Scew Business As Usual – A Shot With Sir Richard Branson

Happy New Year!

A couple of weeks ago I submitted my name for consideration to be invited to attend a Virgin Unite Leadership event that Sir Richard Branson holds on his private Caribbean hideaway, Necker Island. Much to my surprise I received an email telling me I could attend the Necker Meets Oxford event as there was one space available. All well and good however, the way this works and I am not complaining, is one is asked to donate a certain amount money to the Oxford Martin School to support Virgin Unite Initiatives and the Virgin Group would arrange for the entire trip on their nickel for me. However, the donation of $45,000 is nowhere near my reach and thus I respectfully asked for a rain check. Make no mistake, If I could I would go. Maybe I should seek donations!

That being said, I did take the time to convey the ideas I would have brought to the table in the spirit of Virgin’s “Screw Business as Usual” and “Virgin Unite” campaign. I sent that off last Friday, January 4th and I thought I would share it here.

I am sharing this for a reasons that will become clear and one of the real reasons I chose to address the Punta Colonet Megaport, because of the enormous opportunities a project of this size would present. Not just from a business point of view either. With this in mind I have pasted an exact copy of my response to the Virgin people. I would really like to hear all of your feedback please. Please Note: The pictures were not included in my letter.

Click on the picture below to see the event information:

So without further delay here is my letter:

Dear Ms. Darsney,                        January 03, 2013

I have been waiting for an opportunity to collaborate with professionals on a level as offered by this experience for many years. I have, as many do, felt a real sense of understanding when it comes to how Sir Richard Branson “thinks” outside of the proverbial box and the idea that nothing is impossible and one only needs to give it their all to succeed. So much so, that I even took it upon myself to reach out to the city where I live in an effort to engage Virgin Atlantic about offering “gate space” at the Albuquerque International Sunport as a gateway to Latin American markets in the late 90s.  However, I could never seem to get anybody here to grasp this vision. This was well before the time that the Virgin Group and the state of New Mexico were talking about the Spaceport that is now in Southern New Mexico.

The passion and vision I would bring to this event deals with or seeks to turn real, tangible and forward minded focus on Mexico’s Baja California Peninsula and the Sea of Cortez. For close to a decade agencies within the Mexican government have tried to come up with bigger ways to exploit this part of the world and to date for better or worse have failed.  Their two primary and very “visionary” projects that have been foremost in my mind:
1)    The Nautical Ladder
2)    The Punta Colonet Megaport

Both of these projects have, in theory, valid merit. Each grand in their size however, each plagued with potential and significant pitfalls stemming from economics, scale and most importantly, the social and environmental impact of such endeavors.

If you’re not familiar with the Baja Peninsula, it is an amazing piece of land and sea that is unlike any other in the world. Literally hundreds and hundreds of unspoiled square miles mixed in with some world class resort locations like Cabo San Lucas, La Paz, Los Cabos and Loreto Bay, which claims (claimed) to be the largest sustainable development of its kind in the western hemisphere. The onset of these the two projects was significant enough, at one time, to prompt billionaire Carlos Slim to make large land purchases in and around the Sea of Cortez side of the peninsula based in part on the potential outcome of these projects, if not the inevitable growth of Mexico and its place in the world economy.

The Nautical Ladder or the “Escalera Nautica” was to be a network of Marinas that would have linked 20 ports between four Mexican states that border on the Sea of Cortez: Baja California. These ports would have been built one by one starting on the Pacific side of Baja California from Ensenada down to Cabo San Lucas around the “cape” and up the Sea of Cortez side of Baja and Mexico’s mainland all the way north to Puerto Penasco or “Rocky Point” as it is commonly known in to tourists in the U.S.

The Punta Colonet Megaport was (still?) an even more ostentatious endeavor, though it did make some sense at the time of its conception and announcement.
Not only was the news of such a project the “talk of the town” in and around the shipping industry, it spurred a significant run on the real estate in around the fishing village of Punta Colonet; I am talking sleepy fishing village, literally. The scale was such that had the project been on track and not disrupted by the economic crisis, the port would have had a significant impact on the port of Long Beach and all that this implies. So sure was the impact that state of New Mexico and the U.S. Federal Government began constructing an expansion to the port of entry at Santa Teresa, just west of El Paso and Juarez, based on the proposed increase in tucking and rail logistics. To drive this home Union Pacific Railroad is also spending an estimated $400-million to expand their Santa Teresa operations. This project was enough for me to create a little known blog that you may read at http://www.ojosazul.com

So, what does all of this mean and how does it apply to Screw Business As Usual and Virgin Unite? Simple and possible in theory. Not easy by any means. However, it will require all to do the unusual and do so in a united front.

