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September 18: Air Cargo Expansion Improves Job Climate for Toledo Area

September 18, 2009

Thefederal award, Kaptur said, will be augmented by a previously-announced $2.78million state loan and $1 million BAX commitment in order to secure 800existing jobs and open the door to new air cargo service and more jobs to thesite.

"Thisaward, which further enhances Toledo'sreputation as a global distribution center, will create good-payingconstruction jobs and retain hundreds of jobs at the BAX facility," saidCongresswoman Kaptur. "Air cargo is acrucial piece of Toledo'smulti-modal transportation advantage."

Thefederal award is the centerpiece of a $7.2 millionfunding package to build a customs facility and truck terminal at the BAX huband relocate the hub's maintenance

Congresswoman Kaptur was also joined at the event by Michael J. Stolarczyk, president of the port authority, and Ford Weber, president of the LCIC.

Mr. Stolarczyk said the project would make the air cargo operations at Toledo Express more competitive. "Once complete, the BAX Global cargo hub will be the premier international air cargo facility in the country--a truly efficient, loow-cost, high throughput operation. Toledo Express Airport has an economic impact of $640 million for northwest Ohio. Reinvestments in this regional asset, such as this grant and the $1 million commitment from BAX Global, ensure our viability and encourage growth." Mr. Stolarczyk said the Toledo facility is not only "low cost," but benefits from proximity to "every mode of transportation known to man," including highway, rail, waterborne and air.

Representative Szollosi said, "Our message to the people of Northwest Ohio is clear: this is about jobs."

Congresswoman Kaptur said, "Distribution is one of our area's strategicadvantages due to our location. This expansionallows us to position ourselves to be more efficient and competitive and tolead the way in intermodal distribution." Kaptur noted that the number oflogistics terminals and services is shrinking, pointing to the loss of the DHLfacility in Wilmington.

She said intermodal transportations connectionsare becoming increasingly important factors when companies make crucial siteselection decisions. Kaptur has beeninvolved in efforts to promote multi-modal transportation opportunities in thearea, including a visit to NovaScotia to work on the "Atlantic Gateway" concept.

ToledoExpress has emerged as the main hub for BAX Global on the North Americancontinent. BAX, a subsidiary of DeutscheBahn AG, one of the largest mobility and logistics companies in the world,operates a 300,000 square-foot facility, including 4,500 square feet of coldstorage, at Toledo Express.

BAXoperates approximately 20 domestic and international flights daily at the Toledo airport, offeringcapacity to freight forwarding firms.

Theexpansion project will involve a sorting facility that can accommodatewide-body aircraft and greater capacity to handle bulk loads and a "cross dock" to expedite the transfer ofmaterial between airplanes and trucks, improving overall efficiency andreducing inventory storage costs.

CongresswomanKaptur said the project is expected to take 12-18 months to complete.

Shenoted that Toledo Express enjoys easy access to deepwater port facilities, thethird largest rail center in the United States,and major highway access via the Ohio Turnpike/I-75 Corridor, which is locatedwithin 500 miles of 50 percent of the U.S. and Canadian industrialmarkets.