Commission as autonomous constitutional bodies. Furthermore, to ensure the rights of economic actors, courts specializing in telecommunications, broadcasting and economic competition will also be established. n Fourth: Promoting competition. Up to 100% DFI will be permitted in telecommunications and satellite communications. A maximum of 49% DFI will be permitted in broadcasting, subject to reciprocity in the country where the investor has set up business. Broadcasters will be obligated to permit non-discriminatory access and rebroadcasting of their signals to pay television companies. At the same time, broadcasters have the right for their signals to be retransmitted free of charge and in a non-discriminatory fashion by television companies. n Fifth: Establishing a Universal Digital Inclusion Policy and a National Digital Agenda. The president will be responsible for this policy, which will provide for infrastructure, accessibility, connectivity, information technology, communication and digital skills. The goal is for at least 70% of households and 85% of micro, small and medium enterprises have sufficient speed to be able to download information, in adherence to international standards. n Sixth: Promoting greater coverage in infrastructure. To this end, a national backbone fiber optic broadband network will be promoted, together with a wholesale wireless access shared network, based on the radio-electric spectrum of the 700 megahertz band. This is not a light reform. This reform will somehow change Mexico. It will also change the perception that many have of this country. EJ BEDC.com

Positioning ourselves for global competition Continued from Page 5

n SH 550 Corridor, also known as I-69 Connector n Newly designated Interstate-69 n Newly designated Interstate-2 n Capital improvements at the Brownsville SPI International Airport n Dredging, deepening of the Brownsville Ship Channel n East Loop Corridor Project n New West Rail International Bridge n Expansion of Veterans International Bridge n Overweight Corridor in and out of Mexico n Development of the Port of Matamoros n Mazatlan-Matamoros Interoceanic Supervia (interstate connecting the Pacific Coast with the Gulf Coast)

Transport Infrastructure

n 800 MW Power Plant, by the Tenaska Group n 345 KV Lines into the Borderplex n High Voltage DC Ties into Mexico

Energy Infrastructure

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n LNG Liquefaction Plant (planned) n Offshore Wind Power Project (planned) n Our proximity to: New oil discoveries in the Gulf of Mexico Natural gas fracking at Eagle Ford Share

n Resaca restoration project (water distribution, collection) n Water abundance (desalination plant) n Wastewater expansion project n Water reclamation project for industry

Water Management Infrastructure

n Project Stargate - UTB, BEDC & SpaceX n Fiber optic extension project

Communications Infrastructure

n “All In” program, addressing human capital needs n Texas Southmost College reinventing its workforce programs n New UT Medical School for region n Merger of UT-Brownsville and UT Pan American, making it third largest Texas uni-

Human Capital

versity What does it all mean? Solid quality infrastructure, a region's attributes, strategic planning and execution are the key ingredients for sustainable development. We all know that government resources are limited, so we’ve found a way to be creative in finding solutions to our funding needs. Part of it is by way of public-private partnerships in order to get the desirable projects and outcomes associated with it. On the legislative front, quite a few of these items were addressed during the 83rd Texas Legislative Session, such as the extension of the Overweight Corridor to cover more ground in North Brownsville's industrial sector, amending the law to allow for launching of rockets from Boca Chica Beach, tweaking the law to enhance the operations of the soon-to-be 800 MW power plant, and the addition of a University of Texas Medical School to the Borderplex. We're in the midst of the strategic game, where the payoff will be sustainable development by way of trade in the global economy. EJ

Summer 2013

Brownsville Economic Journal

SpaceX project clears major hurdle Environmental study

From Staff Reports

he Federal Aviation Administration held its second and final Public Hearing on the Draft Environmental Statement of Space Exploration Technologies’ (SpaceX) proposal to launch rockets from the Boca Chica beach area near Brownsville, marking an important milestone in the timeline of the project. Federal authorities hosted the public hearing on May 7, at the ITEC Center in Brownsville to solicit feedback from the community regarding the results of the Draft EIS that was made public on April 15. The EIS process took a little over a year to be completed. The FAA’s 350-page Draft EIS found few environmental concerns that would prevent the FAA from issuing a permit to SpaceX for rocket operations at Boca Chica beach. The study details possible ways a rocket launch site there might affect the environment, including threatened or endangered species. The document also recommends actions that could minimize those impacts while still allowing SpaceX to proceed, if a permit were granted by the FAA. The FAA is expected to finalize the report in the fall and after that will make a decision to either let SpaceX launch or not. The company plans to make an announcement in regards to a site location after the FAA’s decision. The Boca Chica area is one of four sites being considered by SpaceX for a launch site. Sites in Florida, Georgia and Puerto Rico are also being contemplated by the commercial aerospace company, head-quartered in Hawthorne, California. The proposed site near Boca Chica is a private tract of land, just south of Highway

AEROSPAcE INDuSTRy

Brownsville Economic Journal Summer 2013

Staff photo

Patrick Burchfield, Director of the Gladys Porter Zoo, speaks in favor of SpaceX during the public hearing.

4 about a quarter-of-a-mile before the Gulf of Mexico. The site is three miles north of the Rio Grande and five miles south of South Padre Island. A total of 539 individuals signed in at the hearing, including Federal and State elected officials, the media, city government agencies, local community planning groups and local school representatives. During the public hearing, the FAA received a total of 94 written comments, 89 of which expressed support of the Proposed Action, 2 expressed opposition to the project and 3 were general. Of the 67 oral comments at the meeting, 61 were positive, 2 were negative, and 4 were general. Patrick Burchfield, Director of the Gladys Porter Zoo in Brownsville, spoke at the hearing and expressed his support for the project. He views SpaceX as “the least environmentally intrusive thing that can happen.” “Take the example of Merritt Island, near Cape Canaveral, that is rich with

wildlife, rich with birds and nesting sea turtles. We don’t have to reinvent the wheel with this EIS statement, just look at what already exists around existing launch sites in the way of wildlife,” he said. The scientist has spent the last 43 years working specifically with the Kemp’s ridley sea turtle, primarily in Mexico. The Kemp’s ridley, an endangered species, nests along the Gulf coast in Northern Mexico and South Texas. To minimize any potential harm to sea turtles, SpaceX will follow a series recommentations proposed in the Draft EIS that include minimizing light emmissions and will work closely with environmental experts to identify any nests that could potentially be affected and relocate them at a safer location. Having SpaceX in Boca Chica “will be a long term way that we are going to protect that natural place,” Burchfield said. A representative of the Lone Star Chapter of the Sierra Club also spoke in support of SpaceX. “We do not oppose this project, we are thankful that SpaceX has reached out to our organization as well as numerous others throughout the state and are working closely with the resource agencies that we also work very closely with. We look forward to working with SpaceX to create a very exciting project that everybody can be proud of,” said Scheleen Walker, a representative of the Lone Star Chapter of the Sierra Club. The first public scoping meeting was held on May 15, 2012 also at the ITEC Campus. That time, more than 550 people showed up at the event. About 75 signed up to speak, of which 73 spoke in favor of the project, one was neutral and one against the project. EJ

BEDC.com

Making progress

FINANcIAL REPORT

Brownsville Mayor highlights the City’s healthy economic status

State of the city Address capacity to meet its long term obligations. “That means we’re paying our bills and managing our debt, and that’s not something every city can say these days,” he said. Martinez added that Moody’s, one of the agencies, said if the city wanted to continue its fiscal growth, it should continue growing its tax base, maintain its balance

sheets and most importantly improve its socioeconomic profile. “Improve socioeconomic profile, frankly is what breaking barriers is all about. It’s why economic gains means little without seeing increases in educational achievement levels, or improved public health indicators.”

Turn To Page 42

Photo by Jorge I. Montero

Brownsville Mayor Tony Martinez delivers his speech during the State of the City Address held in May at the Brownsville Events Center.

ore than 500 people gathered at the Brownsville Events Center in May for Brownsville’s first ever State of the City address, in which Mayor Tony Martinez called on residents to continue breaking down barriers throughout the city, inviting investment and touting the abilities of what he called Brownsville’s “human capital.” “We often sell Brownsville for its location,” he said, noting that while “On the Border, By the Sea” works well as the city’s motto, it doesn’t capture the spirit and work ethic of its residents. He challenged all residents to get involved playing off of the event’s space theme by saying that there are no passengers in the city’s missions and BEDC.com

declaring that everyone has a role to play. Martinez spoke during the two-hour event that was interspersed with videos and onstage interviews of major players in the city’s development, which helped to drive home the mayor’s points on finances, health and infrastructure. Martinez highlighted Brownsville’s financial report after fiscal year 2011-2012, which he said showed an increase in the city’s fund balance and resulted in the three major credit rating agencies all upgrading its credit rating. The mayor said that an audit for that fiscal year found the city to have sufficient funds to meet requirements for cash outlays in the next fiscal year, as well as the financial Summer 2013

Brownsville Economic Journal

INFRASTRucTuRE

See map pages 22-23

Brownsville welcomes I-69 corridor

Road to Progress 10

Brownsville Economic Journal Summer 2013

BEDC.com

Written by Jorge I. Montero

he Federal Highway Administration officially designated the portion of the US Highway 77 in Brownsville as part of the Interstate Highway 69 East. The designation inches the Borderplex area closer to being connected to one of the nation’s interstate corridors. The much anticipated announcement was made in late May by Victor Mendez, administrator of the FHWA, during the ribbon cutting ceremony held for the completion of the second phase of the State Highway 550 project. Once complete, SH 550 will become a connector for I-69 E with direct access to the Port of Brownsville. The portion of US 77 through Cameron and Willacy Counties will be signed as Interstate 69 East. This includes 53 miles of existing freeway starting in Brownsville and running north past Raymondville. “That’s the full 53 miles,” Mendez told the Brownsville Herald. “The importance of that from an economic development standpoint is just having an interstate shield on a highway is really important, positive thing in terms of future development.” “This is a landmark day in the 20-year effort to make I-69 a reality in Texas,” said John Thompson, board chairman for Alliance for I-69 Texas, a coalition made up of cities, counties, port authorities and community leaders building grassroots support for upgrading the entire Interstate 69 route in Texas. “It is the result of a sustained local, state and federal cooperative effort. Community leaders along the I-69 route have relentlessly pursued this goal because they know that moving people and freight efficiently is vital to our economy and our quality of life,” he said. Zeke Silva, owner of S&M Transport, a trucking company based in Brownsville, received the announcement with excite-

Positive impact

BEDC.com

ment and said that having the I-69 corridor in Brownsville will make a tremendous impact in the region. “It’s positive for the economy and the trucking business because the more you have, the more they (companies) like. The infrastructure is going to determine who comes to our area,” he said. He foresees an increase in business because in his trade, it’s all about accessibility. “The more access you have to (a) highway and commercial land, the more the customers are going to want to build,” he said. “If you have access to highways, then you have access to big trucks, therefore you have more access to move your product from point A to point B.” Silva said that having more access to highways helps cut down on the routing of the trucks, which in turn saves time, decreases fuel consumption, and helps the trucker to transport the cargo quicker to its destination. “The quicker you turn around your product, the quicker you can make a profit on it,” he said.

