Ciudad Juarez Airport Upgrade & Inland Port Development International Trade and Logistics Centers WTC Confianza

In 2006, there was $55 billion of U.S.-Mexico Trade crossing through this border. 18%percent of all U.S.-Mexico Trade. El Paso Region

The greater El Paso Region is positioned in southwestern Texas and south-central New Mexico on the U.S./Mexican border. El Paso-Juarez Border is connected by 4 bridges. The region is a blend of urban, suburban, rural, and undeveloped sectors, encompassing an estimated population of 2.5 million. El Paso is the largest metro area on the U.S./Mexican border and the region constitutes the largest bi-national metropolitan area in the Western Hemisphere. 25% of all trade between the U.S. and Mexico crosses through the El Paso/Juárez border. The region is a globally competitive manufacturing center, largely due to our ability to offer manufacturing companies with the opportunity to engage in “production sharing”. There are 267,500 persons employed in manufacturing. El Paso’s sister of Juarez, Mexico is home to 350 maquildoras. These companies, approximately 85% of whom come from the United States, purchase an estimated $8 billion per year in components, raw materials and services. Market Perspective

Over 98% of these 267,000 workers are employed in facilities that are located within a 25-mile radius of downtown El Paso, and the vast majority are engaged in “production sharing” for such industries as automotive parts, medical devices, consumer products, electric motors,electronic components and more. One of the Largest Manufacturing Centers in North America By Total Number of Manufacturing Workers Sources: US Department of Labor, June 2006 and INEGI, June 2006 Market Perspective

The chart on this page depicts the approximate ratio of estimated $8 billion worth of components and services purchased annually by maquiladoras operating in Cd. Juarez. Ciudad Juarez Market

Traffic CongestionTraffic Congestion El Paso Airport served to 3,371,446 passengers, had 109,116 aircraft operations and moved 86,235 tons in El Paso is home to the border's largest and newest passenger terminal and is emerging as the border's most centralized intermodal hub. In the last three years, El Paso Airport have developed our Air Cargo facilities in a coherent, logical fashion with the final objective to create a fully integrated transportation center, second to none on the U.S.-Mexico border. This development included two 144,000 square foot Air Cargo buildings, over 34 acres of aircraft parking and 6.4 miles of roadways. This $60,000,000 investment has resulted in the largest and most modern air cargo complex on the U.S. Mexico border. Development Premises

Traffic CongestionTraffic Congestion This 288,000 square foot cargo complex has an occupancy rate approaching 70% and is the only modern air cargo complex on the border with immediate expansion capabilities. Crossing-Border into El Paso Daily Private Vehicles: 43,000 Pedestrians: 25,000 Commercial Trucks: 3,500 Development Premises

Current Situation El Paso, Tx Border Imports/Exports, It’s10 times more expensive to cross the US-MEX border than the CAN-US. Most of the demand came from warehouse and transportation related companies working in conjunction with the maquilas in Cd. Juárez. Throughout the year there were several significant logistics requirements in El Paso and we certainly believe this will continue into Development Premises

Current Situation During the past twelve months 2,885,000 SF of space was occupied in El Paso and Santa Teresa. With very limited new construction during the some period, the industrial vacancy rate continued its decline from 15.6% in January to 11.2% at the end of the year. This remaining vacancy represents slightly over 6,000,000 SF of El Paso's 53,640,000 SF industrial base started off strong with several key leases in the first half of the year. Werner Ladder leased 375,000 SF in the Americas Logistics Center in Socorro; Commodity Specialists took 200,000 SF in the Northeast and Panalpina leased 116,000 SF in the Vista del Sol area. Throughout the year leasing activity was strengthened by warehouse and distribution users. Ryder Logistics, Transexpedite Morrison Express and Span International were all key transportation companies leasing space in the post twelve months. Development Premises

Advantages Improvement in US security due to trade comerce to mexican companies stays less time in the US side and trade from MEX to US companies are filtred more efficiently (binational clearance). Excellent choice to reduce the Total Distribution Cost (TDC) for the maquiladora industry, local producers and importers from the California region and the rest of the countries. Development Premises Ciudad Juarez Airport

Development Area Air Cargo Terminal

Advantages The CLA-CJS exceed the requirements to has a “Recinto Fiscalizado” or Free Trade Zone within it´s facilities. The operational cost in the Chihuahua territory are much lower than Texas. The facilities will be built in an strategicall point: the second busiest border line in NorthAmerica. A great opportunity to reduce cost and time, improve security and visibililty, and create an effective cross-dock instead of an expensive and ineficient warehousing and handling operation. Development Premises

“Our Air Cargo Terminals are designed to be and effective link between the airline and the shipper or consignee; It´s main objetive is to make sure this process guarantee integrity, control and confidence with less cost and time spent at the same time”. Development Premises

“The actual process of the air cargo is 15 % air traffic and 85 % land traffic.... …..is because of that air companies begin to understand how important is to have a complement into Air Cargo Terminal”. Development Premises

Internal Layout External Layout Development Premises

The Air Cargo Terminal Market is becoming more especialized: Development Premises

ROYALTY FEE CHARGES HANDLING TERMINAL 0 % San Francisco 0.90 USD 5.25 % Nueva York, Los Angeles, 0.90 USD 5 % - 10 % México 0.45 USD 7 % Miami 0.80 USD 8 % Italia 1.20 USD Austria 1.10 USD Checoslovaquia 0.22 USD Paris 1.20 USD 8-10% Singapore 0.20 USD 10 % Inglaterra 1.10 USD 10 % Hong Kong 0.25 USD 10 % Seoul 0.30 USD 11.5 % Guadalajara 0.25 USD 13 % Alemania (Frankfurt) 1.00 USD The average cost of imports and exports considering a 3 to 6 days stay. Shipping’s of 100 kgs. Some of times the expenses are taken care of by the airline. Operating Cost and Service Price in Different Markets

Aeropuerto de Ciudad Juárez Plan Estado Actual Desarrollo Inmobiliario 1.5ha 0.5ha 13 Ha Zona Prevista en el Plan Maestro para la Fase Final de desarrollo de la Carga (Implica la reubicación del VOR actual) 7.2 Ha Zona Prevista en el Plan Maestro para el desarrollo de parques industriales (Implica la reubicación del VOR actual)

1.5ha Aeropuerto de Ciudad Juárez Plan Maestro – Ultima fase Desarrollo Inmobiliario 0.5ha 13 Ha Zona Prevista en el Plan Maestro para la Fase Final de desarrollo de la Carga (Implica la reubicación del VOR actual) 7.2 Ha Zona Prevista en el Plan Maestro para el desarrollo de parques industriales (Implica la reubicación del VOR actual)

Carlos Torres Verdín