urbanSTL

An excerpt from Gov. Nixon's State of the State speech last night...

For the third straight year, I am proud to report that we are shipping more Missouri goods around the world than ever before.

Missouri exports hit record levels in 2010, and topped the $14 billion mark with double-digit growth in 2011. And we’re on track to break records again. That’s because we’re taking a pro-active approach.

In October of 2011, I led a group of Missouri business leaders on a highly successful trade mission to China. We secured agreements to sell $4.6 billion in Missouri goods.

In April of 2012, we went to Brazil, and signed our first-ever trade agreement with the state of Sao Paulo, the financial capital of one of the world’s fastest-growing economies. And this coming March, I will lead a trade mission to South Korea and Taiwan.

We’re making this a priority because it’s critical for every business in the state – no matter how small – to think globally. Because companies that once only did business with customers around the corner are finding new customers around the world. And when we sell more Missouri products overseas, we’re creating more jobs here at home.

That’s why my budget includes $2.3 million to enter new markets, expand foreign trade, and help Missouri businesses develop a world-wide customer base.

One of our export superstars comes from one of Missouri’s oldest family-owned businesses, Volpi Foods in St. Louis. Next time you are in St. Louis, stop by their shop on The Hill.

Volpi is a prime example of a traditional business that with visionary new leadership has broken the mold. With the help of our departments of Agriculture and Economic Development, Volpi has doubled its exports in growing markets like Japan, South Korea, Taiwan and Costa Rica.

Please welcome the CEO of Volpi Foods, Lorenza Pasetti.

There’s no doubt that Missouri is ready to meet the challenges of a global economy.

Source: http://www.stltoday.com/news/local/govt ... a41de.html

Side note: Speaker Jones' rebuttal to the State of the State speech did not mention Missouri exports.

Mid-America Airport is close to securing regular flights between Southwest IL and Ningbo, China after the Ningbo Airport completes construction of refridgerated warehouses able to receive US food products. The anticipated market within China for these SW-IL goods is in the neighborhood of 250 million likely consumers (holy crap!).

Among the first goods to be shipped is... Yogurt. No kidding.
Source: http://www.bnd.com/2013/03/06/2522048/t ... erica.html

Dairy Diplomacy...

gone corporate wrote: Among the first goods to be shipped is... Yogurt. No kidding.
Source: http://www.bnd.com/2013/03/06/2522048/t ... erica.html

Dairy Diplomacy...

I thought you were going to say "Asian Carp!"

Very quietly, with little to no fanfare, the Missouri General Assembly is getting things done that it should have done two years ago. Now that the chief obstructionists in the MO House & Senate have been term-limited out, the revamped Trade Hub legislation is progressing well.

What’s going through now is a tax credit program for freight forwarders only. Warehousing is excluded because real estate tax credits remain a very hot issue, and they want to keep this relatively simple.

This new legislation seeks to provide freight forwarders (logistics managers) $60 million in incentives for shipping goods out of STL by air, effectively providing a discount to the shipments based on total weight of the shipments. The goal is to have these shipments help create a regular series of cargo flights out of Lambert over the next eight years, until the funding expires. By this time, it is anticipated that demand for these regular flights out of Lambert are strong enough to survive without subsidation. Meanwhile, as there would now be these regular freight flights in and out of the airport, it is anticipated that the framework for this new global cargo hub would be fully self-sustainable and will attract new cargo flights around the world to fly in and out of STL.

Pretty much, this is encouraging people to walk down a new path through the woods. This new path starts off with growth and rough grounds, but it provides a new passageway where one wasn’t beforehand. With time, and after enough people walk down the same woody path, the path becomes established, both physically as trampled ground and as a regular way for people to walk. In time, no one needs to encourage people to take the new path, as it is effectively a new road with enough traffic to survive on its own...

Last week, the MO Senate passed legislation authorizing the new Trade Hub tax credits as part of an overhaul to the tax credit system in the state. By cutting back on the total allocations for Historic and (especially) Low Income Housing credits, credits for the Trade Hub can move forward. As well, credits for other projects are advancing, including for attracting high tech companies / data centers, and national sports events (Final Four, etc.).

Yesterday, the MO House also gave initial backing to the new Trade Hub legislation.
Source: http://www.ktts.com/news/195704391.html

It is very likely that these will pass very soon. With the memory of 2011’s failures at the front of their minds, the General Assembly looks like they’re going to actually do what they need to do this time around. Keep hope alive…

Awesome. Thanks for the updates on both airports.

arch city wrote:What is wrong with people in St. Charles?

Yesterday, Ann Zerr...

NO.

Anne Zerr has been a friend of the Trade Hub Initiative for a long time. Last year, she submitted House Bill 1476 (with STL County Rep Mike Leara) to resurrect the Freight Forwarders tax credits. She has continued to seek out the Lambert Cargo Hub this whole time, even amidst the "no-nothings" of the previous Missouri Senate.

If she has acted to amend part of the current legislation, it must be for a good reason, most likely to ensure passage in the MO House from KC-based members of the General Assembly.

There is no doubt that Anne Zerr has been, and continues to be, a strong advocate for this. Don't throw stones at her.

^This hub stuff is a mess all over again, it seems. But I don't think an additional 30-minute flight east to St. Louis is going to be much of an issue.

Plus, when I measure the potential competition from KC, this is what I put together.

