Armed with a strategic plan, cooperation agreements and industry advisers, Puerto Nuevo is moving ahead, but now, it’s up to Tucson Regional Economic Opportunities to establish the template for moving the organization forward, to establish Tucson as a major inland trade center

After several months of study by the Pima Association of Governments and the Tioga Group, a Philadelphia-based transportation and logistics consultant, a concept and feasibility report is now ready for the proposed organization, spearheaded by former City of Tucson economic development director Augustine Garcia.

However, with its own economic development blueprint in place, TREO has stepped in to take the lead. On July 1, it will be assuming control of the organization, making the decision on what shape the planned inland port will take as it develops the corridor, from Sinaloa and Sonora, and links it to the city’s rail and interstate highway system.

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TREO is stepping in as events are already moving quickly, noted Garcia. Following up on the Port of Mazatlán’s memorandum of understanding, one of several now signed with Tucson, representatives of the Southern Sinaloa Directorate for Economic Development met with Mayor Bob Walkup, the Cabelleros del Sol, the Port of Tucson, Tucson Airport Authority and the Sierra Madre Express about improving rail and airline service.

“They have a wish list,” Garcia said. “They want better connection between commercial centers and port cities.”

Tucson and Mazatlán share a common interest and a common corridor, said the directorate’s president, Alfredo Ruelas Solis. Establishing commercial ties will require trust, he said, “but there are friendly people in Tucson, and they’re interested in participating in this effort, and that will lead to the consolidation of this relationship.”

José Luis Hernández Magallón, southern Sinaloa’s director of regional development, said, “We have a clear idea of what our strategic plan with Puerto Nuevo might be. What we’re doing now is looking at the analysis related to cargo and people.”

Speaking with the Mazatlán delegation, Alex Kovach, Tucson Airport Authority’s director of air service research and development, said, “We know Tucson’s economy is growing, and we know that Mazatlán’s economy is also growing. What we’re doing is looking at where the synergies take place. Where there’s potential, we’ll explore it.”

To take an even broader view of the potential, Puerto Nuevo has sponsored creation of the Southern Arizona Logistics Education Organization, a panel of suppliers, transportation companies and logistics providers. Taking their first step forward in developing a corridor master plan, they are presenting their first educational dinner meeting on May 9, discussing cargo insurance and what shippers should know about moving freight between Mexico and the U.S.

As for what will happen after July 1, TREO Chief Executive Officer Joe Snell said he’ll be following the direction set by the concept and feasibility study, which confirmed that Southern Arizona is capable of supporting an inland port, with the right infrastructure in place to expand Tucson’s global trade and logistics business. “There’s some real potential for us with this concept,” he said.

While there are no plans at TREO to establish Puerto Nuevo as a separate organization, Snell said they will be incorporating the existing Puerto Nuevo staff and establishing a taskforce to set the agenda, moving forward. “We want to build on the great partnerships that already exist, on both sides of the border, marshalling forces in our community to build on the work that’s already been done.”

Noting the trip that TREO already sponsored to Mexicali, to improve trade relationships with the Mexican state of Baja California, and the commitment by Target Corp. to Tucson, in part because of the access to Mexican ports, he said, “We see ourselves as the next phase, the next evolution” of the port concept.

Snell said, “This is not something we’re going to wait on. We want to put some legs under it and get moving.”

Philip S. Moore

Inside Tucson Business

Contact Philip S. Moore by e-mail at pmoore@azbiz.com or (520) 295-4238.

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