Despite economic downturn, Panama Canal project continues

Chris Kraul

Special to the Los Angeles Times

Sunday, June 14, 2009

PANAMA CITY, Panama — The economic downturn has stalled big construction projects across the globe, but in Panama, smoke-belching steam shovels and dredges work around the clock on what people here call simply "la ampliacion," or the expansion.

As soon as this month, officials will award the principal contract for the $5.25-billion expansion of the landmark Panama Canal, a project that will probably alter global shipping patterns and cement this Central American nation’s place as a center of global logistics.

“This is a financial crisis, and there has been a decline in ship traffic, but we are very much on time and on target,” said Panama Canal Authority chief executive Alberto Aleman, addressing rumors that the global recession could cause the project to miss its 2014 scheduled completion date.

The authority is on the verge of choosing among three international consortiums, including one led by San Francisco based Bechtel, to build two sets of locks to accommodate massive container cargo ships. Dubbed post-Panamax, the super-sized vessels are capable of carrying three times more cargo than ships now transiting the canal.

The construction of the two new locks -- one at the waterway’s Caribbean entrance, the other on the Pacific Ocean -- will cost $3 billion or more, take five years to complete and require an army of 5,000 construction workers.

The winning consortium is expected to use the contract’s marquee value as one of the world’s highest-profile construction endeavors as a calling card to bid on other major infrastructure projects around the globe. The canal authority maintains the expanded canal will make Panama an even more important transit hub by attracting a bigger share of Asian container freight destined for the eastern U.S. Currently, 70 percent of that cargo is offloaded at Los Angeles, Long Beach, Calif., and other North American ports and moved by rail or truck across the country.

“There will be a migration of freight to the canal, the implication being that Los Angeles and Long Beach ports will take the hit,” said Mark Page of Drewry Shipping Consultants in London. “The U.S. rail lines will also suffer.”

Despite the recession gripping the U.S. and other destination countries, the 9 percent drop in global container traffic forecast for 2009, and a financing scheme that assumes rising traffic and tolls, Panama’s Aleman said the expansion project is moving forward and will not be deterred.

“We factored in a margin of error and we are ahead of the projections,” he said.

A new four-mile access channel on the Pacific side is 85 percent excavated and dredging is under way. The new segment will be much deeper than the existing canal, allowing passage of quarter-mile long ships carrying 14,000 cargo containers, compared with maximum 4,500-container ships that now transit the 50-mile waterway.

The winning contractor will be awarded a $50 million bonus if the expansion is done by 2014, the 100th anniversary of the Panama Canal’s completion by the U.S. Army Corps of Engineers.

The canal expansion project is already having a ripple effect in Southern California. The Los Angeles and Long Beach ports each have launched expansion and streamlining projects valued at hundreds of millions of dollars to improve their competitiveness with an expanded Panama Canal.

“We’re using the down time to improve our infrastructure,” said Los Angeles port marketing director Mike DiBernardo, referring to his facility’s 16 percent decline in container traffic over the first three months of 2009. The port’s plans include the expansion of three terminals and improved wharf access for rail lines.

Long Beach port spokesman Art Wong said his facility has put in motion a 10-year plan to invest $1.6 billion in upgrades of piers and rail access, a response he attributes partly to the tougher competition the port expects from the Panama Canal, as well as from port projects in Mexico and Canada.

(End optional trim)

But global shipping companies are wary of the rising tolls the canal is charging to fund the expansion. Michael Kristiansen, Latin America operations chief for Danish shipping giant Maersk, said the expanded canal will divert some U.S. freight away from U.S. West Coast ports, but how much will depend on transit times and the impact of the canal’s toll hikes.

Another factor is whether U.S. ports on the Eastern Seaboard make changes to accommodate the biggest ships. Ports including Savannah, Ga., Charleston, S.C., and Miami are currently too shallow, and the Bayonne Bridge currently blocks their access to the Newark, N.J., port, the most important in the New York area.

As a defensive measure, Maersk and other shipping lines serving the Asia to eastern U.S. routes are taking a close look at westward routes through the Suez Canal. Although Maersk is not yet diverting traffic away from Panama, it plans to open a Suez route for post-Panamax ships in the near future, Kristiansen said.

In addition to the Bechtel-led consortium that includes Japanese partners Taisei Corp. and Mitsubishi Corp., two other groups also placed bids in March for the contract. They include teams led by Grupo ACS of Spain and another led by Sacyr Vallehermoso of Spain and Impregilo of Italy.

