Federal funds rescue Missouri's Midwest China Air Hub project

MISSOURI Governor Jay Nixon, having found federal stimulus money is reportedly ready to assign US$1.1 million to pay for studies and marketing required before the building of Midwest China Air Hub can begin its progress to creation.

Members of the region's Midwest China Hub Commission said that Governor Nixon had agreed to free up the money, which is $800,000 more than he offered two weeks ago, and enough to get the project off the ground, reported the St Louis Post-Dispatch

After failing to get enough from the state, federal funds designated for economic development were found from the Community Development Block Grant programme for housing and job creation.

The state must approve an application before the Hub Commission gets its money. But Mr Jones said he was confident it would happen.

"Basically, we're back in the game," said hub commission chairman Mike Jones. "We're tremendously grateful to the governor for figuring this out. If this works, it works, we won't fail."

Earlier this year, the Missouri legislature set aside $2 million to help fund the project. But the governor froze it as part of $325 million in spending cuts to cope with the state's budget shortfall.

St Louis business and union groups have been lobbying for state subsidies to create the facility that is supposed to be the major US base for air freight from China. Two weeks ago, citing "historic economic challenges," the governor's spokesman said the state could only contribute $300,000 - not enough to keep the project going.

However the commission had already reached deals with Chinese authorities to study air service, but needs to make a business case to airlines and freight forwarders that there's enough demand to support regular flights between St. Louis and China.

For that, they want to hire Guenter Rohrmann, a renowned air freight expert and former top executive at DHL. He's the kind of person who can sell St Louis to the cargo industry, Mr Jones said. But his fee is $931,000, and the Hub Commission, funded by local governments and business groups and a federal grant, doesn't have that kind of cash.

(Source: www.schednet.com)