1,610
Totally AddictedTotally Addicted
1,610

PostOct 20, 2011#1701

gone corporate wrote:ricke002: Sound idea, but there is a flaw... Lambert International currently has a debt obligation from the new runway that it first has to cover. Right now, landing fees are already among the highest in the US to help cover the payments. It was supposed to fund itself with the continuation of flights at a level just lower than what it was when it was proposed; since then, we've not only lost the American Airlines hub, but we've seen them all but dismiss Lambert as an airport. Raising fees further, I would assume, would already be cost-prohibitive & would drive flights away further.

Instead, I'd look for STL City, STL County, and St. Charles County to put forth funding ideas. All are wanting the Trade Hub, all are angry, and all have authority to seek out special funding ventures of their own.

I believe this remains very much alive, that STL is the preferred site for a Trade Hub for Shanghai, and that efforts are currently underway to salvage what still exists. Still, it's that much harder without a comprehensive funding mechanism.
I was suggesting only taking landing fees from new cargo flights. I suppose it would then be a chicken/egg situation that flights won't come without warehouses & warehouses won't come without flights. At first, it might be slow, but after getting it started, it seems like it would pay for itself.

201
Junior MemberJunior Member
201

PostOct 20, 2011#1702

However, the issue of return economics is still an open question. What are we filling the plane with to go back, and is it sustainable in the long term? I believe the first flight was a one-time consignment by Emerson electric, and the second return flight was only half full?
Part of the goal of luring freight forwarding companies was to encourage the flow of goods into St. Louis. These goods would then be shipped to China. The Chinese were also interested in importing biotechnology and agricultural products produced in the region. Also, the hope was that companies would have relocated here in order to be closer to the Gateway to the East. Most importantly, the Chinese apparently thought that it was viable enough to spend a significant amount of time and resources into developing the project. They certainly wouldn’t have sent Vice Premier Wang Qishan (a man who is expected to emerge as one of the two most powerful people in China after the 2012 power transition), Ambassador Zhang Yesui, and Consul-General Yang Guoqiang to negotiate this deal on behalf of one of China’s largest companies if they didn’t view this as a lucrative business venture. Imagine if we were to send someone like Obama/Romney, John Huntsman, and another high ranking diplomat to negotiate a deal on behalf of GE. How would we feel if Wuhan turned us down? In light of the extent to which Chinese are concerned with the concept of "saving face," it's definitely an analogy worth considering. It's my sense that they are done with us.
As for the first plane only being filled with Emerson products, from what I understand, certain susceptible companies were pressured by competing entities not to support the hub effort. Once this started going south early in the special session, a number of local companies wanted to get as far from this as possible so as to not piss off powers that dominate the air cargo industry. I suppose that might have something to do with it.

44
New MemberNew Member
44

PostOct 21, 2011#1703

Next week's Chinese airline cargo flight canceled

http://www.bizjournals.com/stlouis/morn ... cargo.html

And...

Missouri House seeks to resurrect China Hub bill

http://www.bizjournals.com/stlouis/morn ... rrect.html

941
Super MemberSuper Member
941

PostOct 21, 2011#1704

^Welp - back on the rollercoaster

(Good to see another Flo-town guy on the board)

2,932
Life MemberLife Member
2,932

PostOct 21, 2011#1705

From the Post-Dispatch:


512
Senior MemberSenior Member
512

PostOct 21, 2011#1706

Colby wrote:The Chinese were also interested in importing biotechnology and agricultural products produced in the region. Also, the hope was that companies would have relocated here in order to be closer to the Gateway to the East.
How have I not heard anybody call this project The Gateway to the East yet? It's perfect. I guarantee, you slap that name on the legislation, drum it up through the media and commercials and EVERYONE would be happy to support St. Louis/Missouri being the "Gateway to the West and the (Far) East."

Sure, it's a cheap advertising tactic, but, in lieu of most people actually taking a minute or two to learn about the bill, I don't mind it...

