Associations - Page 2

New value-added service to the supply chain will offer shippers transit at a lower cost

The collaborative effort to launch the first of its kind patented Container-on-Vessel (COV) service to the Midwest continues to make great progress, with several key milestones being reached in recent weeks. Work is already getting underway to prepare for the safe debut of the patented vessels, which will operate on a new, all-water, north-south trade lane connecting the St. Louis region to the lower Mississippi River and on to worldwide destinations.

“Our vision is to offer a new-value added service to the supply chain, which will provide optionality at a lower cost for the shippers,” said Sal Litrico, Chief Executive Officer of American Patriot Container Transport LLC (APCT). He said optionality is needed more than ever, given the recent transportation and logistical issues that have created major challenges for shippers with no real end in sight, coupled with exponential growth projections in containerized cargo.

Litrico said there are three key legs of the new COV service. The first is the new regional Gateway Terminal located on the Gulf Coast in Plaquemines Parish, which will provide full intermodal service at the widest and deepest part of the river with no operational constraints. The second is the strategically located Midwest partner ports, which like the Gateway Terminal will be state of the art and incorporate automation and a green footprint. The third leg is the patented, state-of-the-art, purpose-built vessel which will come in two classes – the liner vessel that will move containers on the Mississippi River and smaller, hybrid vessels that will operate in the tributary rivers. Litrico said, the vessels have significant competitive advantages, which include critical mass volume and speed.

One of the milestones recently reached is the letting of bids for construction of four new vessels, with an option for four more. These will be built in U.S. shipyards, per the Jones Act Requirement, a federal statute, and Litrico said they are continuing to work closely with interested shipyards to achieve a mutual beneficial result within the next 30 to 45 days.

Another milestone is the signing of long-term cargo commitments for Phase One of the operations, which is the service between the Gateway Terminal and Memphis, which is expected to be the first Midwest hub port to come on line. That service will include four dedicated vessels capable of making the round trip in 6.2 days. The Gateway Terminal has secured initial rail funding, and APM Terminals, which is part of Maersk, has agreed to operate the terminal. Looking at Phase Two of the initiative, Litrico said they are working with key beneficial cargo owners (BCOs) and shippers to secure cargo commitments, which will be for an additional four vessels and subsequent Midwest ports, to be determined by the shippers later this year. The operational startup date is projected to be the second half of 2024.

Hawtex Development Corporation is playing a key role in the development of the container terminals on the inland waterway systems, helping to identify suitable locations where the inland vessels could come into port and where they would develop an actual inland intermodal container yard. Memphis and the St. Louis area are two sites they have targeted. Hawtex President James Hurley said they are now under development at both sites, with potential ports also being considered for Joliet, Illinois and Fort Smith, Arkansas. Feeder ports in Jefferson City and Kansas City would also be part of the system. Focusing on the site in Herculaneum, Missouri, just south of St. Louis, Missouri, he said they have a development agreement with Fred Weber/Riverview Commerce Park, which has the current operations, and are in discussions with a second property owner to bring them into the project.

“The coordination between these two companies has been very impressive from my standpoint, as a developer,” Hurley said. “We’re very comfortable moving forward with how we’re integrating both properties into this single development for the container terminal itself and the supporting area around it.”

The new inland container terminal facility in Herculaneum would be built on approximately 75 acres, and there is an additional 125-plus acres for further development of an industrial park behind the terminal, leveraging the close proximity to Interstate 55 and the existing rail connection. Hurley said they are completing 10% design drawings by Vickermon & Associates, a port and intermodal design firm from Virginia, and hope to put out a contract for construction in a few months with the goal of having the operations available at Herculaneum by the Fall 2024.

“In the U.S., this mode of transportation has not really been trusted because in the past, it normally been done by barge here.  We’re actually creating river vessels that are strategically built for the purpose of utilizing the Mississippi River to its absolutely fullest and also the tributaries,” said Denson White. “We’re going to be able to move inland at a very efficient pace. In Europe that’s exactly the same thing. The build of the ships are made to where they can move via the river system, always get underneath and through the bridges and move at a faster pace than a barge would.” White is Director of Customer Engagement at APM Terminals, which operates 76 port terminals worldwide, including several in Europe where river vessels are a common method of transportation to get product inland.

