Grain terminal addition strengthens STL inland port

The St. Louis region’s position as the most efficient inland port in the United States has been strengthened following the recent addition of a new grain handling terminal on the banks of the Mississippi River in Cahokia, Ill., adding capacity in the area known as the Ag Coast of America.

The region garnered the title due to a 15-mile stretch of the Mississippi River featuring 15 barge-transfer facilities that, at total capacity, can handle 150 barges a day – the highest level of capacity anywhere along the Mississippi River.

The addition of the 16th terminal, which was built by American Milling and purchased in December 2020 by Oakley St. Louis, LLC, a subsidiary of Arkansas-based Bruce Oakley, Inc., further expands the existing capacity with the ability to handle at least 1,000 more truckloads of grain daily. 

Bruce Oakley entered the market in 2019 with its purchase of Lange-Stegmann Company, its second terminal in the area. The acquisition gave Bruce Oakley control of Lange-Stegmann’s 60-acre site at Mile 182.7 on the Upper Mississippi River, which includes a barge dock, a rail yard with 23,000 feet of track, three locomotives, a truck and rail scale, and more than 153,000 tons of storage capacity.

“Bruce Oakley, Inc. is very excited to have a presence in the St. Louis area,” said Justin Oakley, vice president of Bruce Oakley, Inc. “For a commodity transportation and distribution company like Oakley, St. Louis is one of the most strategic locations on the river system. No other city connects river, rail, and road quite like the Ag Coast of America. Deep barge drafts, the lock-free and ice-free river to New Orleans, connection to the Class-1 railroads, and proximity to many industrial accounts that Oakley also services, make the Ag Coast a perfect location for us. Having the largest and most efficient fertilizer terminal in the area, complemented by a high-speed grain loading terminal, makes Oakley uniquely suited to add value to customers throughout the region.”

Other facilities on the Ag Coast include the Cargill Grain Elevator, which is one of the busiest grain elevators in the nation; the Bunge-SCF River Grain Terminal in Fairmont City, Ill., which is designed for more than a million bushels of permanent storage and can handle high volumes of multiple commodities simultaneously; and four facilities in Cahokia, Ill., operated by Consolidated Grain and Barge Company (CGB), Louis Dreyfus and COFCO International Growmark, which are the four highest capacity facilities in the entire inland waterway. Facilities operated by ADM, Gavilon Fertilizer, SCF, and Italgrani Elevator Company, along with America’s Central Port and the Municipal River Terminal in St. Louis, round out the 16 barge transfer facilities currently handling the tremendous volumes of agriculture and fertilizer products flowing through the Ag Coast.  

Growth on the Ag Coast is also supported by the recently completed reconstruction of Cargill Elevator Road, a vital link to the terminals in Cahokia, Ill. Trucks represent 87 percent of the vehicles traversing the narrow roadway, and prior to the reconstruction, traffic had been limited to one lane in each direction. Federal funding of  $800,000 through the IDOT Competitive Freight Program was key to advancing the $3.3 million project, which also received state and private funds.

“IDOT is proud to be working closely with our local stakeholders and businesses to improve the efficient transport of freight through our region,” said Keith Roberts, the acting Region Five engineer for the Illinois Department of Transportation. “The recent Cargill Elevator Road improvements complement future planned work by the department, including the extension of relocated IL Route 3 south into Sauget and additional projects to improve reliability of the freight and commuter network along this vital regional corridor.”

One additional project, now partially funded, will help to address heavy traffic volumes on Illinois Route 3 at the A&S Railroad crossing in Sauget, which result in more than 55,000 hours of through-traffic delays annually. Calculating the cost of delay, a proposed grade separation project would provide annual cost savings of $1.5 million for passenger and commercial vehicle drivers traveling this area and improve truck traffic reliability, safety and efficiency benefiting barge and rail rates. The overall project has multiple benefits to the region in terms of improving access to the growing business community and encouraging future business development. 

Mary Lamie, vice president of Multi Modal Enterprises for Bi-State Development and head of the St. Louis Regional Freightway enterprise, is excited about the continued investment in the Ag Coast and the infrastructure surrounding it.

“Handling nearly 450,000 tons per mile, the St. Louis region’s port system is almost two and a half times more efficient on its river usage than its closest competitor, according to the most recent rankings by the U.S. Army Corps of Engineers,” said Lamie. “The added capacity and enhanced access provided by the newest terminal and infrastructure investments will come in handy given projections that 2021 will be a record year for corn and soybean exports from the United States.”

Global supply chain disruptions felt across Midwest

Delays and higher shipping costs have impacted consumers coast-to-coast and underscore the need for new shipping alternatives - can the St. Louis region deliver?

Striking images of dozens of container ships berthed outside of already congested West Coast ports, plus photos and video showing a 1,300-foot-long container ship stuck in the Suez Canal, have landed supply chain industry news in the forefront for consumers in recent months.

