Posted by Heidi Schwartz

Gov. Steve Beshear joined local and company officials to announce that MVP Group International Inc. plans to establish a manufacturing operation in Fulton, KY, creating 150 new, full-time jobs and investing more than $5.2 million in the Commonwealth.

“We welcome MVP Group International to Fulton and look forward to many years of growth and success here,” Gov. Beshear said. “The numbers are impressive, with 150 jobs and $5.2 million in investment, but we’re not here just for the numbers; we are here because of the lives that will benefit from this partnership and the impact it will have on the future of this community.”

MVP Group International is the largest manufacturer of private label candles and home fragrance goods worldwide, with sales to national and international retailers. The company will occupy an existing 60,000-square-foot facility in Fulton.

“MVP is excited to continue strengthening our roots in western Kentucky and now in Fulton,” said Travis Propes, MVP Group International’s chief merchandising officer and owner. “Our growth will continue to be dependent on our employees and our customer’s satisfaction. We wish to thank the Commonwealth of Kentucky, local officials, TVA, and Eddie Crittendon, executive director of the Fulton County and Hickman County Economic Development Partnership, for all of their efforts with this project.”

To encourage the investment and job creation in Fulton, the Kentucky Economic Development Finance Authority preliminarily approved the company for tax incentives up to $2 million through the Kentucky Business Investment program. The performance-based incentive allows a company to keep a portion of its investment over the term of the agreement through corporate income tax credits and wage assessments by meeting job and investment targets.

“We welcome MVP as our area diversifies our manufacturing base, and I look forward to working with a great community partner in the years ahead,” said Sen. Stan Humphries of Cadiz.

“This announcement represents a tremendous boost in the economy of Fulton and the surrounding region,” said Rep. Steven Rudy, of West Paducah. “I welcome MVP Group International to the Commonwealth and applaud their investment and the jobs it will create.”

“On behalf of myself and the board of commissioners, I would like personally to thank MVP for choosing the city of Fulton for this new expansion,” said Fulton Mayor Elaine Forrester. “We are proud to have them locating here and we are excited to be a part of their future growth. The city of Fulton is a very industry-friendly community, and we are proud to have them as the newest member of our industrial family. On behalf of the city of Fulton I would like to thank Gov. Beshear, the Tennessee Valley Authority, and the Cabinet for Economic Development for working alongside our two-county economic development director, Eddie Crittendon, to help bring these much-needed jobs to Fulton.”

“I would like to thank MVP for choosing to locate this new expansion in Fulton County,” said Fulton County Judge-Executive David Gallagher. “We look forward to a long and prosperous relationship. I wish to thank Gov. Beshear, the Cabinet for Economic Development and Tennessee Valley Authority for putting together an incentive package to help make this project happen. I want to also commend our ED director Eddie Crittendon for his hard work and dedication in bringing industry and jobs to our area. Most of all and foremost we thank God for blessing Fulton County with much-needed jobs.”

“TVA and Fulton Electric System are privileged to work with the Commonwealth of Kentucky and the Fulton County and Hickman County Economic Development Partnership to facilitate MVP Group International’s decision to locate and bring new jobs to Fulton,” said TVA Senior Vice President of Economic Development John Bradley.

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The content was anything but. Lautman, principal of Lautman Economic Architecture and author of When the Boomers Bail (How Demographics will Sort Communities into Winners and Losers) told an audience of site selection professionals and economic development agency representatives that their entire industry is living on borrowed time. “The whole economic development game is running out of places to add value,” Lautman declared. “If you look at it honestly, our profession is in the process of going out of business.”

Lautman painted a stark and sobering picture of a barren economic development landscape in which an aging generation of Baby Boomers has failed to replicate itself in a way that ensures that economic growth will keep pace with population growth. “We are the first generation in history – maybe the first species in history – not to create enough children to replace ourselves, and we didn’t educate half of the kids we created,” he said.

According to Lautman, the emerging demographic “new normal,” coupled with long-term economic malaise and a federal government “that is out of business,” is creating a paradigm that will force communities into a fierce competition for the same small pool of skilled workers. “You always want your most productive group of people to expand and your dependent class to shrink, but we’re going the other way. The Baby Boomers – the most over-experienced people – are bailing into the most dependant class as they retire, the same class we’ve dumped our kids into,” he said. “It’s a disaster.” [Lautman said the demographic outlook is even bleaker for China. He predicted that an aging population in China soon will overwhelm the world's second-largest economic power and render it unable to take jobs from other markets. "China will flat-line by 2015," he said.]