Louisiana, Arkansas, Mississippi, Tennessee, Kentucky, Indiana, and Michigan. In the Rio Grande Valley, the US 77 expressway is completed to interstate highway standard for 40 miles starting in Brownsville and ending near Raymondville. This section was added to the Interstate System thanks to a 2012 change in federal law. I-69 signs are slated to be added to the system in Cameron County later this summer. With each overpass and every additional mile of I-69 upgrades, local officials expect to open new doors for economic development, new jobs and more efficient freight movements. “The significance of I-69 is immense. We will be able to look back in 20 years and see the growth that occurred because of these interstates. It will be just like what happened in the Dallas area,” David Garza, Cameron County Commissioner, told the Rio Grande Guardian. EJ

“Corridor of the Future”

When finally complete, I-69, dubbed by the Department of Transportation as one of the “Corridors of the Future,” will run from Brownsville all the way north to Port Huron, Michigan, next to the Canadian border. The I-69 is a 2,680-mile international and interstate trade corridor that runs between the borders of Mexico and Canada thru eight states in the U.S: Texas,

POWERING A BRIGHTER TOMORROW Tenaska’s Texas roots go deep – back to the company’s founding in 1987 and our very first power plant. Today, we’re a national energy company with a regional office in Arlington and a reputation for building safe, efficient and reliable power plants, including two we operate in Texas. Now, Tenaska is bringing our expertise to Brownsville. Fueled by clean-burning natural gas, the proposed Tenaska Brownsville Generating Station would bring hundreds of construction jobs, approximately 25 operations jobs and power to meet the growing demand for electricity in the region. We are excited at the opportunity to grow our business in the great state of Texas and especially to become an active member of the Brownsville community.

Summer 2013

Brownsville Economic Journal

Aiming new heights

INFRASTRucTuRE

See map pages 22-23

By Staff Reports

irport officials are working on a series of major projects that, once completed, will elevate the Brownsville South Padre Island International Airport’s current infrastructure to new heights. In the works are extending the main runway, rehabilitating the taxiway, upgrading the passenger terminal and the construction of a dual customs cargo facility. Larry Brown, the airport’s director of aviation, said the enhancements are needed in order to maintain a competitive position with regard to other airports nearby, as well as to foster economic development in the airport’s catchment area. He added that establishing a dual customs operation, extending the main runway and improving the aesthetic quality of the airport as a doorway into the city are key in making Brownsville a more competitive community as the Borderplex looks to attract companies and businesses to the area. Perhaps the most important project is the runway extension, which would expand it to 12,000 feet. Its current length is 7,400 feet. The project is currently in the environmental review phase and airport officials are at the moment engaged in purchasing property to be used for a runway exten-

sion to the south, Brown said. “The runway extension will allow for heavier, larger air cargo movements in and out of the airport’s foreign trade zone and allow the airport to compete with the cargo operations of bigger airports such as Los Angeles International Airport and Miami International Airport,” Brown said. Also, increased passenger and cargo activity throughout the years has called for a much needed modernization of the current terminal, which was built in the late 1960s. In an interview with the Brownsville Herald, Brown said that the renovation of the facility will allow for additional space for security screenings and allow for more public restrooms. He added that the terminal was not designed to have the high levels of security checks now required for air travel and the expansion will allow for that to be offered. Another project is the construction of a dual customs cargo facility. The customs hangar will increase the airport’s capacity for larger aircraft. The hangar will also increase the ability to attract international freight because it will have space for U.S. and Mexican customs officers, he told The Herald. Having customs officers from both nations will allow air

cargo planes attempting to enter Mexico to have their cargoes cleared at the Brownsville airport before heading to their Mexican destinations. But, in order to build the hangar, airport officials must relocate the National Weather Service’s radar. The radar’s current location restricts the height to which hangars can be built. Moving it to another location on the airport’s property would allow for bigger hangars, like the larger customs hangar. All of these projects are needed in order to continue to expand the aerospace industry in the Borderplex. “We are working on providing an economical, cost effective airport that encourages investment ranging from manufacture of aircraft to transport of parts to and from distant destinations,” Brown said. And if SpaceX decides to build a launch facility in Brownsville, it will allow the region to have a bigger competitive advantage, making the much needed infrastructure enhancements even more necessary. “The arrival of SpaceX will cause an immediate paradigm shift in the regional economy, much as the establishment of Pan American Airways did in Brownsville in 1930. The positive impacts will range throughout the region and will result in new jobs that are related to a wide variety of aerospace endeavors,” Brown said. EJ

Photo by Brad Doherty

An airplane departs from Brownsville South Padre Island International Airport in this file photo. The airport is undergoing through a series of infrastructure projects that will help Brownsville’s global competitiveness. Brownsville Economic Journal Summer 2013

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Three major industrial corridors taking shape EJ

INFRASTRucTuRE

See map pages 22-23

By Staff Reports

en years ago, trucks hauling goods and materials to the Port along FM 511 would get a glimpse of cows and horse grazing, acre after acre as they made the 8-mile trek to the Port of Brownsville. Today, there’s more traffic being generated from trucks hauling materials and goods to and from the Port of Brownsville, the majority of which is for export. Though, 10 years from now, the strip connecting the new I-69 to the Port of Brownsville and southward along the East Loop highway to the Veterans International Bridge might resemble more of an industrial highway than that of cows grazing in the 1990s. The collaboration of such entities and the BEDC, the Port of Brownsville, the Brownsville Public Utilities Board, has resulted in the identification and planning of a 17,000-acre Master Plan for Industrial Development, also known as the area development plan. The identification and classification of public and private properties is split up into three components: n North Brownsville Industrial Corridor n Port of Brownsville Development Corridor n East Loop Corridor The North Brownsville Industrial Corridor is a stretch of FM 511 from the new Interstate-69, westward and connecting to the Port of Brownsville. The FM 511 is now the SH 550, which is designed to take traffic, particularly heavy trucks, nonstop with no obstructions from I-69 to the front door of the Port of Brownsville. Along the NB Corridor is a utility BEDC.com

cluster, which has the Southmost Regional Water Plant, a desalination treatment plant, a new 800 megawatt power plant by the Tenaska Energy Group and the Brownsville PUB, and a set of new industrial natural gas pipelines leading up to the facility and the Port. Across from such infrastructure is the Large Industrial User Site, a 350-acre development ready park owned by the Greater Brownsville Incentives Corporation, the funding board of the BEDC. Access to the Olmito Rail Switchyard is available through the industrial site as well as new 345 KV lines which will be coming into the area for the new power plant. Adjacent to the GBIC land is a law enforcement cluster. The North Brownsville Industrial Park, a 73-acre Master Plan Industrial Park is located at Paredes Line Road, a 1/4 mile south of SH 550. The park is a Class ‘A’ location certified by a leading site selection firm as ‘Shovel Ready’ that includes many of the amenities that companies look for in order to establish their operations. It is zoned light and medium industrial and is suited for an array of industrial operations seeking a clean environment, quality labor force, proximity to international hubs, excellent transportation services, and most importantly, a city with a pro-business environment. The backbone of the NB Industrial Corridor and the East Loop Corridor is the Port of Brownsville Development Corridor, the area of SH 550 leading up to the Port which is open for development. This particular area also served by both, the Brownsville PUB and Magic Valley Electric Coop. The site provides direct access to Port amenities as well as rail, power and natural gas.

The next leg is the planned East Loop Corridor, which will connect on the south side of the Brownsville Ship Channel, travel southward toward the Rio Grande and on its way, connecting the Brownsville South Padre Island International Airport and the Veterans International Bridge. The East Loop will also have access to rail as well as the required utilities for industrial growth. However, of utmost importance is how the loop will be connecting the BRO airport, which will facilitate the trade and commerce of goods to the different ports of entry. The corridor will be connecting directly to the Veterans International Bridge, which in turn will be connecting to the Mazatlan-Matamoros Interoceanic Highway, provide the link between the Pacific and Atlantic oceans by way of the Brownsville Ship Channel and the Gulf of Mexico. The key for the three major corridors, is that it will be one huge strip of interstate highway, connecting the major portals of transportation. The entire strip also is designated a Heavy Overweight Corridor, which means trucks coming from or going to Mexico can overload the weight by 1.5 times the DOT limit, hence, providing a competitive logistics advantage for export. And one more advantage is access to the Foreign Trade Zone, which is at the Port of Brownsville, the BRO airport, and soon-to-be at the GBIC and NB industrial parks. Once complete, the corridor will be the region’s aorta of industrial activity pumping at the pulse of the global trade. EJ

Summer 2013

Brownsville Economic Journal

INFRASTRucTuRE

See map pages 22-23

Access to markets

Written by Jorge I. Montero

he State Highway 550 project is a direct connection to one of the economic engines that fuel the economy of the Brownsville Borderplex, the Port of Brownsville. The new highway will provide a new entry point for truck traffic to the Port of Brownsville and will be key to the region's development as it grows to become a major center of international trade. â&#x20AC;&#x153;The project is intended to provide a safe and secure route for commodities, imports and exports, to move with ease between our

maritime port and our international ports of entry,â&#x20AC;? said State Senator Eddie Lucio Jr. DBrownsville, during a ribbon cutting ceremony for the completion of phase two of the project held in late May. SH 550 will create an alternate route between the Port of Brownsville and US 77/83, which was recently designated as part of the Interstate Highway 69 corridor in the Rio Grande Valley. Ultimately, SH 550 will extend along the center of FM 511 from the I69 corridor (U.S. 77/ US 83) to SH 48 for the length of 10 miles as a divided limited-access road with two new truck tolled lanes.

Photo by Brad Doherty

Work continues on the feeder lanes from U.S. 77/83 to SH550 that leads to the Port of Brownsville.

Brownsville Economic Journal Summer 2013

BEDC.com

Map courtesy of Cameron County Regional Mobility Authority

PROJEcT SH 550

“State Highway 550 will be a tremendous asset for the Port of Brownsville,” said Sergio Lopez, Chairman of the Port of Brownsville, who also spoke at the ribbon cutting ceremony. “It will alleviate and decongest the city of Brownsville and try to take heavy trucks off the regular streets,” he said. “Being a committee member for Section 4 for I-69 this has been one of my goals, to connect the Port of Brownsville thru State Highway 550 to the future I-69,” Lopez added. The new corridor will be of great benefit to freight transport by truck, since trucks will have a direct connection to the Port of Brownsville and would avoid crossing through the city, saving time and money. According to Federal HighBEDC.com

way Administration officials, freight transport by truck represented in 2010 about 80 percent of imports and exports with Mexico. The new highway will be a boon to truckers because currently they have to cross town in order to reach the port, constantly breaking for traffic signals, said Steve Muschenheim, Operations and Sales Manager at Parker and Company, a U.S. Customs Brokerage agency based out of Brownsville. Breaking and starting up back again these loaded trucks wastes a lot of diesel, he added. “This way they can make a smooth transition all the way from (US) 77 right into the port,” he said, adding that transporting cargo will eventually be quicker and less expensive.

PHASE 1 Length: 1.9 miles long Specifics: Included the overpass which crosses FM 1847/Paredes Line Road and the Union Pacific Railroad. The overpass included the construction of four lanes Status: Opened to traffic on March 10, 2011 cost: Approximately $10 million PHASE 2 Length: Approximately 3.01 miles Specifics: A new location of roadway consisting of two main lanes extending from FM 3248 to SH 48 and will be the future main entrance to the Port of Brownsville.

Summer 2013

Status: Ribbon cutting ceremony held in May; section expected to open soon. cost: Approximately $34 million.

