^I'd say someone needs to get rolling on that Herculaneum port.
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Has construction even began on the Memphis or Plaquemines ports yet? If so, I haven’t seen it.
Just from looking at the Memphis site, a ton of work needs to be done. The sandbar they intend to build on has no rail or road connections and interstate connection to site is poor. However, the proximity to the CN intermodal facility is enviable
Just from looking at the Memphis site, a ton of work needs to be done. The sandbar they intend to build on has no rail or road connections and interstate connection to site is poor. However, the proximity to the CN intermodal facility is enviable
So the new APH mother port supports 22,000 TEU vessels. The river ships support 1800 each. If there are 4 riverboats serving NOLA-Memphis, is that like 3600 containers a week northbound? Is the expectation that most traffic will be going via rail anyways?
^ Although, the proposed Plaquemines Port will be built to handle container ships with a carrying capacity of 22,000 TEUs, I seriously doubt a ship of that size will call on the port, at least initially.
Also, these container ships are not typically going point-to-point, but rather call on several ports both on the origination and destination ends.
Below is a link to the Maersk TP-18 service that starts in Houston, then calls on New Orleans, Mobile, Miami and Freeport before traveling through the Panama Canal and reaching Shanghai and Busan, Korea.
https://www.maersk.com/local-informatio ... -westbound
A service like this would stop at Plaquemines and pick up a % of the containers it will eventually transport to Asia (and drop off a % of containers on the equivalent reverse leg of the TP-18 service). Houston and New Orleans are major ports, but primarily for bulk service. Only 6% of NOLA Port's sailings are container ships. These ports aren't big enough to warrant point-to-point service to Asia.
Also, please note the 40-day duration of this journey from Houston to East Asia. A forty day duration is fine for transporting grain in containers, but it may not work for other types of exports.
Keith Creel, CPKC CEO, recently gave a speech in Chicago extolling the benefits of importing through Lazaro Cardenas, MX and having his railroad transport the containers from Mexico to the Midwest. He cites East Asia to LA/LB travel times of 13 days and then lists all the delays encountered when ships reach San Pedro Bay.
https://www.trains.com/trn/news-reviews ... ican-port/
I went to the Marine Traffic website to see if there were any Maersk container ships at or near the Port of New Orleans. I found the Maersk Superior had just left port on its way to Miami. The capacity of that ship is roughly 6,600 TEUs. I think initially ships of this size or up to 10,000 TEUs should be sufficient for this service, which would make the river vessels with 1,800 TEUs sufficient.
This proposed COV service is all about one thing: cost. Cost is king in logistics. If they can deliver on their promised 30-40% cost savings, the containers will find their way on those COV vessels.
Also, these container ships are not typically going point-to-point, but rather call on several ports both on the origination and destination ends.
Below is a link to the Maersk TP-18 service that starts in Houston, then calls on New Orleans, Mobile, Miami and Freeport before traveling through the Panama Canal and reaching Shanghai and Busan, Korea.
https://www.maersk.com/local-informatio ... -westbound
A service like this would stop at Plaquemines and pick up a % of the containers it will eventually transport to Asia (and drop off a % of containers on the equivalent reverse leg of the TP-18 service). Houston and New Orleans are major ports, but primarily for bulk service. Only 6% of NOLA Port's sailings are container ships. These ports aren't big enough to warrant point-to-point service to Asia.
Also, please note the 40-day duration of this journey from Houston to East Asia. A forty day duration is fine for transporting grain in containers, but it may not work for other types of exports.
Keith Creel, CPKC CEO, recently gave a speech in Chicago extolling the benefits of importing through Lazaro Cardenas, MX and having his railroad transport the containers from Mexico to the Midwest. He cites East Asia to LA/LB travel times of 13 days and then lists all the delays encountered when ships reach San Pedro Bay.
https://www.trains.com/trn/news-reviews ... ican-port/
I went to the Marine Traffic website to see if there were any Maersk container ships at or near the Port of New Orleans. I found the Maersk Superior had just left port on its way to Miami. The capacity of that ship is roughly 6,600 TEUs. I think initially ships of this size or up to 10,000 TEUs should be sufficient for this service, which would make the river vessels with 1,800 TEUs sufficient.
