Ties That Bind - Bay Area Council Economic Institute

More documents

Recommendations

Info

54 Ties That Bind 2003–05, shipments to Taiwan fell from 47,000 metric tons of machinery, scrap metal, wood pulp and petroleum products to 15,000 metric tons of industrial earths only. Bulk exports of wood pulp and petroleum products to Hong Kong rose from 13,000 to 53,000 over 2002–04, then fell to zero in 2005. The top 10 containerized exports to greater China through the Bay Area reveal a very different mix of commodities. The list is identical by order of volume for the PRC, Hong Kong and Taiwan, even though actual volumes vary: PRC/Hong Kong/Taiwan Aluminum ingots/shapes Animal feed Beverages (incl. alcoholic) Industrial clay Raw cotton Dried fruit/nuts Drugs/chemicals Earths/related commodities Foodstuffs Hay Bay Area Airports: People and Cargo San Francisco International Airport (SFO) dominates international air traffic moving into and out of the Bay Area, handling nearly all of the combination passenger-cargo and pure cargo operations of regular commercial airlines passing through the region. No commercial carriers out of Oakland International Airport (OAK) or San Jose International Airport (SJC) International Airports offer direct China flights. Air integrators such as FedEx, UPS, Airborne and DHL serve all three airports, but only SFO and OAK have international flights. SFO reported 3.8 million passengers traveling to and from Asia in 2005, most of those direct but with some connecting passengers only passing through the Bay Area. That number was up 3.8% over 2004, and represents the largest component of international travelers moving through the airport—nearly half of the total of 8 million SFO passengers in 2005. One advantage the Bay Area offers business travelers in particular is non-stop air service to multiple destinations in Greater China. SFO is a hub for the transpacific operations of United Airlines and Hong Kong carrier Cathay Pacific, and a major stop for Taiwan-based China Airlines. American Airlines, Air China, Continental Airlines, China Southern, China Eastern and United all offer direct flights to and from the mainland. In addition to Hong Kong service, United Airlines offers non-stop service to Beijing and Shanghai from its SFO hub—one of only five U.S. airports with non-stop connections to China. United plans to add seven weekly flights to Taipei and three to Hong Kong in 2007. In a recent
Bay Area-China Trade: Behind the Numbers agreement that will strengthen its role as a national and international service base, United will also perform maintenance on Chinese carrier Air China’s Boeing 747 and 777 engines at it’s SFO maintenance facility. Cathay Pacific and Singapore Airlines also provide non-stop service from SFO to Hong Kong, and Taiwan carriers China Airlines and EVA airlines both provide direct service to Taipei. While shipments through Bay Area ports generally involve heavier, lower value products, air shipments are generally lighter weight, higher value products. In 2005, SFO handled close to 227,000 metric tons of air freight and mail moving to and from Asia. More than 671,000 total metric tons of air cargo moved through OAK, most of it via integrators, with no breakdown by country available. FedEx has made Oakland International Airport one of its six U.S. hubs since 1987, and currently employs 1,700 workers at a 350,000-square foot facility that handles 250,000 packages daily. With international shipment volume growing faster than domestic business, Oakland will play a key role in the company’s growth in Asia. FedEx took an early lead in the fast-growing international shipping business between Asia and the U.S., first with its purchase of Asian cargo airline Flying Tigers in 1989, followed in 1995 by the acquisition of China air routes from Evergreen International. FedEx expanded its China service from 23 to 26 weekly flights in early 2006 and has been awarded four more flights starting in March 2007. In December 2008 it will shift its Asia hub from Subic Bay in the Philippines to a $150 million facility in Guangzhou, around the time it completes a major Oakland expansion. FedEx currently has 3000 employees in China, a number that will double upon the completion of its acquisition of FedEx joint venture partner DTW Group. Competitor UPS, which also serves Oakland, plans to open a Shanghai hub to serve China in 2007. Its Asia hub is slated to remain in the Philippines. Air cargo growth from China to the U.S. is forecast to grow by an average 9.6% annually through 2025, as tech and other high-value business shipments increase and as online and catalogue sales grow. U.S.