An authoritative study concludes that a 45-minute northbound border crossing delay costs the San Diego-Baja California (Tijuana-Tecate-Rosarito-Ensenada) economy $2.5 billion each year. Every additional 15-minute delay adds another $1 billion. So a 2 1/4-hour crossing delay, now fast becoming the norm, means a regional economic loss of $8.5 billion a year.

Although perhaps more acute as our economy slows and unemployment grows, this pain is not unexpected. It was predicted in last year’s "Economic Impacts of Wait Times at the San Diego-Baja California Border," prepared by the San Diego Association of Governments and California Department of Transportation. But with delays and weekend waits that can approach four hours, you have to excuse businesses and binational visitors who may wonder if anyone truly cares enough to fix the problem.

Analyzing The Losses

Much of the economic losses stem from the discouragement to cross the border because of the delays. Some on both sides cheer such sentiment, declaring, "Good, let them stay and spend their money locally." Such thinking ignores that regional economic growth in today’s global economy is largely dependent on accessibility and trade, not only with the world, but more particularly with neighboring regions.

For instance, the retail sector of San Diego is more dependent on Baja than it is on greater Los Angeles, but more dependent on L.A. for goods and services. Baja is more in dependent on greater L.A. for longer, multi-day tourism and second-home purchases than it is on San Diego, but more dependent on San Diego for goods and services than even other parts of Mexico.

As this circle of commerce plays out, a handsome percentage of dollars flowing from Southern California into Baja finds its way back into San Diego in retail goods and services purchased by Baja businesses and industries. Previous studies, including one conducted by San Diego Dialogue, reveal that Baja residents spend in excess of $3 billion on retail goods in San Diego. Other studies indicate goods and services obtained by Baja businesses and industry amount to another $6 billion. These purchases support in excess of 20,000 jobs and provide more than $200 million in sales tax revenue.

Transporting Freight

Getting little attention is how border delays are negatively affecting freight movement between the two countries. These delays are having a significant impact on commercial trade and the further interest of companies investing in startups. It is naïve to believe an Asian manufacturer, for instance, doesn’t consider crossing times when making investment decisions in Baja and San Diego. Challenges for key executives to move between San Diego, where most want to live, and Baja is a true hard cost.

So is freight that sits idle, waiting for inspection.

"Freight movement has a much broader impact as it significantly affects the labor market in the Mexican side, the retail and manufacturing market in the U.S. side and the capital market on both sides of the border as the ownership of these operations are spread throughout the two countries," notes the San-dag/Caltrans study. "In essence, delay at the border has both a local impact when it comes to personal trips and a broader regional and national impact when it comes to freight movement."

South- and north-bound commercial trucks exceed 1.4 million annual border crossings along the San Diego-Baja California ports of entry. Truck crossing delays are as common as pedestrian and vehicular crossings, which have "an especially dampening impact on economic expansion," the report says.

As the studies report, "In an increasingly just-in-time manufacturing economy, unpredictable wait times for trucks at the border act as a barrier to trade that slows and inhibits cross-border economic investment opportunities. Cross-border traffic generates significant income for retailers, hotels and recreation businesses on both sides of the border. However, by discouraging some from making trips across the border, congestion inhibits potential growth in business income and therefore hinders trade in the long term."

Addressing Security Worries

We could excuse the delays as being the result of tighter security due to the terrorist threat. Of course, national security must not be sacrificed in the slightest. But the problem of border crossing delays was part of the San Diego-Baja California scene long before the terrorist attacks six year ago.

In fact, a mere two months prior to Sept. 11, 2001, this column tackled border crossings, suggesting that delays caused economic disruption on both sides of the border and were a catalyst for unemployment for both regions.

In those days, meetings were held with U.S. Customs and the INS on the subject. A pilot study was conducted. All the gates at San Ysidro and Otay Mesa were opened during peak hours, and, presto, waiting times shrank dramatically to an average wait of 20 minutes.

The answer then was simply opening more gates. But the $15 million for additional salaries could not be found.

Following Sept. 11, additional security concerns arose, including the potential of terrorists infiltrating, along with explosives. The responsibility of inspectors is to be ever on the alert as they process automobiles or trucks.

This begs the question: could they not do the same with more open gates? Does opening all the gates during peak hours mean that inspection would become lax? I believe we all know that the answer is a resounding no. In fact, more gates with more inspectors would be easier and less stressful on each of the inspectors on the line.

Plans have been drawn for expanding the San Ysidro crossing and developing a new one at Otay Mesa. But the billion-dollar price tag has no champion.

Each election year congressional candidates tell us they "will fight for you." Isn’t it time we demand they fight for us by getting the funding to staff more gates? After all, it’s a matter of better national security and economic growth for all of us – them included.

Patrick Osio Jr. can be reached at posiojr@sandiegometro.com. The veteran consultant also has issued The Mexican Perspective, an intensive primer on business culture and protocol. Copies are available at hispanicvista.com/sales/book_sale.htm.