Lambert to add $40M in air cargo facilities
St. Louis Business Journal
December 2, 2009
by Kelsey Volkmann
Lambert-St. Louis International Airport officials have selected a developer of air cargo distribution warehouses to develop 76 acres at the airport to bolster trade efforts, particularly with China.
The airport commission is expected to review a development agreement Wednesday with Aeroterm LLC, which has offices in Annapolis, Md., Houston and Montreal. Aeroterm would pay a $1.5 million privilege fee and invest at least $40 million over the next decade on the so-called "Northern tract" site, which was once housed a Boeing Corp. aircraft fabrication facility and office complex, according to documents from the airport.
Aeroterm, operating as Aero St. Louis, would have to attract tenants for air cargo operations, freight and/or a fixed-based operator to provide services for general aviation aircraft. Within two years of signing the agreement, the company would have to start developing, with the first phase encompassing 17 acres.
"This is a milestone for the airport," outgoing airport director Dick Hrabko said. "This is the first time the airport has reached out with a different emphasis than passenger service alone. It allows us to create revenue, keep costs down for carriers and create jobs."
Currently, the airport has a cargo facility that handles small packages for FedEx and UPS.
Aeroterm's Web site said the company has more than $2 billion in transactions and current assets owned or under development at many of the world's leading airports, including major air cargo hubs such as John F. Kennedy International Airport and Miami International Airport, where the company is the largest private developer, owner and manager of real estate assets. The company also is developing cargo operations at Chicago's O'Hare International Airport.
Lambert officials has wanted to partner with Aeroterm on cargo operations for years but the recession delayed plans, Hrabko said.
Last month, Gov. Jay Nixon's administration said it was providing $1.1 million in federal community development block grant funding toward landing a Chinese freight airline at Lambert.
The money will go toward conducting studies to prove the plan's business viability and hiring air-freight expert and former DHL executive Guenter Rohrmann.
Mike Jones, chief policy adviser for St. Louis County Chief Executive Dooley, is leading the region's efforts to make St. Louis an air-freight hub for China.
