SINALOA TO DALLAS


 CAADES, the largest Sinaloan grower association established an agreement with South
 Orient railway to transport winter vegetables via TOFC. During the 1993/94 season some
 product moved along this corridor and increased haulage is planned for the 1994/95 season. The
 service uses a single bill of lading from the origin in Los Mochis, Sinaloa to the U.S. or
 Canadian receiver. The rail portion is Los Mochis to Ojinaga via FNM, and Presidio to Dallas
 via South Orient. From Dallas, transport is via truck. The scheme takes advantage of rail line
 through Copper Canyon, which is the only feasible means of transporting cargos northeastward
 from Sinaloa. This plan has the potential of reducing dependence on trucking and delays at
 along the border.

 To expedite clearance of customs and phylo-sanitary inspections, cargos travel, in bond,
to Dallas. However at the border, samples are taken and forwarded to Dallas. Moreover,
paperwork proceed the cargos at the border and in Dallas.

 Finally, freight rates to Midwest, Southern, and Eastern locations are competitive with
the all-truck alternative through Nogales.


 CENTRAL MEXICO TO U.S. VIA LAREDO

 Union Pacific, in cooperation with FNM, is planning to initiate service for perishables,
using mechanically refrigerated railcars, between the U.S. and central Mexico. Northbound
freight will consist, primarily, of frozen products made by U.S. processors in central Mexico,
such as Green Giant and Campbells. Southbound freight will include produce, such as deciduous
fruits. Service may begin as early as late 1993.

 As part of this effort, Union Pacific has begun training FNM personnel in proper
monitoring and maintenance procedures for mechanically refrigerated railcars.