Brownsville (Texas) Economic Journal Fall 2013

32
Vol. 2, No. 2 / Fall 2013 EJ “I think Brownsville is doing exactly the right thing by investing in infrastructure” Foreign Direct Investment Latin American companies look to penetrate the American market through Brownsville New investments Projects in the works strengthen local automotive industry Greener pastures Logistics company finds better opportunities in Borderplex - Dr. J. Bruce Kellison, Associate Director for the Bureau of Business and Research of the University of Texas at Austin Key industry

description

Brownsville’s efforts in betting on heavy manufacturing for economic development translate into long term benefits for the entire Borderplex. And in an expert’s opinion, the industry is key for the economic success of the region.

Transcript of Brownsville (Texas) Economic Journal Fall 2013

Page 1: Brownsville (Texas) Economic Journal Fall 2013

Vol. 2, No. 2 / Fall 2013

EJ

“I think Brownsvilleis doing exactly theright thing by investing in infrastructure”

Foreign DirectInvestmentLatin American companies look to penetrate the American marketthrough Brownsville

New investmentsProjects in theworks strengthenlocal automotiveindustry

GreenerpasturesLogistics companyfinds better opportunities in Borderplex

- Dr. J. Bruce Kellison,Associate Director for the Bureau of Business and Research of the

University of Texas at Austin

Keyindustry

Page 2: Brownsville (Texas) Economic Journal Fall 2013
Page 3: Brownsville (Texas) Economic Journal Fall 2013
Page 4: Brownsville (Texas) Economic Journal Fall 2013

Cover story:Brownsville’s efforts in bettingon heavy manufacturing foreconomic development translateinto long term benefits for the entire Borderplex. And in an expert’s opinion, the industry iskey for the region’s economic success.

Page 16

9 Foreign Direct InvestmentLatin American companies look to penetrate the American marketthrough Brownsville

High marksEconomic success ofBrownsville Borderplex highlighted in recent rankings14New investmentsProjects in the worksstrengthen local automotive industry

24Guest editorial:The Mexican EnergyReform: Real benefits,real soon

6Local IndustryCorner:Brownsville is “All In”

87New andImprovedFastGIS facilitatesReal Estate anddata research ofBorderplexCover Design and Illustration: Jorge I. Montero

WHAT’S INSIDE

Greener pasturesAries Freight Systems findsbigger and better opportunitiesin Brownsville10

VIEWPOINTS

EJBrownsvilleEconomic Journal

Page 5: Brownsville (Texas) Economic Journal Fall 2013

Brownsville Economic JournalFall 2013BEDC.com 5

EDITOR IN CHIEFGilberto [email protected]

EDITORIAL CONTENT &DESIGN COORDINATORJorge I. [email protected]

COPY EDITORSylvia [email protected]

PHOTOGRAPHYBEDC Editorial Team

CIRCULATION Sylvia [email protected]

ADVERTISINGJorge I. [email protected]

CORPORATE CONTACTLizzy [email protected]

RESEARCH & ECONOMICINDICATORSDaniela [email protected]

EDITORIAL OFFICEBrownsville Economic Development Council301 Mexico Boulevard, Suite F1 (ITEC Campus)Brownsville, Texas 78520Tel. (956) 541-1183 Fax: (956) 546-3938

VISIT US ONLINEwww.BEDC.com

FROM YOUR MOBILE DEVICE:

FOLLOW US

In the previous EJ issue, we pro-vided a snapshot of the public-pri-vate partnership investment in

infrastructure for the region and how wewere literally and figuratively pouring thefoundation for the region’s future.

Today, we’re starting to get a glimpseof our potential and there to recognize itwas Nerdwallet.com, an organizationwhich prides itself on being nerds who cre-ate great tools, crunch numbers and giveunfiltered and unbiased results.

For most of 2013, the nerd organizationhas ranked Brownsville in its Top Ten U.S.Cities on the Rise, most recently nabbing aNo. 3.

As the economy is trending upward,many are looking for booming citieswhich, “Brownsville is one of the fastestgrowing areas in the United States … thePort of Brownsville makes the city a ship-ping hub, with access to Mexico (and) theUniversity of Texas at Brownsville provid-ing employment opportunities while con-tributing to the growing community withits green outreach programs,” as stated byNerdwallet.com.

The organization used a formula ana-lyzing population growth, median incomegrowth and demand at the international air-port, all from 2007 to 2013, for its rankingof 233 cities. The airport is part of theirequation, gauging how many travelers, es-pecially business travelers, are coming tothe city to find industry and business op-portunities, according to Nerdwallet.com.

Listed Nos. 1 and 2 were Gainesville,Fla., and Fargo, N.D., respectively. Theothers in the Top Ten included Blooming-ton, Ill., Fayetteville, N.C., Alexandria,Va., Shreveport, La., El Paso, Texas,Huntsville, Ala., and Mobile, Ala.

We’re encouraged to see howBrownsville is slowly transforming its fu-ture by what’s being done today.

As we’ve said in the past, it’s no secretwhat we’re trying to do – recruit ForeignDirect Investment. Our objective is to posi-tion the Borderplex for global competition.

Being one of two Texas cities in theTop Ten is certainly an indicator of what’sin store for Brownsville’s future. EJ

Nerdwallet.com sheds lighton Brownsville’s potential

PRESIDENT’SCORNER

EJ

Jason HiltsPresident & CEO

The Economic Journal of the Brownsville Borderplex is published on aquarterly basis and distributed according to the fair-use doctrine of U.S.copyright laws related to non-profit institutions, such as the BEDC, andfor educational purposes.

Page 6: Brownsville (Texas) Economic Journal Fall 2013

If we had to describe the last yearpolitical and economic scenario inMexico all of us, national and in-

ternational spectators, would agree that ithas been exciting and not boring at all.

Late last year a major labor reform wasenacted and this year we have seen thetelecommunications reform a reality, theeducation reform being implemented and atax reform that for most of us in the busi-ness community is unwelcome since itwill cause additional hardship to a sub-stantial number of taxpayers, particularlythose on the Mexican side of the border,maquilas and individuals..

But other than some left wing partiesand groups who vehemently oppose anymodification to the status quo of the cur-rent energy legislation, particularly in theoil and gas fields, a majority of the Mexi-can people are now expectantly waitingfor the discussions and final approval ofan energy reform that will certainly openup the drilling and exploration markets toprivate investors.

Although most believe the reform willvery likely be approved within the nextfew weeks and in spite of the fact that noone knows for sure how the final billwould look like, most analysts believethose activities will no longer be reservedin exclusivity to PEMEX.

Similar reforms in other countries thathad constitutional restrictions to allow pri-vate investment in the oil drilling and ex-ploration industries have undeniablydemonstrated that there are multiple bene-fits to be attained with the flow of “newmoney.”

The Texas-Mexico border communi-ties and particularly the region close to theGulf of Mexico need to start preparingthemselves to take a proactive part in thenew developments that will sooner ratherthan later begin to happen.

Oil exploration and drilling is a verycomplex industry, particularly when ittakes place in deep sea water as the case iswith the recent discoveries in the Gulf of

Mexico. An army of talented people is re-quired with various levels of educationand skills.

An array of products is also required tobe supplied for the construction, operationand maintenance of the various facilitiesthat are used for the purpose as well as forthe support that this industry must receive

from third parties.The local South Texas, Northeastern

Mexican communities have in the pastbeen involved in farming, light manufac-turing and trade. We now have an opportu-nity that many worldwide will certainlyenvy. We will soon be able, if willing, toengage ourselves directly by providingservices, people and products to this newindustry.

How can we participate? What is re-quired? How do we go about it? These aresome of the questions we have been hear-ing lately. Well, this has to be a joint, com-munity effort.

Local and municipal governments,business development groups, chambersand associations should begin to organizeinformative seminars by experts on thesubject in an effort to educate the localcommunities into the needs of this indus-try; schools and universities should startplanning the introduction of new careersto cater to the need of professional peoplethat will be required by the investors tocome.

What we have seen in the Eagle-Ford/Burgos site is that most of the com-panies supporting the gas extraction effortdo come from distant lands and their sup-pliers are seldom local. And this is notright.

We have to team up to organize our-selves, identify the needs, educate and pre-pare ourselves to act and moveaccordingly.

As is the case with any new venture,going into the unknown may often preventthose that are shy from leaving the com-fort zone that is provided by an environ-ment we are very familiar with. Lifefrequently teaches us that opportunitiesmust immediately be grabbed when theypresent themselves.

The time will soon come to get mov-ing. Let us be prepared. We cannot affordto lose an opportunity to do something realgood for ourselves in the Texas/Mexicogulf region. That would not be right. EJ

The Mexican Energy Reform: Real benefits, real soon

TThe Texas-Mexicoborder communitiesand particularly the region close to the

Gulf of Mexico need tostart preparing

themselves to take aproactive part in the

new developments thatwill sooner rather thanlater begin to happen.

Ernesto Velarde DanachePresident & Founder of Ernesto Velarde-Danache, Inc. Mexican & International Lawyers

EJGUEST EDITORIAL

Brownsville Economic Journal Fall 2013 BEDC.com 6

Page 7: Brownsville (Texas) Economic Journal Fall 2013

Brownsville Economic JournalFall 2013BEDC.com 7

The Brownsville EconomicDevelopment Council hasrecently launched its new

buildings and sites database using thecustom designed FastGIS programbuilt by FastFacility.

FastGIS allows the BEDC to cus-tomize data about the BrownsvilleBorderplex and offers potential clientsall the information available about theregion at their fingertips.

The new easy to navigate program,available on the BEDC websitewww.BEDC.com, offers complete GISfunctionality. Powered by ArcGISserver, users will receive the mostcomprehensive possible view and dataof the Borderplex region with simpleto use GIS tools.

Some of these tools include unlim-ited data layers, multiple databasesearch, report generation, drawing andmeasuring, as well as nine basemapsfor the users to access all the informa-tion necessary for a site selection re-port.

FastGIS provides the option ofadding an unlimited amount of data aslayers to the map such as demograph-ics, economic indicators, infrastructureprojects, parcels information, publictransportation routes, real estate, recre-ation, schools, zoning, among other in-formation.