PHASE 3 Length: 10 miles Specifics: Four tolled general purpose main lanes, two in each direction, and direct connectors at U.S. 77/83. In addition, two nontolled discontinuous frontage roads with two lanes are provided, paralleling the general purpose/truck lanes in each direction of travel. Status: Under construction, expected to open in 16 months cost: Not Available

Brownsville Economic Journal

INFRASTRucTuRE

See map pages 22-23

Phase 2 complete The project is being constructed in three phases. The first phase, completed in 2011, consisted of improvements between US 77/83 and Old Port Isabel Road and an overpass that were done by the Texas Department of Transportation. The first phase was 1.9 miles long and included the overpass which crosses FM 1847/Paredes Line Road and the Union Pacific Railroad that opened to traffic on March 10, 2011, and is the first toll road that was opened by the Cameron County Regional Mobility Authority. The overpass included the construction of four lanes and the total construction cost was approximately $10 million. The second phase called the Port

Spur, approximately a 3.01 mile section, is a new location of roadway consisting of two main lanes extending from FM 3248 to SH 48 and will be the future main entrance to the Port of Brownsville. The total project cost was approximately $34 million. “Together we share a common vision of sustainable infrastructure network that will advance the economic vitality and future of our region for generations to come,” said David Allex, CCRMA Chairman, during the ribbon cutting ceremony of phase two. “This industrial corridor is the catalyst for this growth for the entire Rio Grande Valley Region.” The final phase of the ultimate improvements along SH 550 will be a 10 mile stretch consisting of four tolled general purpose main lanes, two in

each direction, and direct connectors at U.S. 77/83. In addition, two nontolled discontinuous frontage roads with two lanes are provided, paralleling the general purpose/truck lanes in each direction of travel. “In about 16 months we are going to be opening this section, which will give us a nonstop (route) all the way from (US) 77/83 to the Port of Brownsville,” Allex said. “It will probably be one of the most important, if not the most important, transportation economic development project anywhere in South Texas,” he added. Funding of this project was prioritized by the U.S. Congress through the American Recovery and Reinvestment Act of 2009. EJ

MESA+PLANNING MESA+PL PL LANNING A 35 years of planning excellence

Robin McCaf McCaffrey cCafffrey AIA, AIA AICP rmccaffrey@mesa-planning.com rmccaff fre frey@mesa-planning.com

Brownsville Economic Journal Summer 2013

BEDC.com

Expediting the process

INFRASTRucTuRE

See map pages 22-23

Commercial lanes at Veterans bridge and overweight corridor, help save time and money

Written by Jorge I. Montero

ommercial trucks crossing Veterans International Bridge in Brownsville now have four lanes to travel into the United States from Mexico. The addition of the commercial lanes, which opened in February of 2013, would help reduce the border crossing time and expedite the shipment of cargo, said Steve Muschenheim, Operations and Sales Manager at Parker and Company, a U.S. Customs Brokerage agency based out of Brownsville. “It is really important, because you can sit there for hours sometimes trying to cross,” Muschenheim said of the added lanes. According to the Texas Center for Border Economic & Enterprise Development, the total dollar amount of U.S. export trade activity to Mexico through the Brownsville port of entry was $149,772,425 million in 2012, while it generated $228,660,415 million in imports from Mexico. Mexico is the top international destination for Texas exports, with more than $86.6 billion in goods shipped from Texas BEDC.com

Photo by Brad Doherty

Mexican trucks pass the import lot at the Veterans International Bridge at Los Tomates in Brownsville, Texas.

to Mexico in 2011. Texas also dominates U.S.-Mexico border crossings. In 2011, 3.3 million trucks crossed from Mexico into Texas, more than into all other southern border states combined. At the Brownsville port of entry in 2012, 190,204 trucks crossed into the U.S., while 191,526 headed south of the border. As of April 2013, more than 43,000 trucks had entered the U.S. through Veterans International Bridge, while more than 65,000 had traveled to Mexico.

The Port of Brownsville Overweight Corridor allows for trucks transporting goods to and from the Port into Mexico to carry cargo at approximately 1.5 times the U.S. weight limit. The overweight corridor allows for companies to increase their cargo loads while reducing costs. Oversize/overweight vehicles with permits can travel on US 77/83 and State Highway 48/State Highway 4 between the Veterans International Bridge and the Port of Brownsville.

Overweight corridor

Summer 2013

Brownsville Economic Journal

INFRASTRucTuRE

See map pages 22-23

BROWNSVILLE’S OVERWEIGHT cORRIDOR N. Central Ave.

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ico

Brownsville Economic Journal Summer 2013

Boca Chica Blvd.

802

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Another project that will help expedite the shipment of cargo to the port is the

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The Veterans Bridge is also the link between I-69E on the U.S. side and the “Interoceanic Highway” in Mexico, a road that stretches across five states and connects Mazatlan, in the state of Sinaloa, with the Brownsville-Matamoros Borderplex. The road, also known as “Supervia”, is an east to west corridor that connects Mexico’s West Coast and the Pacific Ocean with the Gulf of Mexico. Although this important highway has not been finished completely, some parts of the road are already opened and operable. Once complete, the Supervia will reduce from 20 to 12 hours the time to travel the 750 miles from Mazatlan to Matamoros. The Supervia will position the BorderPlex area as an ideal location for produce distribution, among other goods from Mexico, into the United States. Sinaloa is a top Mexican producer of large volumes of food year round exporting grains, vegetables, and fruits. According to Sinaloa’s Department of Economic Development, the state produces 30% of the total food production in Mexico alone. Regional officials expect an increase in the shipment of produce through the Veterans bridge.

pata Ave.

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Jaime J. Za

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S. Central Ave.

E. Price Rd

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Once State Highway 550 is completed, the overweight corridor will shift to that road, which will become a connector for Interstate Highway 69 East, allowing commercial trucks to have direct access to the Port of Brownsville. The port, which plays a vital part in the international economy of the region, is the only one in the country on the U.S./Mexico border. Adding the overweight corridor into the mix enhances the ability of the Brownsville Borderplex to attract companies and other capital investments to the area.

Current overweight corridor

City limits

East Loop Project, which consists of the construction of a four-lane roadway from the Port of Brownsville to the Veterans International Bridge. The project consists of two sections. The first section, State Highway 32 East, is approximately 7.6 miles long and includes the construction of a new nontolled four lane divided highway from FM 3068 to the Port of Brownsville. The total construction cost of SH 32 East is approximately $51 million. The second section, SH 32 West, is approximately 4.5 miles long and includes the construction of a new non-tolled four lane divided highway from FM 3068/FM 1419 to the Veterans International Bridge and U.S. 77/83. The total construction cost of SH 32 West is approximately $25 million. The Environmental Assessment for both sections of the project is near completion and an environmental approval is

802

State Highway

Farm-To-Market Road

still pending.

A competitive advantage

Construction of SH 550 and the addition of more commercial lanes at the Veterans International bridge as well as an overweight corridor, all play an important role in helping give Brownsville an edge in competitiveness in economic development. Brownsville has never seen these types of endeavors being developed at the same time, all with one objective in mind: economic progress. Muschenheim believes these enhancements to the area’s transportation infrastructure will make the Borderplex more competitive. “A lot of customers look at the cost of freight, the cost of logistics, and if we can do anything to improve it, it benefits our community. This gives more options to our area,” he said. EJ BEDC.com

INFRASTRucTuRE

See map page 22-23

Enhancing railways

Courtesy photo

The new railway is seen through a chain-link fence.The West Railroad Relocation Project, soon to be completed, will alleviate congestion, improve safety, and expedite the rail movement of legitimate trade and commerce coming across the border.

After more than a century, U.S. and Mexico prepare to open an international rail bridge

Written by Jorge I. Montero

he last time the United States and Mexico were preparing to open an international rail bridge, the world had yet to see a world war, Teddy Roosevelt was the country’s president, and the railroad was king in the transportation business. BEDC.com

Fast-forward to more than 100 years and the U.S. and Mexico will once again witness the opening of an international rail bridge, one that authorities from both countries expect will generate greater competitiveness and economic development opportunities to the BrownsvilleMatamoros BorderPlex area. The West Railroad Relocation Project, soon to be completed, will alleviate con-

gestion, improve safety, and expedite the rail movement of legitimate trade and commerce coming across the border. “This is a monumental occasion for the entire region,” stated in a press release Cameron County Regional Mobility Authority Chairman David E. Allex. “Improving multi-modal operations for the efficient movement of goods and services is critical to the long term growth and prosperity of our region. This project will enable us to be prepared for an additional 100 years and keep our county and region competitive in the global marketplace,” he said.

Summer 2013

Brownsville Economic Journal

INFRASTRucTuRE

See map page 22-23

The project has a price tag of approximately $80 million, which includes the construction on the Mexican side. Authorities expect the bridge to commence operations in the fall of 2013. According to the CCRMA, the endeavor calls for the relocation of the Union Pacific Railroad that runs through downtown Brownsville to a less densely populated location to the west of the city from U.S. 77/83 and the Olmito Switchyard into Mexico. A ground breaking for the project was held in December of 2010 and construction on the U.S side started soon thereafter. In September of 2012, Cameron County and West Rail project officials gathered at the project location site on U.S. 281 to see the center span of the international rail bridge set in place. And in May of this year officials held a binational ceremony to place the demarcation plaque at the official international boundary of the project. The project includes multi-agency coordination at the federal, state and local level in the U.S. and in Mexico. The rail bridge consists of an elevated structure of almost 3,000 feet (900 meters long). The new rail bridge will reduce transportation times and operation costs, and companies will be able to move their merchandise in less time and more efficiently from Mexico to the U.S. and vice versa. “This is a multifaceted project with many moving parts, stated Cameron County Administrator and project manager Pete Sepulveda, Jr. “The governments on both sides have not had a project of similar magnitude and complexity before and that has made the project both exciting and complicated.” Texas’ railroad system is the second largest in the United States, with 47 freight railroad operators carrying 7.7 million rail carloads, according to statistics from 2010. And with more than 14,361 miles of track, Texas’ railroad system maintains more rail miles than any other state. In 2011, Texas was the entry point for

Brownsville Economic Journal Summer 2013

The newest rail crossing between u.S. and Mexico t a glance it is only a bonds, and you get the money. railroad bridge. But The problem with this project what’s true is that it was that this bridge will not is also the latest border crossing charge a toll. So funds had to that the United States opens with come from the city, state and fedanother country in the world. eral government so it took us I came to tour the site located more time to get them.” off a highway outside of this city, I ask Gilberto Salinas, from but not alone, Brownsville’s the Brownsville Economic DeMayor Antonio Martinez, velopment Council, if opening Cameron County Administrator the border was worth it. Pete Sepulveda and Gilberto Sali- Maria Antonieta “Of course! This region from nas, of the Brownsville Economic collins here to Laredo is where you regDevelopment Council, accomister the highest commercial expany me. change between both countries and the “The last time that the U.S. and Mexico railroad will transport important steel cargo built an international railroad bridge Teddy that will go directly from the Port of Roosevelt was the president. We are talking Brownsville to the foundries located in about something that happened more than Monterrey, Mexico. For the first time it will 105 years ago,” says Pete Sepulveda. cut more than two hours of travel time.” Antonio Martinez, the mayor, is proud. Now the most anticipated moment here “Brownsville’s growth is another project to will be when they take an old steam powered show the world that we are progressing locomotive out of a museum and bring it here.” here so that both the presidents of the U.S. I ask Pete Sepulveda why was the projand Mexico can cross to both sides inauguect delayed for more than a decade. rating the rail crossing. “Since we are saying that there had been “In a time where the news on the border no other construction of a railroad bridge in is about violence and drug trafficking, this a long time, we had to start from scratch. shows that instead of building walls that diThe agreements and laws that were used bevide us we are building a bridge that will fore were obsolete. More than a century had unite us,” Gilberto Salinas says. EJ passed, so we had to do everything again.” The county’s administrator tells me that the project also faced financial hurdles. Senior Correspondent for Univision, “We operate three international bridges Maria Antonieta Collins reported this story with Mexico, and the money collected from from Brownsville. The piece aired throughthe tolls helps us for their maintenance and out the United States as well as all Latin operation. When you have a toll bridge, that America. To view the story, log onto the Uniguarantees a loan from any financial instituvision website and punch in the following tion because you go to Wall Street, sell key words: Brownsville Antonieta.

