NACO RAIL CROSSING PROJECT
Rail Port of Entry and Intermodal facility connecting Naco Arizona and Naco Sonora
Sonora-Arizona International, LLC (SAI) is currently involved in a project to enhance the economic development and growth of the Arizona-Sonora border area by providing international trade with an expedient and cost saving method of transporting cargo from the seaport in Guaymas, Mexico to Arizona and on to other US destinations. This will be done by constructing a rail port-of-entry, warehousing and an intermodal facility at Naco, Arizona.
The growth in trade with Mexico is a natural result of geography, proximity, cultural ties and history. The shared border between Sonora and Arizona provides significant opportunities for mutual economic development and growth. Currently, billions of dollars in potential cross-border trade is lost because of the lack of sufficient rail access into Arizona. The U.S. Border States of Texas, New Mexico, California and their Mexican counterparts, Tamaulipas, Nuevo Leon, Coahuila, Chihuahua and Baja are preparing to accept increased trade growth. These states have improved their rail crossing and intermodal facilities and are aggressively campaigning to receive the majority of Mexican and Central and South American trade. Until recently, Arizona and Sonora, Mexico had not been pursuing projects to entice trade traffic to utilize the Sonora - Arizona border as an entry/exit point.
At present, there exists only one rail crossing between Mexico and the State of Arizona. Approximately 80% of all rail cargo is being directed to the one rail port-of-entry at Nogales. This rail crossing is congested and painfully out-dated and has no visible plans to upgrade. The issue of congestion and delays at Nogales has perpetuated the inability to service the influx of rail trade traffic. Nogales is now providing less and less adequate services to shippers. Currently, there is as much as a 5 to 7 day delay in rail crossings. This creates lost profits for shippers. The problem is felt not only in Arizona but also with other worldwide trade groups that utilize Mexico's seaports for destinations into the U.S. The result is and will continue to be that Mexican and U.S. shippers as well as all of Central & South America will decide to move their traffic through more convenient ports-of-entry in other states to avoid the congestion and delays met at Nogales. While the Nogales problem is superficially being addressed by adjusting rail crossing times and constructing the Mariposa commercial truck entry point, the need to develop a reliever port in Naco is essential. This Naco rail access, otherwise known as the Sonora-Arizona By-Pass, will create an immediate reliever port for Nogales as well as capture a share of the Mexican, Central and South American, Far East and CanaMex trade traffic.
Currently, the only intermodal facilities for southeastern Arizona are located in Phoenix and Tucson. Cargo entering at Nogales and heading east must first travel west to one of these locations before proceeding onto other US locations. A proposed Intermodal Facility at Naco, Arizona, utilizing the Sonora-Arizona By-Pass as a more direct and time saving route, would provide valuable services to shippers by improving shipping time and reducing associated transportation costs. Here, trains will be able to connect to the major U.S. North, East & West rail network and trucks can access Interstate 10.
Another SAI project is the development of the seaport at Guaymas, Sonora, Mexico. The Sonora-Arizona By-Pass rail system will evenutually be connected to the existing transportation corridor originating at the sea port thus providing a much more efficient and less costly way for international shippers to get their products to their US destinations.
Another benefit of this project is the opportunity for business relocation in the Sonora area. Currently, there are many maquiladoras (manufacturing plants) in the Naco, Agua Prieta and Cananea area. Cananea mine, which had been closed since July 2007 due to a strike, is now reopening and production could resume as soon as the end of this year. The mine, which once produced 40 percent of the copper in Mexico, still has enough pit reserves to be mined for the next seven decades. The implementation of the Sonora-Arizona By-Pass rail system will be crucial in providing materials and supplies to the mining facilities. The reopening of the mine also presents new business opportunities for mining equipment and supply companies as well as entrepreneurs looking to get in on the ground floor of the rebirth of the area’s economy.
This SAI project will not only benefit the immediate areas of Naco, Arizona and Sonora but also the surrounding cities. The many business opportunities that will be generated and the subsequent creation of jobs will make this endeavor one of the biggest potentials for economic growth and impact in the area.
