By Justin O'Brien
June 23, 2003

In a meeting of the U.S. Conference of Mayors' Cities and Borders Task Force Saturday June 7, Mayors and private sector industry leaders from the U.S. and Canada discussed barriers and impediments to efficient cross'border transportation of goods and equipment resulting from border inspection and other security measures introduced since September 11. The Cities and Borders Task Force, co-chaired by Laredo Mayor Betty Flores and Detroit Mayor Kwame M. Kilpatrick, met during the 71st Annual U.S. Conference of Mayors in Denver. Laredo and Detroit are the largest and busiest inland ports in the country on the U.S.-Mexico and U.S.-Canada borders respectively.

Equal Treatment of Inland Ports Urged

In her opening remarks, Mayor Flores urged that inland ports be accorded equal treatment with seaports and airports given the volume of trade that passes through cross'border ports relative to national trade levels and their importance to the national economy. Attendees also heard how in 2003, inland ports have not received direct security funding while seaports were specifically targeted by the $75 million High Threat Port Security Grants Program.

SAFETEA, Amendments Improve Systems, Infrastructure

Flores also urged support for suballocation and increased funding for the Borders and Corridors program in the reauthorization of Transportation Equity Act for the 21st Century (TEA-21) also known as SAFETEA. SAFETEA replaces the National Corridor Planning & Development Program and the Coordinated Border Infrastructure Program with the Multi'state Corridor Planning Program and the Border Planning, Operations, and Technology Program. Flores explained that these proposed reforms, in addition to amendments to TEA-21 offered in the House and Senate, would greatly improve the intended effects of the program on the ground at cross'border ports. The amendments are included in H.R. 2220 and S.1099.

Sponsored by Senator Kay Bailey Hutchison (TX), Senator Pete Domenici (NM), Senator Jeff Bingaman (NM), Senator Jon Kyl (AZ) and Senator John Cornyn (TX), S.1099 amends TEA-21 with respect to national corridor planning and development and coordinated border infrastructure and safety. H.R.2220 introduced by Representatives Michael Burgess (TX) and Eddie Bernice Johnson (TX) makes the same changes as S.1099 but funds each program with $200 million per year instead of "such sums as may be necessary".

Commercial, Economic Costs of Inefficiencies Noted

Attendees including Sierra Vista Mayor Thomas J. Hessler; North Vancouver, Canada Mayor Don Bell; the newly-appointed Director for State and Local Coordination at the Department of Homeland Security, David Hagy and representatives from the U.S. Department of State also heard from representatives of private sector industry leaders including Bechtel's Howard Menaker. Menaker described difficulties being experienced by Bechtel in cross'border transportation and the cumulative effects of a series of delays experienced in conducting cross'border commerce and shipping. Menaker also serves as co-chair of the Mayors Business Council.

Persistent Trade, Transportation Slowdown

Container Security Initiative and Secure Supply Chain Management expert Gordon Fuller, Director for e-Business of Covansys provided detailed descriptions of the multiple delays that the private sector currently has to incorporate into cross'border transportation processes. He explained that too often, delays are the result of multi-layered and duplicated administrative and bureaucratic challenges, themselves obstacles to inspection and transportation efficiency. Fuller also described the effect on business and investment confidence of the numerous commercial risks associated with many of these barriers. Fuller highlighted expensive delays and difficulties related to pre-manifesting and approval processes, quarantine of time'sensitive and perishable products, and inefficiencies associated with duplicate, non-compatible requirements for product and container identification including SKU and other serial numbering.

Flores added that numerous consultations with the cross'border transportation and freight-forwarding communities confirm a persistent slow-down in cross'border trade as a result of additional security requirements. Cross'border trade has grown exponentially since the passage of NAFTA creating extensive investments needs in border transportation and inspection infrastructure which has not followed this growth. North Vancouver, Canada Mayor Don Bell noted similar trade, travel and business delays in the Vancouver area.

Discussion of how to alleviate the harmful effect of delays on business caused by new inspections and security measures and procedures at cross'border ports followed questions posed by San Rafael (CA) Mayor Albert J. Boro. On behalf of the Mayors Business Council, Menaker pledged community support and cooperation for joint efforts geared towards securing needed process and infrastructure improvements in the cross'border trade and transportation systems at the federal level.