This proposed COV service is all about one thing: cost. Cost is king in logistics. If they can deliver on their promised 30-40% cost savings, the containers will find their way on those COV vessels.
That makes a lot of sense. Thank you for the thorough explanation. I can also see how, as they scale up with more river boats, they’d eventually be able to carry a greater % of each ship.
How much time is added going to Nee Orleans vs LA from Asia?
How much time is added going to Nee Orleans vs LA from Asia?
^ 38 days transit Shanghai to New Orleans with this service assuming they stop at Freeport, Miami and Mobile, AL.
According to Keith Creel in the above link, it's 13 days transit from East Asia to LA/LB. But, currently, getting the containers off the ship and on a rail car can add several weeks to the duration:
“It doesn’t do any good if your goods are floating in the ocean, looking at LA, hoping you can get discharged,” he said. “Today, the on-dock dwell exceeds a week. Ten days? Eighteen days? …. It’s so random. Just to get to the dock is two or three weeks, and then another 8-9-10 days to get onto the railcar. … Compare that to Lazaro. You’re talking two, two and a half days."
Please note that the business case Keith Creel makes for shipping from Lazaro Cardenas to Chicago would also apply for shipping from Lazaro Cardenas to the proposed MAEG facility in Jerseyville, IL.
According to Keith Creel in the above link, it's 13 days transit from East Asia to LA/LB. But, currently, getting the containers off the ship and on a rail car can add several weeks to the duration:
“It doesn’t do any good if your goods are floating in the ocean, looking at LA, hoping you can get discharged,” he said. “Today, the on-dock dwell exceeds a week. Ten days? Eighteen days? …. It’s so random. Just to get to the dock is two or three weeks, and then another 8-9-10 days to get onto the railcar. … Compare that to Lazaro. You’re talking two, two and a half days."
Please note that the business case Keith Creel makes for shipping from Lazaro Cardenas to Chicago would also apply for shipping from Lazaro Cardenas to the proposed MAEG facility in Jerseyville, IL.
Lock and dam projects including one upriver of St Louis were big on Corps Infrastructure FY22 construction work plan funding. Link to PD as well as ENR Article
https://www.stltoday.com/business/local ... 7386e.html
https://www.enr.com/articles/53471-new- ... 1021934J9T
The plan, which Congress mandated in the IIJA, also includes $732 million to complete design and construction of a replacement for Lock and Dam 25 on the upper Mississippi River at Winfield, Mo. Another allotment is $466 million to complete and close out a project to build a new Kentucky Lock on the Tennessee River.
https://www.stltoday.com/business/local ... 7386e.html
https://www.enr.com/articles/53471-new- ... 1021934J9T
The plan, which Congress mandated in the IIJA, also includes $732 million to complete design and construction of a replacement for Lock and Dam 25 on the upper Mississippi River at Winfield, Mo. Another allotment is $466 million to complete and close out a project to build a new Kentucky Lock on the Tennessee River.
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How long is "currently" expected to last? I wouldn't want to bank on a port that will only be desirable for a year.kota wrote: ↑Jan 19, 2022^ 38 days transit Shanghai to New Orleans with this service assuming they stop at Freeport, Miami and Mobile, AL.
According to Keith Creel in the above link, it's 13 days transit from East Asia to LA/LB. But, currently, getting the containers off the ship and on a rail car can add several weeks to the duration:
“It doesn’t do any good if your goods are floating in the ocean, looking at LA, hoping you can get discharged,” he said. “Today, the on-dock dwell exceeds a week. Ten days? Eighteen days? …. It’s so random. Just to get to the dock is two or three weeks, and then another 8-9-10 days to get onto the railcar. … Compare that to Lazaro. You’re talking two, two and a half days."
Please note that the business case Keith Creel makes for shipping from Lazaro Cardenas to Chicago would also apply for shipping from Lazaro Cardenas to the proposed MAEG facility in Jerseyville, IL.
^ From reading earlier posts, I think the main selling point for this new port will be shipping cost savings and not time savings.
^ That's exactly right. I was slow to pick up on the viability of this proposed service until I saw the promised 30-40% cost savings in transporting these boxes to St Louis. That's a game changer. Savvy shippers will find a way to use this service to enjoy those savings.