The system also allows for the in-tegration of Business Listings, CensusTracts, City Boundaries, Colleges/Uni-versities, County Boundaries, Demo-graphics, and Urban Areas. EJ

BEDC launches new online buildings and sites database

New and Improved EJINFORMATIONAL TOOL

FastGIS facilitates dataresearch of Borderplex

From Staff Reports

The new easy to navigate program,available on the BEDC websitewww.BEDC.com, offers complete GISfunctionality. Powered by ArcGIS server,users will receive the most comprehen-sive possible view and data of the Bor-derplex region with simple to use GIStools.

Staff Photos

Page 8: Brownsville (Texas) Economic Journal Fall 2013

Advancing education, creating careers,transforming Brownsville…that’swhat “All In” is all about. “All In” is

a community-wide movement launched by Part-ners for Postsecondary Success (PPS), an initia-tive that is building community partnershipswith the goal of doubling the number of youngadults with postsecondary credentials that havelabor market value and lead to living wage em-ployment by 2025.

PPS was launched with a $100,000 one-yearplanning grant and a $1.3 million implementa-tion grant from the Bill & Melinda Gates Foun-dation. Brownsville was one of only three citiesin the United States to receive funding from theGates Foundation. The local community (indi-viduals, businesses, and foundations) also cametogether and raised $240,000 as matching fundsfor the implementation plan.

The Partners for Postsecondary Success in-clude: Brownsville Chamber of Commerce,Brownsville Economic Development Council,Brownsville Independent School District, Car-denas Development Company, Community De-velopment Corporation of Brownsville, ProjectVIDA (Valley Initiative for Development & Ad-vancement), Texas Southmost College, UnitedBrownsville, United Way of Southern CameronCounty, University of Texas at Brownsville,Wells Fargo Advisers, and Workforce SolutionsCameron.

Shortly after the partnership was formed,taskforces were created within the partnership asa strategy towards reaching our goal. We werecognizant of the many puzzle pieces in front ofus and realized it would be more effective if wehad specific groups of people focused and com-mitted to a particular piece of the whole puzzle.The taskforces that were created to address andresolve specific issues were: 1) Sustainability2) Data 3) Policy & Practice 4) CommunityEngagement

We’re all about people, quality connectionsand teamwork. We believe that by working to-gether - educators, employers, local leaders, par-ents, friends, mentors and believers, we cantransform Brownsville by 2025.

Though we still have quite a way to go, PPShas already reached many milestones. Some ofthe major accomplishments thus far include thefollowing: 1) The Indicator Report on HumanCapital and Education was released in March2013 as a tool to engage the community in thepartnership’s work. The indicator report reflects

areas that need improvement and serves as aguide in directing our efforts and measuring theoutcomes. 2) The Curriculum Alignment Pro-gram, already in its 2nd year, has been key to-wards helping students transition successfullyfrom secondary to postsecondary education.BISD teachers, UTB, and TSC faculty havebeen meeting to identify gaps between second-ary and postsecondary curricula, and further-more developing ways they can bridge thosegaps. 3) The Career Planning Tool is a web-based tool created by BISD and UTB counselorsand advisors, with the help and input from theBEDC and Workforce Solutions Cameron. Thistool offers students and parents information andadvice on pathways to postsecondary educationand careers. 4) The Student Ambassador Pro-gram is about college students helping highschool students persevere and succeed. The stu-dent ambassadors are from UTB, TSC, andTSTC. The program is now embedded as part ofthe Career & Technical Education curriculumfor seniors at BISD, and this year an estimated1,200 seniors will benefit from peer-to-peerlearning with college students about overcomingchallenges and barriers into and through post-secondary education. 5) The Employer Engage-ment Program has established an internshipcouncil that offers training and guidance to em-ployers and students interested in participatingin internships.

Some local companies have voiced concernsover the workforce. However, Brownsville isnot alone. There is, in essence, a national skillsgap crisis - from students, to the unemployed, tocurrent workers. Based on a Deloitte study,600,000 manufacturing jobs in the US are un-filled due to talent shortage. Businesses cannotfind workers with basic math, science, and tech-nical competencies. Now, more than ever, weneed to focus on developing our human capital.Craig Giffi, Deloitte co-author of the report“The Future of Manufacturing; Opportunities toDrive Economic Growth,” said, “Economicgrowth rests with skilled workforce…In the raceto future prosperity, nothing will matter morethan talent. The skills gap that exists today willnot likely close in the near future…companiesand countries that can attract, develop, and re-tain the highest skilled talent – from scientists,researchers, and engineers to technicians andskilled production workers will come out ontop.”

Brownsville is “All In”LOCALINDUSTRYCORNER

Lizzy PutegnatDir. of Business Retention & Expansion

Brownsville Economic Journal Fall 2013 BEDC.com 8

Turn To Page 11

Page 9: Brownsville (Texas) Economic Journal Fall 2013

Brownsville Economic JournalFall 2013BEDC.com 9

Officials with the BrownsvilleEconomic Development Coun-cil had their hands full in No-

vember as they hosted a 30-memberdelegation of business representativesfrom Latin America.

All the visitors were from foreigncompanies sizing up Brownsville as aplace potentially to relocate or expandtheir operations. Colombians made up thebulk of the delegation, though Mexico andEcuador were also represented. All mem-bers of the delegation paid their own way.

Industries represented included foodprocessing, textile and apparel, electronicsand technology, construction and materi-als, light manufacturers, and medical prod-ucts, according to Gil Salinas, BEDC vicepresident.

Many of the firms were small to mid-sized businesses that each would createanywhere between 10 and 100 jobs here,he said.

The delegation was officially wel-comed by Mayor Tony Martinez beforebeing led on tours of local assets, includ-ing a Wednesday trip to the Port ofBrownsville. The visitors also met withlocal companies in business match-makingsessions to learn about potential opportu-nities.

In addition, BEDC and the UTB incu-bator program put on an entrepreneur-training session that introduced membersof the delegation to numerous facets ofdoing business in the United States. Topicsincluded business law, accounting, immi-gration, regulations, financing, business

planning and marketing.The visit was largely nailed down dur-

ing BEDC’s mid-September trade missionto South America, when a team ofBrownsville officials met with representa-tives from 400 companies, Salinas said.

The group had organized trade mis-sions to South American countries twicebefore over the past three years. On thefirst trip, officials met with merely dozensof companies, as opposed to hundreds.

BEDC’s Latin American business-re-cruitment strategy earned it a “Cities ofthe Future” designation from fDI Intelli-gence, a publication of the London-basedFinancial Times, for its effort to attract“foreign direct investment.”

Latin American delegation visits Brownsville

Latin American companies eyeing Brownsvilleas a door to enter the American market

Foreign Direct Investment EJBUSINESS RECRUITMENT

Members of the delegation participated in a week long entrepreneur-training session hosted by the BEDC and the University of Texas at Brownsville’s incubator program. Thedelegation received information from topics such as business law, accounting, immigration, regulations, financing, business planning and marketing.

Staff Photo

Turn To Page 11

Page 10: Brownsville (Texas) Economic Journal Fall 2013

Brownsville Economic Journal Fall 2013 BEDC.com 10

EJLOGISTICSThe Right Move

Aries Freight Systems cameto Brownsville because ofopportunity — and to

save some money.The Houston-based logistics,

transportation, warehouse and distri-bution company had an office inPharr for a couple of years beforeEmanuel Velasco, district manager,and Regional Account Manager An-nalicia “Ani” Velasco came to theconclusion that Brownsville was abetter place to be from a logistics andtransportation standpoint.

The Brownsville operation catersto the maquila industry in Mata-

moros, Reynosa, Monterrey and else-where.

“We were the ones that kind ofpushed it,” Emanuel said. “We werepaying about $350 per trailer to gofrom Matamoros to McAllen. Onceyou add that up, two or three trailersa day, it gets pretty expensive.”

The Velascos, a mother-and-sonteam, consulted and then brought upthe idea with Aries CEO Jeff McIn-tyre, who liked the idea of a move.

“He said, ‘Hey, if it makes goodbusiness sense, why not?’” Emanuelsaid. “And now we’re here.”

“We decided that business isgrowing in Brownsville and this iswhere we need to be,” said Annalicia,who has 25 years in the industry.

Emanuel said being closer to thePort of Brownsville — a top-five ex-porter/importer of steel and othercommodities — strengthens the argu-ment for being in Brownsville. Sodoes the proximity of several interna-tional bridges.

The Velascos take delivery of

products made at maquilas, sortthem for distribution then ship themoff, usually using a common carrier,to sister plants or customers in theUnited States or elsewhere aroundthe globe.

That includes local pickup anddelivery as well as ocean transport toserve the offshore oil and gas indus-try, which is seeing increased activityin the Gulf of Mexico.

“We can pick up anywhere in theworld and ship to and from any-where in the world,” Annalicia said.

Most of their business these daysis trucking, though in years past airfreight played a dominant role.

“Back in the late 80s, early 90s,everything was air freight,” shenoted.

That’s because the auto industrylargely operated on a “just-in-time”supply strategy. Then 9/11 happened,the auto industry took a hit and pro-duction at maquilas slowed down.

Greener pasturesAries FreightSystems finds bigger and better opportunities inBorderplex

Turn To Page 11

Page 11: Brownsville (Texas) Economic Journal Fall 2013

Brownsville Economic JournalFall 2013BEDC.com 11

Things eventually recovered, butautomakers switched gears and beganbuilding warehouses along the border,signaling a shift away from reliance onair freight.

“At that point they started settingup distribution points and they startedstocking material — for example,Ford, GM and Chrysler,” Emanuelsaid.

“Instead of buying one pallet ofraw material, they would buy a truck-load, which fits about 25 pallets, andthey would store it in a warehouse hereon the border.”

Among the maquilas Aries servesare suppliers to the likes of BMW,Ford, Freightliner, GM, Mercedes, etcetera. The firm is certified by Cus-toms Trade and Partnership AgainstTerrorism, meaning trucks are sealed atdeparture points to allow for stream-lined inspections and thus faster bordercrossings.

“If you’re CTPAT certified you’regoing to breeze through the bordercrossing,” Emanuel said. “If you’renot, you’re going to go through a seriesof inspections, X-ray, whatever it isthat they have to do.”

