82 Global Trade SEPTEMBER•OCTOBER 2013

shippers take note: America’s foreign trade zones are here to help you export. By deferring

duties on imported components assembled into exported products—among other functions—these zones help make world access not only cheaper but more convenient. With more than 250 FTZs operating in America today, we’re tipping our hat to less than the top 10 percent of exporting FTZs.

For our rankings, we looked at which FTZs marked the largest warehouse/distribution exports for the 2011 calendar year. As it turns out, it was the first year under a new congressional reporting system that requires FTZs log only ranges rather than specific dollar totals, so we include these ranges in the ranking and offer finer detail where available.

Top

ForeIGN Trade ZoNeS

25 broWard CoUNTY, FlFTZ NO. 25 $1,000-5,000 MILLION

The nation’s top-ranked FTZ has it coming and going. Consider that FTZ 25, which encompasses Port Everglades, experienced a 68 percent increase in merchandise received and a 66 percent rise in merchandise sent overseas. Balance? Imports measured $3.7 billion while exports were at $3.6 billion. It serves 75 businesses in its General-Purpose Zone, those businesses offering a wide array of goods that range from cosmetics to ship supplies, petroleum to consumer electronics. “Our proximity to South America, Central America and the Caribbean makes it efficient to transport goods through our seaports and airports and re-export merchandise admitted to the zone to these and other markets,” says Michael Vanderbeek, Port Everglades director of Business Development. “Port Everglades’ FTZ is the most export-intensive zone in the country, which reinforces our strategic position at the crossroads of north-south and east-west trade.”—Steve Lowery

No. 1

No. 2 el paSo, TXFTZ NO. 68 $1,000-5,000 MILLION

The region has produced consistent growth—increasing exports from nearly $1.4 billion in 2011 to nearly $1.7 billion last year—by shipping consumer products such as electronics and textiles to such varied markets as Mexico, Germany and China. Helping to make El Paso profitable, and unique, is its FTZ operations training program and its hybrid business model. “[It provides] companies a variation of options for setting up a FTZ and taking advantage of the benefits,” says El Paso manager Jose Quinonez. “SMEs are offered the same advantages while manufacturing startups have a unique incentive that waives FTZ No. 68 activation fee and other startup costs.”—SL

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84 Global Trade SEPTEMBER•OCTOBER 2013

No. 3 aTlaNTa, Ga FTZ NO. 26 $1,000-5,000 MILLION

Though its warehouse/distribution exports dipped in 2012—from $1 billion in 2011 to $725 million last year—No. 26 still moves a lot of product for a heavy duty client list. Chief among those is Yamaha Motor Manufacturing Co.—2010 recipient of the National Assn. of FTZ’s Innovation in Exports Awards—which assembles water and all-terrain vehicles as well as golf carts to be shipped to more than 50 countries. “Whether a company is importing finished goods for sale in the U.S. or international markets, or importing components for use in the production of a finished product, FTZ benefits might be just what it needs to improve its competitive position and grow Georgia operations,” says Rebecca Coppedge, Georgia FTZ program manager. —SL

No. 4broWNSVIlle, TXFTZ NO. 62 $750-1,000 MILLION

It may seem odd that the 16th largest city in Texas ranks this high, but consider in just one year its warehouse/distribution exports went from a respectable $783,698,281 to an extraordinary $3,009,136,281. “Our oil rig operator really took off and our petroleum cargo had an increase of 12 percent,” explains Antonio Rodriguez, Brownsville director of Cargo. Not surprisingly, No. 62’s top four export products/industries are oil rigs, vessels and boat as well as petroleum products.—SL

No. 5peorIa, IlFTZ NO. 114 $500-750 MILLION

What’s noteworthy about Peoria, besides the fact that it is located in central Illinois but is nonetheless world headquarters for Maui Jim Sunglasses—go figure—is the

aggressive and impressive manner in which its FTZ is run. The Economic Development Center of Central Illinois (EDC) has plans that include a possible international distribution center and a far-reaching strategy to increase FTZ activity. “Global trade is a key economic segment for our region,” says EDC chief operating officer Vickie Clark. “Innovative growth in this market arena will expand the prosperity of our region.”—SL

