ARI-SON Council Meeting Welcome Reception Cros oss-Bor Border C Connected Cit itie ies SMART Borders / Cross-Border Connected Cities Steve Hamilton, Senior Manager Deloitte Advisory August 23, 2017
THE US-MEXI CO CEO DI ALOGUE | BACKGROUND High-Level Econom ic Dialogue ( US-Mexico) US-Mexico CEO Dialogue Leads US-Mexico CEO Dialogue ( Bilateral Private Sector Forum ) W orking Groups Strategic Border North Am erican Transform ation Trade Optim ization Com petitiveness I nitiatives Transform ation W orking Group Co-Chairs: Leads Curt Mortenson / John Skowron (Deloitte) Emilio Cadena (Grupo Prodensa/ INDEX) SMART Borders / CBCC Deloitte Team Leads: I NDEX/ CCE Team Leads: Jim O’Gara Juan Vazquez Steve Hamilton Alfonso Rojas Salvador Ledon US and Mexico Cham bers Private Sector Stakeholders Public Sector Stakeholders
THE CBCC PLATFORM | BACKGROUND The Cross-Border Connected Cities ( CBCC) Platform … • Builds on interconnected nature of US-Mexico city-pair communities • Utilizes technology-enabled infrastructure and stream lined processes to meet needs of citizens on both sides of the border • Brings together coordinated investm ent for pilot projects that improve economic and social development EXAMPLE BENEFI TS I NCLUDE: Broader Econom ic Developm ent Broader Technology Access I m proved Mobility and Security Border communities joined by a SMART border will benefit from a “Border I ncreased Job Dividend” — an estimated 5-10x return Creation on targeted investments from improved services and coordination.
THE CBCC PLATFORM | THE TRANSFORMATI ON ZONE Ubiquitous broadband connectivity; IP-based, secure connectivity … ICT United Command and Control Centers Features of the CBCC Platform States Video Surveillance / Analytics RFID and Asset Tracking Traffic Control The overall Transform ation Zone encompasses all Kiosks / Bio-Metrics technological advancements to the border and serves as a catalytic platform for border economic development. The Regional Planning Area enables regional efficiency and e-clearance mobility through transit-oriented development around supply stations for 2 4 / 7 com m ercial chains and adjacent communities and technology solutions. vehicles The City Planning Area creates a more integrated region through complementary strategic planning for economic development, business investment, and workforce training. The Border Optim ization Area uses advanced technological infrastructure and better data management to improve border operations. Transformation zone Mexico Regional planning area Border optimization area City planning area
THE CBCC PLATFORM | PRI ORI TI ZATI ON GREENHOUSE Beginning in 2014/ 2015, Deloitte held two Greenhouse prioritization workshop sessions to gauge interest in various CBCC platform initiatives. Arlington, Virginia W orkshop Mexico City W orkshop Based on voting results, stakeholders on both sides of the border aligned on border initiatives , with expanded pre- border clearance programs garnering the most votes.
CBCC I N ARI ZONA / SONORA | KEY FACTS Given existing political, economic, social, and institutional collaboration (e.g, Arizona-Mexico Commission), Arizona / Sonora are well-positioned to take advantage of the CBCC platform. Econom ic I m perative for the Region Trade Activity in Arizona-Sonora By implementing SMART Border/ CBCC Platform, border $ 4 0 + billion worth of goods in two-way pair cities can recognize the following benefits: trade processed at Arizona’s ports 1 . Job creation through technology infrastructure investments 6 0 % + of the winter produce enter the US 2 . I ncreased econom ic activity through greater through the Nogales port-of-entry traffic 3 . Low er costs for locally based industries 5 0 % of sales tax revenues for Santa 5 0 % + of sales tax revenues for Santa through border efficiencies Cruz County are from Mexican visitors Cruz County are from Mexican visitors The Case for Change in Arizona-Sonora Arizona ports have strong existing private sector collaboration and are already a site for several successful pilot projects to im prove border processes. Yum a – San Luis Nogales – Nogales Douglas – Agua Prieta • Strong collaboration capacity • Piloted the C-TPAT Program • Opportunity to develop a cohesive • Large agricultural worker population • Heavy produce and industry traffic economic development vision