With the debut of the new vessels on the inland waterways drawing closer, APCT is working closely with Captain John Arenstam, USCG (retired), Assistant Director for Seamen’s Church Institute’s Center for Maritime Education (SCI). Arenstam is the project manager for SCI regarding the partnership with APCT, and has four different areas of emphasis: vessel modeling, port feasibility studies, navigation, and officer assessments and navigation training.

“The mariners that will be navigating the ship will actually have a hydrodynamic model to practice on and learn how the ship handles before departing the shipyard,” Arenstam said. He said the prep work will take place in the shipyard, using four world class Kongsberg Maritime interconnected simulators along with the feasibility studies. This will enable them to have the COV along with other models of existing inland towboats operating in the area of the proposed ports to test how they will be able to interact.

Daniel Every, Lieutenant Commander with the U.S. Coast Guard and Prevention Department Head, Sector Upper Mississippi River, is also playing an important role in ensuring the safe launch for this new service.

“Our primary goal is to ensure that the Marine transportation system and Marine transportation system users are prepared for this new service through both education outreach and collaboration with all of our port partners and stakeholders up and down the river system,” Every said. “We want to work closely with both the vessel and facility owners and the operators to ensure that it’s a safe and effective business from the start, and that everyone is postured to support this major development, while also providing equity in the waterway use amongst all waterway users.”

Every said he believes the COV is one of the most significant innovations in the maritime industry in a very long time, likening it to the expansion of the private space travel industry in Florida.

“With the fairly recent expansion of the Panama Canal and the unprecedented deepening projects on the east coast and along the Gulf coast ports, the ability to efficiently and cost-effectively move containerized cargo along the river hinges on the ability to move containerized cargo at speeds that meet customer’s needs while offering the shipper economy of scale. So, a purpose built vessel of the proposed design is an exceptionally novel idea. It fills an existing logistics gap in that area by providing economy of scale and speed that both cargo owners and logisticians want to see. So, I expect that demand will be there,” said Every.

White agreed, and said part of success will stem from the recent supply chain disruption which has forced BCOs to revisit their existing ways of doing things. “CEOs that have never been a part of supply chain that might have only thought about sales and manufacturing are now stepping in and trying to understand more of how can they can more efficiently move their cargo, and here’s our opportunity to really make some headway in providing more solutions, more opportunities for people to choose from.”

“Our new transportation alternative for containerized cargo is necessary and strategic, adding optionality to the supply chain and shippers and provides choices, potential savings, and the opportunity to enhance or expand the shipper’s profile or distribution model,” Litrico said. “Also, a greener footprint has tremendous value and will achieve shippers long term objectives.”

Mary Lamie, Executive Vice President of Multi Modal Enterprises for Bi-State Development and head of the St. Louis Regional Freightway, said “If there’s one key takeaway, I think it has to be the depth of the collaboration in place to bring this new service online — collaboration with various partners to build out the individual ports, collaboration between the folks who will provide this service, the Coast Guard, and the Seamen’s Church Institute to ensure the highest level of safety are adhered to to actually launch these services. And, ultimately, the collaboration between the different port facilities along this new trade route and with the shippers who will benefit from the innovative new offering.”

Lamie moderated the COV discussion which focused on the progress being made for the launch of service as part of the first day of FreightWeekSTL 2022. FreightWeekSTL 2022 continues online through May 27 and will feature panel sessions with other industry experts and leaders in freight, logistics and transportation. The week-long event is presented by the St. Louis Regional Freightway and Bi-State Development in conjunction with The Waterways Journal. To learn more and register for the remaining sessions or view past sessions for FreightWeekSTL 2022, visit www.freightweekstl.com.

The St. Louis Regional Freightway is a Bi-State Development enterprise formed to create a regional freight district and comprehensive authority for freight operations and opportunities within eight counties in Illinois and Missouri, which comprise the St. Louis metropolitan area. Public sector and private industry businesses are collaborating with the St. Louis Regional Freightway to establish the bi-state region as one of the premier multimodal freight hubs and distribution centers in the United States through marketing, public advocacy, and freight and infrastructure development. To learn more, visit thefreightway.com.

On behalf of the Home Builders Charitable Foundation (HBCF), 2022 HBA President Jeremy Roth (Elite Development Services/McBride Homes) (left) and HBA Executive Vice President Celeste Rueter (right) presented a $20,000 donation to Promise Community Homes’ executive director Erin Eberhard and director of operations Lisa Dickerson.

