Commission works on China hub deal
Suburban Journals
Tuesday, August 18, 2009
By Scott Bandle
A St. Louis County commission will know in eight to 12 months if China wants to use the area as a Midwestern trade hub.
China is interested in establishing a "beach head" in the Midwest, using Lambert International Airport if it is cost effective, said Michael Jones, head of the Midwest China Hub Commission and senior policy advisor to St. Louis County Executive Charlie Dooley.
"We've been successful at the initial part of the deal with China," said Jones at Thursday's Northwest Chamber of Commerce meeting. "Right now, we have to develop and prove that the market does exist. We're currently negotiating with two Chinese airlines."
The Midwest China Hub Commission was developed in 2008 and is composed of 13 Missouri, St. Louis County and St. Louis City entities.
Most of China's trade hubs are on the east and west coasts. The Midwest is an open market for China for goods to be shipped back and forth, Jones said.
The cost is key. It's expensive to fly freight from China to St. Louis. The Chinese delegation wants to make sure it will be worth the cost, Jones said.
The commission will begin to negotiate and develop plans with freight haulers throughout the country about the hub possibilities. If it goes into effect, the China hub could provide thousands of jobs in St. Louis and throughout the country, Jones said.
A Chinese delegation visited St. Louis and was impressed with the airport and its facilities. Lambert is a Foreign-Trade Zone with facilities including the Hazelwood Commerce Center, Lindbergh Distribution Center, NorthPark and a 75-acre site owned by the airport.
It's important to impress the Chinese government, Jones said.
"With China, business is first done government to government, and then business to business," he said.
China also wants to establish markets in Latin America. It is too expensive to ship directly to Latin America. The St. Louis hub could provide a port of entry for Latin American countries. They would first ship to Miami, then connect with St. Louis, Jones said.
"This is a transformational opportunity for us," Jones said. "It's a chance to really make St. Louis a trade center."