11K
Life MemberLife Member
11K

PostOct 21, 2011#1707

^ Yep. I maintain that labeling this "aerotropolis" caused a whole lot of harm.

3,762
Life MemberLife Member
3,762

PostOct 21, 2011#1708

^ agreed. and who was the first to call it that? not a supporter, i think.

8,915
Life MemberLife Member
8,915

PostOct 24, 2011#1709

Exciting announcement coming at 9am regarding a Missouri/China trade agreement Jay Nixon is bringing home from China.

201
Junior MemberJunior Member
201

PostOct 24, 2011#1710

Nixon signs $4.4 billion in export trade agreements (unless the legislature somehow manages to ruin everything):
http://www.nbcactionnews.com/dpp/news/s ... xport-deal

I'm sure he would have been able to sign far more export deals had the China hub gone through, and it's also indicative of just how tremendous the China hub opportunity really was. I have a feeling that $4.4 billion would have been a drop in the bucket. Again, epic fail! Heads need to roll!

2,932
Life MemberLife Member
2,932

PostOct 24, 2011#1711

Charlie Dooley's going to push for this again come January
http://stlouis.cbslocal.com/2011/10/24/ ... china-hub/

201
Junior MemberJunior Member
201

PostOct 24, 2011#1712

Charlie Dooley's going to push for this again come January
http://stlouis.cbslocal.com/2011/10/24/ ... china-hub/
Wow. To borrow baseball terminology, I guess that means the count is 0-2. Let's hope our leaders actually take a swing this time.
If we do actually get another shot at this, we need to stop referring to it as "aerotropolis." It's also probably a good idea to call it the "international cargo hub" or the "Lambert hub" rather than "China hub." I've certainly learned a lot over the past several months, and I now feel like I know the issues inside and out. Hopefully we can help push this through next time.

8,915
Life MemberLife Member
8,915

PostOct 24, 2011#1713

I think it's foolish to think we wouldn't have another shot at this. I'd like to think that over the years some pretty good relationships have been made during this process. Too much seems to be invested to move on just because of one public financing speed bump.

The Chinese are smart enough to understand the current american economic climate. I'm sure they are weary about public incentives passing in other areas too. The persistence of our local leaders will get this passed. I have little doubt of that.

Remember that we brought this to the Chinese. They are a loyal people.

The Big Idea is, well, the BIG DEAL. I doubt the Chinese people are in a position to just pick up and move on to the next city. They have considerable time and investment made here. I'm sure they are smart enough to foresee some bumps in the road.

EDIT - Found this article in the Post today that seems to echo my, admittedly optimistic, outlook on this.

"But Nixon urged patience, and noted that the start of any new trade route is going to be bumpy."

Read more: http://www.stltoday.com/business/local/ ... z1bjFqkjVD

Did we really think $360 million was going to sail through the fist time?

201
Junior MemberJunior Member
201

PostOct 24, 2011#1714

Remember that we brought this to the Chinese. They are a loyal people.
Officials representing the highest levels of the Chinese government are apparently intensely loyal to Stephen Perry in light of what he and his family have done for China. I haven't talked to my guy in about a month, but I got the sense from my source that Perry is basically done with us. It's true that Chinese society turns on personal networks and relationships to an extent that most Westerners fail to comprehend. They call it guanxi. If it's also true that we've lost Perry, I just hope that regional leaders were smart enough to develop their own relationships with their Chinese counterparts. If we go into this again without Perry, it might be a bit like playing the World Series without Pujols. Not saying Perry is necessarily gone, but like I said, I definitely got the sense from my guy that he thinks we are pretty backwards, and he might not want to keep spending much of the social capital he has earned over the years in order to take another shot at this working out. He's a Brit, and he's already enormously successful. He apparently only really decided to jump on board because he was excited about helping move forward such a potentially transformative project. I think he has since soured on us.