“Our business is ‘every minutecounts,’” Annalicia said.

Aries is also certified by the Trans-

portation Security Administration sinceit uses commercial airlines. TSA certi-fication guarantees same-day service,she said.

Aries Freight Brownsville, 4536 E.Ruben Torres Blvd., became opera-tional last January. The Velascos planan official grand opening Oct. 16 nowthat the dust has settled from the moveand offices have been built.

Aries, founded 30 years ago, alsohas operations in Dallas, El Paso,Laredo and Miami, and is planning aChicago operation, Annalicia said.

As for the future of the industry,the Velascos foresee a resurgence in airfreight, partly due to rising dieselprices. Maquilas are thriving, mean-while, though not at pre-recession lev-els, Emanuel said.

“I think it’s plateaued for now,” hesaid. “You don’t see families with threeand four cars anymore. But in the nextlet’s just say five to 10 years, I thinkthings will start ramping up again theway they used to be, to where we’reusing more airplanes and quicker serv-ice and things like that.”

This article was written by Steve Clark and appeared

in the Thursday, October 10, 2013 issue of The Brownsville Herald

EJ

As a member of the PPS Leader-ship team and co-chair of the Em-ployer Engagement Committee, Iexhort employers to become involved,offer internships, and be part of the so-lution. Employers often ask me, “Whatwill the company get out of it?” That’sa fair and valid question. My responseto them is, “Your company makesmany capital investments…this is justanother kind of capital investment.You are investing in your future work-force. Your ROI will be an experi-

enced, skilled, and knowledgeable em-ployee that will add value to yourcompany.”

For many years, most of the part-ners were on different boats, paddlingin various directions, trying to reachsimilar goals…now we are all insideone boat, paddling in sync, and allgoing the same direction to reach ourdestination. We invite you to jump onour boat and join the movement. Weinvite you to be “All In.” EJ

When attempting to recruit investment,foreign and domestic alike, emails and socialmedia “will only take you so far,” Salinas said.

“You still need to do the face-to-face,” hesaid. “At the end of the day, if somebody’sgoing to invest in your community they wantto know who you are and what the product islike. We think we have a great product; wehave a great story to tell.”

Actually traveling to target countries is themost aggressive form of investment recruit-ment, but also the most difficult, Salinas said.It involves doing research to identify whichcompanies to focus on, knocking on doors andconvincing those businesses to send someoneto Brownsville to check out things.

The delegation wouldn’t have come toBrownsville if the firms represented weren’talready keenly eyeing Brownsville, Salinassaid. If recruiting is a 10-step process thatstarts with a cold call, actually visiting the po-tential site is probably the eighth step in theprocess, he said.

“In economic development and site selec-tion, whenever a company or investor visitsyour community they’re already in the latterpart of the actual selection process,” Salinassaid. “It means there’s a definite seriousness tothe project you are working with.”

Usually, when Latin American companiesthink of doing business in the United Statesthey think of Miami, he said. BEDC has at-tempted to show these businesses that “there’smore to the U.S. than Florida.”

Another point they’re careful to make isthat Brownsville is part of Texas, which hasthe second largest economy in the UnitedStates and a Hispanic population bigger thanFlorida, making it the logical choice for aLatin American company to break into theU.S. market, Salinas said.

“Once you hit the rest of the market in theU.S. it will be that much easier,” he said. “Youwant to be in Texas to try to take on the bullthat we know as the U.S. market.”

This article was written by Steve Clark andappeared in the Friday, November 14, 2013

issue of The Brownsville Herald

Continued from Page 9

Latin American delegation

Continued from Page 10

Greener pastures

Continued from Page 8

Brownsville is “All In”

Page 12: Brownsville (Texas) Economic Journal Fall 2013

Brownsville Economic Journal Fall 2013 BEDC.com 12

The influx of students to a newregional medical school is ex-pected to boost what is now a

low doctor-to-patient ratio in the RioGrande Valley and help physicians im-prove medical services to residents.

The Valley medical school will alsocreate new research opportunities locally,said Dr. Leonel Vela, regional dean at theRegional Academic Health Center in Har-lingen.

Medical students will be able to partic-ipate in research projects that could pro-vide insight into the Valley’s particularneeds. And patients from the Valley willalso be able to be part of clinical trialshere, Vela said.

The Valley, along with the entire stateof Texas, has long dealt with an inade-quate number of doctors as the populationhas grown, experts say.

According to the most recent estimatescompiled by the Texas Medical Associa-tion, in 2011 Texas ranked 44th in the na-tion with a ratio of 245 physicians forevery 100,000 residents.

Efforts have been made to attract morephysicians to the state, and the new med-ical school in the Valley is expected tohelp efforts here to match the pace of pop-ulation growth.

The Texas Medical Association web-site states that Texas licensed 3,630 newdoctors in 2012, the highest number of anyyear on record. That was a stark contrastto the 2,088 doctors licensed in 2001.

Experts said this increase was largely

attributable to 2003 tort reform leg-islation, with a constitutionalamendment that limited hospi-tal liability for non-economicmalpractice damages.

“Up until that passing,there were people leavingin the middle of theirpractice,” Dr. StephenBrotherton, president ofthe Texas Medical Asso-ciation, said. “That’s beensolved. So that made a bigdifference and it made ahuge difference in (the RioGrande Valley).”

However, experts said thereform raised the issue of train-ing and keeping new physicianslocally.

“We have been educating doctorsfor other states for a while, and it’s actu-ally a mistake we have made in the past,”Brotherton said. “We have not enough res-idency spots for all of our medical schoolgraduates and it forces them to go else-where, and unfortunately a lot of themstay there and don’t come back.”

In June, Gov. Rick Perry signed a billinto law merging the University of Texasat Brownsville and the University ofTexas-Pan American and creating a newregional medical school, with half the stu-dents going to the RAHC in Harlingen.

The decision to create the medicalschool is expected to address the need to

in-crease thenumber of physi-cians here and retain them.

“We start with a notion that SouthTexas has been very much short of physi-cians for a long time,” said Dr. KennethShine, executive vice chancellor for healthaffairs for the University of Texas System.

“So, the University of Texas has longhad a desire to provide opportunities forstudents in South Texas and to educatethem in South Texas so that they may beeducated in staying there,” Shine said.

New regional university will increasenumber of physicians and createopportunities for biomedical research

University Merger EJMEDICAL INDUSTRY

UT Medical school wouldimprove industry

number of new doctors that Texaslicensed in 2012, according to theTexas Medical Association

3,630

Page 13: Brownsville (Texas) Economic Journal Fall 2013

The expected influx of medicalstudents, and the consequent recruit-ment of more physicians who are ex-pected to remain in the region, bringanother level of medical service tothe region: local residents will beable to participate in medical trials

conducted here, providing insightinto particular medical needs in the

Valley.

Residenciesand workforce impact

“The single most important impact isto help with the workforce needs of thecommunity,” Shine said. “One of the rea-sons the hospitals are very interested insupporting residency positions is because

they want a supply of physicians goingforward.”

At the Regional Academic Health Cen-ter in Harlingen, more than a thousand stu-dents since 2002 have taken advantage ofan internal medicine residency program atValley Baptist Medical Center, as well asthe family practice residency program atMcAllen Medical Center.

However, with the development of thenew medical school, the UT Health Sci-ence Center at San Antonio has workedwith area hospitals and clinics to add resi-dency positions to the existing and futureprograms.

“Several years ago we became inter-ested in expanding the opportunities, andthe first thing we had to do was substan-tially increase the number of residency po-sitions,” Shine said.

In 2013, there were 1,761 residencyprograms in Texas, according to TMA of-ficials. They said 1,682 of those werefilled this year.

Texas would need to add an additional400 residency positions to ensure a recom-mended 1.1 to 1 ratio of residency posi-tions to medical students in the state,according to a 2011 TMA report.

Looking at the local region, Shine said,“We began to work with the hospitals inthe region, and we now have commitmentsfor an additional 115 residency positions.So over the next couple of years we willhave a total of about 148 residency posi-tions.”

The new residencies are likely to be inadult psychiatry, adolescent and child psy-chiatry, internal medicine, obstetrics andgynecology, family medicine and surgery.

“For us here, it is very important to de-velop these residencies. These studentswill now have a place to conduct theirpost-graduate studies, and a higher proba-bility that they will stay here and set up apractice,” Vela, regional dean at theRAHC, said.

The new medical school also providesan opportunity to recruit new faculty, andofficials say it will help bring additionaland previously unavailable services to theregion.

This article was written by Jesse Men-doza and appeared in the Sunday, August18, 2013 issue of the Valley Morning Star

Employment by sectorThe Education & Health Servicessector leads all industries in em-ployment in the Borderplex, show-ing a 74% growth since 2000.

25.6%23.8%

18.9%

9.7%7.1%

4.1% 4.1%

2.8%2.3%1.5%

Source: Texas Workforce Commission

EJMEDICAL INDUSTRY

Brownsville Economic JournalFall 2013BEDC.com 13

Education & Health Services

Total Government

Trade, Transportation & Utilities

Leisure & Hospitality

Professional/Business Services

Manufacturing

Financial Activities

Other Services

Mining, Logging & Construction

Information

Page 14: Brownsville (Texas) Economic Journal Fall 2013

Brownsville Economic Journal Fall 2013 BEDC.com 14

Economic success of Brownsville Borderplex highlighted in recent rankings

High Marks EJACCOLADES

Talk of the townBrownsville has recently been recognized by

different renowned publications as one ofthe best places to do both, international

and domestic business. These accolades have giventhe Borderplex the distinction of being one of thecities of the future, a top city for global trade, a cityon the rise, a place for future job growth, and the toptrade zone for foreign exports. EJ

The Port of Brownsville was first amongthe nation’s top 25 foreign trade zones forexports to foreign countries in fiscal year2012, according to the Foreign-Trade ZonesBoard’s 74th annual report to Congress.Brownsville’s FTZ exported more than $3billion worth of commodities in 2012 — pri-marily offshore oil rigs built by Keppel Am-FELS, petroleum products, steel and othermetals. In terms of total exports and im-ports ($3.8 billion), the port was ranked11th in the nation.

