Article
link: http://www.missourinet.com/2010/02/01/g ... ed-states/
Audio of the press conference
link: http://www.missourinet.com/wp-content/u ... nzhong.MP3
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^ Bad link.
http://www.globe-democrat.com/news/2010 ... china-hub/
http://www.globe-democrat.com/news/2010 ... china-hub/
And true or not, there's this nugget:Mike Jones, senior policy advisor to St. Louis County Executive Charlie A. Dooley and chairman of the Midwest China Hub Commission (MCHC), said there was no reason to come to St. Louis in the 19th Century.
Until the Eads Bridge was built in 1874 and opened commerce to the eastern half of the United States with Missouri and beyond. And the same holds true for increasing commerce between China and St. Louis, he said.
Implementing a China Hub, or the “Big Idea,” a phrase coined by the Chinese, for import and export between the two countries will only happen when St. Louis establishes itself as an air hub for the transfer of goods.
Jones said the “Big Idea” began in 2007 when developer Paul McKee was trying to find a way to develop the NorthPark industrial area near Lambert St. Louis International Airport. That effort eventually evolved into a trade missions to China led by Sens. Christopher “Kit” Bond and a Claire McCaskill.
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I was at that meeting last night, and it really was a good one.
Mike Jones' somewhat provocative comment about "no reason to come to StL" is actually right and quite insightful under the framework of political geography. What made the area so important in the 18th & early 19th Centuries was the confluence of the Mississippi & Missouri Rivers, and what made it important in the late 19th and early 20th Centuries was the Eads Bridge bringing rail across the Mississippi into the West. Both of these positioned StL as a hub for commerce while utilizing the natural and man-made infrastructures heading West and East.
The importance of the Big Idea is positioning and establishing StL as a trade hub for the whole Midwest. While there are already bases for Chinese commerce on the East and West coasts, there isn't one fully established yet for the Midwest. The whole idea is preemptive action to position StL alongside Chicago as the focus for all commerce within the Midwest. Just as Long Beach is their hub for cargo ships, hopefully StL will be their hub for air freight as demand becomes apparent.
Since we don't have an ocean port, and since they can't get their goods here by either rail, road, or river with ease, the importance of air freight to Lambert & Mid America give geographic purpose to the metro area again. Even predominant weather condition make StL a prime location for such a hub to be established, as well as providing a basing for Chinese trade into Latin America.
Insights that I picked up from the meeting:
- One of StL's competitive advantages with our negotiations with China is the involvement and advocacy of Stephen Perry, a consultant whose influence is seen as key in establishing the viability of the StL area as a base for commerce.
- A comparable framework for interaction was said to be the 48 Group Club, the group of business leaders from Great Britain who set up trade with China during the Cold War. It's a truly fascinating example of establishing commerce and exchange between the West and China. Do check out their website: http://www.48groupclub.org to get an understanding of what they're about.
- Ambassador Zhou has said he's had the warmest reception in the US by the State of Missouri, moreso even than in DC.
- Also, Ambassador Zhou is soon to be transitioning to a new job, as his ambassadorship is set to expire. It is assumed that this would lead to a promotion, but where he's heading is unknown. Also unknown is exactly who the Chinese will name to succeed him, but the Commission heads said they're prepping to meet whomever is named to the ambassadorship.
- Regarding competition for StL: The primary air cargo exporters to China from the area StL could cover are, in order: Chicago, Atlanta, and Dallas. They account for about 92% of Midwest air cargo flights to China today. This makes perfect sense. The role of the China Hub is to emphasize how StL would be ideal for China for establishing their own hub. Part of this consideration is driving distance for manufacturers of goods shipped by air to China, including Emerson Electric. By basing shipping in StL, China could potentially save on net costs of shipping.
- Much talk was being made of EB5 Investor Visas, which provide for US residency for non-US citizens who bring with them an economic impact to the US and allow them to live in the US by establishing a notable economic impact through their actions brought on by their domestic residency. The Commission sees much progress in setting up EB5 Investor Visas to the Chinese looking to invest in StL.