8,915
Life MemberLife Member
8,915

PostOct 24, 2011#1715

You speak to a higher detail than I can regarding specifics.

I just don't know how realistic it was to think this was going to pass on the first attempt. There are going to bumps in the road, especially on something this big. Really, this failure gives everyone a chance to improve on their proposals.
Maybe I'll change my tune when I read about our leaders giving up or read about China cargo heads seriously moving on to other locations.

Is anyone aware of the Chinese doing any Cargo Hub due diligence in any of our peer cities?

201
Junior MemberJunior Member
201

PostOct 24, 2011#1716

This quote hints at the importance of Mr. Perry to the project:
"The Midwest-China Hub Commission believes that the success of the entire project hinged to a significant degree on Mr. Perry’s and LEC’s personal and political connections in China."

http://www.kmov.com/news/local/China-Hu ... 95338.html

As he is probably better connected to the highest levels of the Chinese government than any Westerner not named Henry Kissinger (his uncle actually briefed Kissinger on China before he went to Beijing with Nixon in the '70's), he is a heavy, heavy hitter. If we lost Perry, I just hope we forged our own relationships with the Chinese.

On a somewhat unrelated note, I wonder which "supporters" told Nicklaus that $60 million would suffice:
"Supporters said the smaller amount would have been enough to get the project off the ground."

Source:
http://www.stltoday.com/business/column ... z1bjnLkGJ3

This died the day the legislature eliminated the $300 million. The Chinese were married to the original proposal. I assume these supporters were legislators who were primarily interested in securing a political victory. Rather than talking with "supporters," maybe he should have spoken with people who have actually negotiated with the Chinese.
He is correct, however, in pointing out that ending flights is a clear indication of their unwillingness to move forward in light of the failure of the MO Legislature. Symbolism is immensely important to the Chinese. It's the reason why repeatedly featuring articles in major newspapers and sending high ranking officials to pay lip service to the deal spoke volumes.
He's also right in pointing out that demand exists. The Chinese wouldn't have wasted four years and the time of high ranking officials if it didn't exist.

453
Full MemberFull Member
453

PostOct 24, 2011#1717

Colby wrote:
He's also right in pointing out that demand exists. The Chinese wouldn't have wasted four years and the time of high ranking officials if it didn't exist. Without naming names, players that dominate the air cargo industry have pressured certain local businesses not support the hub effort. We had plenty to send back on that second flight. The second flight probably went back half full in part because companies with a lot to lose were reluctant to piss off the powers that be.
Colby, this is pretty disturbing.... if this is true, then the problem is a whole lot worse than a rural legislators not getting it or not wanting to help St. Louis.

201
Junior MemberJunior Member
201

PostOct 25, 2011#1718

if this is true, then the problem is a whole lot worse than a rural legislators not getting it or not wanting to help St. Louis.
I just wrote a long post, but I was signed out before I had the opportunity to post it. Sucks.

Think about it: The Chinese are intent on establishing a cargo hub in response to American dominance over the US-China air cargo trade. Moreover, the IMF predicts that China will emerge as the #1 economy in the world by 2016. Also, US-China air cargo trade is expected to skyrocket in coming years. As such, China is arguably the most important international air cargo market in the world. Challenging this dominance is potentially an existential threat. In light of these realities, wouldn’t it be surprising if parties invested in the status quo didn’t do absolutely everything in their power to sabotage this deal? There’s a reason why I’ve been screaming about the fact that Greg Lindsay is the editor of FedEx’s PR publication.

The more I think about it, the more it dawns on me just how Chinese it is to signal their unwillingness to establish a hub at Lambert by canceling Monday's flight as a result of an alleged lack of demand. As I’ve mentioned, and as I’m sure many on this forum have experienced first hand, Chinese language and culture is highly context dependent; actions or gestures are often far more meaningful than their immediate or apparent significance might suggest. Moreover, the concept of “face” is absolutely central in Chinese culture. It’s my sense that canceling the Monday flight is their way of telling us that they have no interest in pursuing this further, and their decision to blame it on factors beyond our control is probably their way of allowing us to save face. They think we are incompetent, but they don’t want to suggest that we shot ourselves in the foot. Hence, the implausible explanation that this died as a result of a lack of demand.