89% of all rail containers crossing into the U.S. from Mexico. Chemical products accounted for almost 39% of all rail freight originating in Texas in 2011, making it the top commodity sector for rail transport. “This bridge will boost progress in a powerful way, not only in Matamoros, but in Tamaulipas (state) and Mexico,” said former Mexican President Felipe Calderon during a visit he made to Matamoros to oversee the work on the project. “This project benefits train users in Mexico, pri-

marily for cargo, because in those trains we transport the products that we Mexicans export, among others, many products for which we are leaders at the global stage.” Calderon mentioned that some of the products where Mexico leads in exports worldwide include the manufacturing of smart phones, plasma screens, and automobiles, the majority of which is hauled by train, he said. EJ BEDC.com

INFRASTRucTuRE

See map pages 22-23

The Mexican ‘Supervia’

The Baluarte River Bridge will be the only crossing for more than 500 miles between the pacific coast and the interior of Mexico.

From Staff Reports

he Mazatlan-Matamoros superhighway is the most important project of the National Infrastructure Plan implemented by former Mexican president Felipe Calderon. It is considered the biggest and costliest infrastructure work during Calderon’s presidency and one of the biggest in Mexico since the construction of the railroad network at the end of the 19th century. It will connect the Mexican Pacific coast with the Gulf of Mexico, enhancing the connectivity between Mexico’s commercial and industrial region in the north with one of the most important Mexican ports located along the Pacific coast. The project is being developed by Mexico’s Secretary of Communications and Transport, which has invested about $2.2 billion in this important undertaking. The superhighway, known as the “Interoceanic Highway” or “Supervia,” will connect the Mexican states of Sinaloa, Durango, Chihuahua, Coahuila, Nuevo Leon, Tamaulipas, and Texas in the United States. The 230-kilometer-long (140-mile) highway, expected to be completed in August, will link Brownsville, on the Gulf of BEDC.com

Courtesy photos

The path of the “Supervia” roughly parallels the famous Espinazo del Diablo (Devil’s Backbone), a narrow road (highlighted in yellow) that earned its nickname from the way it follows the precarious ridge crest of the jagged peaks of the Sierra Madre Occidental mountains.

Mexico and other port cities on the Pacific, by a mere 12-hour drive. It will stretch along the cities of Mazatlan, in the state of Sinaloa; Torreon and Saltillo, in the state of Coahuila; Gomez Palacio and Durango, in the state of Durango; Monterrey, in Nuevo Leon; and Matamoros, in Tamaulipas. According to The Associated Press, the highway will eventually move 5 million vehicles a year, more than four times the number on the old road. The access to the Supervia in Texas will be through the Veterans International Bridge in the Borderplex region. The bridge offers a quick and direct connection to the U.S. Interstate 69 corridor, which stretches through eight states in the U.S. before reaching the Canadian border in Port Huron, Michigan. The Supervia will eventually connect

the Borderplex with the productive produce industry of the state of Sinaloa and will also offer quick access to the Asian market. The Durango Mazatlan Highway is the final part of the Supervia. The Monterrey to Durango section is a 4-lane divided highway. The rest of the road is a 2-lane undivided road. Parallel to this highway, in some sections, runs Federal Highway 40D, which is a 4-lane restricted access toll road. The superhighway includes one of the most incredible engineering marvels: the Baluarte River Bridge in the Mountains in western Mexico. With 1,321 feet high above the ravine called the “Devil’s backbone,” it is the highest cable-stayed bridge in the world. The corridor also features more than 60 tunnels and 115 bridges. EJ

Summer 2013

Brownsville Economic Journal

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BROWNSVILLE, TEXAS

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(Page 12)

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INDUSTRIAL PARKS/ZONES

Brownsville

Veterans International Bridge (Page 17)

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(Page 26)

To Port of Matamoros

SH 32 Project (Page 17)

6. Alianza Industrial Park

S. Oklahoma Ave.

INFRASTRucTuRE

See map pages 22-23

Game changer

The Port of Brownsville has invested $24 million in capital improvements over the past five years, $5 million of them taking place in 2012.

Deepening of ship channel vital to the port’s ability to take advantage of coming economic opportunities

t’s as much an advertisement as anything else, the 2013 State of the Port report, designed to show the Port of Brownsville’s progress since the last such report four years ago. The 2013 version is full of positive news — essentially a quick recap of last year’s study by Martin Associates of the port’s economic impact. One highlight: 21,590 jobs generated by vessel and cargo activity, 11,230 of them having direct im-

Brownsville Economic Journal Summer 2013

pact on the local and regional economies. The State of the Port also touts a record amount of cargo (7.1 million metric tons) moving through the port in 2012; the port’s ranking of Number 4 among the nation’s top 25 Foreign Trade Zones and Number 2 in Texas; and a boost in operating revenues from $12.6 million in 2008 to $15.2 million in 2012. In port operations, 11,230 jobs directly impact the local and regional economy,

Courtesy photo

while business revenue related to the handling of marine cargo generated an estimated $925 million in local economic impact in 2011, according to the report. More details: The port’s maritime operations produced some $2 billion in economic activity in the state, while the amount of income and local expenditures generated for 2011 is estimated at $771.3 million, resulting in $134 million in local and state taxes. The report also highlights the port’s growing financial stability; its ability to refund a number of outstanding bonds; reduction of the port’s ad valorem tax rate for 18 consecutive years; and the creation of an $8.5 million fund for capital improvements. BEDC.com

The port has invested $24 million in capital improvements over the past five years, $5 million of them taking place in 2012. New capital projects abound, including $15 million in security improvements to monitor what goes on at the port. A major capital project on track to begin soon is construction of a second marine cargo dock, courtesy of a $12 million transportation grant from the federal government. But the biggest project by far the port is contemplating, in association with the U.S. Army Corps of Engineers, is to deepen the 17-mile-long ship channel to an authorized draft of 52 feet from its current 39 feet. From the port’s perspective, a deeper authorized draft means more cargo per ship, bigger ships and, ideally, more ships. It all adds up to more jobs and more revenue. Draft refers to the distance between a ship’s waterline and the bottom of its hull. The more cargo a vessel carries, the deeper the draft. “Larger vessels and more cargo is a big plus to the port, especially in bulk commodities because that’s where the jobs are,” said Eddie Campirano, port director and CEO. “It means a lot of people working to load and unload that vessel and move that cargo. It just makes it more beneficial in terms of the impact on our port directly and in our community.” The project is vital to the port’s ability to take advantage of coming economic opportunities, Campirano said. From the shipper’s perspective, more cargo per voyage equals lower costs, Campirano said. The port currently can’t handle vessels with draft requirements of more than 39 feet — enough for Panamex vessels but not post-Panamex vessels, which require a draft of at least 45 feet. “Post-Panamex” represents the world’s supertankers and the largest container ships, unable to fit through the Panama Canal. Not being able to accommodate them BEDC.com

limits the port’s marketability, Campirano said. Plans originally called for widening the channel — to 350 feet from its current 250 feet — in addition to deepening it. The total cost was estimated at $293 million. However, further study, revealed that depth rather than width is the most important factor when it comes to what types of business the port is likely to be in a position to attract in coming years. Just deepening the channel would knock about $100 million off the estimated price of an upgrade. At any rate, some widening is inevitable when the channel is deepened. The need may be clear, but how to pay for it is not. Campirano said completing the massive project will depend on port, local and federal support. The next step is to work out the funding details. The federal Water Resources Development Act, which contains money for ports, is a possible source of funding this year or next, Campirano said. If the port gets its hoped-for liquefied natural gas export terminal, the company building it, Gulf Coast, might be persuaded to cover some of the cost as well, he said. One thing for certain is that no state money exists for such projects, Campirano said. Unlike some Gulf states, Texas “doesn’t have any money for ports,” he said. All the same, he said he’s determined to push the project to completion,

within five years ideally. “This is going to be multiyear project,” Campirano said. “I would tell you that short term is going to be in the three to five year range.” A lot hinges on “the economics of what is happening in Texas” — including offshore oil activity, natural gas, the size of drilling rigs, etc. — that could equal growing commercial demand for a deeper ship channel at the Port of Brownsville, he said. “There are a lot of ways to look at this,” Campirano said. “I can tell you we’re going to be looking at every conceivable way to get this done.” EJ

This article was written by Steve Clark and appeared on the Tuesday June 4 issue of The Brownsville Herald.

Summer 2013

Brownsville Economic Journal

INFRASTRucTuRE

See map pages 22-23

Courtesy photo

Guillermo Ruiz de Teresa, center, General Coordinator of Marine Ports from Mexico’s Office of the Secretary of Communications and Transport, talks to the media during his recent visit to Matamoros, Mexico.

Oil drilling expected to benefit development of Port of Matamoros

From Staff Reports

he Port of Matamoros has the upper hand with the recent discovery of new deep water oil deposits in the Gulf of Mexico, according to the General Coordinator of Marine Ports from Mexico’s Office of the Secretary of Communications and Transport. During a recent visit to Matamoros, Guillermo Ruiz de Teresa said that the development of the Port of Matamoros is very important to the development of the country’s port infrastructure. “In the next three years we will see great advances in the development of this port in Matamoros,” Ruiz de Teresa said, adding that the port’s purpose will be for

Brownsville Economic Journal Summer 2013

commercial and industrial activities. Mexico’s Petroleos Mexicanos (PEMEX) investment in the area will be key to detonate the development of the port, since having two oil platforms in front of Matamoros’ Gulf coast will help attract other companies that can benefit from the port. Ruiz de Teresa said that this year the federal government will initiate phase one of the project, which calls for the dredging of the ship channel to a depth of 26 feet, as well as extending the jetties. He added that the federal government will invest more than $90 million for the extension of the jetties. “We are going to extend the jetties 8,000 feet on both sides to reinforce the existing ones. The dredging of 26 feet

deep will help the port to initiate operations,” he said. The bidding process for the project is underway. Authorities expect the work to be finalized by 2015. “Once PEMEX starts increasing their activities in the area and once the port’s projects are underway, we will see a boost in our economy,” said Matamoros Mayor Alfonso Sánchez Garza. Sanchez Garza said that at least 10 companies that work with PEMEX are currently looking into the possibility of establishing operations in Matamoros. “Matamoros is the closest point to where the explorations (of oil) are being done, and these companies that are looking at Matamoros, if they come, will hire from our local workforce,” he said. EJ BEDC.com

uTILITIES

See map pages 22-23

Courtesy photo

In January, Mayor Tony Martinez, the BPUB leadership and Tenaska, a Nebraska-based independent energy company, announced the development of an 800-megawatt (MW) electric generating facility. The plant is targeted to be fully operational in 2016.

Power plant gives region a competitive edge

Study projects a $16 billion economic impact

Written by Michelle A. Lopez

proposed power plant for the Greater Brownsville Borderplex will infuse more than $16 billion into the local economy during construction and over a 35-year operational BEDC.com

period as well as maintain a competitive edge in corporate recruitment for the region, according to a recent study. The study was commissioned by the Brownsville Economic Development Council (BEDC) in support of the Brownsville Public Utilities Board (BPUB), which is a stakeholder in the project. In January, Mayor Tony Martinez, the BPUB leadership and Tenaska, a Nebraska-based independent energy company, announced the development of an 800-megawatt (MW) electric generating facility. The plant is targeted to be fully opera-

tional in 2016. BPUB entered into a development and purchase agreement with Tenaska for a 25 percent ownership interest in the proposed natural gas-fueled electric generating station. Under the agreement, BPUB would be entitled to receive 200 MW of the plantâ&#x20AC;&#x2122;s output, enough to serve approximately 100,000 Brownsville area homes. Once operational, the electric generating station is expected to become Cameron Countyâ&#x20AC;&#x2122;s largest taxpayer, exceeding the 2012 taxable value of the top five taxpayers combined.

