urbanSTL

So would economic benefits of this FTZ stay primarily within its boundaries (NorthPark, Lambert, etc.) or could it be expected that warehouse space in the city might see a reawakening as a result?

marc buxton wrote:A couple of questions on the cargo hub thing...



Wouldn't we also be in a positon to get air freight from other countries besides China due to the tariff free zone? Why not Europe or Japan?



How long a runway does it take to land an A380? Does the new runway make it possible to handle these behemoth freighters whereas the old one would not? If so, the new runway may actually generate some revenue.

Yes, the FTZ would be open to any international shipper; Euro and Japanese shipments could also take advantage of it.



What makes this opportunity so important in re China, I believe, are that:

1. China is an emerging economic giant with a foundation in manufacturing. The scale of total goods to be imported and exported is much larger than those of more advanced capitalist economies, many of which have begun to focus in service enterprises (intellectual capital) over manufacturing and product development. While Euro and Japanese markets have strong manufacturing, their services sectors (including financial services, legal, consulting, design, marketing, and other non-tangibles) are their leaders, with manufacturing on a specialized level. China's leadership is in broad physical product creation; their needs are more shipment-based.

2. As they are relatively new to engagement of global economics, they are expanding new logistics points of commerce with a blank slate. Euro and Japanese logistics centers are, I believe, already relatively firm with pre-established logistics hubs already in operation. As Chinese logistics hubs, sans maritime shipping, are still in the initial implementation stages (relatively speaking), being first mover is a great advantage to StL, both as a partner in seeking the opportunity with China and for the region regarding potential economic impact.

3. If we can establish a long-term relationship with China, it could prove an impetus to other advancing economies with strong manufacturing needs, including South Korea, Brazil, and India. Their impending wants for international shipment of goods & services with the United States could make long-term logistics hubbing viable beyond China. Same time, I don't want to try counting chickens before they hatch.



I don't know if A380s can land on the W-1W runway, although I assume it can, as it already lands other large planes, including 747s and C-17s.

Matt Drops The H wrote:So would economic benefits of this FTZ stay primarily within its boundaries (NorthPark, Lambert, etc.) or could it be expected that warehouse space in the city might see a reawakening as a result?

I expect the FTZ areas to become quickly filled with warehouses, taking custody of goods from China for shipment throughout the central US. Concurrently, I see the increased utility of the Lambert FTZ igniting stronger demand for warehousing and manufacturing space across the metro area. I would definitely include North StL sites, based on their already being built out and their proximity to the highway, Lambert, and the upcoming new Mississippi River Bridge. I also see logistics hubs able to sprout up across the area; I bet we could see strong growth along other highways, including 255 in IL (the Dupo Discovery project) and along 44 near Fenton (depending on what becomes of Chrysler; they may have a strong need for reconstructing their tax base).



Everyone: Keep your eyes out for the G20 negotiations with China this week. Should pledges of increased commerce be declared between our countries, we could potentially see action on this development progress at a quicker pace in the short future.

does Memphis' cargo volume include FedEx? but memphis is the transfer hub and not the final destination

JMStokes wrote:

shadrach wrote:does Memphis' cargo volume include FedEx? but memphis is the transfer hub and not the final destination

ding ding ding. Memphis is their primary hub. I imagine very little cargo ever touches Memphis.

Same thing in Indy - FedEx's second largest hub ( I think )

Straight from Wikipedia:

The A380 can land or take off on any runway that can accommodate a Boeing 747. Runway lighting and signage may need changes to provide clearance to the wings and avoid blast damage from the engines and taxiway shoulders may be required to be stabilized to reduce the likelihood of foreign object damage caused to (or by) the outboard engines, which overhang more than 25 m (82 ft) from the centre line of the aircraft.

A380 being serviced by three separate jetways at Frankfurt Airport; two for the main deck and one for the upper deck.



The pavement of most runways will not need to be reinforced despite the higher weight, as it is distributed on more wheels than in other aircraft (22 wheels, four more than the Boeing 747, and eight more than the Boeing 777). Airbus measured pavement loads using a 540-tonne (595 short tons) ballasted test rig, designed to replicate the landing gear of the A380. The rig was towed over a section of pavement at Airbus' facilities that had been instrumented with embedded load sensors.

Hey there - point taken. We're likely talking cargo here so modifications wouldn't be needed for passenger terminals. Of course if it couldn't land on our runways the idea would be dead, since it appears to be able to we then have to consider if the infrastructure is in place or able to be built - as you stated.

goat314 wrote:Interesting Article On Mike Jones, an important individual of the Midwest China Trade Commission.



"Mike Jones – part of St. Louis County Executive Charlie Dooley’s core leadership team – has opened a business office in Beijing."



link: http://www.stlamerican.com/articles/200 ... ness01.txt



Quotes I found interesting.......



“The face of St. Louis is going to change. The growth it is going to create in the long term is unimaginable to me. If you come back in 30 years, this place will not be the same place then if we don’t pull it off.”



“We need a game-changer. We need a paradigm shift vis-a-vis how we position ourselves in the national and world economies. If we can pull that off, with economic growth a lot of these other issues that seem intractable – race, class – become more manageable problems.”

