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The St. Louis Region SPONSORED CONTENT The St. Louis Region: Big Developments, Bright Future An abundant, skilled workforce, outstanding multimodal transportation options, and plenty of space for expansion all fuel growth in the area’s logistics sector. May 2017 • Inbound Logistics 73 The St. Louis Region: Big Developments, Bright Future For many years, the St. Louis region has offered of the abundance of exceptional tal- ent. We’re seeing great interest in the outstanding logistics advantages to companies positions we have to offer, and both buildings are doing great.” that located on the Missouri or Illinois side of the The buildings are doing so great, in fact, that employment numbers have Mississippi River. With a wealth of multimodal soared past original projections when transportation options, plenty of available real estate, Amazon announced the facilities in the St. Louis region, stating they would cre- and a position within one day’s drive of 30 percent ate more than 1,000 full-time jobs. “Since opening the facilities, we have of the U.S. population, the bi-state area has drawn grown and added more full-time jobs,” notes Lindsey. “Amazon currently has interest from manufacturers, distributors, and more than 1,500 full-time employees retailers who need efficient access to domestic and in Edwardsville.” While Lindsey does not comment on international markets. future expansion plans in the St. Louis region, she does reaffirm that Amazon Recent developments in the area centers, notes Nina Akerley Lindsey, is growing rapidly. She points to the are ramping up the excitement level. with Amazon corporate communica- recent announcement that Amazon In particular, the past 12 months have tions. Company officials want to be as will create 100,000 new full-time jobs been a defining period in the St. Louis close to their customers as possible to across the company over the next 18 region’s quest to become a premier facilitate fast local and regional delivery, months, many of them in states such as freight logistics gateway and multimodal but they also look at local workforce. Kentucky, Florida, and Illinois. “We’re hub, as Amazon entered the market What Amazon has found in the St. definitely seeing growth in Illinois right and absorbed 1.4 million square feet of Louis region has been great. now,” Lindsey says. speculative space with two facilities in “We’ve been so pleased with the Mark Branstetter, a partner at Edwardsville, Ill. talent we found in the region,” says Panattoni Development Company, A few key factors drive location deci- Lindsey. “We’re thrilled to be able to which developed the Lakeview sions for the company’s fulfillment provide local jobs to avail ourselves Commerce Center spec building that A project to replace the Merchants Bridge with one that can handle two modern freight trains simultaneously could create more than $456 million in economic activity over 20 years–nearly double the impact today, according to its owner, Terminal Railroad Association. 74 Inbound Logistics • May 2017 The St. Louis Region: Big Developments, Bright Future Amazon occupies, highlights the signif- in Hazelwood, Mo., have attracted both public and private sector leaders, icance of the region’s ability to deliver manufacturers and consumer prod- The Freightway is partnering with other the workforce Amazon needs. ucts companies. In addition, various freight transportation hubs, starting with “Location matters, but employment third-party logistics firms have recently the recent signing of a memorandum of matters just as much when it comes to leased space in the nearby Hazelwood understanding (MOU) with the Port of attracting users such as Amazon,” says Logistics Park. New Orleans. Branstetter. “Amazon coming here, While that mix is healthy for the “This partnership will help create and growing here, proves we have the region, Convy says it is Amazon’s deci- opportunities for St. Louis regional ports labor needed.” sion to enter the St. Louis market that and river terminals to capitalize on the Another key ingredient in attracting will drive future growth, following a recent growth in container-on-barge e-commerce giants such as Amazon is record-setting year for the region with operations at the Port of New Orleans having the available space they need, more than 6 million square feet of new and the 500 million tons of cargo that when they need it, adds Tim Convy, industrial construction. annually move through the lower Mississippi River,” says Mary Lamie, executive director of The Freightway. “The St. Louis region is integrating supply chains with regions such as New Orleans and others throughout the country.” Building a Bridge The Freightway is also accomplishing its mission by setting multimodal trans- portation priorities with regional public and private sector leaders. One of the region’s highest priority projects is the 128-year-old Merchants Bridge