Born-again Pan Am proposal puts it in line for Texas tax breaks

THE reconstituted Pan American Airways has managed to break into a state tax break scheme after airing its proposal to create US$25 million gateway for Latin American cargo from its headquarters in Brownsville, Texas to link with Missouri's Lambert-St Louis International Airport.


Pan American and World-Wide Consolidated Logistics president Bob Hedrick's application for his Brownsville airport to be included in the enterprise zone programme benefited from the support of Brownsville Economic Development Council (BEDC). The BEDC helped to prepare a proposal for a highly selective process, which eliminated projects that did not meet the criteria of a Texas Enterprise Zone project designation because they lacked sufficient economic impact and job generation.


The programme allows a company within the designated zone, an economically distressed area of the state, to apply for tax breaks and refunds on state sales on the back of capital investment and numbers of jobs generated.


Mr Hedrick's proposal projected capital investment of $95.5 million and overall job creation of 426 jobs, with retention of 18 existing jobs over a five year period.


"I can't stress how valuable it was for BEDC to help us submit it the right way," said Mr Hedrick, of a application with only 25 enterprise zone designations and 125 project applications.


Gilbert Salinas of the BEDC said the project is of great significance which is reflected in winning approval of what is an "extremely competitive process". He said in a report from Brownsville Herald: "It would tie us into several parts of the world. That makes me want to ask, 'Why haven't we done this before?'"


PAA hubs in Rio Grande Valley and St Louis for cargo between Latin America and China are at final negotiation stage, said Mr Hedrick of a plan that hopes to harness ground, rail and ocean-going transportation in addition to air cargo flights.
(Source:http://www.schednet.com)