Transcript Document

Ciudad Juarez Airport Upgrade & Inland Port Development

International Trade and Logistics Centers

WTC Confianza

El Paso Region

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

Market Perspective

The greater

El Paso Region New Mexico

is positioned in southwestern on the U.S./Mexican border.

Texas

and south-central 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

border.

crosses through the El Paso/Juárez 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 Los Angeles Chicago Dallas/FW El Paso/Juarez/SNM San Diego/Tijuana Boston Houston New York City Minneapolis/St Paul Atlanta Philadelphia Cleveland St. Louis Detroit 466,400 389,700 293,400 267,500 263,085 228,100 218,700 212,600 206,400 178,200 156,100 149,700 138,700 89,700

Sources: US Department of Labor, June 2006 and INEGI, June 2006

Ciudad Juarez Market

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.

Development Premises

Traffic Congestion El Paso Airport

served to

3,371,446 passengers

, had

109,116 aircraft operations

and moved

86,235 tons

in 2005.

El Paso is home to the

border's largest and newest passenger terminal

emerging as the border's most centralized intermodal hub. and is 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 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, 2006.

City U.S./Mexico Trade for Border Cities, 2006

Laredo, TX El Paso, TX Otay Mesa, CA Hidalgo, TX Nogales, AZ Eagle Pass, TX Calexico-East, CA Brownsville, TX

Import $ Value Export $ Value (in billions) (in billions)

$58.22 $25.79 $18.66 $11.77 $12.52 $7.48 $6.66 $5.61 $45.93 $21.03 $9.97 $8.26 $6.36 $3.77 $4.98 $7.02

Source: Texas Center for Border Economic and Enterprise Development

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 2007.

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

.

2006 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

Vista del Sol area. Throughout the year leasing activity was strengthened by warehouse and distribution users. in the Northeast and

Ryder Logistics

,

Panalpina

leased

116,000 SF Transexpedite Morrison Express

and in the

Span International

months. were all

key transportation companies

leasing space in the post twelve

Development Premises

Advantages Improvement

clearance).

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 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.

Ciudad Juarez Airport

Ciudad Juarez Airport

Development Area Air Cargo Terminal

Development Premises

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: 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

16% 59% 25%

2002

15% 52% 33%

2003

12% 49% 39%

2004

11% 46% 43%

2005

11% 41% 48%

2006 Airport Operators Airlines Operators GSA Operators

Operating Cost and Service Price in Different Markets

ROYALTY FEE CHARGES

0 % 5.25 %

5 % - 10 %

7 % 8 % 8-10% 10 % 10 % 10 %

11.5 %

13 % San Francisco Nueva York, Los Angeles,

México

Miami Italia Austria Checoslovaquia Paris Singapore Inglaterra Hong Kong Seoul

Guadalajara

Alemania (Frankfurt)

HANDLING TERMINAL

0.90 USD 0.90 USD

0.45 USD

0.80 USD 1.20 USD 1.10 USD 0.22 USD 1.20 USD 0.20 USD 1.10 USD 0.25 USD 0.30 USD

0.25 USD

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.

Aeropuerto de Ciudad Juárez Plan Estado Actual Desarrollo Inmobiliario

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

0.5ha

Aeropuerto de Ciudad Juárez Plan Maestro – Ultima fase Desarrollo Inmobiliario

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

0.5ha

ZON A DE STINA DA RAY PARA OS "X CR caseta de CR IST ER OF BM OF OF CR OF CV PE SUB ELE.

ZON A DE YOS "X" caseta de CR CR IST ER OF BM OF OF CR OF CV PE SUB ELE.

Thanks

www.wtcconfianza.com Carlos Torres Verdín

[email protected]