The locks will employ a “water savings basin” that will allow recycling of 60 percent of the water used to fill them. Canals in Germany currently use the system, said Jorge de la Guardia, the canal authority’s locks project manager.

He said the project so far has not experienced serious set-backs such as those faced by original canal builders. Those included malaria and yellow fever that killed thousands and the difficulties of digging through highly unstable “cockroach shale,” which kept sliding into the excavations.

Still, rumors that the canal project might face delays gained momentum when the authority extended the deadline for proposals to March from December and when a fourth bidder, a French-Brazilian consortium, dropped out of the bidding.

“You have to look at the long term,” Aleman, of the canal authority, said. “Yes we’re in a financial crisis but there have been others in the past. And Panama still has the best route for Asian traffic.”

Economic Zones World’s Gazeley wins huge admiration in UK for its Inventive Sustainable Initiative

Gazeley, an Economic Zones World subsidiary and global provider of sustainable logistics space, announced that its latest green initiative, an Elizabethan Perfume Garden, created using modern day cutting-edge sustainability has won two prestigious awards at the recently held Chelsea Flower Show in the UK.

The sustainable project was built in collaboration with UK based architect Laurie Chetwood and landscape designer Patrick Collins, leading experts from P & G Prestige Products and Gazeley’s long-standing construction partners.

Combining inventive architectural and sensory elements, the garden project has been awarded the Gold Award and the Most Creative Award for its innovative concept, environmentally sound design and effective use of progressive green technology. The Most Creative Award is a discretionary prize, presented only when the judges feel that the design of a garden has set new standards of imagination and innovation.

Salma Hareb, CEO of Economic Zones World said: “Gazeley’s new initiative breaks new ground in sustainable architecture. The garden project is not only an enchanting aesthetic experience but also a landmark eco-friendly undertaking that will inspire similar developments in the future. Sustainability is key to operational efficiency and corporations worldwide have now made eco-initiatives a central part of their business strategy. As a company committed to sustainable developments, Economic Zones World, through this project, reiterates its commitment to keep providing innovative solutions for our global clients and the communities we serve.”

Gazeley’s pioneering sustainable technologies and an original recipe for rosewater infused perfume created by Queen Elizabeth I in the 16th Century were the inspiration for the garden. The central perfumery incorporates a sculptural wind turbine to power the lighting and irrigation of the garden. It is fed from this central feature with water and electricity from the borehole/ rainwater harvesting, photovoltaic panels and the wind turbine. The garden wall is cedar and incorporates ecological features such as insect ‘hotels’ as well as wet and dry habitats. It is lit at night using the included national resources in the form of side emitting fibre optics.

Jonathan Fenton-Jones, Director of Sustainability and Global Procurement at Gazeley said, “Gazeley is proud to be supporting the perfume garden at this year’s Chelsea Flower Show. It is essential the people understand the importance of how sustainable processes and technologies can easily be applied to modern day developments.

“Combining modern day construction and sustainability has been central to Gazeley’s business strategy since 2001. Gazeley works with an array of experts that form the international sustainable virtual team to combine leading-edge materials, technologies and construction processes to create the most environmentally advanced logistics spaces in the world.”

The garden is sponsored by Gazeley, Chetwoods, P&G Prestige Products, as well as co-sponsors Kingspan, Kelly Taylor, Simons Group, Capita Symonds Structures, Atlas Ward and SJ Berwin.

Lawmakers decide rail ownership, direct SPA to sell Daniel Island property

By Molly Parker
mparker@scbiznews.com
Published May 14, 2009

As lawmakers scramble to wrap up the current session, state senators sent the governor a massive state budget bill Wednesday that also transfers property rights of a controversial railroad line in North Charleston to a division of the S.C. Department of Commerce.

And in the House, lawmakers overwhelmingly gave key approval to a bill that would have far-reaching financial and governing implications on the S.C. State Ports Authority, forcing the agency to sell its valuable Daniel Island property by 2012, among other things.

Budget bill bequeaths railroad
The exchange of railroad ownership to Commerce from the Charleston Naval Complex Redevelopment Authority — the state entity created to divvy out the land when the Navy base closed — is called for in a one-paragraph amendment tucked inside the budget bill that stretches on for hundreds of pages.

