ECONOMIC INFORMATION

INFRASTRUCTURE

Baja California has an important infrastructure that supports tourism activities. Investment in tourism have mainly been channeled toward the construction and renovation of facilities such as hotels, golf courses, movie studios, marinas, residential areas and shopping centers, among other.

The interest that exists for visiting Baja California and the vertiginous commercial growth as well as the increase in services among its cities, has motivated an increase and improvement noticeable in the infrastructure of this state.

Highway System

The State's highway connections communicate the majority of its destinations, from the smallest to the largest cities. Both the Federal and State Governments promote investments for the creating of tourism resting areas along the highways of this state, which include gas stations, pharmacies, mini-markets, restaurants, restrooms, rest areas and tourism information.

The Government has made a special effort to develop and modernize the state highway system.

Currently work is underway to improve the Mexicali-San Felipe highway and there are highways such as Mexicali-Tecate-Tijuana, Tijuana-Ensenada and Mexicali-San Luis Rio Colorado, that give the state first class terrestrial communications among its main destinations.

• 2,535 km (1,530 miles) of paved road that link the main cities within the state.

• 4,449 km (2,800 miles) of coated roads in rural areas that link the smallest cities.

• 3,906 km (2,300 miles) of improved dirt road that bring closer together even the most remote communities.

Airport System

With regard to air travel, the airports in Baja California are used by eight airlines, that in the year 2000 transported more than 3 million passengers and engaged in about 63,000 operations. The system is integrated by:

• Three international airports in Tijuana, Mexicali and San Felipe. Tijuana is among the five airports that have the most passenger flow in the country.

• It has a military and commercial airport in Ensenada that receives regularly private flights.

• The air network also has 100 airstrips and runways that make possible the access to small towns that attract hundreds of tourists.

Maritime-Port System

The main ports of the state are located in Ensenada, Sauzal, San Felipe, Playas de Rosarito and Isla de Cedros.

The Port of Ensenada holds the second place in the country with regard to the number of tourists it receives and it is being transformed to host growing volume of cruise liners and great draught ships that want to anchor at the coasts of Baja California.

The other ports do not have the necessary conditions to receive tourism; nonetheless they represent an important area of opportunity for investment.

Urban Transport

Cargo vehicles
In the state there are more the forty-loading and cargo companies that can provide service both nationally and internationally. As a result of the North American Free Trade Agreement (NAFTA) it is expected that the number of cargo vehicles will increase with regard to the companies that are in the United States that have been authorized to provide an international cargo service in the border states of Mexico.

City Transit Vehicles
Urban transport is provided by a fleet of 1,362 buses, 1,391 micro-buses and 6,673 taxis that together add up to a total of 9,426 public transportation units that satisfy the needs of urban zones in every city.

Tourist Transportation
There are various companies of buses-for-hire and sports utility vehicles for privately transporting passengers and that can adapt to the need of every climate, because generally they belong to national companies.

Communications

As far as communications are concerned Baja California is fully covered with stations that operate via satellite, microwaves and digital networks within urban areas, along with optic-fiber and cell-phone networks.

Telephone
The phone service in the state satisfies the demand very efficiently. Important investments have been made to increase the capacity already installed and introduces state-of-the-art technological improvements with regard to modern telephone services.

Postal Services
In Baja California the postal service needs of the community are met through 88 postal branches distributed in the five cities. As far as telegraph services are considered, the state has 35 branches.

Customs

Baja California has six ports of entry, by land, with California; and a maritime customs port in Ensenada. The customs offices for land vehicles are connected with the U.S. cities of San Diego, San Ysidro, Calexico and Algodones. All ports of entry have customs services and facilities.

These facilities are among the most modern and large in the country; they were designed to provide service during the next 15 years.

In the state there are more than 70 registered customs agencies that provide service to businessmen engaging in commercial activities in foreign countries.

Power

Electrical power is provided through different generators that extensively satisfy the needs of the population, commerce and industry. Currently they service nearly 600,000 customers, of whom 53,000 are commercial users and 3,000 are industrial; the rest have other activities and/or are for domestic use. The electrical power industry has the productive capacity to supply the demand during the next seven years. The actual power that was installed in the year 2000 is of 2,115 mega-watts. A part of the surplus is exported to the United States or to the bordering state of Sonora.

The main energy source is endogenous vapor from which more the half of the total production is generated, reaching 7,500 giga-watts per hour annually. Another important power alternative will be the gas pipeline in Mexicali that will provide natural gas to the productive plant and with it there will be more different options for the fuel supply to industrial customers.

Water

In Baja California the access to tap water is guaranteed. The water source that supplies the Mexicali valley comes mainly from the Colorado River, as well as from agricultural water holes that assure water supply all year long. The coastal and central areas depend greatly on water holes and, in a lower scale, on rain. With this modern irrigation systems these have made the consumption of water more efficient.

The state has an important infrastructure that consists of 83 industrial parks and centers, in Tijuana there are 51, Mexicali has 22, Ensenada 6, Playas de Rosarito 1 and Tecate 3.

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