FOREIGN EXPORTS

#1

Brownsville ranked number 3 on nerd-wallet.com’s “Top 10 Cities on the Rise.”The site considered Brownsville as oneof the fastest-growing areas in the U.S.,with 1.3 percent growth in employmentand 17.8 percent growth in median in-come. Another factor for the ranking wasthe boost in passenger traffic at theBrownsville South Padre Island Interna-tional Airport, which saw a correspon-ding 0.2 percent growth.

CITY ON THE RISE

#3

From Staff Reports

Page 15: Brownsville (Texas) Economic Journal Fall 2013

Brownsville Economic JournalFall 2013BEDC.com 15

Brownsville was ranked among “Cities of the Future”for 2013-14 by fDi Intelligence. The Borderplex madethe list for its “foreign direct investment” strategy,which fDi ranked eighth among the best for smallcities in North America. For the FDI strategy rankings— a new category this year — the magazine’s re-search team collected submissions from 127 citiescontaining details of each city’s approach to generat-ing FDI. The “small city” category lists cities withpopulations between 100,000 and 350,000.Brownsville’s population is around 200,000.

CITY OF THE FUTURE

#8

Global Trade Magazine reports Brownsville regis-tered $6.0 billion in exports for 2011, a 2.1 billionincrease from 2010 (52.3 percent increase). Thesestatistics helped the Borderplex rank number 21on the list of Top 25 Cities for Global Trade. Themagazine reported Brownsville-Matamoros is aU.S.-Mexico region with strong economic ties.Mexico ($3.8 billion) and Canada ($333 million) ac-counted for 68.6 percent of 2012 exports. Top U.S.-to-Mexico sectors were petroleum ($920 million),soy beans ($333 million) and TV components ($288million).

CITY FOR GLOBAL TRADE

#21

Forbes placed Brownsville at number10 on the list of Best Cities for FutureJob Growth. The highly respectedeconomic news source projected theBrownsville MSA to have the fastestjob growth through 2015 in the U.S.as well as in the state. It also fore-casted an annual job growth of 3.1 %for the region.

FUTURE JOB GROWTH

#10

Page 16: Brownsville (Texas) Economic Journal Fall 2013

BROWNSVILLE INVESTING IN INFRASTRUCTUREAn increase in electrical capacity, improvements in waterand waste water infrastructure, and the construction ofshovel ready industrial parks help accommodate largescale heavy manufacturing plants such as a steel mill orrolling steel plant.

“”“I think Brownsvilleis doing exactly the

right thing by investing in

infrastructure”

- Dr. J. Bruce Kellison,Associate Director for the Bureau of Business and Research of the

University of Texas at Austin

Brownsville Economic Journal Fall 2013 BEDC.com 16

Page 17: Brownsville (Texas) Economic Journal Fall 2013

Brownsville Economic JournalFall 2013BEDC.com 17

A long term benefit

Experts agree that heavy manu-facturing is an important com-ponent of a community’s

economic success. The benefits it brings toa region include long term capital invest-ments, as well as employment opportuni-ties with greater salaries and a highlyskilled workforce.

In fact, according to Dr. J. Bruce Kelli-son, Associate Director for the Bureau ofBusiness and Research of the Universityof Texas at Austin, economic developmentexperts and economists favor this industryover others.

“The reason why states like to attractmanufacturing to its region is because the

supply chain it generates is so thick,” Kel-lison said in a phone interview. “We like totalk about thick supply chains that have alot of economic impact and economicturnover, a lot of reverberation in the localeconomy. There is nothing better thanheavy manufacturing.”

But, in these challenging times, themanufacturing industry has been shrinkingat a steady pace, Kellison noted, andsomething needs to be done to help revertthat trend.

Heavy manufacturing

Written byJorge I. Montero

Since its establishment atthe Port of Brownsville in1990, Keppel AmFELS, awholly owned US subsidiaryof Keppel Offshore & Ma-rine Ltd (Keppel O&M), hasbuilt up its facilities andequipment to become themost well equipped offshoreshipyard in the Gulf of Mex-ico. Keppel AmFELS hasbuilt four jackup rigs for Per-foradora Central since2002, the most recent beingthe Papaloapan in early2013 (pictured).

Courtesy photo

Expert: Industry iskey in Brownsville’seconomic success

EJCOVER STORY

Page 18: Brownsville (Texas) Economic Journal Fall 2013

Brownsville Economic Journal Fall 2013 BEDC.com 18

EJ

“Manufacturing in general isshrinking, manufacturing em-ployment is shrinking steadily.Anything that we can do to re-verse that and grow heavy man-ufacturing is a good thing,” hesaid.

So far in the last quarter of2013, the manufacturing activ-ity in Texas has been showing apositive outlook.

The state’s factory activitypicked up in October, accordingto business executives respond-ing to the Texas ManufacturingOutlook Survey published bythe Federal Reserve Bank ofDallas. The production index, akey measure of state manufac-turing conditions, rose from11.5 to 13.3, suggesting outputincreased at a slightly fasterpace than in September.

Doing the right thingThe Imagine Brownsville

Comprehensive Plan, a guide-line designed to address the fu-ture growth of the city in keysectors, identifies heavy manu-facturing as a high value clusterthat offers the potential for thegreatest impact on the economyof Brownsville.

The economic plan alsostates that the heavy manufac-turing cluster is one of the mostpromising economic develop-ment catalysts in the region. Ithas the potential for increasingthe level of integration dramati-cally through targeted recruit-ment of key firms andintegration of existing firms.

With that in mind,Brownsville has been workingon a series of infrastructureprojects that have put the regionin the driver’s seat to attract bigcorporations to the Borderplex

and in turn convert this metro-politan region of 1.2 millioninto the manufacturing center ofSouth Texas.

Those projects, that havebeen completed, are under con-struction or in planning phase,are in the areas of real estate(industrial parks and industrialcorridor), transportation (newlydesignated interstate and over-weight corridor), energy (800MW power plant), water man-agement, and human capital.

“I think Brownsville isdoing exactly the right thing byinvesting in infrastructure,”Kellison said.

“I can’t think of a betterplace to do it given the proxim-ity with Mexico. The areaserves as a transit point for ship-ping and reshipping across theborder,” he added, meaning thatthe Borderplex’s prime locationis excellent for the developmentof a heavy manufacturing clus-ter.

COVER STORY

Keppel AmFELS is a Singapore-based companythat serves one of the most robust oil and gasmarkets in the world.

The company has about 20 yards around the world andlooking towards more expansion in Latin America and Mex-ico.

It was established in Brownsville in 1990 and has built asolid track record in the construction, refurbishment, con-version, life extension, and repair of mobile drilling rigs andplatforms. AmFELS has helped place Brownsville on theglobal map forworld class off-shore solutions.

Keppel Am-FELS has about2,700 direct employees, but about 3,000 workers on theiryard right now. They have an engineering office in bothBrownsville (71 engineers) and Matamoros (30 engineers).

Most recently, the company landed another offshore rigjob: a $240 million contract with Central Panuco S.A. De C.V.,a subsidiary of Mexico’s Perforadora Central, to build a BClass “jackup” rig. Delivery is scheduled for the fourth quar-ter of 2015 for operation offshore of Mexico.

The new rig will be able to operate in water depths of upto 400 feet and drill to depths of 30,000 feet.

Keppel AmFELS has built four jackup rigs for Per-foradora Central since 2002.

Key player in the manufacturing industry of the Borderplex

Areas of opportunitiesThe potential markets that the Bor-derplex is looking into as part ofthe region’s heavy manufacturingcluster includes:

n Manufacturing of steel compo-nents for renewable energy equip-ment (e.g., wind turbines, windturbine structures and heavyequipment, solar energy struc-tures)n Manufacturing of steel compo-nents for energy exploration andextraction (e.g., off shore oil plat-forms and associated heavy equip-ment)n Manufacturing of steel compo-nents for heavy construction equip-ment (e.g., industrial, mining,agriculture, and oil exploration)

Page 19: Brownsville (Texas) Economic Journal Fall 2013

Brownsville Economic JournalFall 2013BEDC.com 19

EJ

A long term benefitKellison also noted that

heavy manufacturing has theupper hand on other industriesbecause of the type of benefi-cial return it brings to the econ-omy of a region or community.

For example, the retail in-dustry produces more of a“short term” capital investmentand generates fewer jobs with alesser pay, whereas heavy in-dustry is generally a long terminvestment that brings morejobs with a higher salary.

“The jobs are more perma-nent and higher paying (inheavy manufacturing) than inthe retail industry,” he said. “Itall comes down to that. They(communities) are better servedin the long run.”

And the commitment acompany in retail makes to acommunity is more unstable,since it is easier for them toclose the business and leavethan for a steel plant to do thesame, he added. The steel planthas a greater commitment to acommunity since it is harder,and costlier, for them to set upshop and then retract and leavetown.

When asked about what acommunity needs to help theheavy industry thrive in the re-gion, Kellison responded thatthe key is integrating the localworkforce development boardsas well as the local educationinstitutions in providing thesufficient human capital and tryto keep a flexible workforceready to go to employ people.

“If making long term in-vestments it’s important to

keep the good communicationlines open between the employ-ers and employee base,” hesaid. “What makes Texas so at-tractive to manufacturers is thehealthy supply of local labor.”

“Make sure you’re trainingpeople for the right jobs and theskill sets are being updated andupgraded as you go,” he recom-mended. “Workforce develop-ment has got to be nimble andflexible when attracting new in-dustries or expanding oldones.”

Brownsville’s betKellison noted that

Brownsville’s success in thedevelopment of a healthy andprosperous heavy manufactur-ing cluster can lie in two indus-tries, steel and oil, the latterderiving from the projected risein oil exploration in the Gulf ofMexico and Mexico’s new en-ergy reform that could allowfor private foreign investment.

Recent reports from CityResearch mentioned that Mex-ico might have 29 billion bar-rels of oil and gas reserves inthe Gulf of Mexico that couldbe recoverable with foreigncapital and expertise. Mexicocould also have an additional13 billion barrels of recover-able oil shale reserves. And ex-perts forecast that the countrycould increase its production byas much as 25 percent by 2024.

Those close to Mexico andthe Gulf, like Texas, and moreso the Brownsville Borderplex,would be the most likely bene-ficiaries of a new Mexican oilboom, Kellison said.

