February 2006
Kansas City SmartPort E-News

Mexican Customs Facility Update

KC SmartPort is very close to receiving a signed commitment from Kansas City, Mo. to begin site grading and preliminary construction work for the Mexican Customs facility. The City Council approved the agreement language and funding several months ago and we are confident we will be able to break ground in the near future. KC SmartPort, TranSystems Corp. and a team from both U.S. and Mexican Customs recently met in KC to review final design plans of the facility and will submit these plans to the City for the necessary permits.

Border Security Seminar

This World Trade Week event sponsored by the International Trade Council of KC and KC SmartPort is scheduled for March 22 from 7:30-12:00 at the Kauffman Foundation. The conference will discuss the latest efforts by U.S., Mexico and Canada related to border security and new trade programs to stream line border crossing efficiencies. We will also be talking about the documentation and process of clearing shipments for import or export and of course the Mexican Customs facility here in KC.

An additional World Trade Week seminar will be a program on the new CAFTA-DR (Central America-Dominican Republic-United States Free Trade Agreement) that will take place from 8 a.m. to 1:30 p.m. on March 7 at the Kauffman Foundation.

For more information on these and other trade and transportation events in the KC area please visit the SmartPort calendar.

Transportation Industry Outlook

The transportation industry is seeing an immense demand for all carriers. Imports from China have spiked by 33.2 percent and U.S. exports by 13.7 percent. Boeing's World Air Cargo Forecast predicts that China's domestic air cargo could grow at 10.6 percent at an annual rate for the next 17 years. This significant growth in imports has prompted alternative freight routes by all modes of transportation and Kansas City is well prepared and equipped to serve as a facilitator in the growing logistics industry. Looking forward, KC fully expects a positive growth year for 2006. To learn more visit 2006 Outlook.

Testing Continues on ITS

Four technology test shipments have now been assessed on tractors and trailers during their travels to and through the border in Mexico. Each of the shipments is utilizing various technologies that EDS (formerly BV Solutions Group) is applying and tracking. Priority Logistics assisted in developing the test loads. Progress continues to be made on deciphering which technologies work best. Approximately $6 million in federal funding has been dedicated to the use of Intelligent Transportation Systems.

Investor Profile: Watkins & Co.

Watkins & Company, Inc. was formed by Rick Watkins in 1990 to specialize in building industrial distribution and warehouse product. Since its inception, Watkins has expanded its scope of services providing property management, construction services, and brokerage and development services to clients in all areas of real estate. Watkins staff includes a CPA, in house counsel, a government incentives specialist, property managers, a construction manager and brokers.

In the last five years, Watkins has built 250,000 sf of speculative warehouse space, assisted in the formation of two Community Improvement Districts in Westport, and renovated the historic Western Union Building (housing their new offices). Current projects include a specialty entertainment project, plans for several large box distribution facilities, new projects in Westport, and development of several industrial land tracts around the metro.

For more information please visit Watkins & Co.