Port of Tampa: the direct route for Mexico-U.S. trade.

The Port of Tampa handles more Mexican cargo than any other Florida port and is poised to significantly expand its role as a major gateway between markets in Mexico and the United States. Tampa's strategic location on the eastern edge of the Gulf of Mexico creates opportunities for significant savings in cost and transit time for trade via the Gulf "Marine Highway", avoiding congested border crossings and overland alternatives.

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According to the Tampa Port Authority, compared with existing truck and rail cargo routing patterns, the potential exists to achieve considerable transportation and transit time cost savings by shipping via water between Mexican Gulf ports (such as Veracruz, Altamira or Tampico) and the Port of Tampa. For example, exporters and importers in Central Mexico can save between US$ 320 and US$ 550 per container to/from U.S. Southeast markets and between US$ 278 to US$ 485 per container to/from U.S. Northeast markets.

Furthermore, transit time savings of up to two weeks can be achieved via the Port of Tampa versus traditional overland routings via congested border crossings. For example, cargo originating in central Mexico destined to central Florida can realize a savings of more than US$ 900 per container and can save 3 to 4 days transit time compared with over-the-road truck service, and 11 to 14 days compared to rail.

The Mexican boundaries that provide the best opportunity for cost savings by shipping through the Port of Tampa include: Veracruz, Hidalgo, Queretaro, Mexico State, Mexico City, Morelos and Puebla. On the U.S. side, the boundaries include: the entire state of Florida, Atlanta and the eastern seaboard. Total Mexico-U.S. trade in 2003 was US$235 billion. With 83% of that trade moving over the land border, the scope for expansion of the water mode of transportation, including the Gulf "Marine Highway" route, is considerable.

Shipping cargo direct by the lower cost water mode between Mexican Gulf ports and Tampa reduces potential for cargo damage and lowers inventory costs. The Port of Tampa's on-dock rail service and direct access to the Interstate highway system allow for easy access up the eastern seaboard and to the Midwest United States.

A diverse economic engine

The Port of Tampa is a sheltered harbor located on Tampa Bay, a large natural indentation of the Eastern Gulf of Mexico, some 41 miles from the open sea and strategically located in the west-central region of the Florida peninsula.

Tampa is by far Florida's largest port (handling nearly 50 million tons of cargo per year), or almost half the total amount of cargo moving in and out of the state. This includes more than 75% of Florida's waterborne trade with Mexico. The port has a very diverse traffic base, including containers, break-bulk and roll on/roll off cargo, as well as dry and liquid bulk commodities and cruise passengers.

The Port of Tampa includes a mix of both public and privately owned property amounting to approximately 5000 acres. The port has 3 cruise terminals, 26 liquid bulk terminals, 7 phosphate terminals, 14 other dry bulk terminals and 11 general cargo facilities. With three full-service shipyards, Tampa is one of the largest shipbuilding and repair centers in the Southeast U.S.

All major deep-water terminals at the Port of Tampa are linked to CSX Transportation's extensive rail network covering the entire eastern seaboard of the United States, and are in close proximity to major interstate highways. In addition to being served by Tampa International Airport, the area is also served by nearby international airports at St. Petersburg and Orlando.

Mexico is the Port of Tampa's largest trading partner, responsible for nearly three million tons of cargo per year. The current cargo mix is varied and includes dry bulk (limestone, fertilizer and scrap metal), liquid bulk (sulphur and sulphuric acid), roll on/roll off (Daimler Chrysler vehicles manufactured in Mexico) and general cargo (containers). Tonnage between the Port of Tampa and Mexico has increased by 97% since 1999, and this tonnage accounts for almost 75% of the total cargo volume moving between Mexico and Florida.

Another component of our trade with Mexico is in the cruise-shipping sector. In 2004 nearly 800,000 passengers passed through Tampa Port Authority cruise terminals for destinations in Mexico.

Consumer goods in containers, bulk cargoes, automobiles and scrap steel are some examples where growth potential exists for trade between Mexico and Tampa. Long recognized as a major bulk cargo port, Tampa has experienced significant growth in imports of building and construction materials to fuel the rapid growth of the Central Florida market. This includes such commodities as steel, forest products, aggregates and cement.

A gateway to Yucatan

The port has also demonstrated its success as a passenger-freight gateway to the Yucatan Peninsula, which is only a one-day ocean transit from Tampa. The strong tourism sector in the state of Quintana Roo, combined with the established trade that exists between the U.S. and the state of Yucatan, offers significant potential for a combined passenger-cargo ferry service.

Tampa has been one of the fastest growing cruise ports in the U.S. Its passenger traffic has more than doubled over the past six years, reaching a total of 791,772 passengers last year.

Tampa Port Authority (TPA)'s Master Plan calls for major improvements and expansion of its infrastructure. Over the next five years, TPA's capital improvement plan includes capital projects totaling more than US$ 250 million to enable Tampa to become the premier U.S. Gulf port. This includes such major projects as: three recently acquired container gantry cranes, container terminal upgrades expansion, strategic property acquisition, new warehouses, new bulk cargo berths and berth expansions, and channel widening and dredging.

Home to one of the largest markets in the Southern U.S. and one of the fastest growing economies in the country, the Tampa Bay and Central Florida region is a major generator of containerized cargoes. Tampa's enviable location, 43-foot deep-water channel and significant local market make the port very well positioned for growth. Studies have shown that the port has a market potential of 400,000 TEUs (twenty-foot containers) per year, including a local truck market of 230,000 TEUs.

The Port of Tampa brings together all the ingredients to serve as the key gateway for Mexican-American trade. With an annual capital budget of approximately US$ 50 million, Tampa Port Authority is investing heavily to position itself to capitalize on growth opportunities, with a focus on expanding its role as the Gateway to Mexico.

For further information please contact:

Tampa Port Authority Marketing Division

1101 Channelside Drive

Tampa, Florida

(33602) USA

Tel [phone]

e-mail: [e-mail]

www.tampaport.com

The Gulf "Marine Highway"

(Cost and transit time savings offered by the Port of Tampa)

Potential Savings per Container

(in US$)

Florida         939
Georgia         320
South Carolina  551
North Carolina  473
Virgina         524
Maryland        485
Pennsylvania    278

Source: Tampa Port Authority.