THE CITY OF LAREDO AND INFINITO GLOBAL LOGISTICS PRESENT: INTERNATIONAL TRADE IN THE NAFTA CORRIDOR

THE CITY OF LAREDO

AND INFINITO GLOBAL LOGISTICS PRESENT:

INTERNATIONAL TRADE IN

THE NAFTA CORRIDOR

“Clients take our perfection in supply chains for granted. They assume Red Prairie will work perfectly, that Starbucks will always have hot coffee, and that FedEx will always deliver on time.”

-Patrick Dixon, CEO Global Change

THE CURRENT STATE OF SUPPLY CHAINS

SPEED, RELIABILITY, AND PERFECTION ARE KING.

THE PROXIMITY OF MEXICO TO THE US LENDS TO MAKING “PERFECTION” POSSIBLE.

“Mexico is seen as offering attractive scale and good growth prospects in general. Foreign investors see significant potential in the country as a near-sourcing location because of its strategic proximity to large consumer markets in the West – and especially in view of ongoing concerns about economic over-heating in China and the probability of higher global oil prices.”

-World Economic Forum Davos

GLOBAL PERSPECTIVE

NEAR SOURCING FROM ASIA-WHY?

“Competence will always trump cost.”-John Rice, GE Vice Chairman

Biggest challenge to manufactuing: 91% of American Chamber of Commerce of Shanghai members mentioned rising labor costs.

Labor cost increases per year:China 12-14%Philippines 8%Mexico 1%

NEAR SOURCING TO PREVENTSUPPLY CHAIN DISRUPTIONS

6

SOUTHERN BORDER MAQUILADORAS

REYNOSA 143*

MATAMOROS 127

LAREDO 36

*(42% of population is employed by maquiladoras)

Laredo’s trade with the world rose to $215,946,651,400 through the first 12 months of 2011, according to a WorldCity analysis of the latest U.S. Census Bureau data. That’s a 16.48 percent increase in the Customs district’s total trade during the same time period in 2010. Laredo is one of only 4 US Customs districts to be back above pre-recession trade levels.

LAREDO WORLD TRADE TOTALS

LAREDO – INTERNATIONAL TRADE HUB

THE US DEPT. OF TRANSPORTATION PREDICTS LAREDO TRADE WILLINCREASE 29% BY 2015.

LAREDO INFRASTRUCTURE

• MORE THAN 1,000 LOGISTICS, TRANSPORTATION, AND CUSTOMS • BROKERAGE COMPANIES

• TWO COMMERCIAL/CARGO BRIDGES, ONE RAIL BRIDGE

• MORE THAN 60,000,000 SQ. FT. OF WAREHOUSE SPACE

• NEW AIRPORT FEDERAL INSPECTION STATION

• LARGEST AIR CARGO AIRPORT SOUTH OF IAH

• COMBINING TO ENABLE DAILY TRADE WITH OVER 70 COUNTRIES

LAREDO TRADE STATISTICS 2011

LAREDO TRADE ACCOUNTED FOR 5.8% OF THE NATION’S TOTAL

NUMBER SIX US CUSTOMS DISTRICT

HANDLED OVER 3,000,000 COMMERCIAL TRUCK CROSSINGS (12,000 DAILY)

OVER 300,000 RAIL CARS

485,000,000 LBS OF AIR CARGO (20% YTY GROWTH VS. 2010)

24 CHARTER CARRIERS PLUS 4 DAILY CARGO CARRIERS

6,000,000 PEDESTRIAN CROSSINGS FROM MEXICO (16,000 DAILY)

9,000,000 COMMERCIAL VEHICLE CROSSINGS FROM MEXICO (25,000 DAILY)

GREEN INITIATIVES AND EFFICIENCY

THE RISING PUBLIC AND PRIVATE CONSCIOUSNESS TOWARDSUSTAINABLE PRACTICES COUPLED WITH COST SAVINGS HAS THRUST GREEN PRACTICES IN TO THE FOREFRONT

Rail transport is almost four times more efficient than trucking with regard to tons moved per kilometer. Since US-Mexico moves are generally long-haul, intermodal has become much more prevalent.

RAIL AND INTERMODAL PROMOTE NAFTA TRADE EFFICIENCY

RAIL EFFICIENCIES

MEXICO OCEAN INFRASTRUCTURE

HOW FAST CAN MEXICO’S PACIFIC PORTS ADAPT TO SUPER CARRIERSSUCH AS THE EMMA MAERSK?

IS THE ASIA-PACIFIC THROUGH MEXICO LAND BRIDGE FASTER TO THEDEEP SOUTH? CHEAPER?

TRENDS

EAGLE FORD

BY 2020 A YEARLY IMPACT OF 21.5 BILLION USD.

Rodney LewisNet Worth

$2.8 B As of September 2011At a Glance

•Age: 57

• Source: natural gas, self-made • Residence: San Antonio, TX • Country of Citizenship: United

States • Marital Status: Married • Children: 4Forbes Lists

#130 Forbes 400#512 Forbes Billionaires

INCREASED COMPLIANCEAND REGULATION

MEXICAN TRUCKS IN THE USMORE ECONOMICAL?

HOW SAFE?

PANAMA CANALEXPANSION

COMPLETION IN 2014 WILL ENABLECAPACITY TO DOUBLE

FOREIGN TRADE ZONES

VENTANILLA UNICA

COMPLIANCE

QUESTIONS TO ASK:

• DO YOU HAVE A COMPLIANCE DEPARTMENT?

• HOW ROBUST IS YOUR COMPLIANCE DEPARTMENT?

• DOES COMPLIANCE KNOW ABOUT MEXICAN CUSTOMS LAW?

• HAVE YOU CAREFULLY CHECKED FOR CORRUPT PRACTICES?

ADDING VALUE TO NAFTASUPPLY CHAINS

• DOES YOUR PRODUCT FLOW FREELY THROUGH BORDERS?

• HAVE YOU COMPARED FREIGHT RATES RECENTLY?

• ARE YOUR TRANSIT TIMES WHAT THEY SHOULD BE?

• DO YOUR SUPPLIERS KNOW YOUR PRODUCTION/VISIBILITY NEEDS?

• IS YOUR CUSTOMS BROKER AN ASSET OR HASSLE?

Company, Capabilities and Competitive EdgeBridging Business Borders

What We DoInfinito Global Logistics, or IGL, is a supply chain

industry leader that ensures seamless, efficient and reliable international coverage to our clients.

Logistics Services

U.S. and Mexican Customs Brokerage

Freight Forwarding

What Sets IGL Apart

Provides strong experience in industry compliance and oversight

Delivers attentive and personalized service

Operates efficiently to lower costs, streamline processes and save time

Establishes key relationships with clients and partners to increase value

Has a proven reputation as a trusted supply chain integrator

Lowering total supply chain costs, raising the bar for service and innovation

THANK YOUAPICSSAN

ANTONIO!