While the visuals may be what has caught the attention of people who normally do not give much thought to the movement of freight, the ripple effect of these global incidents on the heels of supply chain disruption caused by the COVID-19 pandemic is being felt nationwide and in the St. Louis region. It also is reinforcing the importance of having a resilient supply chain and calling attention to the role the St. Louis region could play in providing options for shippers in this evolving environment.

Panos Kouvelis has looked extensively into this subject over the past year, interviewing multiple local and global companies with complex supply chains. He found resiliency in the supply chain comes down to two things.

“When we think about resilience, we say redundancy and flexibility. Those are the two things you've got to build,” said Kouvelis, director of the Boeing Center for Supply Chain Innovation (BCSCI) in the Olin Business School at Washington University in St. Louis, Mo.

Redundancy and flexibility might have helped avoid some of the early pain when the COVID-19 pandemic started and consumers grappled with shortages of toilet paper, sanitizer and paper towels; but those proved to be just a minor annoyance. The global supply chain disruptions experienced in recent weeks are having a much more significant impact.

Due to the shortage of semiconductor chips, General Motors announced in late March it was idling the General Motors Wentzville plant for two weeks, starting March 29. The move affected not just the more than 3,500 employees at the St. Charles County facility, but also the associated suppliers, not to mention the nearby restaurants for whom GM employees are core customers. Other consumers throughout the region are finding their orders for furniture, TVs, laptops and countless other household goods not only delayed, but ultimately costing more as higher shipping costs are getting passed along to end consumers.

As Kouvelis and his colleagues reviewed the pandemic year to see its impact on the manufactured durable goods global supply chains, they feared supply shocks and expected some temporary pandemic pain; but, surprisingly, it was strong consumer demand coming back that caused the most disruption. As summer came, and most Americans became adjusted to a life with limited or no access to dining services, sports venues and other entertainment, gyms and restricted air travel, they turned to projects for their houses, kitchens, cars, in-home entertainment devices, exercise equipment, power tools and boats.

“The demand for those products came back at a speed of recovery and level nobody expected,” Kouvelis said. “And the shortages were compounded by severe shortages of products such as semiconductors, the essentials of ocean and trucking transportation – shipping containers, and raw materials, such as aluminum, titanium and even stainless steel.”

Adding to the high demand were the delays due to continued congestion at the West Coast ports and the even more recent disruption caused by the blockage in the Suez Canal that backed up more than 400 other ships carrying millions of tons of cargo for days. Kouvelis said he expects the shortages will be longer lasting, resulting in consumers having to wait longer and pay higher prices to get their durable goods.

Such challenges actually bode well for the St. Louis region, where the strength of the existing freight infrastructure and innovative collaborations are providing even more reasons for shippers to consider routing freight through the bi-state area. In fact, it appears a hallmark of the St. Louis region’s freight network is its inherent flexibility and redundancy.

“You have so many assets. You have the network of the roads; you have the rail and then you have the Mississippi River. And then of course, the airports as well,” said Kouvelis. “But, again, I think the use of the intermodal and the heavier use of the river is the flexibility that you can offer that sometimes is not fully exploited.”

That is changing with the 2020 launch of Container-on-Barge (COB) services from America’s Central Port and  advancing plans to bring innovative Container-on-Vessel (COV) services to the St. Louis region and the Midwest. Kouvelis is enthusiastic about the proposed services, noting that, as a logistics person, everything is about the 20-foot containers and how you move them and how having them sitting around is a not a good thing.

“If we manage to basically use the transit capacity in a way that we get to free up, for longer trips, the intermodal and the river and the other assets that should be used instead of the truck, that will basically relieve bottlenecks at the ports and start moving things towards the middle of the country,” said Kouvelis. “And that's where we get a big, big advantage with this type of initiative.”

Through his research over the past year and ongoing relationships with global companies headquartered in or having a significant presence in the bi-state St. Louis region, Kouvelis also noted there are tremendous examples of supply chain resiliency among them.

He cited Emerson, which has headquarters in St. Louis and facilities in the bi-state area, and credited it as one of the most resilient companies in the region. He said one thing that has made Emerson more resilient over time is a change in their supply chain strategy. He said Emerson had been very heavy on sourcing from Asia but, over time, it developed a regionalized supply chain strategy. It strives to have a supply chain in North America for North America and in Asia for Asia and operate in Europe for Europe. These more regional supply chains have been an effort to bring things closer to the market. As a result, Emerson either has its own facilities or it has suppliers that are in the region to positively impact lead times.  Kouvelis believes this is good for the St. Louis region, as it might bring more manufacturing closer to the region, especially since it is an environment that will make investments in infrastructure.

