WTC Overview 2011_Carnahan Event
Transcript of WTC Overview 2011_Carnahan Event
8/4/2019 WTC Overview 2011_Carnahan Event
http://slidepdf.com/reader/full/wtc-overview-2011carnahan-event 1/27
Exporting: New Initiatives to Expand
American Business Global Market Share
August 26, 2011
Tim Nowak
Executive Director
8/4/2019 WTC Overview 2011_Carnahan Event
http://slidepdf.com/reader/full/wtc-overview-2011carnahan-event 2/27
What We Do
Facilitate economic development
through the growth of international
trade & investment
1. Trade Education and Programs2. Business to Business
Connections
3. Foreign Market Research
4. Special Projects
8/4/2019 WTC Overview 2011_Carnahan Event
http://slidepdf.com/reader/full/wtc-overview-2011carnahan-event 3/27
Training & Programs
Region’s most comprehensiveinternational-focused education
and training programs
Examples:
Export Compliance (June)
INCOTERMS (August 31st)U.S. China Trade with U.S. China
Business Council (June)
2010, these programs provided
the tools of international trade to
more than 650 peoplerepresenting 466 companies
8/4/2019 WTC Overview 2011_Carnahan Event
http://slidepdf.com/reader/full/wtc-overview-2011carnahan-event 4/27
Training & Programs
Growing Global Awards Luncheon
Established in 1998. Largest
international business event
675 attendees representing >200companies
Timely issues affecting global
business
Recognizing international businessexcellence
8/4/2019 WTC Overview 2011_Carnahan Event
http://slidepdf.com/reader/full/wtc-overview-2011carnahan-event 5/27
Business Connections
One-on-one meetingswith companies based on
markets of interest
Business site visits
Boeing, Monsanto,Express Scripts,
Savvis, Sigma-Aldrich
Congressman Carnahan
instrumental in Germanrelationships
8/4/2019 WTC Overview 2011_Carnahan Event
http://slidepdf.com/reader/full/wtc-overview-2011carnahan-event 6/27
Business Connections
Coordinate trade and investment delegations
2010 – 9 Inbound and 3 outbound delegations
China, Germany, France
Raising St. Louis’ international profile
8/4/2019 WTC Overview 2011_Carnahan Event
http://slidepdf.com/reader/full/wtc-overview-2011carnahan-event 7/27
Foreign Market Research
“Desktop” research using proprietarydata, government, industry association
and news media sources
Trade statistics – Customs data from 175
countries – by commodity, classification,
and code
Buyers and Suppliers – Identify and connect
Academic Advisory Board partnership
to obtain top students as interns for
international projects
Washington University, SLU, UMSL, SIUE,
Webster
Local and foreign interns engaged
8/4/2019 WTC Overview 2011_Carnahan Event
http://slidepdf.com/reader/full/wtc-overview-2011carnahan-event 8/27
8/4/2019 WTC Overview 2011_Carnahan Event
http://slidepdf.com/reader/full/wtc-overview-2011carnahan-event 9/27
Establish direct airfreight connections between
St. Louis and Shanghai, China.
Increase market share of air cargo flown
between U.S. and China on St. Louis-based
Chinese freight carriers
Expand opportunities for Midwest businesses
to access new Asian markets – increased
exports
Assist China companies in establishing a major
Midwest presence from which to do business
with the heartland of America
The New China Gateway
8/4/2019 WTC Overview 2011_Carnahan Event
http://slidepdf.com/reader/full/wtc-overview-2011carnahan-event 10/27
Progress to Date
2008 Feb. 2008: Ambassador Zhou Wenzhong visit to St. Louis Mar 2008: Congressional and business 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 Dec 2008: $1.7 M EDA Planning Grant awarded to WTC & St. Louis County Economic Council
2009 Jan 2009: Ambassador Zhou visit announced Midwest-China Hub Commission (MCHC) formation Mar 2009: MCHC delegation to China – led by Mayor Slay May 2009: Chinese Investment Promotion Agency (CIPA) delegation visit to St. Louis Sept 2009: Chairman Wu Bangguo meets with U.S. Senators Bond and McCaskill Nov 2009: Commission - China Overseas Investment Fair in Beijing Dec 2009: Chinese Embassy (Washington, D.C.) hosted dinner in honor of Hub Commission
2010 Feb 2010: Ambassador Zhou attended state dinner hosted by Governor Jay Nixon
Mar 2010: St. Louis Mayor Francis Slay led delegation to China June 2010: Meetings with airlines and freight forwarders in Shanghai Aug 2010: Missouri Senator led delegation to Beijing and Shanghai Nov 2010: CAAC / CATA delegation with China Cargo Airlines visit to St. Louis Nov 2010: All China Federation of Industry and Commerce (ACFIC) delegation
8/4/2019 WTC Overview 2011_Carnahan Event
http://slidepdf.com/reader/full/wtc-overview-2011carnahan-event 11/27
Progress
8/4/2019 WTC Overview 2011_Carnahan Event
http://slidepdf.com/reader/full/wtc-overview-2011carnahan-event 12/27
Delegation led by U.S.
