Using Simulation to Promote Efficient Traffic Flow at U.S/Mexico Border Ports of Entry: A Proposal for Further Analysis
Delia Valles-Rosales
Assistant Professor
Industrial Engineering Department
MSC 4230/ECIII, Rm 288
New Mexico State University
Las Cruces, NM 88003
Phone (505) 646-2978
Fax (505) 646-2976
Nalini Govindarajulu
Ph.D. Student
Management Dept., MSC 3DJ
New Mexico State University
Las Cruces, NM 88003
Phone (505) 646-5053
Fax (505) 646-1372
Bonnie Daily
Associate Professor
Management Dept., MSC 3DJ
New Mexico State University
Las Cruces, NM 88003
Phone (505) 646-2015
Fax (505) 646-1372
Abstract No: 002-0367
Second World Conference on POM and 15th Annual POM Conference, Cancun, Mexico, April 30 - May 3, 2004.
Using Simulation to Promote Efficient Traffic Flow at U.S/Mexico Border Ports of Entry: A Proposal for Further Analysis
ABSTRACT
Despite increases in transportation delays at U.S.-Mexico border Ports of Entry (POE) and the widespread use of time-based competition in the border region, only a few studies have analyzed the effects of cross-border trucking delays on time-based competition. In response we propose to suggest alternatives that help alleviate the traffic delays at POE and thereby reduce impacts on time-based competition. In this regard, we propose to collect data on current transportation issues from U.S/Mexico POE Bridges’ officials, transportation carriers, and broker companies in the El Paso/Juarez area and conduct simulation analysis.
INTRODUCTION
In the last twenty-five years the U.S.- Mexico border has undergone a boom in manufacturing (Fawcett, Taylor, & Smith, 1995; Weaver, 2001). Principally, the onset of the maquiladora system (production of foreign component parts for re-export) in Mexico has made the border area a hub of industrial activity (Economic Research Service/USDA, 2000). In addition, the nature of the maquiladora structure requires significant transportation on a daily basis back and forth across the border. Unfortunately, the border area suffers from considerable delays in traffic when crossing in and out of the U.S. and Mexico (GAO Report, 2001). These delays are particularly harmful to the sensitive time based competition employed by many of the maquilas. Moreover, these delays and associated problems in implementing time-based competition have only been exacerbated recently with increased security constraints at ports of entry since 9/11 (Aichlmayr, 2001;Bradley, 2001; Sinha & Condon, 2002).
Some of the transportation difficulties at the U.S.-Mexico border include increased immigration measures, increased security constraints due to 9/11, non-compatibility between U.S. and Mexican trucking laws and regulations, lack of automated customs clearance and vehicle tracking, weak infrastructure including poor quality highways, and inadequate security personnel (GAO Report, 2001; Stank & Crum, 1997).
Hence, analysis of bridge-transportation data may help find ways to improve traffic flow at the border and reduce impacts on time-based competition. Accordingly, this study aims to conduct simulation analysis to provide feedback on possible improvements in border delays. We propose to conduct interviews and collect data on current transportation issues from U.S/Mexico Port of Entry (POE) Bridges’ officials, transportation carriers, and broker companies in the El Paso/Juarez area for the simulation.
LITERATURE REVIEW
Transportation problems across the U.S.-Mexico border and within Mexico have been examined in the literature (ex: Fawcett & Smith, 1995; Fawcett, Taylor, & Smith, 1995; Valdes & Crum, 1994). However, an in-depth database search revealed only two studies by Sheffi (2001) and Stank and Crum (1997) that conceptually and empirically examined the impact of U.S.- Mexico border transportation problems on time-based manufacturing. While Stank and Crum (1997) compared JIT versus non-JIT firms’ perceptions of cross-border transportation performance, they did not study the effect of cross-border trucking delays on specific manufacturing operations such as inventory levels and lead times. Sheffi (2001) did describe the adverse consequences of 9/11 on the supply chain and provided some suggestions to businesses on how to deal with the conflicting issues of increased security measures and supply chain efficiencies. Although, it appears a comprehensive overview of border transportation problems and impacts on time based competition is absent in the literature.
Transportation issues in terms of manufacturing have led many businesses to critically focus on supplier delivery performance, and in-house, as well as external, product carrier performance. First, an organization must secure a supplier who can deliver consistently on time (Morash & Clinton, 1997). Unfortunately, 47% of the American manufacturers surveyed indicated they had serious problems with supplier delivery times (Shahabuddin, 1992). Second, businesses must retain the services of reliable carriers who can get their products to customers on time. Shipment delays due to poor carrier performance impair time-based competition, primarily through increasing the need for suppliers or customers to hold safety stock (Tyworth, 1991). This increases inventory costs in addition to using up valuable plant space.
Further complicating the transportation problem is the chosen mode of shipment.