Metro East to share in $220 million to improve ports and transit systems
https://news.stlpublicradio.org/governm ... it-systems
Some more background:
https://www.thetelegraph.com/news/artic ... 806759.php
https://idot.illinois.gov/Assets/upload ... d-List.pdf
https://news.stlpublicradio.org/governm ... it-systems
Some more background:
https://www.thetelegraph.com/news/artic ... 806759.php
On Wednesday, Illinois Gov. J.B. Pritzker and the Illinois Department of Transportation announced that almost $111.4 million has been awarded to transit providers downstate as part of the bipartisan Rebuild Illinois capital program. An additional $108.3 million was announced for public ports in Illinois. The two announcements, combined with earlier announcements, contribute to a combined $601 million commitment to ports and downstate transit.
A total of 37 transit systems are receiving $111.4 million to advance 51 projects, including St. Clair County Mass Transit District's Emerson Park Operational Control Center in East St. Louis...
In addition, West Central Mass Transit District in Jacksonville is receiving $575,821 in funding for a new building to serve as a headquarters, training facility and dispatch center. Madison County Mass Transit District is receiving $3.25 million in funding for Collinsville Park and Ride, as well as $3.1 million for Phase 3 of MCT Base Facility Improvements. A third and final round of grant opportunities for downstate transit needs is anticipated in 2022.
Here's a list:For the state’s 19 public ports, $150 million in capital funding is available for improvement projects, the first time a state capital program is investing in waterways. The remaining $108.3 million being announced today by Pritzker is being awarded on a competitive basis.
A total of 12 projects are receiving $108.3 million, including America's Central Port District in Granite City, which is receiving $21 million in investment with $13 million for a sediment reduction project in Madison Harbor, aimed at increasing operational efficiency and reducing long-term expenses. Additionally, America's Central Port District will also receive $5.5 million in funding for Granite City Harbor Truck staging and calling and another $2.375 million for Hill Storage Track and other Granite City Harbor improvements.
https://idot.illinois.gov/Assets/upload ... d-List.pdf
^ Thanks for posting
Granite City central port has been able to secure some significant grants between the Feds and now the state. I think it is roughly $32 to $33 million if I got my right.
I would be cautious in regards Kota comments on cost savings on container boxes on barges being a game changer. To me containers are driven much more as an overall logistic cost and pricing that includes demurage charges in part controlled mostly by handful of shipping giants with their big ships. The demurage charges must be a big reason why Port of Long Beach/LA now has a line of over +100 container ships sitting off shore again. Essentially big floating storage platforms that have minimal cost if not burning fuel. So why send the ship somewhere else if you make more money sitting. The analogy I can think of is that these massive Container ships have the scale of massive Oil Tankers that at times become defacto storage tanks by sheer size.
In addition, a lot of competition coming together on either side of New Orleans. Port of Houston on rail access puts a container on UP, BNSF and the new CPKS to all the same midwest markets. In addition, State of Alabama supporting some +200 million in rail corridor improvements to get container boxes out Port of Mobile. Game on for those boxes. Things really need to move fast if containers are going to move up the Big Muddy instead of rail on either side
Granite City central port has been able to secure some significant grants between the Feds and now the state. I think it is roughly $32 to $33 million if I got my right.
I would be cautious in regards Kota comments on cost savings on container boxes on barges being a game changer. To me containers are driven much more as an overall logistic cost and pricing that includes demurage charges in part controlled mostly by handful of shipping giants with their big ships. The demurage charges must be a big reason why Port of Long Beach/LA now has a line of over +100 container ships sitting off shore again. Essentially big floating storage platforms that have minimal cost if not burning fuel. So why send the ship somewhere else if you make more money sitting. The analogy I can think of is that these massive Container ships have the scale of massive Oil Tankers that at times become defacto storage tanks by sheer size.
In addition, a lot of competition coming together on either side of New Orleans. Port of Houston on rail access puts a container on UP, BNSF and the new CPKS to all the same midwest markets. In addition, State of Alabama supporting some +200 million in rail corridor improvements to get container boxes out Port of Mobile. Game on for those boxes. Things really need to move fast if containers are going to move up the Big Muddy instead of rail on either side
Dredger, I don't quite see things the way you do here. There's a lot of ground to cover which will require several posts.