Senators Kit Bond and
Claire McCaskill
Meetings with Chinese Air
Transportation Association(CATA) and Chinese airlines
Memorandum of
Understanding signed
Future visit in Fall by Civil
Aviation Administration of
China (CAAC) and Chinese
airlines
Aug 2010 Delegation
8/4/2019 WTC Overview 2011_Carnahan Event
http://slidepdf.com/reader/full/wtc-overview-2011carnahan-event 13/27
Chinese delegation visits St.
Louis per MOU signed in
August
Led by CATA and CAAC
Visit includes reps from
Air China
China Southern
China Eastern / China Cargo
Next step - Chinese airline to
negotiate agreement
Nov 2010 Delegation
8/4/2019 WTC Overview 2011_Carnahan Event
http://slidepdf.com/reader/full/wtc-overview-2011carnahan-event 14/27
China Cargo, a subsidiary
of China Eastern, declared
as the carrier to negotiate
with Lambert-St. Louis Int’l
Airport
Follow up trip to China by
Lambert representatives
Flights tentatively
scheduled to begin in 4th Q
2011.
Jan 2011 Announcement
8/4/2019 WTC Overview 2011_Carnahan Event
http://slidepdf.com/reader/full/wtc-overview-2011carnahan-event 15/27
Delegation visits St. Louis as
part of President Hu Jintao
state visit to United States
Shanghai Foreign
Investment DevelopmentBoard (FID) – Jan and May
2011
Memorandum of
Understanding - Mutual
Cooperation
Formalize trade and
investment relationship
between St. Louis and
Shanghai, China
Jan & May 2011 Shanghai FID
8/4/2019 WTC Overview 2011_Carnahan Event
http://slidepdf.com/reader/full/wtc-overview-2011carnahan-event 16/27
China Cargo teams visit St.
Louis – May and July, 2011
Further negotiations and
technical data gathering
Meetings with Latin
American carriers
Shared goal – Flights by end
of 2011
May / July 2011 China Cargo
8/4/2019 WTC Overview 2011_Carnahan Event
http://slidepdf.com/reader/full/wtc-overview-2011carnahan-event 17/27
Midwest--The Heart of America
20 states – 1.3 million square miles
130 million people – 43 percent of total U.S. population
Combined gross state products of $5.2 trillion – 40 percent of U.S. GDP
52 percent of total U.S. manufacturing employment and 53 percent of total U.S. gross
manufacturing product
Headquarters for 233 Fortune 500 companies
8/4/2019 WTC Overview 2011_Carnahan Event
http://slidepdf.com/reader/full/wtc-overview-2011carnahan-event 18/27
Win – Win Strategy
Expand bi-lateral trade & investment
Supports China’s “Go Out ” policy, 12th
Five year plan
– Raise brands up value chain with
presence in U.S. Creates demand for MO products in
China
Creates jobs and economic opportunity
- Repositioning St. Louis in the global
economy
8/4/2019 WTC Overview 2011_Carnahan Event
http://slidepdf.com/reader/full/wtc-overview-2011carnahan-event 19/27
Backhaul Research
St. Louis Commerce Magazine, January 2011
8/4/2019 WTC Overview 2011_Carnahan Event
http://slidepdf.com/reader/full/wtc-overview-2011carnahan-event 20/27
500 Mile Catchment Area
Potential Reach for STL
1. Missouri
2. Illinois3. Indiana
4. Ohio
5. Kentucky
6. Tennessee
7. Alabama
8. Mississippi
9. Arkansas10. Oklahoma
11. Kansas
12. Nebraska
13. Iowa
14. Wisconsin
8/4/2019 WTC Overview 2011_Carnahan Event
http://slidepdf.com/reader/full/wtc-overview-2011carnahan-event 21/27
Catchment Shippers by State
Key Indicators
1. 67,593,993 KG (2010)
2. 1,299,884 KG per week
1,299 metric tons per week
Top 7 states account for 89% of all
Midwest airfreight to China
Illinois and Ohio are largest airfreight
shippers to China
Origin of Movement Data
Source: WISER Trade, US Census FTD, WTC Research
Rank State ANNUAL 2010
TOTAL ALL STATES 67,593,993.00
1 Illinois 15,789,921.00
2 Ohio 13,943,058.00
3 Wisconsin 10,077,629.00
4 Indiana 8,528,614.00
5 Kentucky 4,238,838.00
6 Missouri 4,212,767.00
7 Tennessee 3,669,215.00
8 Iowa 1,651,603.00
9 Alabama 1,350,583.00
10 Arkansas 1,105,043.00
11 Nebraska 903,266.00
12 Oklahoma 835,418.00
13 Kansas 817,511.00
14 Mississippi 470,527.00
8/4/2019 WTC Overview 2011_Carnahan Event