In spite of which side one sits when it comes to the development of pristine resources we can be sure of few things in this case:

1)    The gateway between Baja California and the bustling community of San Ysidro, California is the busiest border crossing in the world and currently under expansion.
2)    Mexico’s economy and their “middle class” are indeed growing and Mexico will soon surpass Brazil as an economic power in Latin America.
3)    Be it today or tomorrow, change is coming and change will no doubt have an impact on the Baja Peninsula.
4)    Baja is what I consider, to be a true “blank canvas” that could turn out to be a disaster of a picture or perhaps a state of the art model in true, perhaps groundbreaking, sustainable and social development.

To be fair and true, I am a “pro” commerce individual. Times are changing and like any for profit or non-profit for that matter, growth is key and part of a natural cycle. However, I also firmly believe to the very core of my being that we as people including those that make up our governments and the “captains of industry” can indeed realize growth, create value, sustain communities and do so in a manner that achieves a harmonious balance with and within the very environment that surrounds all of us. Not only is it achievable, it is our responsibility and never more so than now. Sounds a little cliché? Perhaps. But when one really looks at Baja from above; from space, one can see what I mean by a “blank canvas”.

The Goal: To dedicate and create a vast portion of Baja California and the sea of Cortez into “Zones” or “Regions” that commit to the following:

1) A Marine and wildlife preserve that would create opportunities for the study and protection of some of the most diverse and unique marine and wildlife on the planet.

2) A Sustainable Development region whereby all concerns doing any commerce, tourism, trade, logistics, education, etc. in and around Baja must adhere to a set of strict guidelines that would benefit and sustain the environment in responsible and reasonable manner.

3) Programs to bring social awareness and education on how communities can manage and adjust to the impact of large scale projects and their affect on smaller populations like those all along Baja California.

Current technologies exist and are being created at a rapid and effective pace that could give this region the opportunity to be “state of the art” examples across multiple sectors of social, industry and educational development. Global alliances with educational institutions could be created on an unprecedented levels leading to the discovery of newer sustainable and perhaps renewable technologies. Much of the landscape of Baja is an unforgiving one however, it presents opportunities to study and develop solutions for co-existing within such an environment that can be shared with other regions similar in climate and topography.  The possibilities are endless and there is only one Baja Peninsula and thus we have only one real chance to get it right.

Screw Business As Usual: Such a term is something you and I tend to easily see and embrace here in the U.S. and other areas of the world. However, when applied to the great country of Mexico, well that is indeed something to think about. Though Mexico is currently churning out more engineers than Germany and a number conglomerates across a range of industries are investing billions in factory expansions and tooling and home to the richest man in the world. The powers that be and the manner in which resources and key industries are managed are archaic and operate as old fashioned monopolies steeped in nepotism.

Unite: It will require multiple communities, industries, at least two countries and their respective governments to unite in a multifaceted yet common vision and goal. I believe the possibilities would have a profound effect on western North America, countless people, businesses, education, innovation and a significant effect on a population in need of opportunity. It could go both ways, good or bad. Mexico now holds free trade agreements with approximately 40 countries chalked full of talent, ideas and the ability to contribute on some level to the realization of a project such as this.

Fortunately there is what I consider to be a very big upside. There appears to be some change in the air. The newly elected Mexican President is as intent as his predecessors in addressing changes to how resources are managed. Brazil and Columbia, among other Latin countries appear to be taking steps to lessen the grip of some industries and freeing up these markets. There is still time and the majority of the work will be in the legislative process. There are signs of change in Mexico and though immigration issues remain with the U.S. and there are industrial states in Mexico, Baja California is still relatively wide open and unspoiled.  There is time to bring together and unite the right people to plant the seeds for what could be a game changer for the Baja Peninsula, the Sea Cortez and Mexico.

Less than 10-years ago no one would have guessed that Sir Richard Branson would be this close to sending people into space just as easily as one boards a plane to Cabo San Lucas. Perhaps Virgin Galactic could arrange to shuttle some of the “powers that be” up and over Baja California so they can get a real look at what is truly at stake.  Something like this could be initiated with simple dialog.

