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THE CITY OF LAREDO AND INFINITO GLOBAL LOGISTICS PRESENT: INTERNATIONAL TRADE IN THE NAFTA CORRIDOR.

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Presentation on theme: "THE CITY OF LAREDO AND INFINITO GLOBAL LOGISTICS PRESENT: INTERNATIONAL TRADE IN THE NAFTA CORRIDOR."— Presentation transcript:

1 THE CITY OF LAREDO AND INFINITO GLOBAL LOGISTICS PRESENT: INTERNATIONAL TRADE IN THE NAFTA CORRIDOR

2 Clients take our perfection in supply chains for granted. They assume Red Prairie will work perfectly, that Starbucks will always have hot coffee, and that FedEx will always deliver on time. -Patrick Dixon, CEO Global Change THE CURRENT STATE OF SUPPLY CHAINS SPEED, RELIABILITY, AND PERFECTION ARE KING. THE PROXIMITY OF MEXICO TO THE US LENDS TO MAKING PERFECTION POSSIBLE.

3 Mexico is seen as offering attractive scale and good growth prospects in general. Foreign investors see significant potential in the country as a near- sourcing location because of its strategic proximity to large consumer markets in the West – and especially in view of ongoing concerns about economic over-heating in China and the probability of higher global oil prices. -World Economic Forum Davos GLOBAL PERSPECTIVE

4 NEAR SOURCING FROM ASIA-WHY? Competence will always trump cost. -John Rice, GE Vice Chairman Biggest challenge to manufactuing: 91% of American Chamber of Commerce of Shanghai members mentioned rising labor costs. Labor cost increases per year: China12-14% Philippines8% Mexico1%

5 NEAR SOURCING TO PREVENT SUPPLY CHAIN DISRUPTIONS

6 6

7 SOUTHERN BORDER MAQUILADORAS REYNOSA 143* MATAMOROS 127 LAREDO 36 *(42% of population is employed by maquiladoras)

8 Laredos trade with the world rose to $215,946,651,400 through the first 12 months of 2011, according to a WorldCity analysis of the latest U.S. Census Bureau data. Thats a percent increase in the Customs districts total trade during the same time period in Laredo is one of only 4 US Customs districts to be back above pre-recession trade levels. LAREDO WORLD TRADE TOTALS

9 LAREDO – INTERNATIONAL TRADE HUB THE US DEPT. OF TRANSPORTATION PREDICTS LAREDO TRADE WILL INCREASE 29% BY 2015.

10 LAREDO INFRASTRUCTURE MORE THAN 1,000 LOGISTICS, TRANSPORTATION, AND CUSTOMS BROKERAGE COMPANIES TWO COMMERCIAL/CARGO BRIDGES, ONE RAIL BRIDGE MORE THAN 60,000,000 SQ. FT. OF WAREHOUSE SPACE NEW AIRPORT FEDERAL INSPECTION STATION LARGEST AIR CARGO AIRPORT SOUTH OF IAH COMBINING TO ENABLE DAILY TRADE WITH OVER 70 COUNTRIES

11 LAREDO TRADE STATISTICS 2011 LAREDO TRADE ACCOUNTED FOR 5.8% OF THE NATIONS TOTAL NUMBER SIX US CUSTOMS DISTRICT HANDLED OVER 3,000,000 COMMERCIAL TRUCK CROSSINGS (12,000 DAILY) OVER 300,000 RAIL CARS 485,000,000 LBS OF AIR CARGO (20% YTY GROWTH VS. 2010) 24 CHARTER CARRIERS PLUS 4 DAILY CARGO CARRIERS 6,000,000 PEDESTRIAN CROSSINGS FROM MEXICO (16,000 DAILY) 9,000,000 COMMERCIAL VEHICLE CROSSINGS FROM MEXICO (25,000 DAILY)

12 GREEN INITIATIVES AND EFFICIENCY THE RISING PUBLIC AND PRIVATE CONSCIOUSNESS TOWARD SUSTAINABLE PRACTICES COUPLED WITH COST SAVINGS HAS THRUST GREEN PRACTICES IN TO THE FOREFRONT

13 Rail transport is almost four times more efficient than trucking with regard to tons moved per kilometer. Since US-Mexico moves are generally long-haul, intermodal has become much more prevalent. RAIL AND INTERMODAL PROMOTE NAFTA TRADE EFFICIENCY

14 RAIL EFFICIENCIES

15 MEXICO OCEAN INFRASTRUCTURE HOW FAST CAN MEXICOS PACIFIC PORTS ADAPT TO SUPER CARRIERS SUCH AS THE EMMA MAERSK? IS THE ASIA-PACIFIC THROUGH MEXICO LAND BRIDGE FASTER TO THE DEEP SOUTH? CHEAPER?

16 TRENDS

17 EAGLE FORD BY 2020 A YEARLY IMPACT OF 21.5 BILLION USD.

18 Rodney Lewis Net Worth $2.8 B As of September 2011 At a Glance Age: 57 Source: natural gas, self-made Residence: San Antonio, TX Country of Citizenship: United States Marital Status: Married Children: 4 Forbes Lists #130 Forbes 400 Forbes 400 #512 Forbes BillionairesForbes Billionaires

19 INCREASED COMPLIANCE AND REGULATION

20 MEXICAN TRUCKS IN THE US MORE ECONOMICAL? HOW SAFE?

21 PANAMA CANAL EXPANSION COMPLETION IN 2014 WILL ENABLE CAPACITY TO DOUBLE

22 FOREIGN TRADE ZONES

23 VENTANILLA UNICA

24 COMPLIANCE QUESTIONS TO ASK: DO YOU HAVE A COMPLIANCE DEPARTMENT? HOW ROBUST IS YOUR COMPLIANCE DEPARTMENT? DOES COMPLIANCE KNOW ABOUT MEXICAN CUSTOMS LAW? HAVE YOU CAREFULLY CHECKED FOR CORRUPT PRACTICES?

25 ADDING VALUE TO NAFTA SUPPLY CHAINS DOES YOUR PRODUCT FLOW FREELY THROUGH BORDERS? HAVE YOU COMPARED FREIGHT RATES RECENTLY? ARE YOUR TRANSIT TIMES WHAT THEY SHOULD BE? DO YOUR SUPPLIERS KNOW YOUR PRODUCTION/VISIBILITY NEEDS? IS YOUR CUSTOMS BROKER AN ASSET OR HASSLE?

26 Company, Capabilities and Competitive Edge Bridging Business Borders

27 What We Do Infinito Global Logistics, or IGL, is a supply chain industry leader that ensures seamless, efficient and reliable international coverage to our clients. Logistics Services U.S. and Mexican Customs Brokerage Freight Forwarding

28 What Sets IGL Apart Provides strong experience in industry compliance and oversight Delivers attentive and personalized service Operates efficiently to lower costs, streamline processes and save time Establishes key relationships with clients and partners to increase value Has a proven reputation as a trusted supply chain integrator Lowering total supply chain costs, raising the bar for service and innovation

29 THANK YOU APICS SAN ANTONIO!


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