APH wants to take containers, fill them with low cost commodities, and send them back to Asia. The surplus of existing containers exists in the Midwest, this is a way of sending them back and providing value to farmers. (As described to me by APH).
This will be more grain silos and container farms and less warehouses.
This is less than a half truth. Yes, moving grain and beans downriver is the immediate demand driver for this project.
No, investors and APH do not plan to move only empty containers upriver and only corn and beans laden containers downriver in the long term.
I do think this will be win it also requires not getting ahead in expectations as a lot is in play, a lot happening and a lot of competition. No one is going to roll over to give up their TEU counts.. So my muted two cents worth
The good news, Mississippi River got 95% of it s channel deeper to handle the bigger ships up to the new/planned Plaquemines Parish container terminal. The remaining 5% of channel being deepened will happen once some pipeline crossing issues are resolved. The head winds will be in the competition, a big part is Port of Houston is full steam ahead on their deepening project as well as another big expansion round of container facilities. Houston is ahead of in facilities and playing to be the Port of LA/Long Beach or Port of Savannah of the Gulf Coast. In other words, the go to port first. That matters, economics of Big Ships had them standing in line for days off LA while Port of Oakland business dropped like a rock. In addition, CPKS merger with direct inline seamless service running from Pacific Ocean via Mexico, through Houston & KC and into Chicago will give everyone a run for their money for containers into the Midwest. So game on
As far as warehousing, I think the big winners regional is the existing developments that can build out more spec space on a dime. Gateway Center, Hazelwood, so on. As someone noted, it is a short drive up I-55 for these containers to be handed off to current business parks that have room can build out in a hurry. So win either way for region but I see the uptick in jobs as gradually centered around existing nodes..
The really big win to me is St. Louis region only cements itself further in world of agriculture. St Louis will have a direct access point to get agriculture export products into containers and onto the water quicker than anywhere else from some of the most productive land in the world. Add in some unique urban agriculture opportunities in the future with it. Should only make Big Muddy/St Louis/New Orleans more competitive in the agriculture export market.
Isn’t the freight bottleneck in Chicago also what’s driving this project, not just congestion on west coast ports? Shippers want an alternative from ports of La, longbeach, Oakland, Savannah and the Chicago rail connection?
^ Indeed. The most popular route for cargo into the US from East Asia is freighter to LA/Long Beach, then emptied onto trains that head up to the freight terminals in Chicago, then sprawling out nationwide from there. The river freighter concept before us will hopefully have the STL rail hubs hopping.
Politicians announcing Port Infrastructure Development Grants handed out by DOT. I think the pot was around 225-250 million.
Just not sure if region snagged one or not. Congress usually gets a day or two to announce prior to the official list posted by respective govt agency. Port of Albany landed grant for offshore wind manufacturing facility & Cali Ports including Long Beach for on dock expanded rail facilities
This should definitely help MODOT get the widening of I-55 to US 67 in Festus actually going, versus the dragging of feet and "not funded" crap we've gotten for years.
This should definitely help MODOT get the widening of I-55 to US 67 in Festus actually going, versus the dragging of feet and "not funded" crap we've gotten for years.
I’m on the advisory committee for that project. It’s moving forward, although I haven’t been convinced that widening is necessary. We have a meeting jan 19th to go over it
In Granite City, the federal grants will help fund an extension of the harbor’s wharf by 30%, creating a contiguous 1,200-foot-long wharf capable of handling six barges at once. The project also will add a half-acre of working space to support cargo dock operations.
Would think the site for the Wildwood warehouses isn't reasonably suitable for big expensive houses, being in the path of Spirit of STL Airport and all. Let's see if the municipalities are satisfied with new industrial coming into their neighborhoods.
This development doesn’t seem to maximize the space. Granted there are engineering concerns I don’t understand but do Chesterfield industrial development patterns really need to mirror their residential neighbors?
It's flood plain - I'd rather warehouses get built here than anything else (and yes, I get that nothing would be best, but that's no longer an option it seems). Side note, Chesterfield, Wildwood and the County are really going to need to enforce the ordinance forbidding traffic trailers using the portion of S. Eatherton between Wild Horse Creek and Centaur or else there's going to be multiple semis per week who try to use 109 as a short cut to get to/from 44 getting stuck on that short winding, narrow hill.
I know slightly off topic but I was amazed during a recent jaunt out to the outlet mall in Chesterfield how much empty office space there is along 40 in West County/Chesterfield. Seemed as if every building was leasing significant amounts of space, not something I remember from before the pandemic.
US 67 / I-255 is now a 4-lane limited access highway from the proposed site of the Mid-American International Gateway Business Park to the I-270 intersection (and beyond).
I know slightly off topic but I was amazing during a recent jaunt out to the outlet mall in Chesterfield how much empty office space there is along 40 in West County/Chesterfield. Seemed as if every building was leasing significant amounts of space, not something I remember from before the pandemic.
The county really needs an ordinance against commercial “For Lease” signs over a certain size. There are signs that appear to be 250 square feet or more. I’m surprised the existing tenants don’t b***h more. It’s an eye sore.
Does anyone actually lease class A space because they saw a sign driving down the highway?
The Springfield Line is a direct competitive alternative to CP’s route from Kansas City to Chicago, and beyond to Detroit and eastern Canada. CP and KCS have made it clear in their merger application that they plan no investment on the Springfield Line, and instead will de-emphasize it in favor of CP’s existing parallel line, CN officials said in a press release.
Putting the line under CN’s control "represents a major opportunity to improve transportation options, promote rail-to-rail competition, and take many of thousands of long-haul trucks off the road annually through increased rail-to-truck competition," the press release stated.
Specifically, CN would invest at least $250 million in the line, including terminal upgrades; opening new international markets to customers; and preserving existing options by providing KCS access to customers on the line, CN officials said.
I'd be surprised if CP agrees to that. Access to St. Louis might not be the biggest deal to them, but it would hand CN a better route between Chicago and Kansas City. And I expect they can at least make the counter-argument that it will cut down competition in St. Louis. (Which while perhaps not particularly important, would still be true.) Maybe they could make a counter-offer of trackage rights. That could be a win-win.
Hearing concerns from different stakeholders here in Chicago.
- Metra hasn’t given its blessing and has asked the Surface Transportation Board to force CP to hand over more info. The Chicago RTA can pack a hefty punch if a service board (Metra) outlines impact clearly. I believe Metra is the largest commuter rail network in the US and is in the process of considering a new operation model. (Regional Rail vs current Commute Rail)
- Coalition of communities have formed to push back on any increased rail traffic caused by merger. I’d expect CP might be asked to cough up some $$$ for safety/sound improvements.
On the flip side, much of Amtrak’s support of the merger is due to CP agreements surrounding significant improvements between Chicago Milwaukee, St. Paul, and Toronto (via Detroit).
Davenport and Bettendorf, Iowa are also suggesting increased traffic will lead to “disastrous impacts”
"In fact, the route from Kansas City to St. Louis and the other assets CN wants the STB to force CP to divest are important parts of the combined CPKC growth story providing new, competitive single-line routes connecting CP's network with customers and port facilities in St. Louis, and connections to eastern carriers. CP anticipates an increase of traffic on this corridor of 30 percent."
CN's proposal is going to go nowhere. CSX, NS and UP would all be strongly against this proposal. CN already has access to the St Louis market and interchanges freight with KCS in East St Louis.
BTW, please check out the latest satellite images of the grain transloading facilities in Cahokia. Specifically, the COFCO / Growmark, Louis Dreyfus, etc facilities. Those facilities are a hive of activity!