The donation will be used to replace roofs at three of the organization’s houses that are homes to adults with intellectual/developmental disabilities. Promise Community Homes (formerly Rainbow Village) supports the foundational needs of people with intellectual/developmental disabilities by providing safe, affordable and well-maintained neighborhood homes. Every home is carefully designed for the comfort, safety and unique needs of each individual resident.

The HBA is a local trade association of more than 600 member firms representing the residential construction industry. The Home Builders Charitable Foundation, the HBA’s charitable arm, is a non-profit organization dedicated to providing housing assistance to people or organizations with special shelter needs.

CREW-St. Louis will honor the achievements of industry leaders at its 17th Annual Networking Awards Event on May 11 at Olive + Oak in Webster Groves.

Each year, CREW (Commercial Real Estate Women) recognizes a group of women who have advanced the commercial real estate industry through their leadership, accomplishments, and service to the St. Louis region. The 2022 awardees will be announced on April 21.

CREW launched the networking awards in 2006 with the goals of influencing the success of the industry, showcasing the power of networking, and demonstrating the organization’s support to the community.

In 2015, they added the Woman of Influence Award to recognize a local professional who, through her leadership and vision, has made a positive impact on the industry. Previous recipients include Carolyn Kindle Betz of St. Louis City SC in 2021 and Maxine Clark, founder and former CEO of Build-a-Bear and current CEO of the Clark-Fox Foundation, in 2020.

“We look forward to shining a light on the women in St. Louis who are shaping the built environment,” said Stacey Kamps, CREW Board of Directors president and CEO/President of Koch Development Co. “These women honor our industry every day with their hard work, their vision, and their commitment to their communities. It’s only fitting that we honor them.”

 In addition to the Woman of Influence Award, the organization will present the New Member of the Year Award, CREW Impact Award, Career Advancement for Women Award, Economic Impact Award, and Leadership in Diversity, Equity, and Inclusion within the industry.

This year’s event will be held May 11 from 5:30 to 8:00 p.m. at Olive + Oak, 216 Lockwood, 63119. The registration deadline is April 27. Visit crewstl.org for full details.

CREW-St. Louis advances, educates, and supports women to influence the commercial real estate industry. CREW-St. Louis furthers its mission through leadership, excellence, influence, community, and advancement. With more than 200 members from nearly every discipline in commercial real estate, CREW-St. Louis stands as one of the largest of CREW Network’s more than 75 chapters across the globe.

The 13^th St. Jude Dream Home® in St. Louis is taking shape at the Streets of Caledonia in O’Fallon, Mo. and once again the IBEW/NECA Electrical Connection is donating resources to build it.  The home’s construction and sale will benefit children served by the renowned St. Jude Children’s Research Hospital®.  The Electrical Connection is a partnership of the International Brotherhood of Electrical Workers (IBEW) Local 1 and the St. Louis Chapter of the National Electrical Contractors Association.  It is donating all electrical services to build the 2,457-square-foot, two-story home which carries an estimated value of $565,000. The home is being built by Fischer Homes.  NECA contractor Grasser Electric and IBEWare performing the electrical work.

In June of this year, tickets will be available to purchase for a chance to win the home.  A total of 16,000 tickets will be offered to win the home for $100 each.  Last year, tickets to win the home sold out in 10 days.  For more information visit www.stjude.org/give/dream-home/st-louis.html.

Located at intersection of Dalriada Blvd & Long Haven Drive at the Streets of Caledonia, the groundbreaking for this year’s St. Jude Dream Home was held on Feb. 10, 2022.  The Grasser Electric/IBEW team began roughing in electrical on April 2, 2022. Each year, the IBEW/NECA Electrical Connection partnership pays the wages of the workforce for the St. Jude Dream Home. “But at the end of the day, our workforce agreed to donate their time and skills on Saturday to advance this worthy cause,” noted Chris Clermont, business representative, IBEW Local 1. 

The home features a morning room adjacent to the kitchen, flexible space for a living room, dining room or study, a first floor owner’s suite, a two-story family room,  three bedrooms, two and a half baths and a two-car garage.

“The purpose of the home is truly special,” said Frank Jacobs, IBEW business manager.  “St. Jude’s critical research and treatment of childhood cancer and other life-threatening diseases inspires and compels our IBEW/NECA partnership to help with this worthy cause.”

