"MidAmerica Airport expansion adds international cargo facility"

Tuesday, October 18, 2005

MidAmerica Airport expansion adds international cargo facility
By Michael Shaw
The St. Louis (MO) Post Dispatch


MidAmerica Airport on Monday unveiled a $6.3 million cargo facility, a
50,000-square-foot building designated as a foreign trade zone to handle
goods from abroad.

Just as when the airport opened seven years ago, there was a ribbon, a giant
pair of scissors and politicians thanking the federal government for the
money to build with. They smiled for the cameras and predicted the airport
will succeed as a hub of international trade, despite some analysts'
forecasts of tough times for the St. Clair County-owned airport.

"We're following a well-reasoned business plan," said County Board Chairman
Mark Kern, when asked if he is nervous about the county developing cargo
business from scratch. "We're meeting all our benchmarks in this plan. This
facility will spark others like it."

Federal money built the cargo facility and financed much of the airport's
$213 million cost.

Since MidAmerica's opening, passenger service has been intermittent, with
three airlines abandoning the airport or going out of business since flights
began in 2000. Another business charter service offered a few flights, then
limped out of town. The airport now has one airline, Allegiant Air, which
flies to Las Vegas.

Kern also said to expect an announcement this week on adding passenger
flights.

Airport Executive Director Tim Cantwell and elected officials see
international shipping as the most likely path to self sufficiency.

The cargo facility already has a tenant: a new venture that's expecting to
lease half the space in the building. The terms are still being resolved,
but Cantwell said the county is looking for about $5.80 a square foot for
about 26,000 square feet of space a year.

The venture, called MidAmerica Land and Development, still needs to build a
cargo business from the ground up to find success, said its principal, Jim
Williams.

"Is it going to be a booming scenario tomorrow? No," said Williams, who also
is chief executive of Sunset Transportation in St. Louis. He said he will be
working to convince freight forwarders that MidAmerica is an economical and
efficient choice.

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