In closing Ms. Darsney, I would like to thank you with all my heart for the opportunity to express my thoughts, 10-years in the making, and for extending me an invitation to Necker Island for this year’s Leadership Gathering. However, it is with great regret that I cannot manage the donation at this time and must respectfully take a rain check. In the meantime please feel free to share what I have written to whomever you think would give these ideas thoughtful time.

Kindest regards,

Jaime Sanchez
jaime@ojosazul.com
http://www.ojosazul.com

Disclaimer:

Any reference to Virgin, The Virgin Group or Virgin Unite are the sole properties of and in no way an endorsement by Virgin, The Virgin Group or Virgin Unite, its subsidiaries and or affiliates of my opinions as expressed on this blog. All rights are reserved. They’re just really cool people.

The Times They Are Still Changing

Yes. The times are indeed changing. It’s getting harder and harder to find any real information on or about the Punta Colonet Megaport these days. There is no doubt that many lingering opinions on this matter still hold for those that support and oppose the Megaport. Port or no port I still believe the region is destined to grow no matter what your opinion may hold.

Though there may not be any immediate movement in the still sleepy fishing village that is Punta Colonet today; it is no secret that California and Baja California, respectively, are and will forever be inextricably joined together and joined not at the hip but by the Aortic artery known as the San Ysidro Land Port of Entry, the busiest border crossing in Western Hemisphere and some would argue in the world.

No matter how busy, there are those who not only see the road ahead they live it each and every day and none more so than the fine people of San Ysidro, California. This vibrant multicultural community south of San Diego does not just rest along the border of Mexico and their “sister” of Tijuana; It is indeed the border crossing. Each and every day, San Ysidro welcomes tens of thousands of men, women, children, cars, tourists and commuters alike. The impact of this daily ebb and flow is in many ways an economy unto itself.

It is true that after 9/11 and the U.S. government’s implantation of a series of security measures have slowed the inspection process at all land border crossings; Congestion at border crossings between the U.S. and Baja California have cost the U.S. and Mexican economies billions of dollars and tens of thousands of jobs however, the numbers of those making their way across the border seem to be rising.

As the new border expansion project enters its first year of construction one can make the reasonable assumption that business in the region will indeed increase over the long haul, Megaport or no Megaport.

Further News From Mexico… A Slow Boat FROM China

As per my previous post, I needed to verify that the Punta Colonet mega-port development was showing signs of movement and indeed there is more to report. According to the Mexican newspaper, La Voz de la Frontera, Mexican officials appear to be unwavering in their commitment to developing Punta Colonet and are claiming the project is indeed alive and moving forward.

Reports indicate BANOBRAS Director’s, Alfonso Garcia Tamez, claims of unfeasibility in developing the port caused a bit of a stir, prompting Baja Governor Jose Guadalupe Osuna Millan and Secretary of Transportation, Juan Molinar Horcasitas, to seek clarification from the Director. Director Tamez suggested he had been misquoted by the Mexican media.

Banco Nacional de Obras y Servicios Públicos, SNC (BANOBRAS) is a state owned “National Works and Public Services” development bank in Mexico whose core competency is public works financing and banking services. Needless to say, their participation in such a high profile project would be a foregone conclusion.

That being said and in spite of the BANOBRAS director’s position, whatever that may be, comments from Punta Colonet’s port project Director, José Rubio Soto, further stymied any negatives in stating that the opinions of the BANOBRAS director to be personal ones and nothing more and that Mexico’s government is clearly committed to the project. Also noting that monies for the project are by and large going to be drawn from the private sector and that long term benefits of the port will certainly outweigh current economic issues. He further supported this position by stating that there are currently four bidders registered for the project with two more bidders coming to the table vying for a shot at developing the mega port.

There is also the support from Mexico’s Ministry of Communications and Transport’s (SCT) Baja California sector noting the December, 2009 timeline for bids has not changed and there appears to be indication that will change. The SCT issued a press release stating that the mega-port’s transportation impact will be significant and continues to remain of the highest priority for the SCT and the Mexican government, respectfully.

This is all interesting and at the very least something that cannot and should not be ignored. There is a tremendous amount at stake here and more than the environmental and economic issues that immediately come to mind. There are also social, logistic and security issues that come with such a project and allow me to remind you that the project will not only be about the development of a facility but also that of a virtually new city, one that will forever change the landscape and fabric of the region and beyond.

Pass it on!

Jaime