Summer 2013

Turn To Page 31

Brownsville Economic Journal

uTILITIES

Drought-proof

See map pages 22-23

Brownsville Economic Journal Summer 2013

BEDC.com

Courtesy photos

The Brackish Groundwater Treatment Facility is a state-of-the-art facility that uses reverse osmosis (RO) membrane technology to provide “bottled water” quality to its customers. This lessens Brownsville’s need for water from the Rio Grande and the city’s reservoirs.

Long term projects will help increase Brownsville’s water supply

Written by Jorge I. Montero

hile drought issues have been a hot topic the last couple of years throughout the state of Texas, Brownsville has managed to maintain itself hydrated thanks to the efforts of the city’s utilities board. The Brownsville Public Utilities Board has kept an adequate surplus of BEDC.com

water thanks to different measures that have helped Brownsville increase its water capacity and satisfy the demand of a growing city, putting the Borderplex in a prime spot for economic development. These measures include a series of projects that call for the expansion of BPUB’s wastewater plant and desalination plant, as well as the dredging of the city’s resaca system. “A lot of our efforts date back several years. BPUB has put a lot of time and effort to make (Brownsville’s) infrastructure better and make sure water infrastructure is strong,” said Ryan Greenfeld, Communications and Public Relations Coordinator for the BPUB. Greenfeld added that these are capital improvements are designed to bring longterm benefits to Brownsville’s water infrastructure. According to BPUB, a municipally

owned utilities corporation in charge of providing water, wastewater and energy to Brownsville, their three treatment plants have the capacity to provide 47 million gallons of treated water per day, which is well above the city’s current peak demand. BPUB’s raw water system extracts water from the Rio Grande and consists of a river rock weir, a river pump station, two reservoirs that provide 186.6 million gallons total capacity, and a raw water transport system. Around the city, two clear wells provide 6.84 million gallons storage capacity, and four elevated storage tanks provide 6.0 million gallons of elevated storage capacity. Water is pumped by four high-service pumping stations into the distribution system, which consists of 624 miles of transmission and distribution mains. Summer 2013

Brownsville Economic Journal

uTILITIES

See map pages 22-23

Additionally, BPUB is a major partner in the Southmost Regional Water Authority (SRWA) Brackish Groundwater Treatment Facility, which has been fully operational since 2005. The Brackish Groundwater Treatment Facility is a state-of-the-art facility that uses reverse osmosis (RO) membrane technology to provide “bottled water” quality to its customers. This lessens Brownsville’s need for water from the Rio Grande and the city’s reservoirs. The plant, the largest such facility in Texas, provides treated brackish water (salty groundwater) for the Southern Cameron County region. The plant provides an alternative water supply source away from the Rio Grande for the majority of the SRWA partners, ensuring them reliable, high-quality water for municipal and industrial use. Twenty production wells, approximately 200 to 300 feet below ground level, tap into the Rio Grande Alluvium within the Gulf Coast Aquifer. The groundwater is pumped 7.2 miles to the RO treatment plant. The plant provides a daily production capacity of 7.5 million gallons per day (MGD) with 6.0 MGD from the reverse osmosis treatment processes and 1.5 MGD of blend water (groundwater bypassing the membrane process and blended on the back end of the treatment process). At this capacity, SRWA saves an equivalent of approximately 8,400 acre feet in surface water diversions per year. Plans are currently underway to install 2 additional RO trains, increasing daily production up to 11.0 MGD. At this capacity, SRWA will save an equivalent of approximately 12,320 acre feet in surface water diversions per year. BPUB said that increasing water diversity will allow the city of Brownsville to accommodate more business growth to the Borderplex area, especially businesses that need reliable water service. The utility board is also working on expanding its Robindale Wastewater Treatment Plant and increase the facility’s current capacity of 10 MGD to 14.5 MGD. The benefits are primarily to stay ahead of Brownsville’s wastewater treat-

Alternative source

Brownsville Economic Journal Summer 2013

ment requirements needed due to the city’s growth. Another benefit is the possibility of recycling the treated water for other purposes, such as the Tenaska Brownsville Generating Station. Once built, the 800-megawatt natural gas-fueled power plant will use treated wastewater supplied by BPUB’s Robindale Wastewater Treatment Plant, which would create a recycling opportunity for the water and a new revenue stream for BPUB. Brownsville’s resacas, also known as oxbow lakes, are remnant river channels unique to the area. Besides adding an aesthetic character to the city, they also help control floodwaters and provide raw water storage to supplement water supply. Over the years, sediment carried by storm water runoff from adjacent urban and rural watersheds has been deposited in the resacas, reducing their depths, storage capacity and natural circulation. Trash and other debris have further clogged these waterways to the point that some resacas have many feet of sediment and debris impeding the water flow, resulting in the degradation of water quality. And the only way to return these resacas to their original depths is dredging them, BPUB officials said.

Restoring the resacas

“The rest of Texas is experiencing drought issues, but this project will enable us to secure our water future and attract more industry to our area,” says BPUB Vice Chairman Oscar D. Garcia. BPUB began the Resaca Restoration Project in March to restore the resacas, which have been an alternative water source for utilities board. And after the enhancements are finished, these bodies of water could become even more important to the city’s economic development. “This long-term project is a big undertaking for the Brownsville Public Utilities Board, but we are excited to be taking the lead on something that will bring so much benefit to the city of Brownsville,” said BPUB General Manager and CEO John Bruciak. There will be a great increase in storm water and raw water storage capacity because even more surface water could be caught. That means that BPUB would be able to store more water in the resacas to be used in times of need. This in turn would produce opportunities for growth, create opportunities for recreation and eco-tourism, improve aesthetics and park areas, and enhance habitats for birds and other wildlife. The strong water infrastructure that BPUB is helping to build will help bring additional businesses to the area. EJ BEDC.com

Power plant gives region a competitive edge KEy NuMBERS

The economic impact for the construction phase of the project would provide an estimated:

790

direct, indirect and induced jobs

($42,000 average annual salary, plus benefits)

$126 million

in economic activity, $45.6 million of which is value added

$40.8 million

in construction-related payroll, plus benefits Post-construction, the economic impact of the plant would provide an estimated:

The Tenaska plant will be built on a 270-acre site at FM 511 and Old Alice Road. Continued from Page 27

“This power plant would create 970 direct, indirect and induced jobs during construction and another 150 during operation of the plant,” said Jason Hilts, BEDC President and CEO. “It would be an integral piece of our corporate recruitment strategy and is critical for the overall economic development vitality of the region.” “The added generating capacity would place the Brownsville Borderplex in a position to recruit larger companies, especially those destined for heavy manufacturing which can draw up to 300 MW,” Hilts said. The Tenaska plant will be on a 270acre site at FM 511 and Old Alice Road, which has been designated as part of the North Brownsville Industrial Corridor spanning from the proposed I-69 highway to the Port of Brownsville entrance. “Instead of buying power from a generating plant somewhere else, BPUB found an option in which our community BEDC.com

150

would receive the benefit of additional jobs, significant local spending and an expanded tax base,” said John Bruciak, BPUB General Manager & CEO. “Plus, our agreement ensures adequate and affordable power for our current customers and helps support commercial growth in this area.” Benefactors of the plant’s added tax revenue stream include the City of Brownsville, Cameron County, Los Fresnos Consolidated Independent School District and the Brownsville Navigation District. “Tenaska is an experienced developer of electric generating plants, having developed approximately 9,000 megawatts of electric generating capacity in the U.S. and internationally,” said Mike Roth, Tenaska Director of Development. “This plant would be a modern, efficient and reliable source of local electric energy for Brownsville and create jobs during construction and operation.” “In 2009, the Imagine Brownsville Comprehensive Plan identified the lack of

direct, indirect and induced jobs ($51,000 average annual salary, plus benefits)

$75,000

average annual salary, plus benefits for plant operations jobs

$282 million

in economic activity its first year of operation, $164 million of which is value added

$7.5 to $9.4 million in annual payroll (over the first 10 years)

adequate electrical capacity as one of the principal constraints for major economic development opportunities,” Hilts said. “The proposed Tenaska power plant signals a major step in closing the infrastructure gap.” “Most importantly, it demonstrates how Brownsville is progressively and strategically moving forward.” EJ

Summer 2013

Brownsville Economic Journal

LOcALINDuSTRycORNER

Human capital- A vital part of a community’s infrastructure

Lizzy Putegnat

Dir. of Business Retention & Expansion

nfrastructure can be defined as the underlying foundation, the basic physical and organizational structures that provide the framework for a community to function and develop. Often times though, people relate infrastructure strictly to roads, bridges, utilities, water supply, telecommunications, and things of that nature. However, humans are the nucleus of a community and human capital a vital part of its infrastructure. Paul Hampton, from Newmark Grubb Knight Frank – one of the world’s leading commercial real estate and site selection advisory firms, quoted, “States focused on providing customized labor training to meet the needs of modern businesses can also tout a steady supply of trained labor, an asset that is again moving to the forefront.” According to Area Development’s 26th Annual Corporate Survey, availability of skilled labor ranked second in overall importance among 26 site selection factors, up from seventh in 2010. Corporate decision makers have again elevated human capital above many cost factors. Most of today’s production operations demand skilled labor – advanced welders, CNC operators, machine tool programming, bioprocessing, just to name a few. Both the state of Texas and the Brownsville community understand the value that exists in developing and investing in our workforce. Texas has three main training programs/grants that are administered through the Texas Workforce Commission (TWC). Brownsville companies have capitalized on these programs and grants, yielding a better workforce each time. The Skills Development Fund (SDF) is Texas’ premier job training program, providing grants to community and technical colleges who provide customized job training programs for businesses that want to train new workers or upgrade the skills of their existing workforce. The SDF grants can cover tuition, curriculum development, instructor fees, and training materials. TWC provides access to a team of highly skilled professionals (at no charge) who help streamline the development of projects and proposals. For these two fiscal years (September 1, 2011 – August 31, 2013), TWC was given $48 million in Skills Development Funds to support high quality, customized job training projects across the state. The Self-Sufficiency Fund (SSF) is another job training program specifically designed for individuals that receive Temporary Assistance for Needy Families (TANF), Supplemental Nutritional Assistance Program (SNAP), parents whose annual wages are at or below $37,000, or individuals at risk of be-