http://slidepdf.com/reader/full/wtc-overview-2011carnahan-event 22/27
Catchment Shippers by Commodity
Key Indicators
1. 67,593,993 KG (2010)
2. 1,299,884 KG per week
1,299 metric tons per week
Top 20 products account for 26% of all
Midwest airfreight to China (YTD)
Top 100 products account for 58% of
all Midwest airfreight to China (YTD)
Origin of Movement Data
Source: WISER Trade, US Census FTD, WTC Research
Rank Code Description ANNUAL 2010
TOTAL ALL COMMODITIES 67,593,993.00
1 841490 Air/Gas Pump, Compressor And Fan Etc Parts, Nesoi 2,477,427.00
2 840999 Spark-Ignition Reciprocating Int Com Pistn Eng 1,870,239.00
3 280461 Silicon Contain By Wt Nt < 99.99% Of Silicon 1,149,215.00
4 870810 Bumpers And Parts, For Motor Vehicles 1,083,900.00
5 940190 Parts Of Seats (Ex Medical, Barber, Dental Etc) 1,079,565.00
6 382200 Composite Diagnostic/Lab Reagents, Exc Pharmaceut 832,438.007 841480 Air/Gas Pumps, Compressors And Fans Etc, Nesoi 809,883.00
8 854411 Insulated Winding Wire Of Copper 775,209.00
9 850440 Static Converters; Adp Power Supplies 766,914.00
10 853890 Pt F Elect Appr F Elect Circt; F Elct Contrl Nesoi 750,395.00
11 854449 Insulated Electric Conductors =< 80 V Nesoi 716,473.00
12 722550 Flt-Rld Oth Alloy Stl 600mm Om W, Cld-Rld 690,013.00
13 732020Helical Springs Of Iron Or Steel 653,129.00
14 841350 Reciprocating Positive Displacement Pumps, Nesoi 640,459.00
15 853669 Elect Plugs & Sockets F Voltage Not Over 1000 V 639,011.00
16 848180 Taps Cocks Etc F Pipe Vat Inc Thermo Control Nesoi 613,741.00
17 880000 Civilian Aircraft, Engines, And Parts 598,677.00
18 900190 Lenses Prisms Mirrors Optcl Elmnt N Optically Work 535,447.00
19 901819 Electro-Diagnostic Apparatus Nesoi, And Parts Etc. 535,139.00
20 870880 Suspension Shock Absorbers For Motor Vehicles 534,815.00
8/4/2019 WTC Overview 2011_Carnahan Event
http://slidepdf.com/reader/full/wtc-overview-2011carnahan-event 23/27
Catchment Exports Growing to China
•
Exports growing since 1998 (with the unique exception of 2009)• CAGR = 19.75% since 2001 (10 years)
• China is now United States’ #1 airfreight customer
Source: WISER Trade, US Census FTD, WTC Research
8/4/2019 WTC Overview 2011_Carnahan Event
http://slidepdf.com/reader/full/wtc-overview-2011carnahan-event 24/27
July 2009 to June 2010Export / Import in KG
Air Freight Returns to China with ¼ of Imported Weight
0
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
ORD DFW ATL
30.1% 19.3% 23.2%
Average 26.7%
0
200,000,000
400,000,000
600,000,000
800,000,000
1,000,000,000
1,200,000,000
US Exports US Imports
US Backhaul 23.1%
Exports Imports
Source: US Census, WTC Research, WISER Trade
8/4/2019 WTC Overview 2011_Carnahan Event
http://slidepdf.com/reader/full/wtc-overview-2011carnahan-event 25/27
100% (100,000 KG) 14/week (720/year)
50% (50,000 KG) 28/week (1,439/year)
35% (35,000 KG) 40/week (2,056/year)
100% (100,000 KG) 7/week (360/year)
50% (50,000 KG) 14/week (720/year)
35% (35,000 KG) 20/week (1,028/year)
100% (100,000 KG) 5/week (252/year)
50% (50,000 KG) 10/week (504/year)
35% (35,000 KG) 14/week (720/year)
100% (100,000 KG) 3/week (180/year)
50% (50,000 KG) 7/week (360/year)
35% (35,000 KG) 10/week (514/year)
100% (100,000 KG) 1/week (72/year)
50% (50,000 KG) 3/week (144/year)
35% (35,000 KG) 4/week (206/year)
% of
Catch Area KG
% of
Plane Capacity KG
Equivalent Number
of Flights
100% of Catchment Area Export = 71,972,726 KG
Catchment Backhaul – 2011 Estimation
Source: WISER Trade, US Census FTD, WTC Research
100%
50%
35%
25%
10%
8/4/2019 WTC Overview 2011_Carnahan Event
http://slidepdf.com/reader/full/wtc-overview-2011carnahan-event 26/27
“To have a direct transportation hub from St. Louis to China will really position St. Louis as a hub of
international trade. We are proud to have provided an almost $2 million grant from the
Department of Commerce's EDA to help on the feasibility and engineering aspects of this project.”
United States Secretary of Commerce Gary Locke
September 24, 2010
Summary