ARIZONA & MEXICO
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MEXICAN INFRASTRUCTURE AND THE STATE OF <strong>ARIZONA</strong><br />
By Arnold Maltz<br />
Major trade corridors between Mexico and the U.S. enter the U.S. at, Nogales/Nogales, El Paso/<br />
Ciudad Juarez, and Laredo/Nuevo Laredo.<br />
Nogales is the largest port of entry in Arizona and accounts for approximately 7% of traffic by<br />
value for the U.S./Mexico border.<br />
Nogales connects Arizona State Route 189 to Mexico 15, which has moved fresh produce from<br />
Sinaloa to U.S. markets for many years.<br />
Upgrades and proper staffing at the Mariposa port of entry are key to maintaining Arizona’s<br />
competitiveness as a port of entry for goods, particularly fresh produce, from Mexico.<br />
The Arizona and Sonora trade corridor requires good rail connections in order to fully benefit from<br />
possible container traffic into the revamped Port of Guaymas in Sonora.<br />
Arizona has long considered its border with Mexico (and the state of Sonora in Mexico) as a potential<br />
gateway to economic growth. As discussed in Chapter 11, there is a long history of border cooperation<br />
with some cities, e.g. Nogales, even having the same name on both sides of the border.<br />
Currently the north-south traffic flow between Mexico and Arizona is dwarfed by the flow of goods<br />
coming from Asia via California and transported to the rest of the U.S. However as Mexico continues to<br />
develop its manufacturing and commercial capabilities, Mexican infrastructure improvements could<br />
increase Arizona’s commercial relationship and opportunities for shared economic growth with its<br />
southern neighbor.<br />
CURRENT STATE OF THE INFRASTRUCTURE<br />
As discussed in Chapter 2, Arizona’s connection to Mexico for commercial purposes is centered in three<br />
major ports of entry (POEs). By far the largest is the Nogales crossing, which consists of the Mariposa POE<br />
for commercial and personal vehicles, and the DeConcini POE, which is used by north-south trains,<br />
operated on the U. S. side by the Union Pacific Railroad and on the Mexican side by Ferromex (partly<br />
owned by the Union Pacific).<br />
Mexico has some 50,000 kilometers of Federal highways and approximately 80,000 kilometers of roads<br />
maintained by the individual states. On a national basis, Mexico’s ranking on the 2014 World Bank’s<br />
Logistics Performance Index (LPI) is 50th out of 160 countries. Interestingly, of the 6 components of the<br />
LPI Mexico is strongest on “Timeliness” and weakest on Customs efficiency.<br />
As the following map indicates, there are 3 major north-south arteries that connect (more or less directly)<br />
to three major crossings between Mexico and the United States-Laredo/Nuevo Laredo, El Paso/Ciudad<br />
Juarez, and Nogales, AZ/Nogales, Son. The recent upgrade/completion of the Mazatlán-Durango<br />
highway link now completes a relatively high speed east-west link from the center of Mexico’s west coast<br />
to Matamoros and Nuevo Laredo.<br />
The most important linkage for Arizona is Mexico 15 that runs from Mazatlán in the state of Sinaloa<br />
along the east coast of the Gulf of California through the Culiacan (Sinaloa), Ciudad Obregon, Guaymas<br />
and Hermosillo to Nogales. Nogales has been a center of importation for fresh produce from Sinaloa for<br />
many years, and Mexico 15 is the key connector for that trade.<br />
35 • <strong>ARIZONA</strong> & <strong>MEXICO</strong> • <strong>ARIZONA</strong> TOWN HALL • APRIL 2016