It is estimated that heavy trucks transport over 70% of all manufactured goods in the U.S. (Clayton, 1999). However, reliance on trucking for delivery is not without its drawbacks. In a recent survey on Californian truckers, 64% of respondents felt that road congestion was a ‘somewhat serious’ problem while 18% felt that it was a ‘critical’ problem; 27% of the respondents also mentioned that congestion caused them to miss their schedules, leading to increased costs (Golob & Regan, 2000).
Furthermore, deregulation policies under the North American Free Trade Agreement (NAFTA) resulted in increased trade and transportation (especially trucking) among the member nations of U.S.A., Mexico, and Canada (Economic Research Service/USDA, 2000). The GAO Report (2001) estimated that NAFTA resulted in a 60% increase of truck crossings from Mexico into Texas and California ports of entry. These two states also account for over 90% of truck crossings from Mexico into the United States (GAO Report, 2001). Unfortunately, NAFTA not only resulted in increased trade and transportation, but also severe congestion at border POE (Economic Research Service/USDA, 2000). Increased traffic combined with other delays has created large bottlenecks at POE. Delays at the Laredo, Texas port alone extended anywhere between 4 and 23 hours in 1999 (Economic Research Service/USDA, 2000).
The need to reduce congestion in U.S. highways and other forms of transportation infrastructure has been recognized by several authors (Fawcett, Taylor, & Smith, 1995; Golob & Regan, 2000; Rao & Grenoble IV, 1991; Valdes & Crum, 1994). Kilcarr (2002) pointed out that while there was an increase of over 120% in the last 30 years of number of vehicle miles traveled, road capacity increased a mere 5%. In addition, increases in population, ownership of private vehicles and jobs have been attributed to rising congestion in highways (Pisarski, 1987). Some authors also attribute the increase in number of firms using JIT to increases in highway congestion (Clayton, 1999; Rao & Young, 1991). The adverse outcome of these increases in congestion is uncertainties in transportation performance.
Unfortunately, these uncertainties only grow when suppliers are not domestically located (ex: Morash & Clinton, 1997; Vickery, 1989). Specifically, the transportation difficulties at the U.S.-Mexico border include increased immigration measures, increased security constraints due to 9/11, drug checks, and inspections by USDA and U.S. Food and Drug Administration, non-compatibility between U.S. and Mexican trucking laws and regulations concerning safety and related issues, lack of automated customs clearance and vehicle tracking, weak infrastructure including poor quality highways and inadequate security personnel on both sides of the border, especially the Mexican side, which is not geared to handle the increased traffic, and increased number of workers commuting to work from across the border everyday. (Aichlmayr, 2001, Bradley, 2001; Economic Research Service/USDA, 2000; GAO Report, 2001; Haughton & Desmeules, 2001; Kilcarr, 2002; Mandel, 2001; Martha and Subbakrishna, 2001; Sheffi, 2001; Sinha & Condon, 2002). Each of these delays hinders the operations of several maquiladora industries that rely on just-in-time operations to reduce costs and improve efficiencies (Bradley, 2001; GAO Report, 2001; Sinha and Condon, 2002; Stank & Crum, 1997).
One area that is ripe for examination in terms of improving border delays is the bridge infrastructure. While not all the areas mentioned above may be easily improved, analysis of bridge transportation data may help find ways to improve traffic flow at the border and reduce impacts on time based competition.
PROPOSED METHODOLOGY
Our objectives for the proposal include:
- Conduct qualitative interviews with U.S/Mexico Port of Entry (POE) Bridges’ officials, transportation carriers, and broker companies in the El Paso/Juarez area.
- Collect baseline data on current transportation issues at bridges in El Paso/Juarez area possibly including but not limited to:
Carrier Average Distribution Times
All Bridge Average Transit Times
Number of Bridges Carriers may use
Number of agents at All Bridges
Number of hours All Bridges are open
Number of Carriers that use time based competition
Average number of inspections Carriers must endure at Bridges
Number of Carriers using Fast Lane
Fast Lane Bridge Average Transit Time
Number of Fast Lanes available at POEs
Number of agents at Fast Lane
Number of hours Fast Lane is open
Number of Carriers that use the Fast Lane that use time based competition
Average number of inspections Carriers must endure in Fast Lane.
- Conduct simulation modeling with baseline data to propose more efficient bridge transportation flow.
- Recommend what impact of improved traffic flow at the border bridges will have on time based competition.
Upon completion of data collection, interviews and simulation analysis we will provide feedback on possible improvements and implications for manager that may be useful in terms of border bridge transportation.
CONCLUSION
Trade in and out of Mexico has been an important economical source for industries on both sides of the border. However, this economical region may be jeopardized due to continuing transportation debacles. Hence it is necessary to examine the problem and determine possible solutions before the repercussions of delays hinder industrial performance.
In an attempt to scrutinize this issue, we have reviewed the literature on the significance of transportation in time-based competition in a cross-border context. Moreover, we propose to collect data from key stakeholders in the U.S/Mexico POE and conduct simulation analysis to suggest a more efficient flow of traffic at the border. Also, we believe that alleviating trucking delays will help reduce the adverse impacts on time-based competition.
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