The redevelopment authority is currently in a legal battle with the Noisette Co. over who has rights to the track and the land underneath it.

Noting it is a “very big budget bill,” Gov. Mark Sanford’s spokesman, Joel Sawyer, said the office is “not ready to weigh in on specific provisos yet.” The budget bill requires Sanford’s signature to become law.

Sanford has already promised swift veto action on budget items related to federal stimulus money, but he has yet to weigh in on this explosive regional debate about providing dual rail access to the Port of Charleston’s customers.

Commerce wants the rail line so that S.C. Public Railways has the option of operating an intermodal facility on the former Navy base property and running a rail line through the northern end of the former base — something Mayor Keith Summey opposes and promises to fight in the courts. S.C. Public Railways also says ownership is necessary because it uses the line currently to serve customers on the former base.

“Access from the north exists today,” said Jeff McWhorter, president of S.C. Public Railways. “This just provides ownership of the rail line to S.C. Public Railways of a line we’ve been operating on since the mid-’90s.”

North Charleston officials did not immediately return a call seeking comment.

Sen. Larry Grooms, R-Bonneau, sponsored the amendment. He said previously that the purpose is to preserve the state’s right to run rail out of the north, in case a compromise cannot be brokered allowing Norfolk Southern and CSX equitable access via rail lines to the south of the SPA’s new container terminal.

Meanwhile, lawmakers in the House voted 103-4 Wednesday to move a bill to the Senate that restructures the S.C. State Ports Authority board and mandates the SPA to sell property where it is not operating a terminal, among other things. As it stands, the bill is a drastic departure from the original version sponsored by Grooms, and passed earlier in the session by the Senate. The upper chamber would still be required to sign off on it before it moves to the governor.

The deadline was extended for passage of this bill beyond next week’s scheduled adjournment.

Among the key tenants in S. 351:

• Orders the S.C. State Ports Authority to have its Daniel Island property under contract by 2011 and to close a deal by 2012.
• Deeds the Daniel Island land to the state’s Conservation Land Bank or to Berkeley County — there are conflicting amendments — if the agency cannot sell the property by that year. The SPA owns 1,300 acres there where it had planned to build the Global Gateway terminal.
• Mandates that the SPA sell the now-defunct Port of Port Royal land in Beaufort County by December 2010.
• Requires the port to pay $800,000, or 10% of proceeds, whichever is greater, from the sale of the Port of Port Royal property for the construction of a public boat ramp on the northern end of Broad River in Beaufort County.
• Says that members of the General Assembly can require the SPA staff to turn over confidential materials related to the negotiation and sale of these properties and forbids lawmakers from sharing the information with the public.
• Sets the terms of all current board members to expire Jan. 15, 2011, though nothing prohibits the reappointment of a sitting member. A new governor will be in place by then and would have the authority to clear the entire board.
• Requires the governor to appoint one member to the board from each of six congressional districts, plus one at-large member.
• Establishes that the secretary of commerce and the secretary of transportation serve on the board as ex officio members.

The railroad amendment in the budget bill says:
“Any, track, spur, switch, terminal, terminal facility, road bed, right of way, bridge, station, railroad car, locomotive or other vehicle constructed for operation over railroad tracks … and all associated structures and equipment that was necessary for the operation of any railroad located on an applicable federal military installation … shall be transferred, and immediately vest, in fee simple absolute, to the Department of Commerce, in the Division of Public Railways.”

Orangeburg seeks $278m for Charleston railroad plan

By MOLLY PARKER, Charleston Regional Business Journal Tuesday, May 12, 2009

Orangeburg County has filed a request seeking $278 million in federal funds to help implement a controversial rail plan that calls for construction of an intermodal facility on the former Navy base in North Charleston and running trains through the base’s northern end.

The proposal to U.S. Rep. Jim Clyburn also requests money for a separate intermodal facility on the Macalloy property on the base’s southern end, several rail overpasses in North Charleston and a rail line running into Orangeburg County, where Jafza International is planning to build a massive logistics park.

“Orangeburg and Jafza understand that, unless this issue is addressed and corrected in Charleston, their project is in trouble,” said Jeff McWhorter, president of S.C. Public Railways, a division of the S.C. Department of Commerce that would purchase the Orangeburg rail line, according to the proposal.

Though only a portion of the requested funding is for projects in Orangeburg, McWhorter said, “That was the avenue by which we ended up pursuing money for Charleston, as well.”

