MIDWEST\\\ >> 18


pandemic ,” noted


Adam


Schlicht, the port’s director. Grains


and soy handling


have increased over 200% in Milwaukee, specialty steel traffic has seen growth, and other traditional cargoes such as salt and liquid bulk have held firm, while cement has been up 29%. “The reason for the increase


in cement,” explained Schlicht, “is that during the pandemic, people have been looking for shovel-ready manufacturing and large construction projects and need aggregates to facilitate that activity.” At Thunder Bay, Ontario,


Canada’s furthest inland port and the Saint Lawrence Seaway’s largest export gateway, elevators have experienced


a Italy, surge in


grain throughput during the pandemic, with exports to France,


and Morocco all up sharply. Rail traffic also


Heney. “It’s an attractive cargo for ocean vessels to backhaul to Europe.”


Robust Activity


Despite the pandemic, investments at many inland ports in North America continue


“[The increase in grain exports has] meant more ocean vessels calling at the port,”


– Tim Heney. Port of Thunder Bay.


increased significantly at the port, doubling compared to 2019 at some points in recent months. Canada has


seen greater


demand for grain in Europe, as some other countries have cut their exports in an attempt to preserve food supplies during the pandemic. The decline in the Canadian dollar has made Canadian grain more globally competitive, according to Tim Heney, CEO at the Port of Thunder Bay. The increase in grain exports


has also “meant more ocean vessels calling at the port,” said


robustly. Port Milwaukee will be constructing a new bulk vessel transload facility to export dried distillers grain, an animal feed supplement and ethanol byproduct, thanks to a recently- announced $4.9 million grant from the State of Wisconsin. The facility also received $15.9 million from the U.S. Maritime Administration (MARAD) and $4.3 million from Port Milwaukee. The $31.3 million facility, which will be the first of its kind on the Great Lakes, will be able to handle other bulk grains such as soybeans, corn, and wheat in the future. In


2019, Port Milwaukee


released a request for proposal for commercial utilization of its Grand Trunk parcel. “It is for maritime utilization with connectivity to the Union Pacific Railroad and light industrial handling of aggregates,” said Schlicht. A major announcement on that project is anticipated later this summer. There are also significant


investments currently ongoing in Kansas City, including the construction of a new airport


“Having air gives us an additional competitive advantage.”


-- Chris Gutierrez, KC SmartPort,


Issue 5 2020 - FBJNA


“We anticipate there will be a significant increase in Komatsu


activity at the port beginning in 2022.” -- Adam Schlicht, Port of Milwaukee.


terminal, expected to be completed early in 2023. The new facility “will allow for the more efficient loading of freight into airplane bellies,” said Gutierrez. A new barge terminal site


on the Missouri River has been acquired by the port authority in Kansas City, Missouri. The project, currently in design phase, will take PortKC, as it’s called, from a 50-acre terminal to 400 acres. “We’re very excited about this


project in terms of traditional barge freight,” said Gutierrez, “and also for the potential for container-on-barge business in Kansas City.” A terminal reconfiguration


at the Port of Thunder Bay is just about complete, the purpose of which is


to allow


the port to accommodate more dimensional freight, project cargo, and structured steel. The 90-acre terminal, which can berth and unload three ships at a time, has 550,000 square feet of covered space and is served by both the Canadian Pacific and the Canadian National railroads. The reconfiguration projects


adds “a new heated warehouse, new rail


infrastructure, and


expanded lay- down areas,” said Heney.


Real Estate Remains Brisk


Development of industrial sites adjacent to transportation nodes is increasingly seen as critical to multimodal connections. “You need


distribution parks near


modes of freight transportation,” said Gutierrez. “Companies have fast decision making processes, and if you don’t have a spec building or acreage that is vertical- ready tomorrow you are at a disadvantage from a speed-to-


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market standpoint.” The Kansas City area has seen


a growth spurt in recent years for industrial spec development. Since 2012, the region has added 40 million square feet of new industrial space. “This year, six to seven million square feet of additional space are under construction or are planned to start,” said Gutierrez. Some of this new space will


accommodate e-commerce distribution, which started booming before the pandemic and has only grown since, as well as food production and cold storage. “Food production has taken off as more food chains have


been repositioned for


COVID,” said Gutierrez. In Milwaukee, the construction


adjacent to the port of the North American headquarters of Komatsu, an exporter of mining equipment and a long-time port user, is ongoing. “We anticipate there will be a significant increase in Komatsu activity at the port beginning in 2022,” said Schlicht. Real


estate development


around Rickenbacker remains brisk, according to Schreiber. “There were many projects in the pipeline before COVID,” he said, “and, judging by the amount of warehousing continuing to be put up, it doesn’t seem like this trend will slow in the short term.” Besides warehouses, Alcorta


Forging Group, a Spanish automotive supplier, recently announced plans to establish its first U.S. manufacturing operations and regional headquarters in the region. Cérélia, a French- based producer of doughs and


19


The Kansas City region boasts connections to several interstate highways. (Credit: KC SmartPort)


baked goods, announced plans to expand its operations near Columbus with a $29 million investment and production slated to start in early 2021. “The Rickenbacker area is the


epicenter of our region’s logistics and distribution sectors,” Matt McCollister,


senior


said vice


president at One Columbus, an economic development agency. “The multimodal infrastructure and market access advantages are driving a strong pipeline of build-to-suit and speculative developments, especially in the area of e-commerce fulfillment.” While the immediate


future remains murky, those


in the logistics and economic development businesses must, of necessity, take a longer view. “Things are very uncertain at this point,” said Schreiber, “but the


current COVID situation


has both exposed some supply- chain weak points and provided opportunities to help companies fill those.” In Milwaukee, the port has


received requests for quotes to handle project cargo in 2021 and 2022, noted Schlicht, indicating that, at


least for some, there


is some light at the end of the pandemic tunnel.


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