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Monday, August 07, 2006
Phyllis Schlafly :: Townhall.com Columnist
Shipping-corridor deal cuts heart out of heartland
by Phyllis Schlafly
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Grass-roots Americans of all parties and economic classes rose up out of their political apathy a few months ago and forced President George W. Bush to reverse his administration's decision to allow a Middle East government to own America's major ports. But the push for foreign ownership continues: the next port scheduled to be taken over is Kansas City, Mo.

Even though public schools stopped teaching geography a couple of decades ago, most Americans (especially residents of the Show Me State) are surprised to learn that Kansas City (where the only waves are "amber waves of grain") is a port. We are also surprised, and shocked, to discover that Mexico will be running its own inspection facility there. The plan, shrouded in secrecy, has been in the works for at least three years, but it is now coming to light because of the diligent use of Missouri's Sunshine law by concerned citizens. Joyce Mucci and Francis Semler forced the release of the e-mails from Kansas City to Mexico, including one admitting that "The space (in Kansas City) would need to be designated as Mexican sovereign territory."

SmartPort representatives are now running away from this written admission, blaming "the problems and pressure the media attention has created." However, the stubborn sovereignty issue won't go away; the plan does involve setting up Mexican customs officials in downtown Kansas City.

The mechanism for this deal is a "nonprofit" business economic development corporation called Kansas City SmartPort Inc., whose president is Chris J.F. Gutierrez. The deal calls for Kansas City to lease the valuable property at 1447 Liberty St.

As laid out on SmartPort's Web site, the plan is to enable products made in China to travel in sealed "containers nonstop from the Far East by way of Mexico," through "a ships-to-rail terminal at the port of Lazaro Cardenas, Mexico," then up "the evolving trade corridor" to Kansas City, Mo., where they would have their first inspection. A Kansas City SmartPort brochure explains further: "Kansas City offers the opportunity for sealed cargo containers to travel to Mexican port cities with virtually no border delays."

A key purpose of the project is to take jobs away from U.S. longshoremen in Los Angeles and Long Beach, Calif., who earn $140,000 a year, and replace them with Mexican laborers at $10,000 a year. U.S. truck drivers and railroad workers will likewise be replaced by Mexicans.

The port of Lazaro Cardenas, on the west coast of southern Mexico, is controlled by Hutchison Whampoa, the same giant Hong Kong shipping firm that owns the ports at both ends of the Panama Canal. Chinese-made goods will be carried by Kansas City Southern Railway de Mexico directly to Kansas City, where freight will be distributed east and west and on to Canada.

Kansas City Southern was originally a belt railway around Kansas City but, after buying various Mexican rail companies and tracks, KCS controls a 2,600-mile artery from Lazaro Cardenas to Kansas City. KCS President Michael Haverty was one of five U.S. businessmen who met with President Bush, Mexican President Vicente Fox and Canadian Prime Minister Stephen Harper at their March summit in Cancun, Mexico.

Mexico was at first expected to pay for the big, expensive machines to conduct high-tech gamma-ray screening for drive-through inspections of containers, but Mexico declined the honor. SmartPort has applied for a $1.5 million grant from the U.S. Economic Development Administration (i.e., to get the U.S. taxpayers to pay for the machines). The Kansas City City Council has already earmarked $2.5 million in loans and $600,000 in direct aid to SmartPort, which would build and own the facility and then sublet it to the Mexican government. The cost could go as high as $6 million because Kansas City has an existing lease that runs through 2045 on the same property with the 107-year-old American Royal, which uses that land for its annual livestock/rodeo/barbecue event.

The last piece in finalizing this project is getting the U.S. State Department to approve the Mexican operation on U.S. soil by signing off on what is called the C-175 document. It has already been approved by U.S. Customs. Meanwhile, NASCO (North America's SuperCorridor Coalition Inc.), another nonprofit business organization, has taken on the mission of building an "international, integrated and secure, multimodal transportation system" from Lazaro Cardenas through Kansas City and up to Winnipeg, Canada. This will allow Mexican trucks to haul goods along a 12-lane superhighway through the heartland of the United States.

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About The Author

Phyllis Schlafly is a national leader of the pro-family movement, a nationally syndicated columnist and author of Feminist Fantasies.
 
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Int corridor from Nuevo Loredo, Mexico
Several weeks ago, I printed a map of the "corridor/highway" and now I am unable to find this said map. Can you shed some light for me and/or send me a copy of the map showing just the exact states, etc that this "highway will cover?
I do appreciate your help!
THANKS so much!

Joan Nicodemus
JMN7955@outdrs.net

The Facts
This article has a number of inaccuracies.

• “Mexico will be running its own inspection facility there [Kansas City].” – The KC Customs Port will employ both U.S. and Mexican Customs officials just like the current facilities in place at our nation’s borders. It’s important to remember the KC Customs Port is for OUTBOUND (south-bound) freight only. It’s a facility that ONLY U.S. companies will use. It will help U.S. companies expedite the process of shipping their products to customers in Mexico.

• “The plan, shrouded in secrecy, has been in the works for at least three years, but it is now coming to light because of the diligent use of Missouri’s Sunshine law” – Local and national media have been covering the progress of the KC Customs Port for the last two years including articles by the Associated Press, Los Angeles Times, Dallas Morning News and Dow Jones Newswires. The discussions that took place over e-mail were just that – speculative discussions early on in the process. Over the course of the last two years, it has been decided that the land will NOT be sovereign to Mexico.

• “SmartPort representatives are now running away from this written admission blaming the problems and pressure the media attention has created.” - SmartPort is excited and optimistic about this project. Because the project was and is not complete, several items were being discussed. KC SmartPort is not running away. In fact, they've been very open.

• A key purpose of the project is to take jobs away from U.S. longshoremen.” – The key purpose is to assist U.S. companies in the growing global marketplace. SmartPort is an economic development organization. It wants companies to consider KC. KC has the infrastructure to handle the influx in freight.

• “As laid out on SmartPort’s web site, the plan is to enable products make in China to travel in sealed containers nonstop from the Far East by way of Mexico….” - This statement refers to a separate project from the KC Customs Port. Kansas City is coordinating with Kansas City Southern Railroad to market a RAIL corridor from the deep water port of Lazaro Cardenas, Mexico up to Kansas City. There will be multiple distribution points along the way including Laredo, Dallas and New Orleans. This project is a separate, non-related effort to the KC Customs Port. There is NO crossover. However, there were early discussions about the location of the Port and if it could assist rail as well. The KC Customs Port is designed for southbound U.S. truck and trailer freight only, NOT rail.

American’s consumption of goods from the Far East has increased. America’s coastal ports are at capacity. The Lazaro Cardenas port is providing an alternative way to get products to North America. These products will come to Kansas City by way of rail. This project has also been widely reported on and in the works for more than two years. Its just that now SmarPort is marketing it to companies to whom it would be a benefit.

• “…SmartPort, which would build and own the facility and then sublet it to the Mexican government.” – There is no sublet. The U.S. and Mexican Customs will sign a use agreement with KC SmartPort to utilize the facility.

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