No. 6SparTaNbUrG CoUNTY, SC

FTZ NO. 38 $500-750 MILLION

Spartanburg saw a healthy increase (from $662 million to $775 million) in warehouse/distribution exports made all the more impressive since only two companies export from the port. Of course, they’re fairly large operations: Michelin ships tires from its distribution center and Black and Decker ships hand tools. Indeed, in South Carolina, less seems to be more. Trade officials say the fact that the state has only two grantees means there is no overlap of zones or services, which allows for streamlined services in areas like fee structure and is operationally able to marshal resources with a more efficient focus.—SL

No. 7 laredo, TXFTZ NO. 94 $500-750 MILLION

Because of its location on the U.S.-Mexico border and dozens of twin-assembly plants, Laredo is the largest inland port in the Unit-ed States. Overall, more than 47 percent of U.S. trade headed for Mexico crosses through the Laredo. The flow of commerce is so large and consistent that the Laredo port of entry consists of four international bridges with a proposed fifth perhaps soon on the way. Besides the bridge, No. 94 offi-cials proposed expanding from their current 10 regions, seven active, to a county-wide framework. —SL

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No. 9 HoNolUlU, HIFTZ NO. 9 $250-500 MILLION

Given its location between North america and asia, it’s not surprising No. 9—which had exports of $894.5 million in 2012—is one of the top zones in the u.S. for number of clients it touches annually, somewhere in the range of 250 to 300, with top companies including tesoro, chevron and Pacific allied Products. “because we’re located in such a remote part of the world, it only makes sense for our clients to seek out global market opportunities,” says David J. Sikkink, FtZ No. 9 acting administrator. “FtZ nine is fast becoming known as the ‘one-stop shop’ for international trade in Hawaii. We assist with complete warehousing services, office lease space, consulting service and import/export training.”—SL

TM

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No. 8HoUSToN, TXFTZ NO. 84 $500-750 MILLION

Having just celebrated its 30-year an-niversary in July, Houston’s subzone has become the largest single subzone in texas and the third largest in the united States with exports valued at $5.3 bil-lion. offering more than 700 acres of zone-authorized land and building space, more than 17,000 people are employed within No. 84. Its grantee, the Port of Houston, has been instrumental in the city’s development as a major center of international commerce and is home to a $15 billion petrochemical complex, larg-est in the nation and second largest in the world.—SL

86 Global Trade SEPTEMBER•OCTOBER 2013

No. 13IMperIal CoUNTY, CaFTZ NO. 257 $250-500 MILLION

Imperial County’s FTZ No. 257 received between $250-500 million of imports for the 2011 calen-dar year and claimed the No. 13 spot on our list by exporting $287,399,846 worth of warehouse/distribution goods from 11 companies that year. In 2012, exports dropped to $91,640,532. Officials declined the opportunity to comment further on the FTZ’s activity.—PD

No. 14pHIladelpHIa, paFTZ NO. 35 $250-500 MILLION

Spanning Southeastern Pennsylvania, FTZ No. 35 operates under the Philadelphia Regional Port Authority. In 2011, eight companies participated in its warehouse/distribution activity, with $1 bil-lion-$5 billion in merchandize value received and between $250 million-$500 million exported. The FTZ is within proximity to maritime ports and international airports, giving its shippers quick access to the global marketplace. In April this year, the FTZ received approval for expansion and reorganization. It will now have a service area of Philadelphia, Delaware, Bucks, Montgomery, Chester, Lancaster and Berks counties.—PD

No. 12MIaMI, FlFTZ NO. 32 $250-500 MILLION

“The Miami Free Zone, the most experienced FTZ in South Florida, offers businesses of all sizes an unsurpassed international business atmosphere,” says Jorge Suarez, leasing & marketing manager at Miami Free Zone, which operates FTZ No. 32. Suarez says the FTZ receives products from more than 100 companies across 60 countries, which it re-exports to more than 80 countries. “Our number of export transactions exceeded 25,000 in 2012 (an increase of 38 percent over 2011), with a value of goods in the range of $500 million-$1 billion.”—PD