Four major themes were:
1. That the focus is based on Chinese-based Air Cargo becoming a viable entity in the international logistics business. As Chinese air cargo grows, they will want to handle air cargo themselves as opposed to relying on outsourcing it to non-Chinese cargo firms (note how our major competitors above are not FedEx or UPS hubs in Memphis, Indianapolis, or Louisville). When Air China or some other shipping entity from China is primed to engage the US markets, we want them to be hubbed in StL. And yes, it is hoped that civilian travel will follow shortly thereafter.
2. Both the US and China are interested in continued and growing trade. Despite all the financial news that has come out about potential trade wars, arms shipments to Taiwan, and arguing over the RMB/Yuan float, it is seen that the current goals of both the US and the Chinese are to cooperatively boost trade in order to recognize mutual growth in our respective economies.
3. The framework for all negotiations with China is:
Relationships, then Trade, then Investment
We are building great relationships, we anticipate trade, and then we should see local investment.
4. Assuming we can prove ample goods can be sourced to ship to China (within the consultants' ongoing analysis of the Midwest's capabilities for export), we can anticipate the first flights being set for the Fourth Quarter of 2010.
I remain pragmatically optomistic on this deal coming through.
Mike Jones' somewhat provocative comment about "no reason to come to StL" is actually right and quite insightful under the framework of political geography. What made the area so important in the 18th & early 19th Centuries was the confluence of the Mississippi & Missouri Rivers, and what made it important in the late 19th and early 20th Centuries was the Eads Bridge bringing rail across the Mississippi into the West. Both of these positioned StL as a hub for commerce while utilizing the natural and man-made infrastructures heading West and East.
The importance of the Big Idea is positioning and establishing StL as a trade hub for the whole Midwest. While there are already bases for Chinese commerce on the East and West coasts, there isn't one fully established yet for the Midwest. The whole idea is preemptive action to position StL alongside Chicago as the focus for all commerce within the Midwest. Just as Long Beach is their hub for cargo ships, hopefully StL will be their hub for air freight as demand becomes apparent.
Since we don't have an ocean port, and since they can't get their goods here by either rail, road, or river with ease, the importance of air freight to Lambert & Mid America give geographic purpose to the metro area again. Even predominant weather condition make StL a prime location for such a hub to be established, as well as providing a basing for Chinese trade into Latin America.
Insights that I picked up from the meeting:
- One of StL's competitive advantages with our negotiations with China is the involvement and advocacy of Stephen Perry, a consultant whose influence is seen as key in establishing the viability of the StL area as a base for commerce.
- A comparable framework for interaction was said to be the 48 Group Club, the group of business leaders from Great Britain who set up trade with China during the Cold War. It's a truly fascinating example of establishing commerce and exchange between the West and China. Do check out their website: http://www.48groupclub.org to get an understanding of what they're about.
- Ambassador Zhou has said he's had the warmest reception in the US by the State of Missouri, moreso even than in DC.
- Also, Ambassador Zhou is soon to be transitioning to a new job, as his ambassadorship is set to expire. It is assumed that this would lead to a promotion, but where he's heading is unknown. Also unknown is exactly who the Chinese will name to succeed him, but the Commission heads said they're prepping to meet whomever is named to the ambassadorship.
- Regarding competition for StL: The primary air cargo exporters to China from the area StL could cover are, in order: Chicago, Atlanta, and Dallas. They account for about 92% of Midwest air cargo flights to China today. This makes perfect sense. The role of the China Hub is to emphasize how StL would be ideal for China for establishing their own hub. Part of this consideration is driving distance for manufacturers of goods shipped by air to China, including Emerson Electric. By basing shipping in StL, China could potentially save on net costs of shipping.
- Much talk was being made of EB5 Investor Visas, which provide for US residency for non-US citizens who bring with them an economic impact to the US and allow them to live in the US by establishing a notable economic impact through their actions brought on by their domestic residency. The Commission sees much progress in setting up EB5 Investor Visas to the Chinese looking to invest in StL.
Four major themes were:
1. That the focus is based on Chinese-based Air Cargo becoming a viable entity in the international logistics business. As Chinese air cargo grows, they will want to handle air cargo themselves as opposed to relying on outsourcing it to non-Chinese cargo firms (note how our major competitors above are not FedEx or UPS hubs in Memphis, Indianapolis, or Louisville). When Air China or some other shipping entity from China is primed to engage the US markets, we want them to be hubbed in StL. And yes, it is hoped that civilian travel will follow shortly thereafter.