COVER STORY

All Star Metals LLC has been operating as a li-censed ship recycling and enviromental remedia-tion contractor since 2003. Over the years, the

company has grown from its small shipyard to a full blownship recycling and metal processing center, and today ranksas one of the largest ship recycling facilities in the UnitedStates.

The companybegan with only 9 em-ployees. In 2013, theyhave 250 people em-ployed.

“Brownsville hasa lot of the dynamicsthat other ports don’thave. We have a deepwater port. Theweather is great year-round, coupled with a full-on laborforce that has the ability to meet our requirements in the re-cycling space,” Nick Shah, the company’s president, said.

Most recently, All Star Metals was awarded a contract bythe U.S. Navy to dismantle a decommissioned aircraft car-rier, formerly known as the USS Forrestal.

“The journey and dream is achieved, the hard work be-gins now – we look forward to working with the UnitedStates Navy to safely and successfully recycle the aircraftcarrier, ex-Forrestal. Our team has worked tirelessly to getready for a job of this magnitude and we are ready to seethis come to fruition,” Shah said.

All Star is expected to begin towing the vessel from itscurrent berth, the Navy’s inactive ship facility in Philadel-phia, before the end of the year after the Navy approves afinal towing plan, according to the announcement.

The aircraft carrier was decommissioned in 1993 aftermore than 38 years of service and saw action during theVietnam War. The vessel was launched in 1954 from New-port News Shipbuilding and Drydock Co. in Virginia as thefirst of the so-called “super carriers.” It was commissionedin 1955.

Key player in the manufacturing industry of the Borderplex

All Star Metals was awarded a contract by the U.S. Navy to dismantle adecommissioned aircraft carrier, formerly known as the USS Forrestal (pic-tured above).

Courtesy photo

Page 20: Brownsville (Texas) Economic Journal Fall 2013

EJ

Brownsville Economic Journal Fall 2013 BEDC.com 20

COVER STORY

“An investment like this inBrownsville could be really ex-citing 5 to 20 years out fromnow… We are watching thatclosely for its impact on Texas.Investments made now aregoing to be perfectly positionedby the time Pemex finally opensup,” the economist said.

In fact, such investment al-ready exists in the Borderplexin the name of Keppel Am-FELS, and the potential to buildfrom this company’s success inthe region is enormous.

Since its establishment atthe Port of Brownsville in 1990,Keppel AmFELS, a whollyowned US subsidiary of KeppelOffshore & Marine Ltd (KeppelO&M), has built up its facilitiesand equipment to become themost well equipped offshoreshipyard in the Gulf of Mexico.

The yard engages in theconstruction, refurbishment,conversion, life extension andrepair of a complete range ofmobile drilling rigs and plat-forms. Spread over 165 acres,its comprehensive facilities areworld class and include a dry-dock capable of docking thelargest semisubmersible drillingunits, and a modern steel pro-cessing plant.

G.S. Tan, President andCEO of Keppel AmFELS, saidin early March that PEMEX'sdemand for jack up rigs is ex-pected to remain strong and

Keppel’s near market, near cus-tomer strategy has put his com-pany in a good position tobenefit from it.

“Keppel has developed astrong partnership with Mexi-can companies,” he said.

Keppel AmFELS’ closeconnection to PEMEX includeshaving built two 220 men ac-commodation modules for thenational oil company in 2006 aswell as repairing and servicinga total of 16 rigs that have beenchartered by PEMEX fromother companies over the years.

The firm recently landed a$240 million contract with Cen-tral Panuco S.A. De C.V., a sub-sidiary of Mexico’s PerforadoraCentral, to build a B Class“jackup” rig. Keppel AmFELShas built four jackup rigs forPerforadora Central since 2002,the most recent being the Pa-paloapan in early 2013.

“It makes a lot of sense ininvesting in port infrastructurebut also specifically makingBrownsville more attractive tocompanies that are building orservicing oil platforms, andhelping exploration companiesget out into the ocean,” Kelli-son said. “There’s alreadyplenty of oil and gas explo-ration in the Gulf, and there isgoing to be more south of us ifPemex opens up to outside in-vestment.” EJ

Trico Products Corporation is a global OEM (origi-nal equipment manufacturer) and aftermarket sup-plier of windshield wiper systems, assemblies,

and components for the auto industry. Trico windshieldwiper products protect more drivers on the road in NorthAmerica than any other wiper manufacturer. From concep-tion to production and delivery, Trico provides superior visi-bility solution – from full wiper systems to wiper blades,arms, motors, and linkages.

Trico has 8 facilities throughout North America, SouthAmerica, Europe, Asia, and Australia with about 1.5 millionsquare feet of manufacturing space and around 2,500 em-ployees worldwide.

They supply 50+countries in those 5 con-tinents. Included in their8 facilities is a plant inBrownsville and a plantin Matamoros.

Their Brownsville facility is their North American manu-facturing headquarters that serves both the OE and after-market sectors.

Their Brownsville facility is also their warehouse anddistribution center for American, Canadian, and Mexican OEcustomers.

Trico’s Matamoros facility is the largest windshield wipersystems and wiper blade manufacturing facility in NorthAmerica. At their Matamoros plant, they assemble, package,and paint for North American OE and aftermarket customers.At both plants, their certifications include Ford Q1, VDA 6.1,TS 16949, ISO 14001, and ISO 9001.

At their Brownsville facility, which opened in 1986, theydo plastic injection molding, metal stamping, rubber extru-sion, tool and die, maintenance and repair, coating/paintingline, and just recently in 2012 they began doing rubber injec-tion molding.

As of July of 2013 they have a total of 391 employees attheir Brownsville facility which operates 24 hours a day, 7days a week.

Key player in the manufacturing industry of the Borderplex

Page 21: Brownsville (Texas) Economic Journal Fall 2013

GC Telecom, a cellphone repaircompany that launched opera-tions in Brownsville three

years ago, is taking its show on the road.The company got its start at the ITEC

Center business incubator, relocated to625 N. Expressway a year ago, and nowhas invested in a mobile repair lab for thepurpose of bringing its services to the cus-tomer.

Besides cellphone repair, GC alsoworks on laptops, PlayStations, XBox, andis a Bose-certified repair center as well.The company has a statewide contractwith Sam’s Club to fix Bose SoundDockdigital music systems, said BenjaminLuna, the company’s head of sales andbusiness development.

“But our main bread and butter is cell-phone repair,” he said.

The mobile rig, a former pipefittingtruck from California, has been tested atone location so far: Sunrise Mall, whereGC also has a kiosk. Luna also hopes totake the mobile lab to the Rio Grande Val-ley outlet mall in Mercedes.

“The biggest thing is to set it up wherepeople can see it,” he said.

The lab doubles as a billboard onwheels. If the concept is successful in theValley, GC plans to put trucks in majormetro areas like Austin, Dallas, Houstonand San Antonio, Luna said.

To date, the company has depended ondrop-off customers at its Sunrise Mallkiosk and at the company’s North Ex-pressway headquarters.

“It’s been working great,” Luna said.“Business is good. We’re happy where we

stand. Of course, there’s more to do.”GC’s target clientele is largely com-

prised of cellphone customers who can’tafford or don’t want the insurance sold byphone manufacturers. It’s a quickly grow-ing segment of the wireless-subscribercommunity, Luna said.

“This market is booming up in Austin,San Antonio, Houston,” he said. “A lot ofpeople are now starting to do third-partyrepair instead of going through insurance.”

As long as GC has the part on hand —cracked screens are a common issue —turnaround time is only an hour, he said.

Research is another aspect of GC’s op-eration, necessary for repairing the newestproducts on the market, such as fifth-gen-eration iPhones and iPods.

GC started in Monterrey, Mexico, inthe mid-1990s and today has a large LatinAmerican footprint, with hundreds oftechnicians at repair centers scatteredaround Mexico, Central and South Amer-ica.

Luna said GC in the Valley has a closerelationship with its Monterrey-based sis-ter company, and that his technicians go tothat city for training.

GC contracts with major wirelessproviders such as Telcel and Movistarsouth of the border, and Luna hopes to dothe same thing here with Sprint, Verizon oranother top U.S. provider.

GC’s southern contracts didn’t happenovernight, of course, but took time to cul-tivate.

“It’s going to be maybe about the samething here,” Luna said. “It’s going to takea little bit more time.”

He’s thinking one, maybe two years.“There’s a lot of red tape we have to

go through, and of course we want to do itcorrectly as well,” Luna said.

“We’re going in the right direction.”

This article was written by Steve Clarkand appeared in the Thursday, August 29,

2013 issue of The Brownsville Herald

Expansion modeGC Telecom expands its operations with mobile service truck

Lab on Wheels EJTELECOMMUNICATIONS

Brownsville Economic JournalFall 2013BEDC.com 21

Page 22: Brownsville (Texas) Economic Journal Fall 2013

The Port of Brownsville rankednumber 1 on the list of Top 25Foreign Trade Zones for ex-

ports to foreign countries, according to the2012 74th Foreign Trade Zone (FTZ) An-nual Report to the U.S. Congress.

The Port exported commodities valuedover 3 billion dollars.

The top commodities moved were off-shore exploration and production plat-

forms, petroleum products, metals, andsteel.

“The Port of Brownsville continues togrow as an international leader in worldtrade. Our ranking as the number one FTZand Port in the nation is very important toour role as the most significant logisticscenter in the region,” Port Director andCEO Eduardo A. Campirano said.

Campirano recently stated that it’sgratifying to see Texas as the number onestate in Foreign Trade Zone activity andthat the Port of Brownsville is leading

Texas ports in FTZ export activity. “FTZ designation is just another tool

we can utilize to attract more industry andmanufacturing to our area,” he said.

The Port of Brownsville is the Granteefor Foreign Trade Zone No. 62 and offerssites at the Port of Brownsville,Brownsville-South Padre Island Interna-tional Airport, Harlingen Industrial Parkand Airpark, NAFTA Industrial Park andFINSA Industrial Park at Los Indios. Zonestatus is available to any of the Port’sproperties.