Brownsville Economic Journal Summer 2013

coming dependent on public assistance. SSF assists businesses by designing, financing and implementing customized job training programs in partnership with public community and technical colleges, a higher education extension service, & community-based organizations for the creation of new jobs and/or the retraining of existing workforce. The Skills for Small Business program supports businesses with fewer than 100 employees. It emphasizes training for new workers and helps upgrade the skills of incumbent workers. Small businesses can apply to TWC for training offered by their local community or technical college or the Texas Engineering Extension Service (TEEX). TWC processes the applications and works with the college to fund the specific courses selected by businesses for their employees. There are a number of Brownsville companies that have utilized these great resources. Most recently, in 2012 Carling Technologies partnered up with Texas Southmost College to provide job training using a $115,203 Skills Development Fund grant. The grant provided 79 new and incumbent workers with 3,842 hours of technical training designed to improve productivity, product quality, and advanced manufacturing skills. There were a total of 15 courses that included Hydraulics, Pneumatics, Leadership Skills, Lean Enterprise, Single Minute Exchange of Dies, and OSHA General Industry. The training allowed them to experience cost savings of more than $150,000, it helped reduce the time it took to change tools and dies by 45 minutes, and as a result of the OSHA course, Carling Technologies fell way below the national average for workplace accidents. Trico Products Corporation also received a Skills Development Fund grant for $331,030 and are currently undergoing the training. The grant comprises 23,894 hours of training and 21 total courses that include Basic Blue Print Reading, CPR/First Aid, Paulson’s Software Training, Visual Basic Programming, Advanced Product Quality Planning, Design of Experiments, and Hazardous Material Transportation Training. With both companies, the duration of training is one year, employees are paid while attending classes, and upon completion of the training, employees receive a 2% pay raise. There are 2 other companies pursuing contracts, for $120,000 and $301,000 totaling over 20,000 hours of training. Employers seeking more information on training programs and grants may visit the Texas Workforce Commission website at www.texasworkforce.org. EJ BEDC.com

e t i n U d an n I l l A

HuMAN cAPITAL

Initiatives focus on improving human capital, education, quality of life, economic development and health

By Staff Reports

nited Brownsville is a project created to provide an organized framework for cooperation and coordination between seven major public institutions in the city, all working with the goal to identify challenges and solutions to improvements in key areas such as economic development, quality of life, human capital, education, among others, through the city’s master plan. The seven Brownsville public institutions — the City of Brownsville, the Greater Brownsville Incentives Corporation (GBIC), the Brownsville Independent School District, the Port of Brownsville, the Brownsville Public Utility Board, the Brownsville Community Improvement Corp (BCIC) and the University of TexasBrownsville/Texas Southmost College — all have come together in an effort to unite the community around the implementation of the Imagine Brownsville Comprehensive Plan. BEDC.com

The Imagine Brownsville Comprehensive Plan provides the foundation for guiding the future growth of the Brownsville Borderplex that is consistent with the vision and goals of the community. The development of the plan involved the participation of hundreds of residents and institutions throughout the process. The goals and objectives identified by the community through this effort were then condensed into 12 vision themes: talented, healthy, livable, sustainable (green), safe/prepared, functioning/mobile, collaborative, engaged, vibrant, equitable, and efficient. The plan outlines the key private and public sector strategies needed to create a more sustainably competitive community in order to attract the capital and resources needed to improve the economic development and quality of life of the Brownsville area. The American Planning Association’s Texas chapter honored the Imagine Brownsville comprehensive plan with the chapter’s 2009 Comprehensive Planning Award, competing with over 40 Texas

communities. In a video highlighting the initiatives of United Brownsville, Brownsville Mayor Tony Martinez says that “Brownsville is not only united, but we are going to be competitive for high paying jobs, good paying jobs, for technology, science, engineering. We are ready for that, our young people are ready for that and I think the whole global economy is ready for that. Brownsville is the place to be.” In the same video, which can be viewed at www.unitedbrownsville.com, Oscar D. Garcia, Vice Chairman of the Brownsville Public Utility Board, mentions that the Imagine Brownsville comprehensive plan has helped the community identify key challenges and solutions. “We have been working over the last several years in a collaborative effort to implement projects to address education, workforce development, wellness and quality of life, infrastructure, economic development,” he says in the video.

Summer 2013

Brownsville Economic Journal

HuMAN cAPITAL

The United Brownsville initiatives are industrial cluster development, binational economic development, prevention and wellness, equity, civic and leadership, public safety, downtown revitalization, education/human capital, infrastructure, environment, and institutional capacity building. For more information about United Brownsville, visit www.unitedbrownsville.com Local community leaders have pledged to be “All In” in a mission that looks to double the number of young adults in Brownsville who earn postsecondary credentials with labor market value. United Way of Southern Cameron County is spearheading this initiative and has partnered with the Brownsville Economic Development Council, Brownsville Chamber of Commerce, Brownsville Independent School District, Texas Southmost College, University of Texas at Brownsville, Cardenas Development Co., Community Development Corporation of Brownsville, Project VIDA, United Brownsville, Wells Fargo Advisers, and Workforce Solutions Cameron, in an effort to make this endeavor succeed. “We know that the jobs of the future will require education beyond high school, and we know that all degrees are not created equal when it comes to finding a great job that will provide a good life for a family. That's why we created All In,” explains Partnership for Postsecondary Success on its website www.allinbrownsville.org. PPS is an initiative that builds community partnerships with the goal of doubling the number of young adults with postsecondary credentials that will lead to living wage employment. This initiative was created with the guidance of MDC, a non-profit organization based in North Carolina that helps communities across the nation close the gaps in education and guidance that separate young people from opportunity. According to its website, All In “follows a proven system that dramatically improves college readiness and college completion. Our framework is an adaptation from the Gates Foundation’s System

All In for education

Brownsville Economic Journal Summer 2013

united Brownsville Initiatives Industrial cluster Development The Industrial development initiative lays out a blueprint, integrated with the other initiatives, to leverage existing regional physical, natural, and human resources to create sustained improvements in the quality of life and economic development of Brownsville.

BiNational Economic Development This task force works to increase the binational economic competitive advantage by reducing market barriers between Brownsville and Matamoros, planning and implementing economic development policies as one region ad by creating a framework to attract direct federal and private investment to support binational trade. Prevention and Wellness The Prevention and Wellness task force focused on what is seen as one of the most prevalent diseases in the Lower Rio Grande Valley, obesity and its linkages to diabetes. It is believed that many of the strategies would also have a positive impact on instances of other preventable diseases. Equity Promote equal access and opportunity for economic mobility through workforce development, work supports and asset attainment.

Public Safety Focus on maintaining a safe and prepared community while keeping public safety expenditures affordable by coordinating the location of new safety facilities with land use policies and smart growth patterns, promoting greater community collaboration on emerging safety issues, upgrading public safety technology, employing adequate personnel and investigating alternative mechanisms for funding public safety programs. Downtown Revitalization Working to foster a “sense of place” by making it easy to live and invest in downtown via key catalyst projects that attract private investment and increase downtown residents by creating a thriving, clean and safe, pedestrian friendly, culturaldriven, downtown center that leverages its historical character and spatially reconnects with the UTB/TSC campus.

Education/Human capital Increase our “Human Knowledge Capital” by creating and promoting clear educational pathways to quality careers through aligning education curriculums with market demand for talent and skills. This initiative works in conjunction with the Brownsville Partnership for Postsecondary Success lead by the United Way of Southern Cameron County and funded by a $1.5 Million grant from the Bill & Melinda Gates Foundation.

civic and Leadership This initiative is based on a very simple premise: and engaged and civically minded community is a prerequisite for a quality community.

Infrastructure Identify and improve key infrastructure that critically supports our economic development efforts and improves the quality of life for citizens. Elements included Drainage, Water/Wastewater, Electricity, Transportation.

for Student Success Model. Its multiphase implementation includes the gathering of student data, student engagement activities, collaborative work from faculty, administration and trustees and an emphasis on community partnerships and employment opportunities.” The initiative follows a curriculum alignment in which educators across all levels (including BISD, TSC and UTB) formally evaluate a course or an educational program to address the changing needs of students and the workforce. Teachers, educational advisers and program coordinators work together to develop the curriculum and make sure there are no gaps that may impede academic progress.

“Through the All In initiative we reach out to our local community college and university because we depend on them as much as they depend on us. By understanding what the needs are employment wise from the private sector we know how to better prepare our students to meet those needs,” says BISD Board President Dr. Enrique Escobedo, Jr. in a video highlighting the initiatives of United Brownsville. PPS’ All In is part of the education/human capital initiative of the Imagine Brownsville Comprehensive Plan. For more information, visit www.allinbrownsville.org. EJ BEDC.com

Market strategy

Brownsville recognized for foreign investment strategy

rownsville has been ranked among “Cities of the Future” for 2013-14 by fDi Intelligence, a publication of the London-based Financial Times that focuses on globalization trends. Brownsville made the list for its “foreign direct investment” strategy, which fDi ranked eighth among the best for small cities in North America. The ranking was published in the online magazine fDi Intelligence.com. FDI is foreign direct investment, direct investment in business or production in one country by a business in another country. It can mean either acquiring a company or expanding operations of an existing business in the target country. FDI is an alternative to traditional “portfolio investment,” which refers to the practice of investing in stocks and bonds in another country. fDi Intelligence identifies FDI as the leading driver of globalization. For the FDI strategy rankings — a new category this year — the magazine’s research team collected submissions from 127 cities containing details of each city’s approach to generating FDI. Be-

BEDC.com

AccOLADES

sides Brownsville, the other U.S. city on the list was Lafayette, La., which was ranked No. 1 in FDI strategy. The other cities were in Canada and Mexico. The “small city” category lists cities with populations between 100,000 and 350,000. Brownsville’s population is around 200,000. Michelle Lopez, director of public affairs and international development for the Brownsville Economic Development Council, said the ranking is based on how well cities market themselves internationally to lure foreign investment. The BEDC, which made the submission to fDi Intelligence, has been pursuing an FDI strategy the past two years that entails traveling to different countries, primarily in South America, to meet with business leaders face to face. For instance, officials from BEDC, the city and the Port of Brownsville traveled to Colombia in September to talk with companies that might be interested in doing business here. The BEDC also takes part in the state’s “Invest in Texas” trade shows in various foreign countries. In addition to Colombia, BEDC is focusing mainly on Argentina, Chile, Ecuador and Peru, countries whose economies are “starting to boom again,” Lopez said. “We’re trying to get there

before everybody else does,” she said. “We are a little bit ahead of the pack.” The BEDC and city officials also met last week with officials in Kiev, Ukraine, seeking to lure business to Brownsville. Lopez said the fDi ranking is evidence that BEDC is “working diligently” on a new and improved FDI strategy, which involves taking their story to potential foreign investors. This is in contrast to the old, less effective strategy — basically buying ads in trade magazines and hoping for a response, she said. Gilberto Salinas, BEDC’s executive vice president, said the more aggressive strategy has resulted in three foreign companies “in the pipeline.” He declined to offer specifics because negotiations continue, noting that cultivating business across borders is a long-term process. “When it comes to marketing tactics, it pays off dividends in the long run. It’s not a quick (return on investment),” Salinas said. “It takes a while to develop that pipeline.” FDI is a great way to build the region’s economic base — something cities like Houston and Miami have known for decades, he said. “We finally figured out that we are an international city, so let’s start acting like one,” Salinas said. EJ

Summer 2013

This article was written by Steve Clark and appeared on the Thursday April 18 issue of The Brownsville Herald.