641
Senior MemberSenior Member
641

PostOct 25, 2011#1719

Colby, I'm going to try and decipher this for the rest of the viewing public. I know for a fact that Emerson and Monsanto were totally behind this...So in trying to figure out which STL-based companies were influenced by FedEx to not support and participate in the China Hub, it has to be Express Scripts, a company very dependent on the FedEx's of the world.

Sad, but, it's time to move on. Colby, I know your heart and soul were immersed in this but as a STL-based professional who is probably 10-15 years older than you, I know from past dissapointments that one has to move on...FAST.

It didn't work out, the Chinese are cancelling flights and you are correct, that is their signal it's over. So call the Brazilians, call the Indians, hell, call every sovereign..

That's what true pros do, move on, adapt, learn from lessons, and thrive.

201
Junior MemberJunior Member
201

PostOct 25, 2011#1720

If we get another shot at this, I think we need to take into account the following cultural realities: Chinese culture is highly context dependent; the concept of face is absolutely central to Chinese culture; and relationships matter to the Chinese.

Chinese culture is context dependent: The Chinese are not going to come out and explicitly say what is on their mind. Rather, they’ll signal their intentions by doing things like featuring stories in prominent newspapers or sending high-ranking officials to have lunch with regional leaders.

Face is absolutely central: Unfortunately, this will likely work against us. From their perspective, they went all out to indicate their desire to establish a hub in St. Louis, but Missouruh told them no. China is a 5,000 year-old civilization that is home to roughly 20% of the human race and projected to emerge as the #1 economy in the world in the near future. On the other hand, Missouri is a fly on the wall. Total loss of face. We need to realize this reality and fix it.

Relationships matter: If Perry has soured on us, we suffered a huge blow here. Hopefully we cultivated some guanxi during the 4 years of negotiations. If not, we’re probably SOL. This also probably speaks to the reason why it took 4 years to develop relationships with key officials. Allegations that the Midwest-China Hub Commission was just jet-setting around the world at taxpayer expense completely miss the point. If you want to close a deal with Chinese, you’re going to have to develop some relationships.

They probably assume that we know all this stuff in the same way we might assume that they'll come back to the table if we can just get our act together and pass the bill during regular session. Point is that culture matters. Unfortunately, fancying themselves international trade experts, state legislators and many local media outlets completely undermined years of negotiations and relationship building.

3,552
Life MemberLife Member
3,552

PostOct 25, 2011#1721

Deal going to either Denver or Ohio!

link: http://www.fox2now.com/news/ktvi-mo-del ... 5285.story

The Show-Me Institute is such a fraud and overloaded with cynical naysayers. Their economic plan is to eliminate all taxes, cut spending, get socially conservative and watch the economy grow! Hasn't this been proven over and over again that it is not a sound economic plan? IDIOTS!

Missouri is seriously on the track of becoming more and more like Arkansas, Mississippi, West Virginia, and Kentucky if we dont get some political balance. When even right wing corporate types are pissed and think we've going too far to the right you know its bad! smh

2,932
Life MemberLife Member
2,932

PostOct 26, 2011#1722

Goat: Jaco’s only reporting on pretty much what we’ve known all along, that both Denver and Wilmington, OH are gunning for this in our wake. For all we know, he’s been trolling here and picking up stories. You’re not Charles Jaco, are you? For all I know…

But yes, the competition is very real, and we’ve dropped the ball.