Let's start with what's going on at the LA/LB Ports. There's been a threat to charge demurrage by the Ports of LA/LB, but they have yet to implement it and you have to wonder if they ever will:
https://spectrumnews1.com/ca/la-west/tr ... containers
The major shipping lines can not be pleased with having their ships parked in the San Pedro Bay. It's not the fuel or staffing costs that they're concerned with. Its the opportunity costs of having those container ships sitting in the San Pedro Bay. The major shipping lines are minting money on the China to US import trade. Maersk made $24 billion in profits last year!
https://www.maritime-executive.com/arti ... -2-billion
There's nothing that MSC, CMA-CGM, and Maersk (among others) would rather do than unload those ships and send them back to Asia asap, so that they can be reloaded. The fact those ships are sitting there indicates how screwed up things remain at the Ports of LA/LB.
Things are so bad FedEx is loading up newly built 53 foot domestic containers in China with cargo and sending them on specially chartered ships to the Port of Hueneme. How can they possibly make money on this move? But they must be or else why do it?
https://www.maritime-executive.com/arti ... hueneme-ca
What's going on right now with supply chains is bonkers.
All of this helps make the business case for creating the new COV service lane on the Mississippi River. I was skeptical when this plan was first mooted, until I heard about the 30-40% cost savings. Who wouldn't want to save that amount of money on their logistics? I'm pretty sure Amazon and Walmart are going to be all in. Amazon's logistics costs have absolutely exploded in the past year, which is reflective of many factors, but the fact remains they've got to be looking to trim logistics costs wherever possible. BTW, Amazon now has 5 million sq ft of warehouse space in the St Louis metropolitan area.
Walmart just announced they're building a new 1 million sq ft warehouse in the Memphis area:
https://www.areadevelopment.com/newsite ... sipp.shtml
Probably a coincidence, but maybe not.
Its going to take time to establish a totally new service lane like what's being proposed with this COV. My hunch is that it's going to happen.
Let's start with what's going on at the LA/LB Ports. There's been a threat to charge demurrage by the Ports of LA/LB, but they have yet to implement it and you have to wonder if they ever will:
https://spectrumnews1.com/ca/la-west/tr ... containers
The major shipping lines can not be pleased with having their ships parked in the San Pedro Bay. It's not the fuel or staffing costs that they're concerned with. Its the opportunity costs of having those container ships sitting in the San Pedro Bay. The major shipping lines are minting money on the China to US import trade. Maersk made $24 billion in profits last year!
https://www.maritime-executive.com/arti ... -2-billion
There's nothing that MSC, CMA-CGM, and Maersk (among others) would rather do than unload those ships and send them back to Asia asap, so that they can be reloaded. The fact those ships are sitting there indicates how screwed up things remain at the Ports of LA/LB.
Things are so bad FedEx is loading up newly built 53 foot domestic containers in China with cargo and sending them on specially chartered ships to the Port of Hueneme. How can they possibly make money on this move? But they must be or else why do it?
https://www.maritime-executive.com/arti ... hueneme-ca
What's going on right now with supply chains is bonkers.
All of this helps make the business case for creating the new COV service lane on the Mississippi River. I was skeptical when this plan was first mooted, until I heard about the 30-40% cost savings. Who wouldn't want to save that amount of money on their logistics? I'm pretty sure Amazon and Walmart are going to be all in. Amazon's logistics costs have absolutely exploded in the past year, which is reflective of many factors, but the fact remains they've got to be looking to trim logistics costs wherever possible. BTW, Amazon now has 5 million sq ft of warehouse space in the St Louis metropolitan area.
Walmart just announced they're building a new 1 million sq ft warehouse in the Memphis area:
https://www.areadevelopment.com/newsite ... sipp.shtml
Probably a coincidence, but maybe not.
Its going to take time to establish a totally new service lane like what's being proposed with this COV. My hunch is that it's going to happen.
^ Yes, a lot of great points but so many moving parts in this whole picture. I just think some context and realization that the impact might not be as huge as the expectations and maybe another moving target is who can find a way to cheaply and efficiently store all these boxes that the port developments have to consider..