Leader in exports to foreign countries

From Staff Reports

PORT OF BROWNSVILLE

Brownsville Economic Journal Fall 2013 BEDC.com 22

Page 23: Brownsville (Texas) Economic Journal Fall 2013

Brownsville Economic JournalFall 2013BEDC.com 23

FOREIGN EXPORTS

Oil/Petroleum (80%)

Consumer Electronics (11%)

Petrochemicals (2%)

Consumer Products (1%)

Vehicles (1%)

Other (5%)

Top foreign-status products by value (in Texas)

The Port is a leading in-transit port andmajor importer of steel in the United States.

In an interview with The BrownsvilleHerald, Campirano said that the steel comesfrom China, Europe, Italy, Japan, Russia,among other places, and it is mostlyshipped to mills in and around Monterrey,Mexico and as far south as San Luis Potosi.

The steel goes into multiple applica-tions, including vehicle production, “whiteappliances” and construction materials, hesaid.

Campirano told The Herald that he pre-dicts a continued rise in steel and petroleumvolume, with major new oil discoveries inthe western Gulf of Mexico likely to in-crease rig production.

“It just kind of points to really the capa-bilities of the port,” he said. “We are amajor logistical center. Obviously we havea global reach. The port is critical to thetrade we do between the United States andMexico. It’s all great for the region, whetherit’s northern Mexico or South Texas.” EJ

1. Brownsville, Texas (Zone 62)2. Broward County, Florida (25) 3. El Paso, Texas (68)4. Knoxville, Tennessee (148) 5. Spartanburg County, S. Carolina (38) 6. Atlanta, Georgia (26) 7. Peoria, Illinois (114) 8. Honolulu, Hawaii (9) 9. Laredo, Texas (94)10. Homestead, Florida (166) 11. Detroit, Michigan (70) 12. Harris County, Texas (84) 13. Boston, Massachusetts (27) 14. Miami, Florida (32) 15. Philadelphia, Pennsylvania (35) 16. Orlando, Florida (42) 17. Los Angeles, California (202) 18. Kern County, California (276) 19. Corpus Christi, Texas (122) 20. Newark/Elizabeth, New Jersey (49) 21. Anchorage, Alaska (160)22. Jacksonville, Florida (64) 23. West Sacramento, California (143) 24. Denver, Colorado (123) 25. San Diego, California (153)

Top 25 Foreign Trade Zones

Source: 2012 74th Foreign Trade Zone (FTZ) Annual Report

EJ

The Port of Brownsvilleranked number 1 on the list ofTop 25 Foreign Trade Zonesfor exports to foreign coun-tries, according to the 201274th Foreign Trade Zone(FTZ) Annual Report to theU.S. Congress.

Courtesy photo

Page 24: Brownsville (Texas) Economic Journal Fall 2013

Brownsville Economic Journal Fall 2013 BEDC.com 24

Japanese supplier Toyoda Goseihas set up a new company inMatamoros to strengthen its auto-

motive rubber hose production in the U.S. The new company, Toyoda Gosei Rub-

ber Mexico, S.A. de C.V. (TGRMX), willstart production of fuel hoses and radiatorhoses in February 2015 in Matamoros, andwill employ 140 workers. The factory isexpected to span about 129,000 squarefeet.

This will be Toyoda Gosei’s third man-ufacturing base in Mexico and it will caterto Toyota in the U.S., Canada and Mexico,with expected sales of $3.2 million for fis-cal 2015.

Capital investment in the project wasput at about $1.5 million by the company.An additional investment was estimated at$7 million.

Established in 1949 and headquarteredin Kiyosu, Aichi prefecture, Japan, ToyodaGosei has grown as a manufacturer in thearea of polymers (such as rubber and plas-tics) and optical semiconductors. Today,the company internationally provides a va-riety of automotive components and LEDswith its network of 60 group companies in17 countries and regions worldwide.

Autoliv invests in expansionAutoliv, the world’s largest automotive

safety supplier with sales to all the leadingcar manufacturers in the world, recently

expanded its Matamoros factory andadded 500 workers for the production ofsteering wheels. The total investmentsmade were in the ballpark of $6 million.

The company develops, manufacturesand markets airbags, seatbelts, steeringwheels, passive safety electronics and ac-tive safety systems such as radar, night vi-sion and camera vision systems. It alsoproduces anti-whiplash systems, pedes-trian protection systems and integratedchild seats.

In 2012, Autoliv registered a total of$8,267 million in global sales and had51,000 employees for its global opera-tions, located in 29 countries.

Johnson Controls receives quality honor from Ford

Johnson Controls, a global leader inautomotive seating and seating compo-nents, recently was awarded Ford MotorCompany’s “Q1” quality award for itsplant in Matamoros.

The facility, which opened in 2006,supplies metal front-row seat adjusters fora variety of Ford vehicles.

“We are honored to receive this qualityrecognition from our customer,” saidDaniel de la Lama, Matamoros plant man-ager for Johnson Controls AutomotiveSeating. “The award reinforces our contin-uing focus on quality and commitment toexcellence.”

This is the first time the Matamorosplant has received Ford’s quality award.

Johnson Controls also announced theinvestment of about $15 million in thecontruction of a new building at its Mata-moros site. The investment will be done in2013. EJ

Projects in the works strengthenlocal automotive industry

New Investments EJMAQUILADORA NEWS

Toyoda Gosei sets upplant in Matamoros

From Staff ReportsArtist rendering of the new Toyoda Goseiplant in Matamoros that is set to beginoperations in February 2015. This will bethe company’s third manufacturing base

Courtesy Photo

The investmentsToyoda Gosei:n $8.5 millionAutoliv:n $6 millionJohnson Controls:n $15 million

Page 25: Brownsville (Texas) Economic Journal Fall 2013

Brownsville Economic JournalFall 2013BEDC.com 25

Recently inaugurated interoceanic highway will connect the Pacific Coast with the Gulf of Mexico

Mexican Supervia EJTRANSPORTATION

Open for businessMexican federal authorities re-

cently inaugurated theMazatlan-Durango Highway,

the final missing piece of a much ambi-tious road infrastructure project known asthe “Supervia”, the interoceanic highwaythat spans through six northern states andconnects the Pacific Ocean with the Gulfof Mexico.

The 230-kilometer-long (140-mile)highway will link the Brownsville-Mata-moros region on the Gulf of Mexico withother port cities on the Pacific by a mere12-hour drive. It will stretch along thecities of Mazatlan, in the state of Sinaloa;Torreon and Saltillo, in the state ofCoahuila; Gomez Palacio and Durango, inthe state of Durango; and Monterrey, inNuevo Leon.

During the inauguration ceremonyheld in early October, Jorge HerreraCaldera, Governor of the Mexican state ofDurango, said that the important economic

corridor will become a true engine for cap-ital investment, growth and job generation.

The Supervia will connect Mexico’scommercial and industrial region in thenorth with Sinaloa, dubbed the “breadbas-ket of Mexico.” The state is the country’sleader in food production.

Meanwhile, Gerardo Ruiz Esparza,Mexico’s Secretary of Communicationsand Transportation, revealed that the mas-sive project that began in 2001 called foran investment of more than $1.2 billion.The corridor features more than 60 tunnelsand 115 bridges.

The superhighway includes one of themost incredible engineering marvels, theBaluarte Bicentenario bridge, in the moun-tains of western Mexico. With 1,321 feethigh above the ravine called the “Devil’sbackbone”, it is the highest cable-stayedbridge in the world.

Opportunity for the BorderplexIn August, Brownsville and Mazatlan

officials got together to form a sister-city

agreement between both municipalities,further strengthening its commercial ties.

Brownsville Mayor Tony Martinez andMazatlan City Commissioners EricReynoso and Sergio Romero signed a pactto form a new partnership in commerce tobring economic prosperity to their respec-tive regions.

According to The Associated Press, thehighway will eventually move 5 millionvehicles a year, more than four times thenumber on the old road.

The access to the Supervia in Texaswill be through the Veterans InternationalBridge in Brownsville. The bridge offers aquick and direct connection to the U.S. In-terstate 69 corridor, which stretchesthrough eight states in the U.S. beforereaching the Canadian border in PortHuron, Michigan.

Through Brownsville, Sinaloa now hasa quicker, less expensive route to exportits products to the central and eastern U.S.markets, and Brownsville now has easyaccess to the Pacific and Asian markets. EJ

From Staff Reports

Courtesy Photos

Page 26: Brownsville (Texas) Economic Journal Fall 2013

Brownsville Economic Journal Fall 2013 BEDC.com 26

The inaugural SelectUSA 2013 In-vestment Summit, which tookplace at the end of October, in-

cluded two high-impact days of meetingsand discussions among senior governmentofficials, major business executives, globaleconomic experts and U.S. economic devel-opment officials about strategies to increaseforeign direct investment (FDI) in theUnited States.

Throughout the day, speakers from busi-nesses, professional services firms, acade-mia, and trade associations helped todemystify aspects of the U.S. economic andregulatory system. The discussions coveredthe implications of U.S. leadership in theenergy sector, advice on effective global tal-ent development, understanding U.S. in-vestment export controls and foreigninvestment security reviews, and accessingU.S.-based sources of investment and work-ing capital.

U.S. Secretary of Commerce PennyPritzker, who hosted and presided over thefirst-ever federal government event focusedon inbound U.S. investment, declared theSummit a success.

“We predicted that there was a hungerfor something like this,” she told Summitattendees. “But we were overwhelmed withthe positive response from global businessleaders and economic development organi-zations.”

The Summit is a key component of Se-lectUSA’s mission to promote FDI and tohelp achieve the Obama administration’sgoals of creating jobs, spurring economicgrowth and promoting American businesscompetitiveness. Approximately 1,200 busi-ness and government leaders from nearly 60countries and economic development organ-izations from 47 states, the District of Co-lumbia and three territories met at theSelectUSA Investment Summit to learnabout the advantages of doing business inthe U.S. and to explore investment opportu-nities.

President Obama launched SelectUSAin 2011, creating the first federal program topromote and facilitate U.S. investment inpartnership with the nation’s states. EJ

SOURCE: U.S. Department of Commerce

UNITED STATES

Inaugural SelectUSA Summitfocuses on increasing FDI

Gross Domestic Product

2.8%

Real gross domestic product -- the output of goods andservices produced by laborand property located in theUnited States -- increased atan annual rate of 2.8 percentin the third quarter of 2013(that is, from the second quar-ter to the third quarter), ac-cording to the “advance”estimate released by the Bureau of Economic Analysis.