This dynamic is having the biggest impact on what Lautman called “the hiring relationship.”

“In the past, employers had all the power in the hiring relationship. Now (prospective) employees have all the power. When the Boomers entered the job market, there were 10 of us applying for every open position. Now, 10 companies will be chasing after the same young professional,” he explained, adding that in the new normal it won’t be unusual for employers “to have 95 percent of their job offers rejected.”

The seismic shift in demographics “will change the calculus for site selection and economic development,” Lautman said. “It will change the way businesses operate and chart their futures.”

The most important change will be the elevation of quality of life as a primary factor in site selection decisions, he said. “Employers must be really careful about where they locate their facilities. They have to make sure where they locate is where the employees want to live,” Lautman said. “What is the DNA that makes those places attractive to (young professionals)? That’s the new game – talent attraction.”

“Employers are going to come to your communities because of who’s coming there and who wants to stay,” he added.

Lautman said economic developers also must rethink their approach to strategic planning and embrace regional strategies that avoid head-to-head competition for the same pool of skilled workers (he projected that it may cost more than $1 million to recruit just 10 prospects, forcing communities to pool resources). But he did not mince words in predicting that competition between communities inevitably will get nastier as the new demographic reality takes hold.

“You used to be able to grow your economy without hurting anyone else,” he said. “Today, the only way you can grow is by stealing (talented workers) from your competitors. You will need to be able to set up in places where you can steal talent from your competition, bring them there, set them up and not have them stolen back.”

Standard strategic planning models will have to be replaced with a more deliberative process that anticipates the new reality, Lautman said. “What we’re doing right now doesn’t work and it doesn’t involve the right people. It’s really a mess – there’s no one thing that works and no single way to approach it,” he said. “We need design partnerships to understand the kind of communities we have to build to attract talent.”

“It’s now a game of winners and losers, and it won’t take long to figure out who the winners are,” Lautman concluded.  “It’s either New Bedford Falls or Pottersville, there’s no in-between. It’s a zero-sum market now.”

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Photo: UWT Logistics

Tennessee Department of Economic and Community Development Commissioner Bill Hagerty along with UWT Logistics announced plans to expand the company’s facilities in Memphis, TN. The expansion represents a $4.8 million investment by UWT Logistics and will create 81 new full-time jobs.

“Tennessee’s global transportation systems provide unsurpassed efficiency and proximity to customers throughout the U.S. and around the world,” Hagerty said. “Companies like UWT Logistics understand the competitive edge that our solid infrastructure and pro-business environment offer. I appreciate the continued investment UWT Logistics is making in Shelby County and its citizens.”

From left to right: Chris Williams, CEO of UWT Logistics, A C Wharton, Jr. Mayor of Memphis, David Ozier, CFO of UWT Logistics, Joann Massey, Business Development Consultant, TN Department of Economic & Community Development, Mark Herbison, Sr. VP of Economic Development, Greater Memphis Chamber

“At UWT Logistics, we are committed to making a difference in Memphis though our core values of family, excellence and growth. We have a team in place that does the family thing well, both internally and in our community. We continue to strive for excellence both in service to our customers and in being diligent with our resources. With those values in place, the table is set for growth,” UWT Chief Financial Officer David Ozier said.  “We are focused on expanding our footprint in the city of Memphis by bringing in new customers, offering more services and adding the right people to our family. We are grateful for the state of Tennessee Department of Economic and Community Development, the Greater Memphis Chamber, the Economic Development Growth Engine for Memphis and Shelby County, and other local economic development agencies for their support in reaching our goals.”

“This is another significant step forward in our efforts to provide jobs and strengthen our local economy,” Memphis Mayor AC Wharton said.

“UWT Logistics personifies what it means to be great corporate citizens. In everything they do, you can see that they have a great passion for Memphis and its people,” Senior Vice President of the Memphis Chamber Mark Herbison said.  “The jobs they are creating in some of the poorest neighborhoods of the city are making a real difference in the lives for some of the people in our community that need it most.”

