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1 Model Commercial Port

2 About SecureOrigins SecureOrigins is the leading US-Mexico provider of transport-critical security and trade facilitation communication solutions for manufacturing, logistics and government partners. Act as a neutral third-party alert and information system.

3 Mexico Snapshot Population: 121 Million (2014) Unemployment: 4.9% (2013) Inflation: 4% (2013) Exports: $371 billion (2013) (78% US) Imports: $370 billion (2013) (50% US) FDI: $19.44 billion (2011) (9.7% increase) GDP per capita: $15,600 (2013) Worlds 11th largest economy 3.6% real GDP growth (2013) Higher GDP growth rate than Brazil CIA Factbook 2014

4 What has changed? High oil prices Increase supply-chain costs Companies rethink sourcing with near-shoring strategies Manufacturing is coming back to Mexico The Panama Canal expansion, will influence new trading patterns and will allow super-sized vessels to serve U.S. ports on the East Coast and the Gulf of Mexico.

5 What s at stake when we re talking trade? $511B $626B Texas: $101B Over 550,000+ border crossings per day

6 What s at stake when we re talking trade? 1 in 5 in Texas One out of every four jobs in the U.S. depends on international trade.

7 What s at stake when we re talking trade? 6%+ Year over year the average increase in trade between our borders are minimally six percent! Trade with Mexico will double in 15 years.

8 What s at stake when we re talking trade? Five of the Top 8 Land Ports and Texan Laredo $174B 42.4% El Paso $66.6B 16.2% Hidalgo $ % Eagle Pass $21.4B 5.2% Cameron County $14.6B 3.6% Nearly 75% of all NAFTA Trade in Texan

9

10 Freight Transportation Networks in Mexico

11 MODEL PORT: Segmentation of Trusted Shipments Improves Security while Increasing Port Capacity Preserves Value of C-TPAT/FAST Investment WITHOUT Lane Segmentation WITH Lane Segmentation

12 DOT - FMCSA

13 Off Route Position Alerts Door Tamper Alert

14 Project 21 vs. Standard Shipments Average Crossing Time for Non-Project 21 is 2-4 Times Longer

15 Accomplishments - El Paso, TX MOU executed between City of El Paso and CBP-DHS Dramatic reduction in crossing times: - Before Project-21: 76 minutes - Current average Project-21: 22 minutes - Reduced emissions/environmental pollution by 27% per truck and saved 1.6 gallons of fuel per movement - Increased truck turns by 33% CBP Issues memorandum of clarification on contamination reporting

16 Crossing Times by Segment Ysleta Commercial Port of Entry 4 Week Average 1/20-2/ FMCSA, 1.1, 2% DPS, 2.2, 3% US Port Area, 9.7, 16% Aduana Queue, 12.1, 20% CBP, 8.5, 14% Adu Time, 9.2, 15% CBP Queue, 7.1, 11% Aduana 2I, 12.0, 19%

17 140 Ysleta Commercial Port of Entry Commercial Shipments Crossing Times by Segment Week Average: 1/20-2/ US Port FMCSA DPS CBP CBP Queue Aduana 2I Adu Time Aduana Queue :00 6:00 7:00 8:00 9:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00

18 Shipment Monitoring Throughout North America

19 Intelligent Transportation Initiative for Texas Cross-Border Freight Mobility CONSIDERATION RECOMMEND THAT THE FREIGHT ADVISORY COMMITTEE ADOPT THE USE OF AN ESTABLISHED INTELLIGENT TRANSPORTATION SYSTEM FOR IMPROVED CROSS- BORDER MOBILITY AND INTRA-STATE TRACKING OF INTERNATIONAL FREIGHT AS PART OF ITS RECOMMENDATION INTO THE TEXAS FREIGHT MOBILITY PLAN.

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