Trade in Goods and Services

-$41.8billion

Total September exports of$188.9 billion and imports of$230.7 billion resulted in agoods and services deficit of$41.8 billion, up from $38.7billion in August, revised.September exports were $0.4billion less than August ex-ports of $189.3 billion. Sep-tember imports were $2.7billion more than August im-ports of $228.0 billion.

U.S. International Transactions

$98.9 billion

The U.S. current-accountdeficit—the combined bal-ances on trade in goods andservices, income, and netunilateral current transfers—decreased to $98.9 billion(preliminary) in the secondquarter from $104.9 billion(revised) in the first quarter.The decrease in the current-account deficit was ac-counted for by a decrease inthe deficit on goods, an in-crease in the surplus on in-come, and an increase in thesurplus on services. Thesechanges were partly offset byan increase in net outflowsof unilateral current trans-fers, such as governmentgrants, government pensionsand other transfers, and pri-vate remittances.

Employment

7.3%

Total nonfarm payroll em-ployment rose by 204,000in October, and the unem-ployment rate was littlechanged at 7.3 percent.Employment increased inleisure and hospitality, re-tail trade, professional andtechnical services, manu-facturing, and health care.

Import and Export Price Indexes

0.7%

U.S. import prices declined 0.7percent in October, led by lowerfuel prices. The October de-crease in overall import pricesfollowed comparatively modestadvances in each of the previous3 months. Prices for U.S. ex-ports fell 0.5 percent in October,after a 0.4 percent increase theprevious month.

SOURCES: U.S. CensusBureau;U.S. Bureauof EconomicAnalysis; U.S. Bureauof Labor Statistics

Page 27: Brownsville (Texas) Economic Journal Fall 2013

Brownsville Economic JournalFall 2013BEDC.com 27

Global Economic Activity

0.5%

Mexico’s global economicactivity index (IGAE), amonthly proxy for the na-tion’s GDP, grew 0.5 percentin July after stagnating inJune (Chart 1). In July, serv-ice related activities (includ-ing trade, transportation andgovernment) expanded 0.6percent.

Exports

2.2%

Exports grew 2.2 percentin August and are up 0.2percent in the first eightmonths of 2013 comparedwith the same period lastyear. Three-month movingaverages show improve-ment in oil exports, whilemanufacturing shipmentsshow some decline.

Industrial Production

0.5%

Industrial production (IP)rose 0.5 percent month overmonth in August after grow-ing 0.2 percent in July. Three-month moving averagesshow considerable improve-ment, particularly in manu-facturing production. Acrossthe border, U.S. IP increased0.4 percent in August afterposting a flat reading in July.

Consumer Price Index

Inflation fell to 3.4 percentyear over year in September,down from 3.5 percent in Au-gust (Chart 7). Prices exclud-ing food and energy rose only2.5 percent, below the centralbank’s long-term inflation tar-get of 3 percent. The centralbank lowered its policy rate to3.75 percent in Septemberover concerns that the econ-omy was slowing.

Peso/Dollar Exchange Rate

13.1pesosper dollar

The peso depreciated1.2 percent in Septem-ber, when the ex-change rate averaged13.1 pesos per dollar,up from 12.9 in August.Relatively higher U.S. in-terest rates and concernsabout the slowing of theMexican economy maybe pushing up the dollarrelative to the peso.

Employment

2.2%

Formal-sector employ-ment—jobs with govern-ment benefits andpensions—expanded at anannualized rate of 2.2 per-cent in August, better thanJuly’s growth of 1.9 percentbut still below the averagemonthly rate of 2.6 percentfor the year. Formal-sectoremployment grew at a 4.6percent pace in 2012.

MEXICO

The monthly proxy for gross domes-tic product (GDP) increased in July,suggesting Mexico economic

growth ticked up after three months of eitherstagnant or declining activity. In the most re-cent data, exports, industrial production andemployment also grew. However, retail saleswere subdued. The rate of inflation has contin-ued to fall, and the peso depreciated againstthe dollar in September.

Output growsMexico’s global economic activity index

(IGAE), a monthly proxy for the nation’s GDP,grew 0.5 percent in July after stagnating inJune. In July, service-related activities (includ-ing trade, transportation and government) ex-panded 0.6 percent.

However, goods-producing industries (in-cluding manufacturing, construction, utilitiesand mining) fell 0.1 percent. Agricultural out-put grew 0.1 percent. Despite the recentpickup in economic activity, the 2013 GDPgrowth forecast has been revised down to 1.4percent from 1.8 percent in August. In the firsthalf, GDP contracted 1.4 percent at an annual

rate from its fourth-quarter level.Exports improve

Exports grew 2.2 percent in August and areup 0.2 percent in the first eight months of 2013compared with the same period last year.Three-month moving averages show improve-ment in oil exports, while manufacturing ship-ments show some decline. Exports are postingtheir second consecutive year of little to nogrowth, having risen a meager 3.8 percent in2012. Exports grew at double-digit rates in2010 and 2011 and played a major role inMexico’s recovery from the 2009 recession.

Industrial Production RecoveringIndustrial production (IP) rose 0.5 percent

month over month in August after growing 0.2percent in July. Three-month moving averagesshow considerable improvement, particularlyin manufacturing production. Across the bor-der, U.S. IP increased 0.4 percent in Augustafter posting a flat reading in July. Mexico’sindustrial production typically tracks U.S. IP,due in part to the U.S. automotive industry’slarge presence in Mexico. EJ

SOURCE: Federal Reserve Bank of Dallas

Mexico’s economypicks up the pace

SOURCE: Federal ReserveBank of Dallas

3.4%

Page 28: Brownsville (Texas) Economic Journal Fall 2013

Brownsville Economic Journal Fall 2013 BEDC.com 28

The seasonally adjusted unemploy-ment rate in Texas fell to 6.2 per-cent in October, down from 6.3

percent in September. The state’s unem-ployment rate remained well below the na-tional October unemployment rate of 7.3percent.

In October, Texas had an estimated totalnonfarm employment of 11,232,700 jobs,an increase of 267,400 jobs over the year.Total nonfarm employment in Texas rose byan estimated 7,400 positions in October fol-lowing an increase of 36,400 jobs in Sep-tember, a total of 43,800 jobs added overthe last two months.

“The private sector in Texas recorded astrong annual growth rate of 2.9 percent inOctober, adding nearly 265,000 jobs overthe year,” said Texas Workforce Commis-sion (TWC) Chairman Andres Alcantar.“We encourage job seekers, in particular ourreturning veterans, to visit their local Work-force Solutions office for assistance in find-ing work.”

Seven out of 11 industries that addedjobs in October included Leisure and Hospi-tality, which expanded by 7,600 positions;Professional and Business Services, which

added 5,000 jobs; and Trade, Transportationand Utilities, which grew by 3,700 posi-tions.

“It’s good to see our unemployment ratedeclining for three consecutive months,from 6.5 percent in July to 6.2 percent inOctober,” said TWC Commissioner Repre-senting Labor Ronny Congleton. “Positiveeconomic growth means continued employ-ment opportunities for the job seekers andworkers of Texas.”

Industries such as Mining and Logging,and Professional and Business Services,continued to show annual growth in Texas.Mining and Logging added 15,000 jobsover the year, while Professional and Busi-ness Services added 73,200. Both of theseindustries have grown by more than 5.0 per-cent over the year.

“The Texas economy continues to moveforward, with every major industry in thestate showing positive growth over the lastyear,” said TWC Commissioner Represent-ing Employers Hope Andrade. EJ

SOURCE: Office of the Governor Rick Perry

TEXAS

Unemployment rate down as morethan 43,000 jobs are added statewide

Employment

6.2%

The seasonally adjusted un-employment rate in Texasfell to 6.2 percent in October,down from 6.3 percent inSeptember. The state’s un-employment rate remainedwell below the national Oc-tober unemployment rate of7.3 percent.

Monthly Exports

2.8%

Monthly Texas exportsfell 2.8 percent fromJuly to August after in-creasing 4.1 percentfrom June to July. Au-gust exports were 5.3percent higher than atthe same time last year.

Production Index- Texas Manufacturing

13.3

Texas factory activity pickedup further in October, accord-ing to the Texas Manufactur-ing Outlook Survey. Theproduction index, a key meas-ure of state manufacturingconditions, rose from 11.5 to13.3, suggesting output in-creased at a slightly fasterpace than in September.

Natural Gas Prices

1.1%

Natural gas prices rose to$3.66 per million Btu in Oc-tober, a 1.1 percent increasefrom the September level.The price was 10.6 percent

Crude Oil Prices

5.4%

The West Texas Inter-mediate crude oil pricefell 5.4 percent to$100.56 per barrelin October and was up12.3 percent year overyear.

Texas Rig Count

820

The Texas rig count de-creased to 820 in Octoberand was down 5.4 percentyear over year.

SOURCE: Federal ReserveBank of Dallas

Page 29: Brownsville (Texas) Economic Journal Fall 2013

Brownsville Economic JournalFall 2013BEDC.com 29

Border Crossings

ConstructionEmploymentCivilian Labor Force: 162,700

Employed: 146,142

Unemployed: 16,262

Job growth rate: -1.05

Unemployment rate: 10%

Brownsville-Harlingen MSA data for August 2013Source: Texas Workforce Commision

BROWNSVILLE BORDERPLEX

Despite a big demand for new apart-ment space in Brownsville, preciouslittle of it has been built in recent

years.So says Ryan Harden, a Dallas-based devel-

oper and partner with JJR Group LTD, whichbroke ground on the new Bella Vista complex onAug. 15.

The multimillion-dollar development, to belocated on 28 acres on Ruben Torres Boulevardbetween Central Avenue and Robindale Road, isbeing built in response to that demand, he said.

“There hasn’t been any market-rate, Class A,luxury multi-family brought to market inBrownsville since I think early 2000, with the de-velopment of a project called La Mansion thereon (Ruben Torres) kind of close to Paredes LineRoad,” Harden said.

“The only other Class A, market-rate, multi-family complex in Brownsville is one called LasPalmas. It was built I think in the late ‘90s. Sothere’s pent-up demand for market rate, Class Aapartments in Brownsville.”