-China traffic will also expand as per capita incomes rise, China’s consumer markets develop and logistical infrastructure extends inland. Infrastructure—roads in particular—has historically been a major problem for logistics companies like FedEx, which rely at the end of their service chains on ground delivery. The quality of China’s road system is improving rapidly, however, with a 60% expansion in its highway network in the last five years. Falling tariff barriers as China implements its WTO obligations can also be expected to stimulate trade growth. U.S. Census Bureau data offer a breakdown of airfreight imports and exports between the San Francisco Customs District and greater China. Census reports that 2005 air cargo imports from greater China totaled 59,026 metric tons with a value of $8.78 billion. Air exports to greater China via Northern California gateways during 2005 amounted to 36,103 metric tons of air freight, valued at $6.84 billion. Leading commodities by volume in both directions are shown below: 55
Page 2 and 3:
The Bay Area Economic Forum wishes
Page 4 and 5:
Bay Area Economic Forum 201 Califor
Page 7 and 8:
Table of Contents Introduction ....
Page 9 and 10:
Introduction About This Report The
Page 11 and 12: Introduction dollar-denominated ass
Page 13 and 14: Introduction practices of their sup
Page 15 and 16: Executive Summary The San Francisco
Page 17 and 18: Executive Summary As Silicon Valley
Page 19 and 20: Executive Summary 8. Establish regi
Page 21 and 22: 1 A Rich History of Work and Reward
Page 23 and 24: A Rich History of Work and Reward m
Page 25 and 26: A Rich History of Work and Reward t
Page 27 and 28: A Rich History of Work and Reward T
Page 29 and 30: 2 New Networks Emerge The Bay Area
Page 31 and 32: New Networks Emerge With scholarshi
Page 33 and 34: New Networks Emerge nomic Law; the
Page 35 and 36: New Networks Emerge and academics f
Page 37 and 38: New Networks Emerge schools on the
Page 39 and 40: New Networks Emerge Hong Kong and T
Page 41 and 42: New Networks Emerge financing—ban
Page 43 and 44: New Networks Emerge Since the mid-1
Page 45 and 46: New Networks Emerge (R&D) innovatio
Page 47 and 48: Hong Kong Seeks Its Role New Networ
Page 49 and 50: New Networks Emerge In recent years
Page 51 and 52: New Networks Emerge savings rates a
Page 53 and 54: New Networks Emerge Two, featuring
Page 55 and 56: New Networks Emerge All of the abov
Page 57 and 58: 3 Bay Area-China Trade: Behind the
Page 59 and 60: Bay Area-China Trade: Behind the Nu
Page 61: Bay Area-China Trade: Behind the Nu
Page 81 and 82: An Electronic Public Square Bay Are
Page 83 and 84: %D\ $UHD &RQQH�WLRQV Bay Area-Chi
Page 113 and 114:
4 Investment: Building Global Busin
Page 115 and 116:
Investment: Building Global Busines
Page 117 and 118:
Page 119 and 120:
Page 121 and 122:
14,000 12,000 10,000 8,000 6,000 4,
Page 123 and 124:
Page 125 and 126:
Page 127 and 128:
Page 129 and 130:
Page 131 and 132:
Page 133 and 134:
Page 135 and 136:
Page 137 and 138:
Page 139 and 140:
Page 141 and 142:
Page 143 and 144:
Page 145 and 146:
5 Building Bridges, Leveraging Asse
Page 147 and 148:
Building Bridges, Leveraging Assets
Page 149 and 150:
Building Bridges, Leveraging Assets
Page 151 and 152:
Acknowledgments This report was co-
Page 153 and 154:
Walter Reichert Hewlett-Packard Co.
Page 155 and 156:
Sources Introduction American Chamb
Page 157 and 158:
Sources Hicks, John D. “The Ameri
Page 159 and 160:
Financial Services Sources “A Gre
Page 161 and 162:
Sources Schmitt, Kellie, “Lost Ho
Page 163 and 164:
Sources “China-Based Worksoft Cre
Page 165 and 166:
Sources Guerin, Didier, “Human Ca
Page 167 and 168:
Sources Cooper, Chris, Ken DeWoskin
Page 169 and 170:
Sources Liou, Fu Tai, “How Taiwan
Page 172:
Bay Area Economic Forum 201 Califor
show all

Ties That Bind - Bay Area Council Economic Institute

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?