Brownsville Economic Journal

Aerospace Industry

INTERNATIONAL NEWS

Satmex signs agreement to work with SpaceX

atelites Mexicanos (Satmex) announces that it has entered into a Satellite Procurement Agreement with Boeing Satellite Systems International (Boeing) and a Launch Services Agreement with Space Exploration Technologies (SpaceX) for the manufacture and the launch, respectively, of the latest communications satellite in its fleet, Satmex 7. The procurement of Satmex 7 is part of a global agreement in cooperation with Asia Broadcast Satellite (ABS) involving the manufacture and delivery of four firm and four optional satellites all at firm fixed prices. The purchase and delivery of these satellites will be governed by a Master Procurement Agreement entered into among Boeing, ABS and Satmex and will be subject to separate satellite procurement agreements between Boeing and each of Satmex and ABS. Both Satmex and ABS shall have the

Brownsville Economic Journal Summer 2013

ability to convert the optional satellites to firm orders as they may determine in the future. Satmex 7 is a hybrid satellite with both C- and Ku-band capacity, serving all of Satmex’s Latin America customers. The satellite will provide new expansion capacity that will be a catalyst for Satmex's growth plans over the next decade. The Boeing 702SP product line is a great fit for Satmex's expansion strategy, offering an innovative design with capabilities that provide flexible service offerings to meet the growing demands of Satmex's prestigious customer portfolio. “We are very pleased to partner with both, Boeing and SpaceX, on these agreements, which provides Satmex with the flexibility to grow our satellite fleet,” said Patricio Northland, Chief Executive Officer of Satmex. “Satmex is positioned for a new era of growth with the anticipated launches of

Satmex 8 in 2012, and with Satmex 7, our first satellite in the Boeing 702SP program, in late 2014 or early 2015. Satmex 7 will be a cornerstone of the Satmex fleet designed to provideDTH and data services with increased power levels and good elevation angles from any location within its coverage. These benefits will provide better performance to deliver media content directly to homes as well as broadband and other data services.” Concurrently with the satellite procurement agreements, ABS and Satmex have entered into a Bilateral Agreement which establishes rights and obligations between the parties with regard to the manufacture and launch of Satmex 7 and the other satellites in this global procurement. The launch is scheduled for late 2014 or early 2015 from Cape Canaveral, Florida and will use SpaceX’s Falcon 9 rocket. EJ BEDC.com

State Legislature

TEXAS NEWS

Rio Grande Valley fared well in Legislature

n the messy sphere of politics, rare are the moments of near universal satisfaction with policy outcomes. Yet such is the case in the Rio Grande Valley this year, where no shortage of superlatives has been used to describe the 83rd Texas legislative session, including extraordinary, fortuitous and by God’s hand. “My sense, it was all of the above,” said Juliet Garcia, president of the University of Texas at Brownsville. From the designation of a corridor to allow overweight trucks, thereby alleviating one of the bottlenecks at ports of entry, to incentives meant to lure the SpaceX launch site, the session is being called transformative by leaders here. And no legislation has received more praise than Senate Bill 24, which merges UT-Pan Am and UT-Brownsville into a Valley-wide institution and adds a medical school. The bill received unanimous approval in the House and Senate, and a standing ovation. Gov. Rick Perry signed the bill that creates the new UT System university that will serve about 30,000 students and stretch from Edinburg to Brownsville. More importantly, the realignment will give the combined university access to the Permanent University Fund, a key source of revenue that UT-Brownsville and UTPan AM had been precluded from using to grow their institutions. “All of these years that I’ve been in the Legislature, 26 now, I’ve been looking for an issue that would really unite the Valley and fuse us together as one family, and I think the university issue will do that,” said state Sen. Eddie Lucio Jr., DBrownsville. It was a fortunate turn of events several years ago when UT System Chancellor Francisco Cigarroa pitched the idea to the university presidents and Valley legislative delegations of joining the universities and adding the medical school. “It was a very, very successful birth to a baby,” said Robert Nelsen, president of UT-Pan Am, which is in Edinburg, about BEDC.com

the merger and the medical school. Lobbying for a Valley medical school can be traced back decades, according to Randy Wittington, a Harlingen attorney and president of the South Texas Medical Foundation. “The best I can determine from the research I’ve done, the first bill ever introduced to create a medical school in the Rio Grande Valley was in 1947, which happens to be the year I was born, and I’m on Medicare and Social Security,” he said. A self-described squeaky-wheel advocate for the medical school, Wittington was involved since 1998, first with the establishment of the Regional Academic Health Center in Edinburg as a branch of the UT Health Science Center at San Antonio. Since then, UT has invested about $200 million there, he said. The bill lays out the specifics of the medical school. Students will begin their medical training on campuses in Hidalgo County and complete their second two years in Cameron County. But first, a search is underway for the first dean to shape the medical school. “It’s an entirely different demographic down here from an ethnic standpoint, from a cultural standpoint, from a socioeconomic standpoint and more importantly from a pathological standpoint,” Wittington said. “We have diseases down here both the incidence at which they occur and in some cases the diseases themselves you don’t see in other parts of the country, and some you don’t see in other parts of the world.”

While SB 24 was arguably the most significant, it was by no means the only legislation to receive applause. With three-quarters of all fruits and vegetables entering Texas imported from Mexico through Valley ports and significant increases on the horizon when Mexico completes infrastructure connecting Pacific Coast markets to the border region, an overweight truck corridor concept in the Upper Rio Grande Valley was a must to remain competitive, according to the

Trade and space

Texas International Produce Association. On the corridor, heavier trucks from Mexico can enter the country without divvying their haul onto two trucks, which is costlier and clogs the ports of entry. For now, it benefits the international bridge near Pharr, but later it will also serve the bridge near Mission. Nogales, Ariz., which competes for import business with Texas, has successfully operated an overweight corridor for years. “The corridor sends a strong message to our trading partners to the south that we want to continue to attract their business to our region and we’re taking the necessary steps to stay competitive,” said Bret Erickson, president and CEO of the Texas International Produce Association. Other legislation that stirred regional excitement this session was aimed at luring Space Exploration Technologies Corp., or SpaceX, to build a spaceship launch site at Boca Chica Beach near Brownsville. “This allows us to dream big,” said Gilbert Salinas, vice president of the Brownsville Economic Development Council. “Ten years down the road, we might look back and say legislatively, 2013 was the year everything fell into place.” Budding physicists at UT-Brownsville say the company has already expressed an interest in their talents. Many are calling this year historical, but Garcia, the UT-Brownsville president, prefers to call it pivotal because it changes the Valley history rather than documents another event in time. “When I was a kid, the way we went to go see my grandmother in Camargo (Mexico) … was on a big raft, pulled by a mule,” Garcia said. “It’s lovely for me to imagine now SpaceX,” she added. EJ

Summer 2013

This article was written by Aaron Nelsen and appeared in the San Antonio Express-News Brownsville Economic Journal

Gross Domestic Product Real gross domestic product -the output of goods and services produced by labor and property located in the United States -- increased at an annual rate of 2.5 percent in the first quarter of 2013 (that is, from the fourth quarter to the first quarter), according to the “advance” estimate released by the Bureau of Economic Analysis.

2.5%

Trade in Goods and Services

Total March exports of $184.3 billion and imports of $223.1 billion resulted in a goods and services deficit of $38.8 billion, down from $43.6 billion in February, revised. March exports were $1.7 billion less than February exports of $186.0 billion. March imports were $6.5 billion less than February imports of $229.6 billion.

-$38.8 billion

construction Spending Construction spending during March 2013 was estimated at a seasonally adjusted annual rate of $856.7 billion, 1.7 percent (±1.5%) below the revised February estimate of $871.2 billion. The March figure is 4.8 percent (±1.6%) above the March 2012 estimate of $817.8 billion.

-1.7%

Private construction Spending on private construction during March was at a seasonally adjusted annual rate of $598.4 billion, 0.6 percent (±1.2%) below the revised February estimate of $602.0 billion. Public construction In March, the estimated seasonally adjusted annual rate of public construction spending was $258.3 billion, 4.1 percent (±2.5%) below the revised February estimate of $269.2 billion.

uNITED STATES

Gross domestic product continues to grow

Real gross domestic product (GDP) increased 2.5 percent at an annual rate in the first quarter of 2013, according to the advance estimates of the national income and product accounts (NIPAs) In the fourth quarter of 2012, real GDP increased 0.4 percent. The acceleration in real GDP in the first quarter primarily reflected an upturn in private inventory investment, an acceleration in consumer spending, an upturn in exports, and a smaller decrease in federal government spending that were partly offset by an upturn in imports and a deceleration in nonresidential fixed investment. Prices of goods and services purchased by U.S. residents increased 1.1 percent in the first quarter after increasing 1.6 percent in the fourth quarter. Energy prices turned down, and food prices decelerated. Excluding food and energy, gross domestic purchases prices increased 1.3 percent after increasing 1.2 percent. Real disposable personal income (DPI) decreased 5.3 percent in the first quarter after increasing 6.2 percent in the fourth quarter. Current-dollar DPI decreased 4.4 percent in the first quarter after increasing 7.9 percent in the fourth quarter. The sharp

Brownsville Economic Journal Summer 2013

SOURCE: U.S. Department of Commerce Bureau of Economic Analysis

Import and Export Price Indexes

Employment

Total nonfarm payroll employment rose by 165,000 in April, and the unemployment rate was little changed at 7.5 percent. Employment increased in professional and business services, food services and drinking places, retail trade, and health care.

downturn in DPI reflected a sharp downturn in personal income that was partly offset by a deceleration in personal current taxes. The personal saving rate, personal saving as a percentage of current-dollar DPI, was 2.6 percent in the first quarter; in the fourth quarter, the rate was 4.7 percent. Consumer spending accelerated in the first quarter, reflecting a pickup in spending for services that was partly offset by a slowdown in spending for goods. The slowdown in spending for goods reflected widespread slowdowns in the durable-goods categories, but especially motor vehicles (new and used), that were partly offset by a pickup in nondurable goods, primarily food and nonalcoholic beverages for off-premises consumption, clothing and footwear, and fuel oil and other fuels. The pickup in spending for services reflected an upturn in electricity and gas and a pickup in financial services and insurance that was partly offset by a slowdown in food services and accommodations, mainly in food services. EJ

7.5%

U.S. import prices fell 0.5 percent in April, following a 0.2 percent decrease in March. Lower prices for both fuel and nonfuel imports contributed to the declines in each month. Prices for U.S. exports decreased 0.7 percent in April after a 0.5 percent decline in March.

0.5%

SOURCES: U.S. Census Bureau; U.S. Bureau of Economic Analysis; U.S. Bureau of Labor Statistics BEDC.com

MEXIcO

Mexico improves ranking in global competitiveness

The International Institute for Management Development (IMD), a top-ranked global business school based in Switzerland, placed Mexico in the 32nd spot of its 25th anniversary world competitiveness rankings. According to IMD, Mexico has seen a small revival in its competitiveness that now needs to be confirmed over time and by the continuous implementation of structural reforms. The country climbed five spots since 2012 (from 37 to 32), and eight spots since 1997 (from 40 to 32). Mexico is ranked second best among Latin American countries, second only to Chile (30). The US has regained the No. 1 spot in 2013, thanks to a rebounding financial sector, an abundance of technological innovation and successful companies. In Europe, the most competitive nations include Switzerland (2), Sweden (4) and Germany (9), whose success relies upon export-oriented manufacturing, diversified economies, strong small and medium enterprises (SMEs) and fiscal discipline. Like last year, the rest of Europe is heavily con-

strained by austerity programs that are delaying recovery and calling into question the timeliness of the measures proposed. Professor Stéphane Garelli, director of the IMD World Competitiveness Center, said: “While the euro zone remains stalled, the robust comeback of the US to the top of the competitiveness rankings, and better news from Japan, have revived the austerity debate. Structural reforms are unavoidable, but growth remains a prerequisite for competitiveness. In addition, the harshness of austerity measures too often antagonizes the population. In the end, countries need to preserve social cohesion to deliver prosperity.” The BRICS economies have enjoyed mixed fortunes. China (21) and Russia (42) rose in the rankings, while India (40), Brazil (51) and South Africa (53) all fell. Emerging economies in general remain highly dependent on the global economic recovery, which seems to be delayed. EJ The complete report is available at www.imd.org

Employment

SOURCE: Federal Reserve Bank of Dallas BEDC.com

Formal-sector employment—jobs with government benefits and pensions—fell at an annualized rate of 0.1 percent in March, declining for the first time since mid-2009. Through March, employment grew 2.8 percent annualized, significantly below the 4.6 percent pace realized in 2012.

consumer Price Index

2.8%

Inflation increased in March for the second consecutive month as prices rose 4.2 percent year over year. Prices excluding food and energy increased 3 percent, a rate that coincides with the central bank’s long-term inflation target.