Harden was the developer behind Villages atPaso Real apartments in San Benito, and also hasa complex under construction in Edinburg. Hispartners in Brownsville-based JJR Group areJohn Cowen and John Cowen Jr. The contractoris Peterson Construction of McAllen and Frisco.

Phase one of Bella Vista will include a club-house and 128 units and will be complete in 12

months. Phase two will add another 150 to 170units.

“We’ll have a lease-up period that will over-lap with construction,” Harden said. “Once we’vehit a certain percent occupied in the first phase,then we plan to initiate the second phase.”

The clubhouse will feature amenities such asa media center, business center, fitness center, re-sort-style swimming pool and poolside cabanaand barbecue area. Rents will range from $660 to$1,040, and the first units will be available foroccupancy in April 2014.

Harden described the location as prime, witha high traffic count, a Wal-Mart and associatedretail development 1.5 miles to the east, and an-other Wal-Mart planned less than two miles to thewest.

“The retailers there and the housing has notkept up with the growth on the commercial side,which is unusual, because usually it’s the otherway around,” he said.

The site is also close to Sunrise Mall,Brownsville South Padre Island International Air-port, the Port of Brownsville and South Padre Is-land.

This article was written by Steve Clark and appeared

in the Friday, September 5, 2013 issue of The Brownsville Herald. For the com-plete article, visit www.brownsvilleherald.com

Developer breaks groundon apartment complex

RailNorthbound: 25,641Southbound: 25,864

TruckNorthbound: 119,902Southbound: 130,057

VehicleNorthbound: 2,583,187Southbound: 1,704,750

PedestrianNorthbound: 1,410,378Southbound: 1,185,487

Data from Jan-Aug 2013Source: Texas Center for Border

Economic and Enterprise Development

Residential Building Permits: $34,219,628

Commercial Building Permits: $37,948,051

Total Permits: $72,167,679

Data from Jan-Jul 2013Source: Rio Grande Valley Partnership

Landings & TakeoffsEnplaned Passengers: 8,607*Deplaned Passengers: 10,698*Total Passengers: 19,305*

Revenue LandedWeightsAmerican Airlines:3,948,000*United Airlines:5,113,989*Other: 1,093,776*Total: 10,155,765*

Cargo Weights (lbs)Cargo Enplaned: 86,533*Cargo Deplaned: 80,652*Total: 167,185*

Year-to-Date (Jan-Jul 2013)Landings & Takeoffs: 22,500Passengers: 120,638Revenue Landed (lbs): 75,424,872Cargo (lbs): 929,580

Brownsville South Padre Island International Airport

*Data for July 2013

Source: Brownsville South Padre IslandInternational Airport

Page 30: Brownsville (Texas) Economic Journal Fall 2013

BUSINESS&ECONOMICBRIEFS

Construction of CargoDock 16 underway

The Port of Brownsville Board ofCommissioners approved the Award ofContract for the construction of CargoDock 16 to Shoreline Foundation, Inc. ofPembroke, Fl.

Construction began in September,2013 with estimated completion in March,2015.

“We have eagerly awaited the com-mencement of this important project at thePort of Brownsville,” Port Director andCEO Eduardo A. Campirano stated.

Cargo Dock 16 will enhance the Port’sexpansion efforts in the container businesswhile allowing it the versatility to keep upwith increased demand for handling bulkcommodities. It will serve as our secondheavy-load capacity dock and increase ef-ficiencies by eliminating or minimizingpotential vessel delays.

“The construction of Cargo Dock 16will allow us to increase our cargo han-dling capabilities and allow us to accom-plish our goal of continued growth as aninternational port and create jobs for ourregion.”

The project is being funded in part bya U.S. Department of TransportationTIGER Grant in the amount of$12,000,000. The Port will contribute theremainder of the funds for a total esti-mated cost of $26,207,427.

The Port’s funds will be utilized toconstruct the general cargo dock, road im-provements and lighting.

Shoreline was the responsible biddersubmitting the lowest and best bid for$20,924,230 for the construction of thedock.

“First and foremost, I would like tothank the Port of Brownsville Board ofCommissioners and staff for putting theirtrust and confidence in us,” stated TonyRoyo, President, Shoreline Foundation. “Iam sure that they will be very pleased withthe quality and outcome of our work. Welook forward to a successful project thatthe Port of Brownsville can be proud offor years to come.” EJ

UT System, Valleycelebrate funds forregional university

A symbolic check for $196 millionwas presented in a ceremony Wednesday,November 20, to Project South Texas, theinitiative to create a new Rio Grande Val-ley university and medical school.

University of Texas System Board ofRegents Vice Chairman Gene Powell andRegent Ernest Aliseda met with local lead-ers at the Regional Academic Health Cen-ter for the check event.

The money comes from the PermanentUniversity Fund, which is funded by stateoil and gas revenues. The University ofTexas at Brownsville and the University ofTexas-Pan American were not eligible forPUF money until legislative approval thisyear to begin the process of consolidatingthe campuses.

UT System Chancellor Francisco Cig-arroa attended the ceremony, as did stateSen. Eddie Lucio Jr., D-Brownsville, stateSen. Juan “Chuy” Hinojosa, D-McAllen,and students from the two universities.

Powell said the creation of the newuniversity is the result of efforts by manyindividuals over many years.

“All of these years have come to-gether,” he said. “In October 2012, Chan-cellor Cigarroa called me one night at11:45 and we talked for two hours. Theidea came up with how to get the state toallow us to get PUF funds.”

A plan emerged and the process beganto merge UTB and UTPA into one univer-sity and allow the state to provide PUFrevenue for the Valley.

“This has been going on for years andyears and years, but one great idea got itdone,” Powell said. “Thirteen monthslater, in November 2013, we’re meeting tobring the first PUF money ever in 130years.”

The PUF money will be used to buildfacilities for the new university at UTPAand UTB. Classes at the new universityare expected to begin in 2015, with thefirst medical school classes opening in2016.

UTB President Juliet V. Garcia calledthe event “a momentous moment.”

“We have been laboring with the un-

fulfilled dreams of our parents,” she said.“This is the beginning of a new day, agreat day for the Valley. Our dreams canbe fulfilled.”

UTPA President Robert Nelsen said itwas an important day for the future of theValley.

“The future of the Valley is going to bevery different because of today,” Nelsensaid. “Our students will have the facilitiesthey need and will gain the education theydeserve.”

This article was written by Travis Whitehead and appeared

in the Thursday, November 21, 2013 issue of The Valley Morning Star

Maintenance dredgingenhances BrownsvilleShip Channel

Goodloe Marine Inc. recently took onthe task to do maintenance work on theBrownsville Ship Channel at the Port ofBrownsville.

The contractor was required to dredgethe channel and remove approximately333,200 cubic yards of shoal materialusing a pipeline dredge, with materialbeing placed in an upland confined place-ment area.

“The Brownsville Ship Channel,which services the Port of Brownsville, iscurrently under a draft restriction,” saidUSACE Galveston District Chief of Navi-gation Christopher Frabotta. “Maintenancedredging will increase channel availabil-ity, a critical component in providing un-restricted navigation to the Port ofBrownsville.”

According to Frabotta, the Port ofBrownsville is the 67th ranked port in thenation with respect to import and domestictonnages, moving approximately 5.9 mil-lion tons of cargo in 2011.

Principle commodities include petro-leum products, ores and minerals, steeland other metals, vegetable oils andgrains.

Work began in August 2013 was fin-ished in November 2013. EJ

Brownsville Economic Journal Fall 2013 BEDC.com 30

Page 31: Brownsville (Texas) Economic Journal Fall 2013

Home of CK Technologies LLC

SOLD5.1 acres

SOLD6.2 acres

AVAILABLELot 3 (5.6 acres)

AVAILABLELot 4 (5.7 acres)

AVAILABLELot 5 (6.6 acres)

AVAILABLELot 6 (10.0 acres)

AVAILABLELot 7 (5.0 acres)

AVAILABLELot 8 (5.0 acres)

AVAILABLE

Lot 11 (4

.9 acres)

AVAILABLE

Lot 10 (2

.3 acres)

AVAILABLE

Lot 9 (2

.3 acres)

Park entrance

Paredes L

ine Road

1/4 mile to SH550 (I69 Spur)INTERSTATE

69

N

Railroad

To Port of Brownsville, Brownsville South Padre Island International Airport

Drainage Canal

G.B.I.C. Circle

Industrial C

ircleDrainage Canal

Note: Lot dimensions a

re not scale

North Brownsville Industrial Park

73-ACRE MASTER PLAN INDUSTRIAL PARK SHOVEL READY CERTIFIED SITE

SITE DESCRIPTION:

n Inaugurated in June 2011n 73-Acre Master Plan Industrial Park n 9 lots remainingn Minutes from Port of Brownsville,

Brownsville International AirportI-69 Highway, and Mexico

n Acess to railn Minutes from Maquiladora Industry

in Matamoros, Mexicon Concrete roads, boulevards,

and turnarounds

n 1/4 mile from SH 550, future extension of I-69

n All utilities in place: electric, water, wastewater, natural gas

n Gas supplied by Texas Gas Servicen 4-inch gas line size with 125 lbs

of pressuren Water, wastewater, electricity

supplied by Brownsville PublicUtilities Boardw 16” water line runs along

Paredes Line Road

w 8” looped water line around theCK Technologies LLC building (adjacent to park)

w An existing lift station and an 8” sanitary sewer gravity line at CK Technologies building(adjacent to park)

w Capacity at 10 MGDn Flat topographyn Site is development readyn Shovel ready certified site

A DEVELOPMENT OF THE GREATER BROWNSVILLE INCENTIVES CORPORATION

CONTACT:[email protected]

Brownsville Economic Development Council301 Mexico Blvd. Suite F-1 Brownsville, Texas 78520

p.956.541.1183 / 800.552.5352 f.956.546.3938www.BEDC.com

Page 32: Brownsville (Texas) Economic Journal Fall 2013

™™™

“Texas is a state where a dream can be put to work.”- Texas Governor Rick Perry

It’s a commitment to create and sustain an environment that fosters business and entrepreneurship, trains the workforce of the future, and helps

to your growth and success Come to Texas, we’re

Wide Open for Business