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Lt. Gov. Kim Guadagno, State of New Jersey

By the Business Facilities Staff
From the March/April 2013 issue 

BF: Amazon has announced it will build a $200-million fulfillment center in Robbinsville, the first phase of a major investment in NJ. Do you anticipate that central New Jersey will be a major logistics hub?
KG: Yes, I believe central New Jersey and the state as a whole will continue to develop as a major logistics hub. With more than 38,000 miles of interstates and highways, nearly 1,000 miles of rail freight lines and the nation’s third largest seaport—not to mention access to 130 million consumers within a day’s drive—New Jersey is already a leader in transportation and logistics. Central New Jersey is a great location for companies that need access to world-class infrastructure and transportation networks.

BF: The University Heights Science Park in Newark is gaining international attention, with Biotrial of France establishing its North American headquarters there. What role do Newark’s five universities play in attracting new biotech players to the state’s largest city?
KG: The Science Park is focused on drawing in technology companies that specialize in biosciences and biotechnology, information and communications, environmental and energy technology and advanced manufacturing technology. Home to 35,000 university students, researchers and professors, the research taking place and the highly skilled workforce being trained in New Jersey are the forces behind attracting new global biotech companies to Newark and to New Jersey. The state public research universities that are involved in Science Park—University of Medicine and Dentistry of New Jersey (UMDNJ), Rutgers-Newark and New Jersey Institute of Technology (NJIT)—annually conduct nearly $100 million of research, most of which takes place at their sponsored technology centers in Newark’s University Heights district. Additionally, Essex County College focuses on training the technicians in 11 science and technology fields.

BF: Gov. Christie recently signed the Angel Investor Tax Credit Act, which is aimed at spurring early-stage biotech investment. How does the program work?
KG: The law encourages investment in technology companies by providing a tax credit against corporation business and gross income taxes of up to 10 percent of the qualified investment, up to a maximum of $500,000 per year for each investment. The program is subject to a $25 million annual cap. To be eligible, companies must have fewer than 225 employees, with at least 75 percent of those jobs within New Jersey, and must conduct research, manufacturing or technology commercialization in the state.

BF: Data storage leader CommVault is putting its global headquarters in Fort Monmouth. Are other companies considering locating at the Fort Monmouth site?
KG: At the end of January, the State reached a significant milestone in the redevelopment of the former military installation when the first sale of property was finalized between the Fort Monmouth Economic Revitalization Authority (FMERA) and CommVault. The global technology leader plans to undertake a three-phase project on the 55-acre site in Tinton Falls, including a 275,000-square-foot facility to serve as its worldwide corporate headquarters. Once the three phases of the project are completed, CommVault may create a total of up to 1,500 new jobs in NJ. In addition to CommVault, AcuteCare Health System is also expected to soon call the former Fort home. The company plans to reuse the former clinic as a medical facility, creating 50 new jobs in the near-term and investing a minimum of $5 million. AcuteCare is a privately owned corporation formed in 2002 to establish and manage long term acute care hospitals.

BF: How is the FMERA working to spur development at the former Army base?
KG: The Fort Monmouth Economic Revitalization Authorization Act is creating an environment where companies can invest and employment can grow. FMERA is responsible for filling the 1,127 acres of land, with a focus on attracting technology-based companies. Master broker Cushman & Wakefield continues to leverage the work of FMERA to market the former Fort Monmouth property to attract businesses and investors. The Cushman & Wakefield team established www.fort-monmouth-marketing.com to showcase the property.

BF: NJ purchased billboards at the Super Bowl and President Obama’s inauguration for its “Resilience” campaign. What is the key message of this campaign?
KG: The key message of the “State of Resilience” campaign is that New Jersey is open for business, despite being hit by Superstorm Sandy in October. The objective of this integrated marketing campaign is to share this message with corporate decision makers in targeted top markets, while reassuring companies already invested in the state. New Jersey still remains a prime location for business, and it’s our job to let the world know that. And it’s important to note that not a single tax dollar was spent on this campaign, which is being led by Choose New Jersey, Inc., the state’s nonprofit business recruitment agency in partnership with New Jersey’s private industry sector.