over the Mississippi River, owned and operated by the Terminal Railroad Association of St. Louis (TRRA). Carrying six Class 1 railroads and Amtrak, this structure serves the nation’s third-largest rail hub and is considered a model for public- private partnerships. This Panattoni Development building within the Lakeview Commerce Center in Edwardsville, Ill., is composed of concrete tilt-up panels and is designed to expand up TRRA is willing to cover a significant to 1 million square feet. This type of new construction helps attract businesses to the portion of the $220-million project to St. Louis region. replace the bridge, and estimates that a new span that can handle two mod- principal with the St. Louis office of “There’s a herd mentality in the ern freight trains simultaneously could commercial real estate services firm industry,” says Convy. “Amazon’s pres- create more than $456 million in eco- Avison Young. ence validates the region.” nomic activity over 20 years—nearly “As a broker working for an inter- That is exciting news for the St. double the impact TRRA gener- national company, we know that if Louis Regional Freightway, which is ates today. we don’t have product, our customers tasked with optimizing the region’s The Merchants Bridge is not will move on,” Convy says. “Panattoni freight transportation infrastructure only capturing the attention of The has had the confidence to build spec and advancing its position as a world- Freightway and the railroad industry, it facilities in the St. Louis region and, class distribution hub. is also very much on the barge indus- therefore, we’ve been able to attract Officially launched in April 2016, try’s radar. companies such as Amazon.” The Freightway is already playing a “While enhancements to the nation’s Such industry giants are not the only critical role in the growth of manufac- locks and dams are a top priority, we companies turning to the St. Louis turing and fulfillment centers within the consider the Merchants Rail Bridge to region; the other spec facilities recently bi-state region. Through a unified bi- be the number-one infrastructure pri- completed at Panattoni’s Aviator Park state regional collaboration, including ority for the St. Louis region,” notes 76 Inbound Logistics • May 2017 The St. Louis Region: Big Developments, Bright Future The Board of Commissioners of the Port of New Orleans and the St. Louis Regional Freightway sign a Memorandum of Understanding to exchange market and operational information. The goal is to expand trade and build upon existing and new business relationships between the two regions and critical ports. Tim Power, president of SEACOR provides a direct link to St. Louis, Tulsa, St. Louis. Today, the region is the third- Inland River Services/SCF Marine Inc. and Oklahoma City; I-55 to Chicago, largest rail hub in the United States. Six “Competitive barge rates are contingent Memphis, and New Orleans; I-64 to of North America’s seven Class I rail- to competitive rail rates.” Missouri, Kentucky, West Virginia, and roads serve St. Louis, providing freight Such agreement among various Virginia; and I-70 to Denver, Kansas transportation throughout the continent stakeholders on the region’s priorities City, Indianapolis, Columbus, and without need for interchange. will improve The Freightway’s abil- Baltimore. Those highways put much ity to coordinate with industry and of the Midwest with one day’s drive and Connection to the World government to ensure the region’s offer two-day access to multiple East These rail lines connect the region infrastructure can handle the growth as Coast and Gulf ports. not only with major markets in the they work to enhance and increase the To keep freight and other traffic United States, Canada, and Mexico, $6 billion in goods traveling through flowing, communities in the St. Louis but with the world, via ocean ports on the St. Louis region by rail, road, river, metropolitan area have recently com- the East and West Coasts and the Gulf and runway. pleted several important highway of Mexico. Several shortline railroads Branstetter sees The Freightway as infrastructure projects. One is the Stan add to the number of options available the region’s first concerted regional Musial Veteran Memorial Bridge across to companies that ship by rail. effort to pursue logistics and freight as the Mississippi, a $670-million project Six intermodal yards accommodate a focus area, and he remains bullish that connects St. Louis and southwest- freight moving into and out of the St. on the region’s potential for contin- ern Illinois via I-70. Louis region: ued growth. “I don’t think the growth Another initiative has rebuilt the 1. BNSF’s St. Louis Intermodal we saw in the past 18 months is a one- Daniel Boone Bridge to extend I-64 Terminal, St. Louis. Located near I-44, time thing,” he notes. “The future in the across the Missouri River.
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