Local Companies: International Markets.

The phrase "international trade" conjures images of ships, airplanes and ports. But there is more to trade than meets the eye. It's not enough to move your goods from point A to point B, say three Chamber members who offer insiders perspectives on doing business in the qlobal marketplace.

Their stories reveal that doing business in foreign countries requires new, unique business skills. Whether it's understanding the infrastructure of transportation and delivery systems, the do's and don'ts of foreign protocol or the changing political climate, you need to be one-third businessperson, one-third ambassador and one-third politician.

Santa Monica-headquartered Cadiz Inc. and its wholly owned subsidiary, Sun World International, Inc., have teamed up to become a dynamic duo on both water and agricultural products -- domestically and internationally. And, in the process, they've established themselves as a company that knows how to work with foreign governments. Cadiz is an industry leader in water management and agricultural operations and owns 57,000 acres throughout California, all near major aqueduct systems. Sun World specializes in desert farming, international marketing and the development and production of proprietary products, such as their patented seedless grapes. When the government of Egypt decided to irrigate more than 500,000 acres of arid, undeveloped desert in its South Valley, the unique qualifications of these two companies made them a natural fit for the project.

Planning and Perserverance Key

While the first shipment of water from Lake Nasser to the first of four South Valley sites in Egypt won't happen until later this year, Al Masse, Cadiz vice president of corporate development, shares some important reminders about doing business abroad.

"In developing an agricultural enterprise as unprecedented in size and remote in location as the Tushka Project, we learned that planning and perseverance are as important as your desert farming expertise," says Masse.

No matter how experienced and expert you may be, he says, you're going to run into some pretty daunting challenges, especially in unexpected delays as you cope with building in an undeveloped area without established infrastructures, without transportation and delivery systems, or historical weather data.

"Recognition of proprietary products and intellectual property rights vary from country to country," adds Masse. "In any foreign enterprise, it's important to know how the government and private sector operate and to have productive, cooperative working relationships with both."

Many business leaders involved in international trade echo that sentiment. Among them is Brian Williams, chief financial officer of Sunshine Industries, an import and export company located in Covina that specializes in the sale of spare parts, particularly for aircraft. Sunshine does about 90 percent of its business with the Turkish government and looks to build upon its success there to expand to neighboring countries like Greece.

Start Small

Williams advises any company looking to build its international clientele to start small and focus on outstanding performance.

"Especially with foreign government contracts, it is critically important to perform on time and within budget, meeting all contract specifications," warns Williams. "Failure to do so can result in getting banned from all future contract work with that government."

Williams' advice to international start-ups is the same that he offers to individuals participating in his after-business-hours work with the California Venture Forum, a nonprofit organization that mentors entrepreneurs on how to find investors for their new business ideas.

"Make sure your new business plans are backed by sound financing plans. How you're going to pay for the first couple years' inventory cannot be an after-thought," he says.

One place to find expert assistance and foreign connections is at the Los Angeles Area Chamber of Commerce, says Chamber Chairman Charles Woo, chief executive officer for toy importer Megatoys. The Chamber, through its LA Trade program, helps its members establish themselves in the global market place with private consulting, international fairs, trade missions, business delegations and local trade programs.

"Business delegations from around the world visit the Chamber seeking new business opportunities," Woo says. "Members have access to these groups.

Time is Money

Those who are involved in world trade know that not only does inventory cost money, time costs money as well, says Guy Fox, chairman of the board of Global Transportation Services, Inc., an international air and ocean freight forwarder and licensed customs house broker.

"Imagine an aircraft that needs a navigation gauge sitting on a tarmac in Singapore," says Fox. "Not only is the airline paying tarmac fees, but the airplane is out of service and losing passenger or freight revenue as well."

To satisfy this aircraft customer, explains Fox, you need a tracking system that addresses and anticipates questions about where in transit is the gauge, when will it clear customs, when will it arrive at the airplane and be delivered to the mechanic for installation.

"We're in the business of 'knowing,' not 'supposing' answers," says Fox, whose business is about 80 percent sea freight and 20 percent air freight. Summing up the current environment for those in international trade, Fox says it's an industry for people "who can understand and handle a sense of urgency every day - 365/24."

Trade Facts

* If the Los Angeles five-county metro area were a separate nation, its $499 billion gross product would be exceeded by only 10 nations.

* Los Angeles County's two main ports, the Port of Los Angeles and the Port of Long Beach, form the busiest port in the United States and the third-busiest port in the world.

* The two ports now handle one-fourth of all U.S. international ship trade with an annual value of $116 billion. By the year 2010, the value of this trade is expected to grow to $253 billion.

* Toy industry analysts say that more than 60 percent of the toys sold in U.S. retail stores and imported into the country are distributed from Los Angeles, making it the nation's top toy distribution center.

Port Expansion Opens Doors to World's Markets

Already one of the busiest ports in the world, the Port of Los Angeles continues to add capacity to move cargo between U.S. and world markets. Larry A. Keller, Executive Director of the Port of Los Angeles, recently spoke to Business Trends about the port's impact on the region's economy.

Q: How will the expansion of the Port of Los Angeles impact businesses in the region?

A: Continued growth at the Port of Los Angeles brings business opportunities to both manufacturing and retail sectors. For example, the port's agreement with Maersk Sealand to operate a container terminal in the Los Angeles Port conservatively means $2 billion to the city and port over the course of the 26-year lease. Beyond that, however, is a ripple effect within the greater L.A. area as goods and services are provided in support of additional cargo traffic coming through the port. Port business currently accounts for one out of every 24 jobs in this region. Continued growth means added impact to the local workforce.

Q: When the Alameda Corridor to completed, how can businesses utilize it?

A: Developments like the Alameda Corridor, as well as other infrastructure projects at the port, provide seamless delivery of goods to the region's consumers and businesses through improved surface and rail transportation. In addition, the improved local truck access achieved by the corridor means significant development of adjacent properties such as the former GM plant and other sites, which have been underutilized.

Q: What can small and medium sized businesses do to more efficiently use the Port of Los Angeles?

A: Growth at the Port means greater opportunities for all business, small and large. The steamship carriers calling at the Port provide local businesses with global access at a cost efficient rate. Small and medium sized companies should, therefore, make greater use of the logistics, freight forwarding or broker firms and agencies available to help them with worldwide sourcing and networking.