The proposal specifies the locations for the rail yards, but McWhorter said he doubts that a federal funding commitment would be contingent upon sticking to those plans. Furthermore, he said, funds were submitted for both rail yards with the understanding “that one or the other would work.”

North Charleston Mayor Keith Summey has promised a legal fight against any state entity that attempts to force rail through the northern end of the former Navy base.

Last week, Summey said he was frustrated that he was not consulted about the federal funding request.

“This is one of those things that annoys you. People don’t talk to you,” Summey said. “I think it’s a little unusual the subject wasn’t broached with us. If the two locations are off the Navy base and in the south end, we’d be more than happy to work with them. I would think they would at least want to talk with us, get our opinion, what-have-you.”

The S.C. State Ports Authority is building a new container terminal on the former Navy base property, and the Noisette Co. has designed a live-work community there — and Summey is adamant that rail not run through that city-backed business and residential development.

The aim of the proposal, McWhorter said, is to secure enough federal funds to build rail yards that would service both of the region’s Class 1 railroads — CSX and Norfolk Southern — and provide them equal access to the Port of Charleston’s customers.

Gregg Robinson, executive director of the Orangeburg County Development Commission, called the rail plan, and the request for federal funds to implement it, “a regional concept to a statewide problem.” The proposal was presented to Clyburn, the House majority whip, who helped spearhead the Jafza project, and to other members of the S.C. congressional delegation, Robinson said.

“The statewide problem is we do not have adequate rail currently and we need to improve it,” Robinson said.

Orangeburg officials also want to ensure that both CSX and Norfolk Southern can service the Jafza project, which includes plans for millions of square feet of warehousing and manufacturing space in that county.

A portion of the requested federal funds is for the potential purchase by S.C. Public Railways of CSX’s line running between Creston and Harleyville adjacent to the Jafza property.

If S.C. Public Railways owns the line, the companies at Jafza could access CSX and Norfolk Southern services through his agency, McWhorter said. As it stands, CSX is “not agreeable to that,” McWhorter said, but the federal money was requested in case the railroad company changes its mind and decides to negotiate.

Robinson said his opinion is not “relevant at this time” about where the rail yards should be situated in the Charleston region.

“What I’m trying to accomplish is of mutual benefit to a number of different parties, and we’re working via S.C. Public Railways to get this accomplished,” Robinson said. “This is a team effort to try to improve our overall approach to be able to handle business.”

Robinson said now is not the time to point fingers about why this plan was not put into place earlier.

“Let’s move forward,” he said. “We know it’s a problem; we have to collectively come together and figure out how to best solve the problem. We are going to continue to lose market share if we don’t fix it.”

On the Web: www.charlestonbusiness.com

Gazeley's G.Park Blue Planet at Chatterley Valley awarded first BREEAM

Global provider of sustainable logistics space, Gazeley, today announces that its new completed £50 million scheme, G.Park Blue Planet at Chatterley Valley, is the first development in the world to be awarded the new BREEAM (Building Research Establishment Environmental Assessment Method) “Outstanding” rating (design stage). This is the highest sustainable accolade available in property development.

On average G.Park Blue Planet scored 85.49%, which classifies it as outstanding under the new tougher 2008 ratings for environmental performance introduced in June 2008. The development scored particularly well under the BREEAM rating in the management, health & wellbeing and water (all 100%); energy (87.5%); and waste (85.71%).

Jonathan Fenton-Jones, Director of Sustainability and Global Procurement at Gazeley said, “Receiving the first BREEAM ‘outstanding’ rating is the highest recognition for Gazeley’s focus on sustainable logistics. With G.Park Blue Planet at Chatterley Valley, we believe we have created an industry blue print for cutting-edge developments. Not only does it deliver significant environmental savings, it also creates total energy and water cost in use savings of up to £300,000 per annum.”

Gazeley partnered with Newcastle-under-Lyme Borough Council and regional development agency, Advantage West Midlands (AWM) to create the world’s greenest logistics developments as part of the first phase of the wider Chatterley Valley park, North Staffordshire.

Located on a former colliery site, G.Park Blue Planet at Chatterley Valley is a 35,500 sq m development that was recently completed. It houses the UK’s first truly carbon positive logistics development, with its own biomass micro power station. What sets this development apart is that 100% of the energy and heat is supplied by renewable sources. This has helped it exceed the UK Governments Climate Change Bill targets for both 2020 and 2050 in 2009.