CBCC I N ARI ZONA / SONORA | PROGRESS TO DATE Applying the general CBCC platform, we’ve been working with local stakeholders in Arizona and Sonora to determine priorities and potential pilot projects for the greater Arizona-Sonora border region. Nogales, Yum a, San Luis Scoping Missions October 2 0 1 6 – May 2 0 1 7 Hold stakeholder meetings in Nogales, Yuma, San Luis, and Phoenix to collect inputs on potential pilot projects and ongoing efforts within the Arizona – Sonora region Governor Ducey’s Support Letter Novem ber 1 0 , 2 0 1 6 Arizona Leadership Alignm ent July 6 – 9 , 2 0 1 7 Convene Arizona, Sonora, Deloitte, and Grupo Prodensa leadership for joint alignment on the CBCC platform at the US-Mexico CEO Dialogue and Deloitte Global Public Sector Meeting in Washington, DC. Sonora Alliance W orkshop August 8 , 2 0 1 7 Convene technical and local stakeholders and implementing partners for a technical working session on potential pilot projects Pilot Project Finalization August – October 2 0 1 7 Develop investment prospectus briefings for “qualified” pilot projects that outlines the approach to implementation readiness and provides a clear path to funding
CBCC I N ARI ZONA / SONORA | PROGRESS TO DATE Applying the general CBCC platform, we’ve been working with local stakeholders in Arizona and Sonora to determine priorities and potential pilot projects for the greater Arizona-Sonora border region. Nogales, Yum a, San Luis Scoping Missions October 2 0 1 6 – May 2 0 1 7 Hold stakeholders meetings in Nogales, Yuma, San Luis, and Phoenix to collect inputs on potential pilot projects and ongoing efforts within the Arizona – Sonora region Governor Ducey’s Support Letter Novem ber 1 0 , 2 0 1 6 Leadership Alignm ent July 6 – 9 , 2 0 1 7 Convene Arizona, Sonora, Deloitte, and Grupo Prodensa leadership for joint alignment on the CBCC platform at the US-Mexico CEO Dialogue and Deloitte Global Public Sector Meeting in Washington, DC. Alliance W orkshop August 8 , 2 0 1 7 Convene technical and local stakeholders and implementing partners for a technical working session on potential pilot projects Pilot Project Finalization August – October 2 0 1 7 Develop investment prospectus briefings for “qualified” pilot projects that outlines the approach to implementation readiness and provides a clear path to funding
SMART BORDERS ALLI ANCE W ORKSHOP | AUGUST 8 th ( PHOENI X) W orkshop Facilitators Public Sector Co-Chairs of US-MX CEO Private Sector Dialogue: Transform ation Technical Partners W orking Group
SMART BORDERS ALLI ANCE W ORKSHOP | AUGUST 8 th ( PHOENI X)
CBCC I N ARI ZONA / SONORA | OUR EVALUATI ON PROCESS The CBCC platform has been guided by a four-stage evaluation process. Define CBCC I dentify Universe Evaluate and Select Alliance W orkshop Guiding Principles of Projects Pilot Projects Create a framework that Investigate projects Present pre-vetted pilot Consult with identifies core concepts via initial screening for stakeholders to identify project options to key upon which the CBCC feasibility, evaluating stakeholders for potential projects that platform relies. them using an further input and to would serve as value- established criteria delivering manifestations drive forward framework to refine developm ent of of the CBCC platform. the list. priority pilot projects .
CBCC I N ARI ZONA / SONORA | CBCC GUI DI NG PRI NCI PLES The first process was identifying the core foundational principles that guided the selection of pilot projects. GEOGRAPHI CAL CROSS BORDER RELEVANCE I MPACT The project affects people The project addresses a locally recognized need, suggested by across borders, reducing inefficiencies by increasing stakeholders who live/ work in the border zone. interconnections. APPLI CATI ON OF ECONOMI C/ SOCI AL BENEFI T TECHNOLOGY The project generates The project depends on thoughtfully designed use of tech economic/ social returns, including employment or solutions to drive improvements. investment.
OVERVI EW OF PI LOT PROJECTS | PROJECT CLASSI FI CATI ON Based on this evaluation exercise, we prioritized projects according to the established parameters, which informed the workshop exercise. Projects that address Priority known challenges relevant to CBCC with Defined projects technically mature identified as ready for Smart Yuma (Regional) Traffic Optimization solutions Energy Smart Campus Application further discussion and vetting, to be discussed Foundational Underlying physical and today technical infrastructure that enables other CBCC concepts Broadband and CBP / SAT Pilots Digital Kiosks Potential Future I nitiatives Reserved for future Border Region Port Natural Gas Banking and discussions Marketing Improvements Consumer Financing Autonomous Vehicle Testing Workforce Exchanges
Thank you! Get in touch: Steve Hamilton Senior Manager | Deloitte Advisory Deloitte Transactions and Business Analytics LLP Tel/Direct: +1 571 858 0648 Mobile: +1 202 374 2329 shamilton@deloitte.com @sshamiltonii www.deloitte.com
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