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Public-private partnerships critical to improving border ports, staffing levels

WASHINGTON – Cross-border trade and travel stakeholders will gather in Washington, D.C. today at the headquarters of Customs and Border Protection for the official signing of five “reimbursable fee agreements” between CBP and partners in the air and land environments.

The agreements were made possible by Section 560 of the Fiscal Year 2013 continuing resolution budget deal (H.R. 933), which passed in March. The agreements allow the winning projects to partner with CBP to improve staffing at the affected ports of entry.

Two proposals focused on improving port staffing levels that were submitted from U.S.-Mexico border communities were selected by CBP: one by the City of El Paso, and another by the South Texas Asset Consortium (STAC), a joint submission by South Texas port entities in Laredo, Rio Grande City, McAllen, Pharr and Cameron County. The City of El Paso and the STAC partners of the Starr-Camargo Bridge Co., City of McAllen, City of Pharr and Cameron County are all Border Trade Alliance members.

The signing of these agreements comes at a critical time in cross-border trade. A recent Bloomberg Government analysis found that delays at the U.S.-Mexico border resulting from poor staffing levels and inadequate infrastructure cost the U.S. economy $7.8 billion in 2011.

“Today marks a bold step towards improving operations at our nation’s ports of entry,” Border Trade Alliance President Noe Garcia said. “We look forward to these pilots demonstrating that CBP and partners at the local level can craft innovative solutions for facilitating legitimate trade and travel through improved staffing levels. This is a significant achievement for a trade community that has been clamoring for a new way of doing business on the border. We want to thank Sen. John Cornyn (R-Texas), Rep. Henry Cuellar (D-Texas), Rep. Filemón Vela (D-Texas) and Rep. Beto O’Rourke (D-Texas) for their support of these proposals.”

Representatives of STAC and El Paso are ready to begin implementing the agreements.

“The Public Private Partnership between the City of El Paso and CBP is one step towards expediting wait times at our international ports of entry,” El Paso Mayor Oscar Leeser said. “As Mayor, I look forward to working closely with CBP to ensure the success of this important program, not only for the El Paso community but the entire nation. The El Paso and U.S. economies depend heavily on cross border traffic and trade. By opening more lanes during peak times of travel, border communities stands to increase the number of people and amount of cargo that passes through our ports of entry each and every day. Today’s partnership is not just an economic development driver for our community, but it will revive economies in communities across the nation.”

STAC President and Starr-Camargo Bridge Co. President Sam F. Vale said: “These agreements take an innovative, regional approach to port management. Now bridge owners and operators have a greater voice in how needed resources will be deployed to the ports of entry. On behalf of all the STAC participants, we look forward to working with CBP in implementing these pilot projects, which we believe will greatly enhance our region’s economy and international trade competitiveness.”Border region senators and representatives also applauded the signing of the agreements.

Sen. John Cornyn

“Innovative partnerships that enhance staffing levels and reduce wait times at our nation’s ports of entry can play a vital role in the Texas economy. From El Paso to the Rio Grande Valley, improving our successful trading relationship with Mexico has the potential to create more jobs, and the signing of these agreements is an important step towards creating new opportunities for Texans.”

Rep. Filemón Vela

“The signing of these reimbursable fee agreements is a recognition of the importance of Texas ports of entry to the national economy,” Representative Vela said. “The South Texas Asset Consortium (STAC), which is comprised of the City of Laredo, Starr-Camargo International Bridge, the City of McAllen, the City of Pharr, and Cameron County, should be commended for finding innovative solutions to reducing wait times and facilitating trade along our ports of entry. Improving port staffing levels is critical in order to increase U.S. trade with Mexico, which last year alone reached $500 billion. My office worked alongside STAC and the Border Trade Alliance to ensure that CBP understood the vital role Texas ports play in our regional and national economy.”

Rep. Beto O’Rourke

“I would like to thank El Paso Mayor Oscar Leeser and city leaders for their hard work in finalizing this deal with CBP. This is another example of El Paso stepping up to decide its future. We have created a practical solution to reduce bridge wait times, increase bi-national trade and create jobs,” Congressman O’Rourke said. “El Paso is the second busiest port of entry in the nation, accounting for $92 billion in annual cross border trade with Mexico and $1.45 billion in retail shopping that supports nearly 100,000 jobs in our area. The safe, efficient and predictable movement of goods and people across our border is central to creating a 21st Century border policy. ”

Rep. Henry Cuellar

“These partnerships are an example of how stakeholders can come together and find creative solutions to complex problems along the border,” said Congressman Cuellar. “Public-private partnerships allow bridges across the US-Mexico border to find innovative ways to use resources in a way that creates jobs and fosters economic development. I congratulate the South Texas Consortium for its admirable work in the Rio Grande Valley and Laredo to facilitate trade and commerce and increase economic development in the South Texas region. I will continue to support this type of initiative in the Appropriations process that allows the private sector to partner with local government to facilitate trade.”

The BTA has been leading efforts on Capitol Hill to advance the public-private partnership concept in port infrastructure development as well. Rigo Villarreal, superintendent of international bridges for the City of McAllen and a BTA board member, has faced challenges in using city funds to improve the capacity of the Anzalduas International Bridge. BTA, working with McAllen and Mr. Villarreal, have sought a creative solution for improving port infrastructure using local dollars.

“The BTA has been working with a bipartisan group of legislators in Congress, including Sen. Cornyn, Rep. Michael McCaul (R-Texas), Rep. Cuellar, Rep. Vela and Rep. O’Rourke to gather support for a border financing system that allows for a robust role for private sector and local government funding for not only improved staffing, but for bricks and mortar,” Border Trade Alliance Chairman Jesse Hereford said. “With CBP reporting that it would take $6 billion to bring our ports – which average 40 years of age – up to a level reflective of today’s trade volumes, there is an opportunity for CBP to seek out partners to help meet the need for modernized infrastructure.”