2. Both the US and China are interested in continued and growing trade. Despite all the financial news that has come out about potential trade wars, arms shipments to Taiwan, and arguing over the RMB/Yuan float, it is seen that the current goals of both the US and the Chinese are to cooperatively boost trade in order to recognize mutual growth in our respective economies.
3. The framework for all negotiations with China is:
Relationships, then Trade, then Investment
We are building great relationships, we anticipate trade, and then we should see local investment.
4. Assuming we can prove ample goods can be sourced to ship to China (within the consultants' ongoing analysis of the Midwest's capabilities for export), we can anticipate the first flights being set for the Fourth Quarter of 2010.
I remain pragmatically optomistic on this deal coming through.
What needs to be done to make this real? Will there be a contract? If so how long is it for? I take it there is an army of lawyers and customs officials that would draft the logistic details
Excellent summary, Grover.
Still, I am totally confused about one major question: what are the tangible benefits of this deal to the city of St. Louis, as opposed to North County? Will we be seeing more Earth City's popping up around the region (and in the city)?
Still, I am totally confused about one major question: what are the tangible benefits of this deal to the city of St. Louis, as opposed to North County? Will we be seeing more Earth City's popping up around the region (and in the city)?
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I assume you meant the summary by Gone Corporate.stldotage wrote:Excellent summary, Grover.
Still, I am totally confused about one major question: what are the tangible benefits of this deal to the city of St. Louis, as opposed to North County? Will we be seeing more Earth City's popping up around the region (and in the city)?
And I think the same way we always preach that what's good for downtown is good for the metro works the other way a bit too. More jobs around the airport is good for the region. Maybe a company would locate a headquarters downtown, maybe. Importers, exporters are going to want to be close to lawyers and government officials.
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This would be akin to having a major international seaport transported to what is now an under-utilized airport and proximate noise-abated lands, with direct trade in the fastest growing economy in the world directly to us. Even with fears of the Chinese economic model being flawed, you only need to look to the 1,300 million people who live there having direct trade with 3 million of us in Saint Louis, then setting us up as their aerial port of entry to the United States.Grover wrote:I assume you meant the summary by Gone Corporate.stldotage wrote:Excellent summary, Grover.
Still, I am totally confused about one major question: what are the tangible benefits of this deal to the city of St. Louis, as opposed to North County? Will we be seeing more Earth City's popping up around the region (and in the city)?
And I think the same way we always preach that what's good for downtown is good for the metro works the other way a bit too. More jobs around the airport is good for the region. Maybe a company would locate a headquarters downtown, maybe. Importers, exporters are going to want to be close to lawyers and government officials.
And don't think of just the international trade partners we'd have flying into StL; how many other Americans would want to come here to share in the bounty, bringing with them jobs and their skills? How many new Fortune 500 companies would want to set up shop here? We all want new development in Downtown; how about a big company or two relocating here for proximate geography?
Think big. Think really big.
I would suggest that Slay offer dual ownership of Lambert with the county as a big step in making the region more competitive in order to secure the air hub. First, It would give conty residents something tangible and destroy the misconcecption that the county loses out on Slay's other idea of bringing the city back into the county. I'm a big supporting of that concept. Second, I would argure that the county's as well as the states best hope for development in trade and transportation is now hinged upon Lambert. Railroads have already built their large intermodal and distribution hubs elsewhere and the river has never been competitive for anything other then bulk materials, even then pipelines and unit grain trains have taken a big chunk of the business off the river. More importantly, where else can you find this much free trade zone developable land with freeways, rail and transit already in place. Third, Lambert is already a self supporting entity and economical doesn't give the City a boost. What the city just as much as the county needs, as Gone Corporate notes, is a big influx of business willing and wanting to set up shop in the region.
I'm also a county resident and see the political, economical benefits of the city being brought into the county. As county and city residents we are already paying for Zoo/science/art museum, etc. not too mention the fact that my wife pays into city earnings tax.
St. Louis leaders going back to China for more cargo hub talks
At the very least, St. Louis civic leaders are racking up lots of frequent flier miles with their China air cargo hub project.
Another local delegation is heading to Beijing next week, this time to try and pitch Lambert St. Louis International Airport to specific Chinese airlines as a site to base cargo operations in the U.S. They leave next Friday and return the following weekend.
