Figures released by the United States Census Department reveal Laredo slipped in its national rank for cities that see the most trade in 2007.According to the numbers, the total dollar value of imports and exports that traveled through Laredo's ports in 2007 was approximately $167,801,732,000, behind New Orleans' figure of approximately $175,310,000,000. The figure puts Laredo in the sixth spot nationally, just one notch down from its 2006 standing.

The upside remains, however, that the figures are consistent with the increasing price of oil, which raises the figures for port cities like New Orleans and Houston (ranked fourth).

"New Orleans is heavily dependant on oil imports for their trade," said Ken Roberts, the president and chief executive officer of WorldCity, a Florida-based company that monitors and publishes globalization trends and how they affect local communities.

"As you know, the last time you filled your tank the price of oil related products has gone up."

In fact, he added, oil and other petroleum-related products accounted for about 50 percent of the New Orleans' trade figures.

The good news is, he added, that Laredo's two-way trade numbers have grown steadily since 2003.

That year, Laredo's total trade amount was more than $115 billion. It was more than $130 billion in 2004, just less than $140 billion in 2005 and more than $157 billion in 2006.

A large reason for those figures, Roberts said, is Laredo's continued trading relationship with Mexico, which accounted for about $162 billion of Laredo's approximately $168 billion in two-way trade in 2007, or about 97 percent.

Roger Creery, the executive director of the Laredo Development Foundation, sees Mexico's commitment to improve its trade infrastructure, especially along its seaport, as a key to continuing that growth.

"We believe that that trends going to continue, if not accelerate, over the next five years with the improvements that are going to be made down at Lazaro Cardenas," he said. "In addition to that we've got a lot of automotive capacity being built along the trade route, most of it in the interior of Mexico."

The continued expansion of the manufacturing industry in the Mexican states that border Laredo is also a positive sign, he said.

"At least two of the three states (Nuevo Leon and Tamaulipas) are very, very business friendly, as demonstrated by the sheer amount of expansion of the maquila industry in that part of the country," he said.

Creery also cited the emerging growth the South American economy is experiencing as an indicator that Laredo's trade numbers will increase, or at least remain consistent.

Statistics from the census department indicate Argentina went from 18th to 10th in rank of countries with the most trade passing through the Laredo port, with approximately $162 million in total trade passing through the Gateway City in 2007. Brazil remained in the 11th position with approximately $150 million.

Central America also faired well, with Nicaragua ($144 million) Costa Rica ($117.5 million) and Guatemala ($98.6 million) ranking 12th, 14th and 16th respectively. Finland represented the country with the largest jump, from 68th to 19th place with $66.5 million in total trade passing through Laredo in 2007.

Roberts agreed that Mexico's economy and government indicates the trade trends will continue, but cautioned there are risks associated with too much reliance on one country.

"There's certainly shock that can come for any endeavor in life if it's to become too dependent on one partner," he said. "With that much of Laredo's trade coming out of Mexico it always creates some challenges, so Laredo has a true vested interest in a healthy Mexican economy and a growing Mexican economy. Mexico's continued interest in education and infrastructure are all truly good things for Laredo."

Aside from the strength of the Mexican economy, however, there needs to be a logistics community in place in Laredo to facilitate the trade.

"In terms of Mexican trade, you have to look at ... who else is going to take that trade from Laredo," Roberts said. "If they (trade countries) want to bring trade across via land, Laredo certainly can't ignore the fact that certain other (ports) will want to take that business away."

Tom Wade, the president of the Laredo Logistics and Manufacturing Association warned against the same possibility.

"What the trade community has to do is continue to be forward looking, and understand what the trends are in the global logistics realm of things," he said.

Wade said current initiatives are underway to address those concerns.

"One of the actions we have that we're promoting right now is to open the commercial bridge in Laredo 24 hours a day," he said. "That in itself will keep Laredo in an number one position for trade in and out of Mexico. Other things we have to continue to do is work with the city, state and federal government (of both countries) on improving processes …… of crossing the bridge.

"We have to continue to work with them to assure that they have adequate resources to get the job done, and take advantages of those programs that are offered by both countries to expedite trade, programs like the FAST and others, we have to maintain our vigilance and keep up to date with what's going on."

Wade also addressed the current rail bridge controversy, which has local business and elected officials tangling with each other over which site would be the most beneficial for the community.

"I think that according to the railroads, (Union Pacific and Kansas City Southern), that we're going to be nearing capacity here very soon," he said. "I don't want to say that it's a decision that's going to be made by the city or the county, I think it's a decision that going to be made by the railroads in conjunction with the city and the county and (the federal governments of) Mexico and the United States."

Wade also addressed timing, as said all the entities involved need to come to a resolution before time draws near.

"All of the people that are involved in that, in making those decisions, are going to have to come together," he said. "To move forward they're going to have to do something within the next year or so, because the timing to get a bridge in that five-year span when we may be nearing capacity, something's going to have to happen within a year or so."

Creery also stressed cooperation as the key to solving the dilemma, but also warned a business's bottom line has always been and will continue to be driven by profit.

"If we become the blockage point, if we become the obstacle, if we become an expensive option when there are less expensive options available to the business community at large, the business community will take their business elsewhere," Creery said. "There isn't a level of loyalty. Wall Street doesn't pretend to be a loyal entity …… The minute we become a barrier to their improvement or bottom line, they will find a way to improve their bottom line that does not include Laredo. And that is a very real economic situation."

(Julian Aguilar may be reached at 728-2557 or by e-mail at jaguilar@lmtonline.com)