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(618) 566-5656 A Special Feature of Southwest Illinois News |
MASCOUTAH, IL (SWI-NEWS.com), October 31, 2008 - The first weekly floral shipment from Bogotá, Colombia, landed at MidAmerica St. Louis Airport at 6:00 a.m. on Thursday. The DC-10 Arrow Air Cargo flight arrival affirms the airport's position as a key Midwestern distribution hub for Miami-based Teqflor International Logistics. The airport was chosen for its ideally-suited location and is expected to play a key role in increasing Midwest exporting capabilities to 21 different Latin American markets. "Being positioned as a distribution hub for plane shipments of imported and exported goods speaks to the significance of Southwestern Illinois' intermodal capabilities," stated St. Clair County Board Chairman Mark Kern. "These are the first, direct intercontinental cargo flights to utilize our distribution and warehousing offerings. It's great news for St. Clair County and the entire St. Louis metropolitan region." The intercontinental flight from Bogotá, Colombia in South America arrived direct carrying as much as 70 tons of fresh flowers imported from Colombia and Ecuador. To put the size of the shipment in context, that's the weight equivalent of 70 Volkswagen Beetle cars. The shipment was transferred through 19,000 square-feet of the airport's cargo warehouse space which boasts 163,000 cubic feet of refrigerated space. Fresh Connections, a joint venture between Teqflor, Mission Cargo and Baisch & Skinner Wholesale Floral Distributors, can now begin timely shipments to 40 percent of the United States market for perishables. Subsequent shipments will arrive direct at MidAmerica every Thursday. These imported shipments are bypassing extremely congested southern ports, getting the product to customers faster, while saving them money on handling charges. "Eighty percent of Latin American exports are perishable and need to get to the point of sale quickly," stated Manuel Aragon, a partner in Teqflor International Logistics. "The location of this airport serves as an excellent and necessary gateway to middle American regions." John Baisch of Baisch & Skinner Wholesale Floral Distributors added, "The real economic benefit of the new service is quickness to market and freshness of product, therefore improving consumers' satisfaction with their purchases of our product. Because of the emphasis we put on a continuous cold chain and the quickness to market, Fresh Connections LLC can ensure that products shipped through MidAmerica will enhance the end consumers' enjoyment of the flowers." Once unloaded, the planes will be filled with products originating in the Midwest and flown to Miami International Airport for onward transfer into Arrow Air's extensive Central and South American route network. Future growth anticipates direct service from MidAmerica to key destinations in Latin America. Discussions are at an advanced stage to link major international freight forwarders in Asia with Latin America using MidAmerica St. Louis Airport as a cost-efficient, timely and economically-effective transfer point. Aragon noted the significance of being able to export products directly from the Midwest, stating, "There is a strong demand in Brazil and other Latin American markets for tractors, food processing and other industrial goods. We will be exporting parts, equipment and high-tech devices used for manufacturing and processing to 21 different markets - a long footprint in Latin America." Aragon continued by noting, "The initiation of cargo flights from MidAmerica Airport opens the door to global trade for hundreds and perhaps thousands of small and medium sized companies in the twelve state mid-America region. These enterprises can now benefit from new and expanded numbers of markets for their exports of the goods and services that create new jobs and expanded market opportunities." St. Clair County invested nearly $3 million in refrigeration and specialized cargo handling equipment to secure Teqflor International Logistics' business. The company signed a 20-year lease with MidAmerica St. Louis Airport, and will pay the county $365,000 a year in years two through 10, after which time the rent will be based on fair market value. The county expects the venture to initially create 25 new jobs and bring in $200,000 annually in landing fees, ultimately generating $5 million in revenue over 10 years. MidAmerica will also sell the jet fuel that powers the airplanes for their southbound trips, with each flight consuming half a million gallons of fuel annually. MidAmerica St. Louis Airport beats out its competition when compared in an International Cargo Movement Analysis prepared by Aviation Transportation Business Solutions, LLC. "It was determined that MidAmerica can process cargo and get it to 30 out of 45 destination cities in a shorter period of time when compared to O'Hare International Airport in Chicago, Ill., and Rickenbacker International Airport in Columbus, Ohio," added Tim Cantwell, Director of MidAmerica St. Louis Airport. "We are central, fast, cost effective and somewhat of an unknown treasure. And with the weekly flight from Bogotá expected to grow to two per week by the end of the year and three per week by Valentines Day 2009, we look forward to this part of our business model really taking off."
As with all other Foreign Trade Zones, Zone #31 is a specifically designated, highly secure US Government-approved area, where US Customs import/export procedures are permitted to facilitate the effective handling of shipments and transactions in the least restrictive environment available. Foreign Trade Zone #31 helps companies improve their international business practices and maximize their profits by offering lower insurance, lower shrinkage, a reduced Merchandise Process Fee, the destruction of off-spec or bad products, simplified procedures that make faster processes and the flexibility to transfer from Zone to Zone. "This cargo operation is helping to fulfill a key area of focus outlined in our long-term business model, which calls for Joint Use Operations first, International Cargo Operations second, and Leisure Passengers third," added Cantwell. "We put the resources in place to create an environment appealing to the cargo industry. Now, we are looking to Teqflor and other businesses to help fuel our vision and capitalize on our offerings."
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