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http://twitter.com/MayorSlay/statuses/11078873846
I guess I was the only one up to catch this at three in the morning
http://en.wikipedia.org/wiki/Hainan_Airlines
What do you think?
I guess I was the only one up to catch this at three in the morning
Some background info:Just left a meeting with Vice Governor of Hainan Provence. Now on to meeting with Hainan Airlines. Will invite its reps to #STL. #fgs
http://en.wikipedia.org/wiki/Hainan_Airlines
What do you think?
^^^ I think if we land one of those major Chinese airlines we are going to see a massive influx of Chinese people and businesses. I was looking them up and they only have 4 direct flights to the US (Seattle, Chicago, Newark, and Honolulu) and all of these areas have large Asian populations and business presences. When the Asian community sees that St. Louis offers direct flight we will definitely see an influx of Chinese, because of our low cost of living and central location. I could see Olive St. becoming a legitimate Chinatown.
Who told you that?Moorlander wrote:^ I hear North Grand for the new C town.
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Arch_Genesis wrote:http://twitter.com/MayorSlay/statuses/11078873846
I guess I was the only one up to catch this at three in the morning
Some background info:Just left a meeting with Vice Governor of Hainan Provence. Now on to meeting with Hainan Airlines. Will invite its reps to #STL. #fgs
http://en.wikipedia.org/wiki/Hainan_Airlines
What do you think?
I think any influx would start very slowly and could take a decade to really get moving. That said, there are some good links to China in St. Louis - WU works with several Chinese University for just one example. Anyone arrive in St. Louis due to this deal would likely be upper management and other professionals so I'm betting they would move to West County before the City. Just my take.
More China Hub New
Ink 4 preliminary agreements with Chinese Airlines.
http://www.stltoday.com/stltoday/busine ... enDocument
Ink 4 preliminary agreements with Chinese Airlines.
http://www.stltoday.com/stltoday/busine ... enDocument
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I doubt U City will ever let that part of Olive Blvd become an official Chinatown. Many U City officials and African American business oppose it. I rather see a new Chinatown in West County where majority of the Chinese/Asians live.goat314 wrote: When the Asian community sees that St. Louis offers direct flight we will definitely see an influx of Chinese, because of our low cost of living and central location. I could see Olive St. becoming a legitimate Chinatown.
Also there is something new coming to U City, which I will mention in another thread.
No offense but I really wouldn't like to see a Chinatown in Chesterfield. Also do you think that Chesterfield would be anymore receptive to the idea than U-City?10-intuition wrote:I doubt U City will ever let that part of Olive Blvd become an official Chinatown. Many U City officials and African American business oppose it. I rather see a new Chinatown in West County where majority of the Chinese/Asians live.goat314 wrote: When the Asian community sees that St. Louis offers direct flight we will definitely see an influx of Chinese, because of our low cost of living and central location. I could see Olive St. becoming a legitimate Chinatown.
Also there is something new coming to U City, which I will mention in another thread.
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It may just be a deal to study cargo flights, but it's another essential step. Seems like there's quite a bit of momentum going here. I don't doubt that Mayor Slay is representing the region well to the Chinese, and I know others are involved, but it's kind of silly to have the mayor of 350,000 representing 2.8M.goat314 wrote:More China Hub New
Ink 4 preliminary agreements with Chinese Airlines.
http://www.stltoday.com/stltoday/busine ... enDocument
How optimistic is everyone on this? I will be very excited if this happens. I know I read somewhere that they could possibly invest here. Could you see St Louis having a large Asian influence this century?
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I'll be interested to see what others think, but I'm optimistic. I don't think there will be huge change overnight, but St. Louis seems like an easy front-runner for Chinese access to middle America. I don't think there are very many other great options. I may be partial as a born-and-raised Hoosier, but I actually think Indianapolis would be/could be a more central international player due to its geography. Especially with potential high-speed rail, Indy could be an easy commute for Chicago, Louisville, Cincinnati and Columbus - and not much further for St. Louis and Chicago. Anyway, a lot of money has been invested at this point and St. Louis is certainly much, much further ahead of any other city in the process.
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From everything i've read and heard, everything is proceeding slowly but proceeding. We just need to figure out what's going back on those planes.