1. Look Beyond Your Borders Trade Corridors Ted Houghton Texas Transportation Commission

2. Texas State Highway System largest road system with 80,000+ miles

3. The State of Texas Is #1 in Gross Domestic Product Has top business climate in nation (Site Selection Magazine 11/04)

4. Texas Trade Partners 1) Mexico –45% with Texas –Chihuahua, Mexico largest state trading partner 2) South Korea 3) Taiwan 4) China 5) Japan

5. Texas/Mexico Trade Corridors Corralitos Ranch cattle drive

6. Texas Trade Corridors The Butterfield Trail Marker

7. Texas Trade Corridors Del Rio Wool & Mohair Company

8. Texas Trade Corridors Gulf Intracoastal Waterway

9. Texas Trade Corridors

10. Interstate Highway 35 in Austin, Texas

11. Trade Corridor Ports of Los Angeles and Long Beach

12. Trade Corridor The Alameda Corridor

13. Trade Corridor The Alameda Corridor

14. Trade Corridor Pacific Coast Water Ports

15. Texas Trade Corridors Texas Gulf Water Ports

16. Texas Trade Corridors Texas/Mexico Border Ports of Entry

17. SHIFTS IN TRADE ROUTES AFFECTING TEXAS Panama Canal Chicago POLA / POLB 2009 Expansion of All-water Route via Panama Canal Expansion of Mexico Routing Expansion of San Pedro Bay Ports Routing Distribution Warehouse Transloading Inland Port Distribution Warehouse MEXICO Train Block

18. MAJOR IMPORTER TRENDS The concentration of trade between the US retail sector and North Asia has provided a number of importers with market power Identified top retailers represent approximately 4.3% of GDP and employ 2.7% of US private employment, and nearly 20% of retail employment Wal-Mart Lowe’s Circuit City Kohl’s Best Buy Pier1 93 35 21 -- 31 44 NORTHWEST Wal-Mart Lowe’s Circuit City 744 168 128 Kohl’s Best Buy Pier1 196 142 196 MIDWEST Wal-Mart Lowe’s Circuit City Kohl’s Best Buy Pier1 366 102 118 39 103 166 SOUTHWEST NORTHEAST Wal-Mart Lowe’s Circuit City Kohl’s Best Buy Pier1 273 63 82 77 64 146 Wal-Mart Lowe’s Circuit City 287 102 78 Kohl’s Best Buy Pier1 57 53 99 MID-ATLANTIC Wal-Mart Lowe’s Circuit City 779 309 128 Kohl’s Best Buy Pier1 49 88 187 SOUTHEAST Wal-Mart Lowe’s Circuit City 842 167 80 Kohl’s Best Buy Pier1 67 77 123 SOUTHCENTRAL

19. What Will It Take? Champions Look beyond your border all the way to …. Financing Public/Private Partnerships –Shipping companies –Railroads –Regional Mobility Authorities –State of Texas