Paul Gibbon, Director of Sustainability at BRE Global, the developers of BREEAM, said, “Obtaining the first ever BREEAM outstanding is a remarkable achievement. This development scored very highly in all sections of BREEAM and achieved exemplary credits on the key areas of daylighting, reduced CO2 emissions, construction waste management and use of low carbon technologies. What is more the development shows that achieving a high BREEAM standard can also mean lower running costs.”

The sustainability credentials that have led to this prestigious award include:

• Thermally efficient buildings with air tightness and thermal insulation
• Kinetic plates which capture energy every time a vehicle enters or leaves the site
• Efficient systems for further building energy reduction, utilising cutting-edge lighting, maximum use of natural light, under floor heating and an energy panel wall
• The latest solar cell technology implanted into special rooflights which eliminate night time light pollution
• The majority of materials used in the building being either A or A+ rated in BRE Globals’ Green Guide to Specification
• The development targets zero waste send to landfill

Steven Holland, Head of Asset Management at regional development agency, Advantage West Midlands, said, “We’re delighted to see the hard work at G Park Blue Planet being rewarded. It is truly one of the most exciting developments we have in the West Midlands region. This is a tangible example of moving talk about climate change into demonstrable action, and showcases the West Midlands as a region which is embracing the opportunities of the new low carbon era.”

The overall Chatterley Valley park is a joint venture between Advantage West Midlands and the North Staffordshire Regeneration Zone, Newcastle Borough Council, Stoke-on-Trent City Council and Staffordshire County Council. The park totals 70 hectares of land that will be transformed over the next decade, creating a total of around 4,000 jobs.

A Short List of Top Logistics Locations

Which locations are ready to handle your next logistics facility?

Christopher Steele, President, CWS Consulting Group LLC (LDW: Logistics, Distribution & Warehousing 2009)

As global trade continues to change along with fluctuations in the value of the dollar, fuel costs, and the overall state of the economy, several communities stand as true winners in the global logistics game. The lists that follow contain cities that have performed well in diversified screenings in the recent past, are poised to capture significant new volume, or are otherwise likely to be centers of innovative logistics activity.

Of course, as with any ranked list, it is important to note that each and every location decision is unique and reflects the specific requirements of a company as it works to meet the needs of its customer base efficiently. Hence, there are a lot of good locations that will not appear below that will serve as excellent bases of operations for some companies. Likewise, the locations below will not work for every company’s need.

No specific weighting and ranking has been used to develop these lists. While tempting, such a concept would provide a false ranking for the reasons cited above. As a result, these lists are — to some degree
— subjective.

Top - 10

U.S. Distribution Logistics Locations
1. Northern Illinois/Indiana
2. Riverside/San Bernardino, CA
3. North Central Texas
4. Central Georgia
5. Greater Kansas City (KS, MO)
6. Memphis, TN
7. Eastern PA (Lehigh Valley, Scranton/Wilkes-Barre)
8. North Carolina Piedmont
9. Northwest Virginia
10. New Jersey

Port-Related Intermodal Sites
1. Los Angeles/Long Beach, CA
2. Port of New York/New Jersey
3. Norfolk, VA
4. Jacksonville, FL
5. Savannah, GA
6. Charleston, SC
7. Houston/Galveston, TX
8. Prince Rupert, BC
9. Lazaro Cardenas, MX
10. Guaymas, MX

Emerging Logistics Locations
1. Central Ohio (Rickenbacker/National Gateway)
2. Prince Rupert, BC
3. Guaymas, MX
4. Lazaro Cardenas, MX
5. Savannah, GA
6. Winter Haven, FL
7. Orangeburg, SC
8. Fayetteville, AR
9. Toledo, OH
10. Cleveland, OH

Reinvestment in the legacy freight hubs of the United States has gained steam over the past couple of years. In general, the above locations provide access to the largest and/or most rapidly growing consumer bases in the Unites States. All have very strong multimodal connections, and what had been the historic mega rail hubs of Chicago, Memphis, Atlanta, and Dallas from decades past have all experienced new growth in trucking and air, and have seen dramatic new re-investment in rail. This growth has been particularly strong in the Southeast, where investments in new manufacturing facilities, port expansion, and rapid population growth have converged to drive a major need for investment in the distribution network. This is particularly relevant to the regions around Atlanta, Central Florida, and North Carolina. Southern California continues to experience dramatic growth through the repackaging and distribution of goods entering from the Pacific Rim. Other areas such as Eastern Pennsylvania and Northwest Virginia serve as alternate, lower-cost distribution locations to the heavily populated Northeast, while trying to avoid some of the congestion along the I-95 corridor.