No. 10 KNoXVIlle, TNFTZ NO. 148 $250-500 MILLION

Not surprisingly for an FTZ located in the Volunteer State, they take a somewhat cooperative approach to business in Knoxville. No. 148, created in 1988, was expanded in 2003 and 2006 and there was another request

to augment and increase the service area in 2012. An area dubbed “Innovation Valley” aggressively promotes business. Recruiting highly skilled workers is made all the easier with the cost of living nine percent lower than the national average. What’s more, well, less actually, housing is 20 percent less than the national average. —SL

No. 11boSToN, MaFTZ NO. 27 $250-500 MILLION

FTZ No. 27 consists of 129 acres conveniently located at various sites around Boston Harbor, according to Massport itself. Of the products moving through the state’s FTZs, 76 percent were listed as oil or pe-troleum and 23 percent as footwear or textiles. Boston Freight Terminals, located within the International Cargo Center of New England at FTZ No. 27, also operates a U.S. Customs-bonded Container Freight Sta-tion, a U.S. Customs Central Examination Station and a U.S. Customs General Order warehouse. —Patrick Dooley

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88 Global Trade SEPTEMBER•OCTOBER 2013

No. 15dorCHeSTer CoUNTY, SC

F T Z NO. 21 $100-250 MILLION

FTZ No. 21 had a great 2011, with $249,433,502 in warehouse/distribution exports earning its 15th-place ranking. Germany topped its list of export destinations, followed closely by Canada. In 2012 those two would switch positions, but exports dropped to $77.1 million, led by medical film from AGFA Medical, automotive components from Robert Bosh and tires shipped by Treadway. In addition to its 2012 warehouse/distribution total, Dorchester County also produced nearly $100 million worth of products added to its exporting total. —PD

No. 16orlaNdo, FlF T Z NO. 42 $179.8 MILLION

“With its central Florida location at Orlando International Airport, FTZ No. 42 is well positioned to support export business activities of SMEs,” says Jim Rose, deputy executive director of Business Services/Facilities at Greater Orlando Aviation Authority. In 2012 the FTZ’s exports checked in at $179,763,744—a nice boost from the roughly $58 million exported the previous year—with Mexico, Argentina, Columbia, Ecuador and the Dominican Republic as its top destinations. Topping the heap of products shipped overseas were gas and steam-turbine parts, all sent from a single manufacturer. —PD

No. 19SaN dIeGo, CaFTZ NO. 153 $107.2 MILLION

FTZ No. 153’s warehouse/distribution exports dipped just a bit in 2012 to $91,783,220 from 2011’s 19th-ranked $107,241,316, in addition to more than $14.2 million in exported products being produced within its sites. Pacific Rim countries were its biggest recipients, with China, Japan and Korea falling just behind Mexico in the Top 5 destinations and Ireland, surprisingly, rounding out the list. San Diego’s FTZ is home to such notable companies as Callaway Golf, General Dynamics NASSCO and DNP Electronics. —PD

No. 20NeWarK/elIZabeTH, NJF T Z NO. 49 $100-250 MILLION

“Operating a foreign trade zone allows companies to effectively compete with foreign markets while maintaining operations in the U.S.,” says Richard Larrabee, director, Port Commerce Department at the Port Authority of New York & New Jersey. After grabbing the 20th spot for warehouse/distribution exports in 2011 with $105.3 million, FTZ No. 49 increased its exports in 2012 more than 7.5 percent to $114 million. Included in its total, the FTZ’s nine subzones were engaged with products as diverse as pharmaceuticals, petroleum, fragrance and jewelry. —PD

No. 21laS CrUCeS, NMF T Z N O . 1 9 7 $100-250 MILLION

A three-state (New Mexico, Texas, Arizona), two nation (U.S., Mexico) region with 2.5 million residents hosts this zone—the “New Mexico Borderplex.” Handling everything from maquiladora-manufactured clothing to parts for commercial space flight, it has logistics parks, rail spurs, direct access to Houston and Long Beach ports, and an overweight cargo subzone. With merchandise received and exports balanced, the zone, located in the Mesilla Valley, encompasses Las Cruces and Santa Teresa. “Southern New Mexico, especially Dona Ana County, is the shining economic development light in the state,” says Davin Lopez, Mesilla Valley EDA’s president. —Marlene Piturro