St. Louis Disadvantages

1.Poor promotion/marketing of metro transportation distribution system. KC has its KC SMARTPORT website. St. Louis - not so much. St. Louis is so lame in this area. Information is all over the place. This has to change regardless. Better marketing is essential to growth.
2. KC is planning to build a new airport. They potentially could entice an international air cargo freight-forwarder to build new facilities in conjunction.
3. BNSF's new 443-acre intermodal facility.
4. New 4-lane CKC Corridor bypasses St. Louis and goes fairly straight to Chicago.

A Draw (no advantage for either region)
1. Tie. Locally-based major corporate ground freight-forwarders - St. Louis: UniGroup (United/Mayflower), Kansas City: Yellow
2. Tie. Six Class I railroads. However, KC does have Kansas City Southern based there.

St. Louis Advantages

1. St. Louis (Lambert and MidAmerica) is farther along in negotiations with the Chinese than either Kansas City or Denver, which is also exploring air cargo from China and other countries.
2. Both airports have either tested and/or is operating regular international air cargo flights.
3. Lambert has excess facility capacity that can be tweaked and utilized almost immediately.
4. St. Louis is the closest metro to 3/4th's of America's population.
5. Proximity to more domestic and international manufacturing companies/product.
6. Industrial/Warehouse Inventory. St. Louis 234-million. KC 193-million.
7. Port advantages: St. Louis - especially ag commodities. St. Louis is widely regarded as the largest inland water port for agricultural products in the world. Read this article from Inbound Logistics.
8. St. Louis interstate advantage. Plus major interstate connectors I-57 and I-24 (Nashville and Atlanta) traverse the region. Even U.S. 61 (Avenue of The Saints) ties into I-35 (MSP).

dredger wrote:^ Gone Corporate, this is the only time I have seen her name mentioned...

Understandable. Here's some background...

House Bill 1476 (2012) to establish the Freight Forwarders Incentive Act (pretty much what's underway today). This bill never made it into law as the MO General Assembly couldn't overcome the power of the "no nothings" that prevented the Trade Hub legislation in 2011 (when it was called "Aerotropolis").
http://www.house.mo.gov/billsummary.asp ... 012&code=R

An article from Frank DeGraaf last year mentioned HB 1476:
http://nextstl.com/transportation/once- ... onal-cargo

Very much, I agree that it would be preferable to just have the submitted legislation go right through the General Assembly and be passed as was written by Senator Eric Schmitt. Same time, that's not how legislation usually goes, and amendations are common and often necessary to win support from various interests. And, what Senator Schmitt has going forward now is pretty much the same thing that Reps Zerr & Leara fought for last year with HB 1476: $60M x 8 years for freight forwarders.

If it needs to include airports other than just Lambert in order to pass, then so be it. Quite frankly, no other airport in MO is anywhere close to where Lambert is today in attracting & securing international cargo flights. These amendations don't mean the sky is falling all over again.

Making Global Local -- St. Louis Aiming to be Gateway of Opportunity
In 2011, Missouri's trade with China grew 18%.
Adrienne Selko
Jan. 22, 2013

A successful strategic plan often calls for determining areas of strength and building upon it. That’s exactly what St. Louis is doing based on the state’s strong record of trade with China. The growth in 2011 was valued at $1.2 billion.

A successful strategic plan often calls for determining areas of strength and building upon it. That’s exactly what St. Louis is doing based on the state’s strong record of trade with China.

In 2011, Missouri's trade with China grew 18%. In 2010 growth was even stronger increasing 44%.

The growth in 2011 was valued at $1.2 billion, with copper scrap, fan parts, lead ores, aluminum scrap, and semiconductor devices among China’s most demanded Missouri commodities.

Exports translate directly into jobs. Since 2010, 21% percent of Missouri’s total employment, or 774,300 jobs can be tied to trade-supported jobs.

Part of the job growth was brought about due to programs and initiatives created by the World Trade Center of St. Louis. This group is focusing on ways to keep the momentum going.

“By offering to become a freight hub for China, St. Louis is positioning itself as a spot for international activity,” explained Tim Nowak, executive director for the World Trade Center of St. Louis. “The Lambert-St. Louis International Airport is set to become a Midwest hub for trade, increasing the $1 billion in goods that Missouri exports to China annually.”

Steps to ensure success include a national partnership with the U.S. Trade and Development Agency. St. Louis was selected to be involved in the Making Global Local initiative. This partnership will enable targeted reverse trade missions to St. Louis, connecting interested local companies with foreign buyers.

Trade Missions Useful Tool

“We are working with World Trade Center and its Asia Trade Desk to position St. Louis for further business opportunities in Asia through specialized training and high‐level trade missions.” said Denny Coleman, CEO of the St. Louis County Economic Council.

A recent trade mission occurred last November in Hangzhou, when more than a dozen businesses and two universities participated in the 5th U.S.-China Transportation Forum, held jointly by the U.S. Department of Transportation and the Chinese Ministry of Transport.

Also last year executives from Boeing, Monsanto, Emerson, Innoventor and Nestle Purina PetCare completed a trade mission to Indonesia.

Specialized training is taking the form of a new online Chancellor’s Certificate in International Trade that is being offered through the University of Missouri.

The certificate is a six-month online training program, providing participants with the opportunity to learn practical aspects of international business from experienced industry professionals.

(Read More)

Great article on STL being a strong location as a new Third Party Logistics Hub
Source: http://interact.stltoday.com/pr/busines ... O4.twitter

^ Trust me, actions are still hopping for the Trade Hub initiative, just not necessarily in Jeff City. Have to be vague right now, sorry, but believe me when I say that this is not a forgotten opportunity. Will talk more when I have clearance...