Port capacity in the United States is strained, with large investments along both coasts attempting to compensate for limited capacity and increasing regulation at traditional U.S. ports. Los Angeles capacity issues and environmental regulations have spurred growth in both Mexico and Canada as a means to satisfy the need for imported goods from Asia. Also gaining — as a result of Pacific trade seeking easier routes to large U.S. markets — are the new ports of Lazaro Cardenas and Guaymas in Mexico and Prince Rupert in British Columbia. All have direct links to less-congested Class I rail mainlines. Lazaro Cardenas will expect up to 700k TEU per year in Phase I, expandable to 2.0m. Guaymas will be built to a 850k TEU capacity.

Certainly Los Angeles/Long Beach and New York/New Jersey have — and will continue to have —
a very large share of overall port-related activity, but Norfolk, Savannah, and Charleston have experienced and will continue to gain significant growth in the near term due to the size constraints in the Panama Canal. Other facilities such as Melford in Nova Scotia may soon join this list once they become fully operational.

Port-related intermodal facilities create an interesting challenge in that they require new and innovative approaches to utilize limited property available along the waterfront. In the case of most legacy port cities, investigation into agile port systems and other initiatives have become more numerous as the country copes with its current capacity issues. In addition to better utilizing space, ports have also started to become increasingly conscious of the environment. This is most relevant in the ports of Los Angeles and Long Beach, where strict environmental regulations are scheduled to take effect in the coming months and years, with limits on the types of fuel and number of trucks into and out of the port among some of the more stringent guidelines.

As transportation has grown more important, investment is taking place in some expected and, indeed, some unexpected places. Major infrastructure hubs are upgrading facilities and infrastructure to help to improve the ability of goods to flow through their system. The goal for many of these locations is to serve as alternative ports of entry or waypoints to the traditional logistics hubs, allowing those operators to relieve congestion and mitigate the impact of increased population growth and trade on any one particular location.

Two of the largest investments are occurring in the state of Ohio, with Norfolk Southern’s Rickenbacker project and CSX’s National Gateway project. Both are expected to serve as alternatives for multimodal transportation, with an added benefit of mitigating the downturn in the economy by creating jobs in one of the regions most in need. Other areas, such as Toledo and Cleveland, are expected to gain through increased water traffic through the St. Lawrence.

Top - 10

U.S. Distribution Logistics Locations
1. Northern Illinois/Indiana
2. Riverside/San Bernardino, CA
3. North Central Texas
4. Central Georgia
5. Greater Kansas City (KS, MO)
6. Memphis, TN
7. Eastern PA (Lehigh Valley, Scranton/Wilkes-Barre)
8. North Carolina Piedmont
9. Northwest Virginia
10. New Jersey

Port-Related Intermodal Sites
1. Los Angeles/Long Beach, CA
2. Port of New York/New Jersey
3. Norfolk, VA
4. Jacksonville, FL
5. Savannah, GA
6. Charleston, SC
7. Houston/Galveston, TX
8. Prince Rupert, BC
9. Lazaro Cardenas, MX
10. Guaymas, MX

Emerging Logistics Locations
1. Central Ohio (Rickenbacker/National Gateway)
2. Prince Rupert, BC
3. Guaymas, MX
4. Lazaro Cardenas, MX
5. Savannah, GA
6. Winter Haven, FL
7. Orangeburg, SC
8. Fayetteville, AR
9. Toledo, OH
10. Cleveland, OH

In addition to those projects, CSX is investing additional monies into a large intermodal facility in Winter Haven, Fla. JAFZA (Jebel Ali Free Zone Authority) has created a U.S. headquarters near Orangeburg, S.C., and is working to develop a multimodal distribution concept in order to serve the rapidly growing Southeast consumer market. Such developments also provide useful solutions to community environmental concerns and demands for reduced traffic, while serving increasing and changeable consumer demand.