True that. Get the StL region to have a significantly higher tax base, and monies will be used to fix a whole myriad of things. Think about: Metro, schools, quality of roadways, policing. That’s just public works; new incomes from companies new to the area will propel us massively forward, including I bet some high paying industry sectors that set up large operations in StL in part to capitalize on this deal (i.e.: biotech).



Whoever said money is the root of all evil DOESN’T F*CKING HAVE ANY. This will bring the money in by the planeload.



My favorite quotes:

Mike Jones: "… Because of (British businessman & ally Stephen Perry)’s credibility, we had initial discussions at the highest levels, which made all of the difference in the world. That’s why we are on the very, very fast track." (emphasis mine)

Way to show your hand without showing your hand.



Also:

One major issue: the “backhaul.”



“China knows what it can bring here. It’s always about what is going back,” Jones said.



“What is going back and why it would leave from St. Louis. Right now, it’s not flying to China or it’s flying from somewhere else.”



The idea of a new “backhaul” – of the U.S. producing and exporting new goods to China, rather than the other way around – is attractive to China at the highest policy levels, Jones said.

Or: Getting this deal means a massive increase in total manufactured goods shipments to StL for later flight to China. Better yet: To save on these costs, firms across the US move their operations to the Metro StL area to capitalize on the trade hub. Look for new companies, new jobs, and massive commercial developments should this deal take place, especially for North Park but also warehousing hubs around the outer highways and massive industrial development in close proximity to Lambert.



Both sides are very aware of the current account balances for trade between our countries. We want high quality goods for cheap; they want new technologies & luxury goods. If we can send them prescription drugs and the highest quality of beef & biotech crops, we'll get our flat screens, Li Ning athletic shoes, and everything else we buy, because it's all made in China.

Arch_Genesis wrote:http://en.wikipedia.org/wiki/World%27s_ ... statistics



I'm just curious, would a potential hub have to make this list to be considered successful? ... Could we crack this list? Should this deal crack this list? ... I'm also pretty surprised Memphis is the busiest airport of them all. I'm also not quick to think of Memphis as an international city. Could it be that this is just the sole feather in their cap and they've peaked?

Let’s look at some history. From the 1980s-1990s, Lambert was one of the busiest airports in the country, serving as a major hub for transcontinental flights for TWA and other major airlines. To compete, other airports searched out for non-airline business, including the developing industries related to air shipments, capitalizing on centralized proximate geography. From this, Memphis is now home to FedEx, which owns that place (their terminal sucks as 747s take off steadily), with Indy as FedEx’s #2, and Louisville’s major build-out for UPS. Today, these airports are thriving as Lambert sits back without the American flights post-TWA acquisition. The new W-1W runway was built to handle the amount of traffic for the at-the-time retained hub before industry consolidation cancelled Lambert out for the preexisting American hubs at DFW and O’Hare. It makes sense; after all, we’re in the Post-9/11 world and are lucky gas isn’t $4/gallon, let alone jet fuel at higher prices.



Today, Lambert and Mid America are underutilized. They have the necessary geographic proximities to the rest of the US (as well as the route to Latin America), they are both underutilized by means of operational infrastructure, they are surrounded by developable land for logistics, both have immediate & priority access to the refinery in IL for jet fuel, and they can cooperate with like synergies, so that mutual development can elevate the status of both airports’ operations, and especially for the same air client.



Being currently under our potential is essential. They won’t go to Chicago because it’s too damn crowded. Assuming passenger traffic remains the same (I expect growth with or without the deal), should the daily flights from Lambert double, we’d probably hit this list.

Dredger wrote:A bigger question, what will the State and the region do to pursue what is needed.

These are politicians. They'd whore out their own mothers to get a deal like this done. And forget the state reps who aren’t necessarily fans of urban areas; this already has both our US Senators, the Governor(s), and the US Commerce Department fighting for tangible progress.



Or: This is no BPV subsidy, this is the potential future of US import-exports to East Asia, nothing less.

Dude, Gone Corporate, you're the sh#t.





Imagining this new influx of money into the economy makes me worry about the inevitable argument...city vs. county. If most corporations that might resettle in the region set up shop in the county, do tax dollars go to the county only? Pardon my ignorance.

Now you guys are catching on to the full impact of such a relationship. I can reasonably envision so much more.



1. Chinese firms with their US bases of operation throughout StL.

2. China Air flights hubbing into the US.

3. New skyscrapers downtown that would be apt for Pudong.

4. So much new tax money it'll be hard to allocate.

(Both City, which runs Lambert, and County, with proximate developments)

5. Advancement of a high speed rail line to Chicago from the increased demand.

6. Chinatown being more than just great restaurants & fish shops.

7. JOINT VENTURES EVERYWHERE!

8. Cardinals baseball being the favorite of the Midwest, the South (from KMOX), and, coming soon, the Eastern Provinces.

9. 747s, commercial and then passenger, darting across the skies constantly.

10. StL becomes known as the centralized air hub for East Asia and Latin America.

^ If it were anyone else I'd call bullsh!t, but I don't think this is far off. AND assuming that there is going to be a Chinese cargo hub somewhere between SF and NYC it's going to be STL.