Kouvelis called attention to Bunge, which has gradually increased its presence in the bi-state region to leverage its logistics advantages, especially the river. Its new headquarters is located in Chesterfield, Mo., a research and development center is located in St. Charles County, and its barge loading/grain facility is located in Fairmont City, Illinois, part of the Ag Coast of America.  He also cited AB-InBev, and how the pandemic reinforced that the beer business is a logistics business.

“From a logistics business perspective, they are really the best,” said Kouvelis. “They don't want to change St. Louis from being the logistics hub. They have moved marketing functions and finance functions to New York. But the logistics have stayed in St. Louis.”

He pointed to AB Mauri® North America, the yeast manufacturer based in St. Louis, which saw demand increase by an estimated 400% during the pandemic, and highlighted Bayer, Millipore Sigma and Belden, which all have a strong presence in the region and share the common thread of resiliency in their supply chains -- resiliency that has been years in the making. All of the companies Kouvelis has been engaging with have been willing to talk about their best practices for dealing with supply chain disruptions, sharing important knowledge for the benefit of all, without revealing private information.

Kouvelis believes other companies can learn from these corporations and he shared several key takeaways. Companies need some redundancy in their assets, either in facilities or in the inventories. They should consider a more diversified footprint, potentially having facilities in different areas as much as possible. He suggests supply networks also have to be very diversified, either at the global level or even within the different regions where a business operates. When something happens, companies should have the operational flexibility to switch assets or to find alternatives, which can require that businesses have a little buffer. 

“One part of that is distribution, so there are advantages in having multiple alternatives,” said Kouvelis. “I think that the transportation alternatives that the St. Louis Regional Freightway is creating are a major advantage for companies.”

Mary Lamie, vice president of Multi Modal Enterprises for Bi-State Development and head of its St. Louis Regional Freightway enterprise, is excited about the work that Kouvelis is doing with these organizations.

“Kouvelis’ supply chain resiliency collaboration with private industries prior to COVID-19 has demonstrated the value of knowledge sharing within a specific industry, the value of redundancy and flexibility, and a region’s ability to work together to leverage human capital and logistics assets,” said Lamie.

“The St. Louis region has a great positive business climate and thanks to forward thinking global and national corporations anchored in the St. Louis region, we’ll continue to lead the nation through the COVID-19 and future supply chain disruptions.” 

Mary Lamie receives 2020 'Women in Supply Chain' award

In celebration of its 20th anniversary, Supply & Demand Chain Executive, a supply chain industry magazine covering the entire global supply chain that focuses on ROI, professional development and change management, announced the recipients of its first-ever “Women in Supply Chain Award.”

Mary Lamie, head of the St. Louis Regional Freightway and executive vice president of Multi-Modal Enterprises at Bi-State Development, was recognized with the prestigious award that honors female supply chain leaders and executives whose accomplishments, mentorship and examples set a foundation for women in all levels of a company’s supply chain network.

Since 2014 when Lamie was selected to establish and lead the St. Louis region’s new freight district, she has worked with public and private partners to evaluate freight needs in the St. Louis region and the freight network’s operational status. She heads the regional effort to grow the $6 billion of goods traveling through the bi-state area annually and to ensure the freight network can handle the 45% growth in freight volume projected over the next 25 years.

Lamie created a foundation for a comprehensive, regional approach to freight management, infrastructure and marketing, and has united the region toward a common focus by establishing partnerships bridging government boundaries, public and private sector, industries and modes of transportation.

“We received over 200 entries for this new award, entries that were submitted from a combination of men and women. This proves that our industry needed an award like this, especially in conjunction with Supply & Demand Chain Executive’s 20-year anniversary,” says Marina Mayer, editor-in-chief of Supply & Demand Chain Executive and Food Logistics.

When it comes to women’s roles aligning supply chain with a company’s broader strategy, Lamie sees clear evidence that women are playing a critical role building reliable and efficient supply chains and the infrastructure that supports them, both of which enable the nation to compete globally.

“It is truly an honor to receive this award from Supply & Demand Chain Executive and validates the hard work we’re doing to elevate the St. Louis region’s status as a world-class freight hub right here in the heartland of America,” said Lamie.

“This award is a testament to the support I and the St. Louis Regional Freightway receive from many public and private sector partners who are all working collaboratively with us to maximize infrastructure funding for the region and to advance our partnerships with other midwest and coastal ports so more cargo moves between Midwest and foreign destinations. All of these efforts will help increase jobs in manufacturing and logistics industries here and, ultimately, improve the nation’s global competitiveness.”

Lamie’s work building consensus and advocating for funding has been central to these efforts, but she also plays another critical role -- marketing the St. Louis region to further elevate its status as a global freight hub. 

Lamie developed FreightWeek STL, an annual event bringing together industry leaders to share ideas and advance the latest innovations shaping the future of the freight industry and impacting supply chains. 

