St. Louis The New China Gateway

St. LouisThe New China Gateway

Traffic and Safety Conference Briefing

May 10, 2010

Agenda Overall Objectives and Progress

Midwest China Hub Commission

Introduction

Geographic Benefits of St. Louis

Current Freight Analysis

Lambert Advantages

Summary

St. Louis and the Big Idea – Objectives

Expand opportunities for Midwest businesses to access new Asian markets

Increase the market share of air cargo flown between U.S. and China on St. Louis based Chinese freight carriers

Assist China businesses in establishing a major Midwest presence from which to do business with the heartland of America

Provide a platform for accessing Central and South America – as another basis for future market expansions

St. Louis and the Big Idea – Progress Feb. 2008: Ambassador Zhou Wenzhong visits St. Louis

March 2008: St. Louis delegation to Beijing MOU with MOFCOM/CAAC

April 2008: Foreign Affairs Minister Li Zhaoxing visit to St. Louis

June 2008: Vice Premier Wang Qishan visit to St. Louis

December 2008: Midwest-China Hub Commission (MCHC) formation

January 2009: Ambassador Zhou visit to St. Louis

March 2009: MCHC Delegation to China

May 2009: CIPA Delegation visits St. Louis

September 2009: Chairman Wu Bangguo meets with Senators Bond and McCaskill

November 2009: Commission participates in the China Overseas Investment Fair in Beijing

December 2009: Chinese Embassy hosts dinner in honor of the Hub Commission

January 2010: Senator Bond meets with Chairman Wu as Vice-Chairman of U.S.-China Interparliamentary Group

February 2010: Ambassador Zhou attends State Dinner hosted by Governor Jay Nixon

March 2010: St. Louis Mayor Francis Slay leads delegation to China

Midwest China Hub Commission Members

Civic Progress County of St. Louis Lambert International Airport—City of St. Louis Missouri Chamber of Commerce and Industry Missouri Partnership (MOPAR) Regional Chamber and Growth Association (RCGA) St. Charles County, Partners for Progress St. Louis County Economic Council State of Missouri – Department of Economic Development Missouri Department of Transportation (MODOT) World Trade Center Saint Louis

MCHC Executive Business CouncilsIn order for China to take advantage of the benefits offered by this region, the

Hub Commission proposes focused studies and trade missions to connect businesses to businesses, and people to people. These Councils will broaden regional understanding and support for the China Hub initiative, define the breadth of business already occurring between the St. Louis region and China, and identify new opportunities for regional trade and back-haul. Business Councils in six Unique Sectors have been formed:

Agribusiness and Nutrition Financial and Professional Services Manufacturing and International Trade Multi-Modal Logistics Management Construction and Real Estate Development Clean Energy and Sustainable Business Practices

Midwest--The Heart of America

20 states – 1.3 million square miles 130 million people – 43% of total U.S. population Combined gross state products of $5.2 trillion – 40% of U.S. GDP 52% of total U.S. manufacturing employment and 53% of total U.S. gross manufacturing

product Headquarters for 233 of the Fortune 500 companies

Targeted Catchment Area

St. Louis – the Multimodal Hub

Major highways surround Lambert International Airport. NorthPark and Hazelwood Logistic Center are approved Foreign Trade Zones. Hazelwood already has a rail head in place.

1013(9:30)

901(8:30)

482(5:00)

885(8:30)

499(5:00)

885(8:30)

467(4:30)

DistancesKilometers (hours)

1955(19:30)

630(6:15)

Total 2008 tonnage among Midwest origin airports to China was 37,000 tons.

Chicago, Atlanta, and Dallas combined count for 93% of the tonnage exported to China where Chicago counts for 52%, Atlanta for 26% and Dallas for 15%.

Shanghai tonnage among Midwest origins counts for 70% of the total tonnage exported to China in 2008, Beijing is 17 % - the remainder is spread across the other international airports in China.

Where is the Freight? 2008 Export Tonnage to China and Shanghai

Lambert-St. Louis International AirportMulti-Modal Hub

Major highways surround Lambert International Airport. NorthPark and Hazelwood Logistic Center are approved Foreign Trade Zones. Hazelwood already has a rail head in place.

No-slot airport Open for 24 hour operations Located in U.S. class B airspace ASDE-X, ground surveillance radar with Runway Safety Logic, ASR-9

and Precision Runway Monitoring systems in use

Lambert-St. Louis International Airport Features

Four Runways• Runway 12R-30L

11,019 ft. (3358 m) long200 ft. (60 m) wide

• Runway 12L-30R9,003 ft. (2744 m) long150 ft. (45 m) wide

• Runway 11-299001 ft. (2743 m) long150 ft. (45 m) wide

• Runway 06-247602 ft (2317 m) long50 ft. (45 m) wide

U.S. Customs and FDA are located on site Approved Foreign Trade Zone status

Lambert-St. Louis International AirportFeatures

Immediate availability of bonded cargo facilities ranging from 18,000 sq. ft. to 30,000 sq. ft. Direct access to the tarmac and aircraft parking area Long-term development of additional on-airport cargo facilities for next generation cargo

aircraft underway

Lambert-St. Louis International AirportCargo Facilities

Lambert-St. Louis International AirportFuture Air Cargo Development

On-Airport Site Location 75 Acres Direct Airside Access

Lambert-St. Louis International AirportFuture Air Cargo Development

Site Plan Site can accommodate 700,000 sq. ft. of facilities

1,000,000 sq. ft. of Aircraft Ramp (10 widebody positions)

Utilization of existing facilities for rapid occupancy

Lambert-St. Louis International AirportFuture Air Cargo Development

Site Perspective

Lambert-St. Louis International AirportFuture Air Cargo Development

Building Perspective

Lambert-St. Louis International Airport features:

Onsite U.S. Customs and Border Protection

Flexible working hours

Fast recovery of imported goods

Quick transit time

Lambert-St. Louis International AirportU.S. Customs and Border Protection

Summary

Key geographic advantage over any other U.S. Midwest location Strong trucking volumes can be re-routed into St. Louis region Major freeway and rail connections - excellent multi-modal opportunities Large undeveloped land in airport vicinity Lambert St. Louis International airport has all infrastructure elements in place

including a newly expanded Foreign Trade Zone Next Step: prove up a viable business model for airlines and forwarders

“…let us make Missouri, let us makeMidwest United States a new startingpoint for our future development.”

Remark by Vice Premier Wang QishanJune 16, 2008

For more information, contact us:Midwest China Hub Commission121 South Meramec, Suite 1117Clayton, MO 63105

Jason Van Eaton Doug PottsExecutive Director Project Manager573/256-2111 314/[email protected] [email protected]