In Texas, Dallas, San Antonio, and the areas along the Gulf Coast are all working to increase capacity both as a means to accommodate a growing consumer base, as well as to accommodate increased container and import traffic coming over the Mexican border from the growing Mexican ports of Guaymas and Lazaro Cardenas. As container volumes shift to these ports, increased development in infrastructure for handling the entry of these containers must be developed. Union Pacific is currently developing an intermodal terminal in San Antonio expected to handle many of these consumer goods. In addition, Southern Dallas is investigating the development of logistics and supply-chain facilities and is already home to Union Pacific’s Southern Dallas Intermodal Terminal, a potential BNSF intermodal facility, and the Lancaster Municipal Airport, a future cargo airport.

All in all, this is a very exciting time to be working with logistics and shipping. Shippers have rediscovered the value of diversity in their shipping options, and this rediscovery results in a host of opportunities for communities and developers in looking to accommodate these changes. Some of the communities on these lists are at the forefront of preparing for these changes and are poised to be real centers of major activity for the next quarter century.

Chris Steele is president of CWS Consulting Group LLC. He was formerly with TranSytems’ real estate consulting group. With over 17 years of direct experience in real estate, location, and development advisory, he has worked with a wide range of industries and users, ranging from banks and high-tech companies through heavy industry and intermodal development.

Making the top 10

By GENE ZALESKI, T&D Staff Writer Monday, April 20, 2009

The Orangeburg County Development Commission touts its trademark Global Logistics Triangle logo and slogan every time it has an opportunity.

Whether it is to a local audience or overseas, the triangle - bordered by Interstate 95, Interstate 26 and U.S. 301 - is a prime selling point for the county's economic development arm.

The promotional efforts have worked.

Orangeburg is listed as the seventh top 10 emerging logistics location in the February/March 2009 issue of Area Development Site and Facility Planning magazine.

The bimonthly magazine touts itself as 'the leading executive magazine covering corporate site selection and relocation." The publication has approximately 45,000 subscribers.

The Orangeburg area was ranked as the result of plans by Jafza Americas to build a 1,324-acre industrial park near Santee.

Jafza is a subsidiary of Jafza International, a Dubai-based Economic Zones World company.

"It is a prestigious magazine and one that is recognized as a voice for the development of the our nation," OCDC Executive Director Gregg Robinson said. "It is one that industries and companies consider as a resource in the site-selection process."

Robinson said the ranking speaks volumes about how Orangeburg, which typically is tied into the Charleston and Columbia markets, has come into its own.

"Being recognized is a large part of Jafza and is also in part due to our Global Logistics Triangle," he said, explaining that development is on the horizon. "It is coming and we have to be prepared from an industrial standpoint and a space component to assist our ports."

The article, titled "A short list of Top Logistic Locations -- Which locations are ready to handle your next logistics facility," was written by Christopher Steele, president, Real Estate Line of Business, TranSystems Corp.

TranSystems is a transportation and logistics consulting company based in Missouri.

Steele says the rankings - though acknowledged as subjective - are based on locations believed to be poised to capture new cargo volumes.

The study notes that Orangeburg and Jafza are working to "develop ... a multimodal concept in order to serve the rapidly growing Southeast consumer market."

"Such developments also provide useful solutions to community environmental concerns and demands for reduced traffic, while serving increasing and changeable consumer demand," the article states.

Orangeburg ranks behind Winter Haven, Fla., and ahead of Fayetteville, Ark., as emerging logistics locations.

Central Ohio (Rickenbacker/National Gateway) ranks as the top site.

In addition to emerging logistics sites, the study also ranked the top 10 national distribution logistics sites and port-related intermodal sites.

The Port of Charleston is ranked sixth in port-related intermodal sites with the Savannah, Ga., port ranked fifth. County officials have said Orangeburg could capture volumes from both ports.

Central Georgia is listed as the fourth top distribution logistics location.

The magazine cites the increasing investments in new manufacturing facilities, port expansion and rapid population growth in the Southeast as driving a major need for investment in the distribution network.

The article goes on to note that port capacity in the United States is strained, with large investments along both coasts attempting to compensate for limited capacity and increasing regulation at traditional U.S. ports.

With increasing congestion at larger ports, Norfolk, Savannah and Charleston have experienced and will continue to gain significant growth in the near term due to the size constraints in the Panama Canal, the article states.

n

T&D Staff Writer Gene Zaleski can be reached by e-mail at gzaleski@timesanddemocrat.com or by phone at 803-533-5551. Discuss this and other stories online at TheTandD.com