No. 17aNCHoraGe, aKFTZ NO. 160 $100-250 MILLION

If Anchorage’s FTZ seems a bit conspicuous on the list of Top 25, well, it is. From its perch at spot No. 17 on our list (earned with just north

of $100 million in exports in 2011), its 2012 exports dropped as far as possible: all the way to zero. Not that they can be blamed. After all, Anchorage isn’t known for its bustle. As Jim Hinkle, director of Finance & Administration at the Port of Anchorage explains, the spike is attributed to exported jet fuel, which, in 2012, simply wasn’t shipped.—PD

No. 18brUNSWICK, GaF T Z NO. 144 $161,193,165 MILLION

The $161,193,165 million in warehouse/distribution exports shipped from Brunswick, Georgia’s FTZ No. 144 was good for 18th best in the nation in 2011. Come 2012, however, that total would fall nearly 50 percent to $83,814,555. That drop-off represents the downside of servicing larger automobile companies whose year-to-year overseas demand may be inconsistent at best. “The top products exported from FTZ No. 144 were Mercedes vehicles built in Vance, Alabama,” says Dave Smith, the FTZ’s interim director. —PD

SEPTEMBER•OCTOBER 2013 Global Trade 89

No. 23deNVer, CoFTZ NO. 123 $75-100 MILLION

Minutes from Denver International Airport’s peaked roof is Worldport@DIA, also known as FTZ No.123. The 70-acre cargo park’s 2012 warehouse/distribution activity jumped to $8.6 billion, from $7.3 billion in 2011. Leading sectors were computers and electronics ($449 million), beef ($440 million) and medical instruments ($386 million). Mayor Michael Hancock says “to compete and succeed in a global marketplace, it’s critical we create an economy built to last.” His Jumpstart2013, Denver’s economic development plan to boost foreign trade, includes expanded R&D facilities, precision manufacturing and more warehouse/distribution space.—MP

No. 22porT oF SaCraMeNTo, CaFTZ NO. 143 $75-100 MILLION

This 150-acre inland port partners with the ports of Stockton and Oakland and connects to the coast via a deep-water channel. Currently a bulk cargo port, it manages three main sectors: agricultural products (rice), industrial (lumber, wood chips, cement) and manufacturing (wind turbines and mining equipment). A harbor crane upgrade for barge shuttle service and rail extensions are recent improvements. Transportation Manager for City of West Sacramento Transportation Mike Luken says the port provides “a full array of services for efficient, affordable and environmentally responsible goods movement.”—MP

No. 25deTroIT, MIFTZ NO. 70 $75-100 MILLION

It’s unsurprising that Chrysler, Ford, Mazda, GM, Auto Alliance and Michelin are occupants of the Greater Detroit Foreign Trade (GDFT) zone. With a 9:1 ratio of merchandise received to exports, it follows that zone usage allows firms to take advantage of deferred duties on imported materials and reduced tariffs to warehouse auto components until needed. Eddie Munson, the zone’s secretary-treasurer, aims to boost zone usage through www.gdftz.com. “The ‘www’ stands for World Wide Web, an appropriate tool for global trade and marketing foreign trade zones,” he says. —MP

No. 24dallaS/ForT WorTH, TXFTZ NO. 39 $75-100 MILLION

A premiere global distribution hub located at the Dallas/Fort Worth International Airport (D/FW), FTZ No. 39’s tenants include GM, Fossil Partners, Maxtor and American Eurocopter. John Terrell, VP for Commercial Development at D/FW, says the zone’s benefits begin with excellent air cargo service, especially to key Asian and Mexican markets. “We’re at the crossroads of several major highways, providing outstanding truck transport access, and have excellent rail service,” he says. “When you combine the intermodal advantages with the economic benefits of having a business within a FTZ, it’s compelling for companies to chose locations within the D/FW zone.”—MP