“According to Gartner’s 2020 Women in Supply Chain Survey, 17% of chief supply chain officers are now women – a 6% increase compared to 2019. This award resembles females supporting other female leaders; men supporting their female counterparts. It resembles the future. It represents growth, evolution and community. And, that future shows that it’s a great time to be a part of the supply chain industry. So, congratulations to these top female leaders. I look forward to seeing what else you do to grow the supply chain industry,” Mayer said.

Companies such as World Wide Technology, Bunge, General Motors and many others have some or all of their supply chain in St. Louis, and have been growing as they compete in the global market, a signal that others can be successful in the St. Louis region too.

For more information and the full list of 2020 Women in Supply Chain winners, visit Supply & Demand Chain Executive’s website at www.sdcexec.com. The 2020 Women in Supply Chain Award winners will also appear in SDCE’s September issue.

STL Regional Freightway launches new real estate site map

The St. Louis Regional Freightway has launched the expanded Featured Real Estate Sites Map section of its website, which highlights a wealth of information about the bi-state St. Louis region’s growing real estate market with its abundance of warehouse/distribution buildings and land sites ready for all types of industrial and corporate users.

The new tool is another offering from the St. Louis region’s go-to source for coordinating freight activity, which is committed to providing up-to-date information for the entire industrial market as it works to provide both marketing for active sites and accurate listings for interested parties.

The Featured Real Estate Sites Map section at www.thefreightway.com/real-estate/ provides a unique look at the region and pulls data from both the Illinois and Missouri sides of the Mississippi River, spanning from the City of St. Louis to multiple surrounding counties in the bi-state area, including opportunities at two airports.

“The goal is to collaborate between municipalities, counties, and cities in the St. Louis region and market the entire St. Louis MSA as an active, business-focused, growth-ready region primed for further industrial development,” said Mary Lamie, head of the St. Louis Regional Freightway and executive vice president of Multi Modal Enterprises at Bi-State Development.

The St. Louis Regional Freightway site is tracking 37 sites with more than 8,000+ acres available for development. These sites are actively updated with site information, pricing changes, and accurate contact information to make it easy for anyone searching for potential operation locations.

Data is compiled through communication with brokers and developers around the region and also from third party property databases. The website is regularly updated and is provided without cost to property owners, brokers and developers

Sites included on the website must all meet the following criteria: the developable land is 20 acres or larger; the site is being actively marketed; existing structures are modern bulk buildings (minimum 24’ clear height); the location has access to a major transportation highway, rail spur (or rail potential), seaport access, or runway access; and, lastly, entitlements and utilities must be in place.

The sites are all located in the bi-state St. Louis region, which is becoming increasingly recognized as business focused and perfectly situated to help companies both large and small, seeking a single location with global access. The region is suited for operations ranging from a global headquarters to manufacturing operations to distribution hubs to call centers or service centers at a cost-effective level. It allows companies to find the right spots for every branch of their company in a single region while having a global reach. The abundance of developable land makes it easy to get a site selected, construction started and operations commenced.

“St. Louis not only has the places and the people that companies need to grow but also all has the logistical advantages of being in the middle of it all, which allows easy access to their supply chain,” said said Allison Gray, vice president, Steadfast City Economic & Community Partners. “The Real Estate section of the St. Louis Regional Freightway website is the best spot to find all of the up-to-date information for industrial sites across the entire region.”

While the website will be regularly updated with new sites as they are announced, the following is a summary of the newest sites added prior to the launch of the expanded website:

• Mid America Commerce Center – New industrial park in O’Fallon, Ill., developed by TriStar Cos. with more than 200 acres of developable land for warehouse/distribution buildings ranging from 25,000 SF to 710,000 SF with a possible 10-year tax abatement.

• Dupo Real Estate & Development Sites – Dupo, Ill., offers multiple sites for commercial and industrial development and is located at a primary east-west rail corridor serving the nation’s third largest rail hub. Sites range from 10 acres – 200 acres.

• Hartford Logistics Park – Located in Madison County, Ill., this park offers nearly 400 acres of land available for built-to-suit projects for buildings up to ±1.5M with potential rail access. 

• Earth City Industrial Sites – The Earth City, Mo. submarket is a large industrial hub of nearly 3,000 acres of industrial construction. Links to 8 new site listings were recently added to the Earth City section.

• Wentzville I-70/I-64 Real Estate Sites – Wentzville, MO, is the location of the GM Wentzville Assembly Plant and is at the intersection of Interstate 70 and Interstate 64. Highly desirable buildings and land sites are available ranging from 18 acres – 50 acres. 

Check out these sites and the other bi-state St. Louis sites at the St. Louis Regional Freightway’s website:  www.thefreightway.com/real-estate/