The Memphis warehouse in my opinion is the reality of companies not keeping inventory has bitten them in the arse as well as home delivery/online replacing some brick & mortar space.. Good bizjournals article on St. Louis warehouse vacancy rate sitting at all time low of 3.3% as well as the fact that more space is in the pipeline including another 1 million square footer as part of 4 million square feet coming online for the region.
https://www.bizjournals.com/stlouis/new ... space.html
Developers have been working to bring more space to market. Roughly 4 million square feet of new industrial properties are scheduled to be available for leasing by spring, which can be viewed in a construction tracking tool built by JLL. Then, in the third quarter, the largest speculative warehouse construction project in the metro area — a 1 million-square-foot building at Gateway Tradeport in Pontoon Beach, Ill. — will be ready for tenants.
The Memphis warehouse in my opinion is the reality of companies not keeping inventory has bitten them in the arse as well as home delivery/online replacing some brick & mortar space.. Good bizjournals article on St. Louis warehouse vacancy rate sitting at all time low of 3.3% as well as the fact that more space is in the pipeline including another 1 million square footer as part of 4 million square feet coming online for the region.
https://www.bizjournals.com/stlouis/new ... space.html
Developers have been working to bring more space to market. Roughly 4 million square feet of new industrial properties are scheduled to be available for leasing by spring, which can be viewed in a construction tracking tool built by JLL. Then, in the third quarter, the largest speculative warehouse construction project in the metro area — a 1 million-square-foot building at Gateway Tradeport in Pontoon Beach, Ill. — will be ready for tenants.
Thanks, Dredger, for your response. You're wise to counsel tempering enthusiasm. A lot of moving parts here. It's going to take awhile before we see tangible progress.
Meanwhile, Freightwaves just posted this article:
https://www.freightwaves.com/news/los-a ... les-volume
This is quite an alarming piece. Import volumes at LA/LB are dropping while the number of containers parked at sea outside the Ports of LA/LB are climbing. The thrust of the article is that the freight ecosystem in Southern California is severely stressed and unable to handle the unprecedented import volumes. Additionally, the Ports of LA/LB are not accurately reporting the severity of the problem.
This is an unwelcome development because 40% of America's containers come through the Ports of LA/LB. We can anticipate that there's going to be increased inflation over what's already been forecast. Things could get really bumpy in 2022.
Meanwhile, Freightwaves just posted this article:
https://www.freightwaves.com/news/los-a ... les-volume
This is quite an alarming piece. Import volumes at LA/LB are dropping while the number of containers parked at sea outside the Ports of LA/LB are climbing. The thrust of the article is that the freight ecosystem in Southern California is severely stressed and unable to handle the unprecedented import volumes. Additionally, the Ports of LA/LB are not accurately reporting the severity of the problem.
This is an unwelcome development because 40% of America's containers come through the Ports of LA/LB. We can anticipate that there's going to be increased inflation over what's already been forecast. Things could get really bumpy in 2022.
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I just read a news article about the court blocking BNSF workers from striking over increased work hours. Just another interesting supply chain crisis.
Building on SC's post earlier in this thread on the State of Illinois grants to America's Central Port, the Kaskaskia Regional Port District, which is part of the St Louis metropolitan area, also received $12.7 million for two port improvement projects from the State of Illinois. Total costs for those projects, including local funding, will be $18.7 million.
Just a quick follow up to my previous post. The two Kaskaskia Regional Port District developments that received funding from the State of Illinois are included in the St Louis Regional Freightway's 2022 Priority Freight Projects. The project descriptions are attached below (Project Descriptions A & B)
St. Louis is nearly out of industrial space: JLL on what’s next
https://www.bizjournals.com/stlouis/new ... -ZNAJo1avY
1.4M-square-foot business park proposed on farmland in Maryland Heights
https://www.bizjournals.com/stlouis/new ... mland.html
https://www.bizjournals.com/stlouis/new ... -ZNAJo1avY
Also:“We are tracking 6 million square feet of space that should be coming online within the next year,” said JLL Research Manager Joshua Allen. “Most of that is going to be taken pretty quickly. There’s a large appetite in the market, and there’s really not a lot of space for a large user to go.”
…….
While it’s unlikely rate increases in St. Louis will be high enough to drive prospective tenants out of the market, Branding said, it is likely to attract new investment. “Part of a healthy real estate market means having rental increases that keep up with inflation,” he said. “Flat is not a good thing for St. Louis. For the first time in a long time, we’re on the top 10 list nationwide in terms of metros with rent increases.”