Global Economic Activity

The Global Economic Activity Index (IGAE), a monthly proxy for Mexico gross domestic product, slowed from 0.3 percent growth in January to 0.2 percent in February. While this is a slight improvement since December, IGAE’s three-month moving average shows signs of slowing.

0.2%

Exports

Exports grew 1.8 percent in March; however, exports are down 1 percent in first quarter 2013 compared with fourth quarter of last year. Three-month moving averages show that total exports have been flat since mid-2012, while manufacturing exports have been falling.

1.8%

Industrial Production Industrial Production (IP) increased 0.5 percent month over month in February after growing 1.3 percent in January. Nevertheless, yearto-date growth has simply made up for year-end declines. Three-month averages show slowing as Mexico IP remains below the levels reached in mid-2012.

0.5%

Peso/Dollar Exchange Rate

The exchange rate averaged 12.2 pesos per dollar in April. The peso has appreciated 5.2 percent since December 2012, when the peso/dollar exchange rate averaged 12.9 pesos per dollar

Summer 2013

12.2

pesos per dollar

Brownsville Economic Journal

TEXAS

Employment

Texas lost 7,900 jobs in March after adding 61,000 jobs in February. In the first quarter of 2013, Texas employment grew at a 2.1 percent annualized rate, raising the number of jobs to 11.08 million. The Texas unemployment rate held steady at 6.4 percent in March. The Texas rate remains lower than the U.S. rate, which was 7.6 percent in March.

State wins 2013 Gold Shovel Award 6.4%

Quarterly Exports

Monthly Texas exports rose 1.7 percent from January to February, marking a second consecutive month of increase. February exports were 3.3 percent higher than at the same time last year.

1.7%

Production IndexTexas Manufacturing

Texas factory activity was flat in April, according to the Texas Manufacturing Outlook Survey. The production index, a key measure of state manufacturing conditions, fell from 9.9 to –0.5. The near-zero reading indicates output was little changed from March levels.

-0.5

Natural Gas Prices

crude Oil Prices

The West Texas Intermediate crude oil price fell 1.1 percent to $92.07 per barrel in April and was down 10.9 percent year over year.

Area Development, the leading publication covering site selection and facility planning, awarded Texas a 2013 Golden Shovel in the 10+ million population category. Annual Shovel Awards recognize state economic development agencies that drive significant job creation through innovative policies and infrastructure improvements, as well as processes and promotions that attract new employers. Investments in expanded facilities are also recognized. Gold Shovels are presented to states that have achieved the most success in terms of new job creation and economic impact. Texas is far ahead of the game when it comes to economic recovery, according to the latest statistics from the office of the Comptroller of Public Accounts. “Employers are looking at the recent recession through a rear-view mirror,” according to the office’s “Economic Outlook.” The report continues, “Texas replaced all of its recession-hit jobs by December 2011.” By March 2013, the state’s unemployment rate had dropped to 6.4 percent, more than a percentage point below the national average - it’s been below the national average for more than 75 consecutive

1.1%

Natural gas prices rose to $4.17 per million Btu in April, a 9.2 percent increase from the March level. The price was 113.9 percent higher than in April 2012.

Brownsville Economic Journal Summer 2013

months now. The state’s gross domestic product was up by 3.2 percent last year, well ahead of the national growth rate. Fueling the way toward the Lone Star State’s Gold Shovel award has been the energy sector, along with chemicals, IT, and other varied sectors. Austin is the home of one of the latest Projects of the Year Apple’s new IT operations center and its 3,600-plus jobs - as well as an 800-job Visa IT center. Another 2,600 jobs come by way of headquarters expansions at Ericsson in Plano and Southwest Airlines in Dallas. When it comes to oil and chemicals, that's where the really big-dollar investments come into play - they’re all in the billions of dollars. Texas has quite a top-10 list - with investments worth more than $11 billion and some 8,000 new jobs. And there’s a lot more where that came from. As Gov. Rick Perry proclaimed at a recent business event, “Texas’ economy has become the envy of the nation.” A report on the 2013 Shovel Award winners will be published in the Q2/Spring 2013 issue of Area Development and posted online at www.areadevelopment.com/awards. EJ

Texas Rig count The Texas rig count increased to 836 in April and was down 9.4 percent year over year.

9.2%

836

SOURCE: Federal Reserve Bank of Dallas BEDC.com

BROWNSVILLE BORDERPLEX

Empty call center attracts nationwide company A year ago the phones went quiet at Brownsville’s T-Mobile call center, as some 475 employees lost their jobs. The wireless giant shuttered the facility it had occupied since 2007 as part of a consolidation of T-Mobile call centers, from 24 to 17 nationwide. However, as Mayor Tony Martinez revealed during May’s “State of the City” address, the call center’s phone lines are set to crackle back to life soon under new management: Maximus, a Reston, Va.-based company with “contact centers” around the nation to help clients of government health and human services programs, will bring approximately 600 jobs to the city, Martinez said. “It’s not officially up and running until August,” said a Maximus spokeswoman. “It’s a brand new startup project. We’re just taking care of hiring at this time.” On the Maximus website the Brownsville call center is advertising for nine positions, including call center manager, director of finance and accounting, human resources recruiter, and finance and accounting analyst. Anyone interested in applying for these and other positions should visit and click on “current opportunities.” The spokeswoman said the Brownsville

Employment

A complete version of this article, written by Steve Clark, can be found at www.brownsvilleherald.com

Border crossings

Source:Texas Workforce Commission

EcONOMIc PuLSE

call center will support federal government services. Maximus has 7,000 employees in 220 offices worldwide. The Brownsville location will become the company’s 16th Texas call center, according to the Maximus website. T-Mobile built the Brownsville call center, located near the Brownsville Events Center, and launched operations there in 2007 before pulling the plug in June 2012. Gilberto Salinas, executive vice president of the Brownsville Economic Development Council, said T-Mobile at its height in Brownsville employed around 600 people. T-Mobile invested $18 million building the call center and put nearly $100 million into the local economy in the form of payroll during four and a half years, Salinas noted. Plus, Brownsville ended up with an empty call center — still the responsibility of T-Mobile — that it nevertheless could shop around to other companies, he said. “What happened in the end we had an asset which was a plug-and-play back office operation,” Salinas said. “Quite a few companies were looking at it.” EJ

(Jan-Mar 2013)

Source:Texas Center for Border Economic and Enterprise Development

Civilian Labor Force:163.6

Rail Northbound: 10,066 Southbound: 9,895

Unemployed: 16.3

Truck Northbound: 43,609 Southbound: 65,601

Employed: 147.3

Job growth rate: 1.4

Unemployment rate: 9.9%

BEDC.com

Data is from April 2013. All estimates in thousands

9.9%

New transmission line approved

The Rio Grande Valley’s power supply will be less vulnerable to coastal storms once an additional transmission line from the Laredo area to the Valley is complete. In May the Public Utilities Commission of Texas approved an application by Electrical Transmission Texas LLC for a “Certificate of Convenience and Necessity” to build the proposed 345-kilovolt (kV) transmission line. One kV equals 1,000 volts. The project will include roughly 156 miles of transmission line connecting ETT’s Lobo Substation near Laredo with substations north of Edinburg, plus construction of two new substations along the line route. ETT is a joint venture between subsidiaries of Columbus, Ohiobased American Electric Power and MidAmerican Energy Holdings Co., headquartered in Des Moines, Iowa. The cost of the project is estimated at $397 million — $318 million for the line alone. In 2011 the board of Electrical Reliability Council of Texas deemed the project as critical to the reliability of the ERCOT system grid in the Lower Valley based on the recommendation of its engineering committee. ERCOT manages the electric grid and the deregulated electricity market that covers roughly three-quarters of the state. The new transmission lines and upgrades are all part of what’s been dubbed the “Cross Valley Project,” aimed at ensuring dependable electric service for the Lower Valley and addressing growing demand for electricity in the Brownsville area, according to AEP. EJ

Vehicle Northbound: 949,228 Southbound: 831,158 Pedestrian Northbound: 511,216 Southbound: 582,175 Summer 2013

A complete version of this article, written by Steve Clark, can be found at www.brownsvilleherald.com Brownsville Economic Journal

State of the city Address people their jobs. The new call center is expected to begin taking calls in August. “Maximus understands the value of Brownsville’s human capital. Our metro area is the second most bilingual community in the nation. What they see in Brownsville is simple: the future face of the nation,” Martinez said. Martinez noted improvements by the Brownsville Public Utilities Board concerning resacas and the emerging partnership with Tenaska Power, which will greatly multiply the city’s power capacity and open the door for new, larger businesses to relocate to the city. The mayor went as far as to say that Brownsville’s access and abilities with water, thanks to the resacas, and expansion of power capabilities puts the city in the best position possible in comparison to other cities across the state and nation. Tying the event’s themes together,

Continued from Page 9

The Mayor touted the All In campaign, as one of the key elements to increase those educational levels. “All In Brownsville is about increasing the number of young adults with post-secondary credentials with labor market value. It’s no longer just to get a degree or a technical degree. It’s about advancing education, creating careers, and transforming Brownsville,” said Mariana Tumlinson, coordinator for the campaign. Martinez later pivoted to discussing jobs and infrastructure while announcing the opening of a new call center at the former T-Mobile facility on Paredes Line Road. He said a Maximus call center will bring 600 jobs to the area and that those jobs will pay better than the T-Mobile jobs they’ll replace. The T-Mobile call center closed in June 2012, costing nearly 500

Martinez last turned to the SpaceX project, which aims to bring the world’s first commercial rocket launch site to Boca Chica Beach along with about 1,000 related jobs. He stressed that the SpaceX project was not a done deal, but said bills in Austin appear destined to remove the final barriers to the project’s progress. Officials have said the Federal Aviation Administration could make its final ruling this fall on whether it will allow a launch site in Brownsville. Locations in Georgia, Florida and Puerto Rico are also being considered, but are not as far along in the FAA process, officials have said. EJ This article was written by Ty Johnson and appeared on the Wednesday, May 15 issue of The Brownsville Herald

North Brownsville Industrial Park A development of the Greater Brownsville Incentives Corporation

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AVAILABLE Lot 3 (5.6 acres) AVAILABLE Lot 4 (5.7 acres)

AVAILABLE Lot 5 (6.6 acres)

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1/4 mile to SH550 (I69 Spur) INTERSTATE

To Port of Brownsville, Brownsville South Padre Island International Airport

Brownsville Economic Development Council 301 Mexico Blvd. Suite F-1 Brownsville, Texas 78520 p.956.541.1183 / 800.552.5352 f.956.546.3938 www.BEDC.com

Brownsville Economic Journal Summer 2013

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SHOVEL READY CERTIFIED SITE

Site Description 73-acre Master Plan Industrial Park

Minutes from Port of Brownsville, Brownsville International Airport, I69, and Mexico

Minutes from Maquiladora Industry in Matamoros, Mexico

Access to rail service

Concrete roads, boulevards, and turnarounds 9 lots available

All utilities in place: electric, water, wastewater, natural gas Contact: Sylvia Rodriguez srodriguez@bedc.com BEDC.com

“Texas is a state where a dream can be put to work.” - Texas Governor Rick Perry

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