The home is built with the generosity and support of sponsors, trade partners, and the local community. Every dollar raised goes straight to St. Jude for funding research and providing care. 

“The ultimate winner of the St. Jude Dream Home will appreciate the reliable electrical installations built to code that is the hallmark of all our residential projects,” noted Kyle McKenna, executive vice president, St. Louis NECA.

St. Jude Children’s Research Hospital is leading the way the world understands, treats and defeats childhood cancer and other life-threatening diseases. It is the only National Cancer Institute-designated Comprehensive Cancer Center devoted solely to children. Treatments invented at St. Jude have helped push the overall childhood cancer survival rate from 20 percent to 80 percent since the hospital opened more than 50 years ago. St. Jude is working to drive the overall survival rate for childhood cancer to 90 percent, and we won’t stop until no child dies from cancer. St. Jude freely shares the discoveries it makes, and every child saved at St. Jude means doctors and scientists worldwide can use that knowledge to save thousands more children. Families never receive a bill from St. Jude for treatment, travel, housing or food – because all a family should worry about is helping their child live. Join the St. Jude mission by visiting stjude.org, liking St. Jude on Facebook (facebook.com/stjude) and following us on Twitter (@stjude).

The Electrical Connection IBEW/NECA partnership more than 5,000 highly skilled and safe IBEW electricians and the more than 150 NECA electrical contractors who employ them.  For more than 75 years, the partnership has trained more electricians/communication technicians than any education program in Missouri. Its award-winning work provides safe and reliable electrical construction, maintenance, repair and replacement services across Missouri, the nation and the world. Learn more at www.electricalconnection.org.

After a competitive bidding process, St. Clair County Transit District (SCCTD) today announced Belleville-based Hank’s Excavating & Landscaping, Inc. was awarded a $767,952 construction contract for Phase I of the Old Collinsville Road Trail. This approximately ¾ mile-long trail project will connect Richland Creek Bikeway in Swansea to Lebanon Avenue in Belleville, as well as to the Old Collinsville Road Bike Trail Phase II project currently under construction from Lake Lorraine Drive to Munie Road in Swansea. This latest phase will further extend the reach of the MetroBikeLink System, which features 14 continuous miles of trails in Southwestern Illinois and links users to six Metro Transit Centers.

Phase I of the Old Collinsville Road Trail will feature a separate 10-foot-wide, shared-use, asphalt path within the Old Collinsville Road right of way; a pedestrian bridge over Richland Creek; and traffic signal modifications for safe crossing at Lebanon Avenue. It also will link Belleville’s existing sidewalk system along Old Collinsville Road and West Boulevard, providing pedestrian accommodations from Belleville East High School and approximately 2,000 homes nearby.  The project is underway and is expected to be complete later this fall.

“This project is one of several in the works designed to further connect our county’s growing trail system,” said Ken Sharkey, managing director for St. Clair County Transit District.

The first section of the MetroBikeLink System opened in 2002 and was comprised of a four-mile trail, extending from Southwestern Illinois College to the Swansea MetroLink Station. Since then, the system has expanded to include the Memorial, Fairview Heights and Shiloh Scott sections for a total of 14 miles of trail adjacent to the MetroLink light rail tracks. Additional trails have been built by SCCTD to connect to this main artery, including SCCTD Orchard Loop Trail Phases I and II, the Engelmann Park Connector and the Old Collinsville Road Trail (currently under construction) totaling another eight miles of SCCTD connected trails. These accessible pathways, along with the connecting trails from other municipalities, will combine to provide over 35 miles of connected trails in St. Clair County.

Wages Rise but Lag Other Sectors; Price Hikes Continue

Submitted by the AGC

AGC posted an updated version of its Construction Impact Model, created for AGC by Brian Lewandowski, University of Colorado, Boulder, a leading regional economist. The model projects the direct, indirect, and induced impact on U.S. or state-specific employment, labor income, and output (sales), as well as 10 sectors with the largest increase in sales. Users can specify project amount, starting date, duration, and more than a dozen types of investment in construction, maintenance and repair, and architectural and engineering services. Users may contact ken.simonson@agc.org or macrina.wilkins@agc.org for assistance.