1.4M-square-foot business park proposed on farmland in Maryland Heights
https://www.bizjournals.com/stlouis/new ... mland.html
When they say industrial does that just mean warehousing?sc4mayor wrote: ↑Feb 02, 2022St. Louis is nearly out of industrial space: JLL on what’s next
https://www.bizjournals.com/stlouis/new ... -ZNAJo1avYAlso:“We are tracking 6 million square feet of space that should be coming online within the next year,” said JLL Research Manager Joshua Allen. “Most of that is going to be taken pretty quickly. There’s a large appetite in the market, and there’s really not a lot of space for a large user to go.”
…….
While it’s unlikely rate increases in St. Louis will be high enough to drive prospective tenants out of the market, Branding said, it is likely to attract new investment. “Part of a healthy real estate market means having rental increases that keep up with inflation,” he said. “Flat is not a good thing for St. Louis. For the first time in a long time, we’re on the top 10 list nationwide in terms of metros with rent increases.”
1.4M-square-foot business park proposed on farmland in Maryland Heights
https://www.bizjournals.com/stlouis/new ... mland.html
These large tilt-up buildings are primarily used as warehousing but they’re also used as manufacturing space, office space, etc. They’re flexible. For example, that 8th Avenue Food company that just moved its manufacturing and 300 jobs to STL from BC occupies a building like this in the Hazelwood TradePort.
^ Article on some of the recent tilt space going up in Hazelwood. I believe Aviator Business Park was where the old Ford auto plant was located. Also wonder how much of the uptick in Air Cargo is driving this. Probably not as much as I think as the business park and for that matter the airport is well situated with Freeway access in all directions as well as a rail line. Plus, I think one of the Regional Freightway projects is to update, upgrade some of the area's street infrastructure on northside of Lambert. Not sure if any of that has been funded yet..
https://www.bizjournals.com/stlouis/new ... 2#cxrecs_s
Construction on all five of the warehouses, which range in size from 130,900 to 423,000 square feet, should finish this summer.
https://www.bizjournals.com/stlouis/new ... 2#cxrecs_s
Construction on all five of the warehouses, which range in size from 130,900 to 423,000 square feet, should finish this summer.
Have to love these headlines if your in logistic biz moving goods through MO. Task force highlights infrastructure challenges while at same time MO statehouse wants to roll back gas tax increase to address the under investment.
https://www.stltoday.com/news/local/gov ... db4e2.html
https://www.stltoday.com/news/local/gov ... 05bc7.html
https://www.stltoday.com/news/local/gov ... db4e2.html
https://www.stltoday.com/news/local/gov ... 05bc7.html
Thought this was interesting. Bizjournals reporting on opposition to what appears to be a new railyard or would assume what they meant by switch station covering 100 acres. Anyone know what is being proposed? Is it really a rail yard and maybe it would be for rail car storage? Not to often in this day and age do you see a proposal for new rail yard. Usually it is the other way around, rails being torn for future non rail development
https://www.bizjournals.com/stlouis/new ... ights.html
https://www.bizjournals.com/stlouis/new ... ights.html
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^The article says it would be to "receive and distribute" vehicles manufactured in Wentzville. The only thing that makes sense to me is that it would be essentially a loading facility for distribution to the rest of the nation: ferry the cars in and load them onto auto-racks. Since it's a shortline that's connected directly to the TRRA you could probably get the TRRA to hand a train off to any of the freight railroads maybe more cheaply and reliably than NS, on whose line the plant actually sits. I suppose it'd cut down the turnaround time on your trucks ferrying cars considerably over anything on the east side, but it would still be vastly more handling than just loading them at the plant. (Which you can also do.) I'm guessing it would be similar to an old Gateway Western facility in Brooklyn: A large, secure parking lot with maybe a half dozen tracks and ramps at the end to allow you to drive automobiles onto freight cars. Auto racks are some of the only cars with doors on the ends. With the help of a few ramps I believe you can just drive the new cars down the train and strap them in place. They're pretty simple operations. Not really much of a "yard" per se. Maybe a very small industrial one. But I'd love to see some investment on that line.