From that video... Audrey’s still campaigning against this? Seriously, this has been torpedoed by a 24 year old recent Mizzou grad? With a background in Journalism and Econ, but not Business or International Relations?!? And just farking Undergrad Degrees, no Masters or Doctorates?!?! And she's been the media's expert?!?!?!! This woman’s not qualified to tell me the difference between Szechuan and Lo Mein! I’m seriously going to throw up now… And yes, Audrey, I know you read this. I also know a lot of people in your organization in my private life, and I have repeatedly supported your organization in the past. No more. You all can go fishing with Fredo, because you’re dead to me now.

Sirshanksalot: I’m wondering about your ESRX call-out. Besides market cap and FedEx usage, what makes you think they wanted to throw this deal under the bus? Two points against your position are: they’re looking to expand market to China, not shy from it, and they’re already built out near NorthPark and would only look to see its furtherance with the Trade Hub, not its stagnation.

Moorlander: I agree, we can’t call this whole thing dead just yet. Sure, it sucks not being done already, but it’s not done as a concept.

Colby: That outstate MO failed us the first time doesn’t mean this whole thing is dead. Yes, that’s recognizing the quality of your unnamed contact, and appreciating your attention to guanxi & the value of relationships (which cannot be under-stressed). Still, if Shanghai and Beijing walk away from 4 years of work precedent to the General Assembly’s failure, such a public withdrawal could shame China just as much for a lack of foresight.

Focus: Very, very, very much, we are dealing in the highest levels of Diplomacy.

This is far much more than a Trade Hub by now. It’s the future of Chinese-US relations. Beijing, DC, and many others are watching this (not just Wilmington, OH) to see what’s going to happen next. How other nations deal with China going forward will reflect how they choose to deal with STL now. I say, if you’re standing on the edge, to take a couple steps back and know that this isn’t over, no matter what Hugo and Jethro think about how their “Main Streets” and “propane superstores” are the center of global economics.

Another consideration that must be given, which so far has barely been touched, is near-term economic volatility, both domestic and abroad, with primary emphasis towards the state of the Euro as an ongoing concern. Europe is dealing with the very real possibilities of default in Greece and Italy, as well as contingent collapses for Ireland, Portugal, and Spain (the “PIIGS”). While Merkel and Sarkozy are trying to figure out what to do with the burdens on their economies, when not fighting with the British, the rest of the world is watching to see if contagion sets in for global financial markets, including currencies. While the long-term viabilities of Chinese-American trade are very, very strong, near-term abilities are susceptible to multiple volatilities.

Beijing and Shanghai still prefer MO to OH, and especially to a mile up in CO. Keep hope alive. And, keep up the pressure to our elected leaders, especially now to those in the Metro Area, but also to our Federal representatives...

3,441
Life MemberLife Member
3,441

PostOct 28, 2011#1723

$5.7 million warehouse coming to MidAmerica

Associated Press

5:30 a.m. CDT, October 28, 2011
BELLEVILLE, Ill.—
A $5.7 million refrigerated warehouse is coming to MidAmerica St. Louis Airport in Mascoutah (muh-SKOO'-tuh), and it's expected to bring about 80 jobs to southwestern Illinois.

The St. Clair County Public Building Commission approved a 15-year deal for the warehouse Thursday.

more....

http://www.chicagotribune.com/news/loca ... 3651.story

44
New MemberNew Member
44

PostOct 28, 2011#1724

China Snub: Second Lambert cargo flight in two weeks canceled

Read more: http://www.stltoday.com/business/local/ ... z1c6xz01GF
http://www.stltoday.com/business/local/ ... 0f31a.html

PostNov 03, 2011#1725

Maybe many of you knew this... But I stumbled across this in an article unrelated to the hub:
Tilley owned 25 percent of Mid Missouri Aviation of Columbia until he sold his share to Travis Brown, a lobbyist who works for wealthy financier Rex Sinquefield, in 2009
http://www.bizjournals.com/stlouis/morn ... a=handmark

Read more posts (123 remaining)