Wages and salaries in the construction industry rose 0.7%, seasonally adjusted, in the first quarter (Q1) of 2022 and 3.6% year-over-year (y/y), up from 3.0% a year earlier, BLS reported today. Wages for the total private sector increased 1.3% in Q1 and 5.0% y/y, matching the Q4 2020-to-Q4 2021 increase as the most in the 21-year history of the series and up from 3.0% a year ago. Total compensation (wages, salaries, and benefits, including required employer payments) in construction rose 0.8% in Q1 and 3.4% y/y, up from 2.7% a year earlier. Total private industry compensation increased 1.4% in Q1 and 4.8% y/y, up from 2.8% the year before. The steeper increases in sectors other than construction may be one reason contractors are having trouble filling jobs.

“Engineering and construction costs reached a new [Engineering and Construction Cost] index high” in April, data firm IHS Markit and the Procurement Executive Group reported on Wednesday. The index measures the share of respondents reporting price increases minus the share reporting decreases. “Shipping costs rose for the 20th consecutive month…The sub-indexes for [structural steel and carbon steel pipe] prices surpassed the previous peaks set in March,” while the sub-index for alloy steel pipe remained at peak, with nearly all respondents reporting price increases. “According to survey responses, labor costs continued to rise in all regions.”

A $40 per ton rebar price increase “was pushed through on April 14 by one major mill in our region with all other mills following over the next two days,” New South Construction News reported on Wednesday. “The surprising aspect of this increase is that the…increase only impacts stock 20’ length rebar. With little to no competition from import rebar, domestic mills were able to push this increase through with little pushback. Demand for all lengths of rebar continues to soar, and mills are already selling out on future months’ rollings. Lead times are stretching out to four or five weeks depending on each mill’s rolling schedule. Poly sheeting saw a 4% increase in mid-April.” In contrast, “Wire mesh remained flat through April with no change in pricing since the mid-March increase.” A Wisconsin-based wall products supplier notified customers on April 8 of price increases effective on May 2 of “up to 30%” on gypsum wallboard products and mineral wool, up to 20% on all joint treatment and plaster, up to 10% on batt insulation and foam, and 6% on steel studs and trim. Readers are invited to send price and supply chain information to ken.simonson@agc.org.

Inflation-adjusted gross domestic product (real GDP) fell 1.4% at a seasonally adjusted annual rate in Q1 2022, the Bureau of Economic Analysis (BEA) reported on Thursday, following a 6.9% gain in Q4 2021. The decline reflected an increase in imports, a decrease in exports and government spending, and a drawdown of inventories, not a pullback in consumer or business spending. Real residential investment in permanent-site structures jumped 12% (single-family structures, 14%; multifamily, 1.1%). There was a 0.9% dip in real gross private domestic investment in nonresidential structures (commercial and health care, -16%; manufacturing, 12%; power and communication, -1.6%; and other non-mining structures, 2.8%; but investment in wells and mining structures jumped 25%). Real government gross investment in structures declined 14%, including federal investment for defense structures, up 0.7%; nondefense structures, 11%; and state and local structures investment, -15%. The GDP price index increased 8.0%, with price indexes for nonresidential structures investment up 19%; residential investment, 18%; and government investment in structures, 14%.

At the end of Q1, “the total U.S. [hotel] construction pipeline stands at 5,090 projects/606,302 rooms…, up 2% by projects, but down 3% by rooms” y/y, lodging data provider Lodging Econometrics reported on Monday. “There are 961 projects/128,784 rooms currently under construction, down 27% by projects and 28% by rooms y/y. Projects scheduled to start in the next 12 months, at 1,911 projects/223,030 rooms, are up 2% by projects and 3% by rooms y/y. Projects and rooms in early planning reached a record high in the first quarter, standing at 2,218 projects/254,488 rooms, up 24% by projects and 12% by rooms y/y. Notably, the upscale and upper-midscale chain scales dominate the pipeline in Q1 with 63% of projects in the total pipeline concentrated in these two chain scales. This has been the case for several years. Also of note is that there are a total of 1,420 projects/184,692 rooms in the renovation or conversion pipeline in the U.S. during [Q1, with project] and room conversions reaching an all-time high and increasing 59% by projects and 48% by rooms y/y. New projects and development planning that was previously on hold are now getting the green light from investors and developers with buoyed confidence thanks to rather robust domestic leisure travel during the first part of the year.” On Tuesday, the firm reported, “Dallas leads all U.S. markets in the number of pipeline projects,” followed by Atlanta, Los Angeles, New York, and Phoenix. New York has the greatest number of projects already under construction.