BF: What are the most important steps NJ is taking to improve its business climate?
KG: New Jersey is equally dedicated to attracting new jobs and investment while retaining the businesses that are here. It’s important for us to promote New Jersey’s business advantages nationally and internationally. To do this, we meet with companies across a range of sectors, as well as with site selection consultants to update them on NJ’s business value proposition. In 2010, we created the Partnership for Action. This organization is made up of the New Jersey Business Action Center, the New Jersey Economic Development Authority and Choose New Jersey, Inc. Since its inception, the Partnership for Action has worked with the state government to generate a projected 64,056 new and retained jobs and more than $9.8 billion in capital investment. We also have worked with policymakers on lowering taxes, adopting a single sales factor, eliminating or streamlining the red tape and bureaucracy, and restructuring government to make it easier for our businesses to grow, while also recruiting new businesses to NJ. The bi-partisan Red Tape Commission has succeeded in removing dated regulations, fostering the use of online technology to streamline licensing and permitting applications; it continues to review the state’s regulatory process to remove obstacles that impede growth.

All of these organizations continue to work together to find new ways to improve our economy and market our key messages, so that every company knows what we can do for them in New Jersey.

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“I want to thank HP Pelzer for its investment in Tennessee and the new jobs created in McMinn County,” Haslam said. “Our Jobs4TN strategy recognizes the auto sector as a key industry cluster where Tennessee has a distinct advantage with more than 900 auto suppliers and manufacturers, and today’s announcement helps us toward our goal of becoming the No. 1 location in the Southeast for high quality jobs.”

“Tennessee offers the automotive industry unparalleled logistical advantages and a strong manufacturing base with a quality workforce,” Hagerty said. “I appreciate HP Pelzer recognizing our state’s inherent strengths in the auto sector and the competitive edge that Tennessee’s business friendly environment provides.”

“Athens, TN is the perfect location for us to manufacture and supply parts to our automotive partners. We are quite pleased to make it our new home,” HP Pelzer Chief Operating Officer Steve Paladino said.

“TVA congratulates HP Pelzer on its decision to locate a facility in Athens, Tennessee,” said TVA Senior Vice President of Economic Development John Bradley. “TVA and Athens Utilities Board are privileged to partner with the state of Tennessee, the McMinn County Economic Development Authority, the Southeast Industrial Development Association and other community leaders to facilitate HP Pelzer’s location and growth in McMinn County.”

“We are delighted to have HP Pelzer join our community,” Athens City Mayor Hal Buttram said.  “This will bring much-needed jobs to our citizens.”

Headquarterd in Witten, Germany, the HP Pelzer Group operates 37 manufacturing sites and five technical centers employing more than 5,000 people in 18 countries. In the U.S., the McMinn County site will join other HP Pelzer facilities in Michigan, Georgia and Kansas.

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By the time the damaged wellhead was capped–nearly three months after the explosion–more than 5 million barrels of oil had leaked into the Gulf. That’s almost 20 times more than what seeped out of the Exxon Valdez off the coast of Alaska in 1989.

The five states that were impacted by the Deepwater Horizon disaster (including 665 miles of contaminated coastline), Gulf Coast business owners, the federal government and BP have spent the past three years dancing a slow legal tango that has assessed clean-up costs, fines and other liabilities.

The British oil giant estimates its overall liability for the catastrophe could eventually top $42 billion; BP has sold off significant assets to generate cash for the payouts.

In December, a federal judge approved the Deepwater Horizon Economic and Property Damages Settlement agreement, which covers individuals and businesses in Louisiana, Mississippi, Alabama, and certain coastal counties in eastern Texas and western Florida, as well as specified adjacent Gulf waters and bays. BP says it has set aside about $8 billion to cover these economic and property damage loss claims (the agreement does not set a cap on the liability), of which about $1.87 billion has already been paid out (the overall settlement includes a guaranteed $2.3-billion fund to compensate seafood industry businesses damaged by the spill).

Meanwhile, a trial underway in New Orleans will determine civil claims under the Clean Water Act which could amount to more than $17 billion; billions more could be assessed after damage claims from Gulf Coast states are adjudicated; and a third set of claims covering natural resource damage has yet to be filed.

While the overall scope of the settlements is still taking shape, a bureaucratic framework has been put in place to distribute these funds.

In 2011, the  RESTORE Act established a Gulf Coast Ecosystem Restoration Council, which is comprised of governors from the five affected States, the Secretaries from the U.S. Departments of the Interior, Commerce, Agriculture, and Homeland Security as well as the Secretary of the Army and the Administrator of the U.S. Environmental Protection Agency. The Gulf States recommended and President Obama appointed the Secretary of Commerce as the Council’s Chair.

The RESTORE Act dedicates 80 percent of all administrative and civil penalties related to the Deepwater Horizon spill to a Gulf Coast Restoration Trust Fund. It specifies that these funds can be utilized “to restore and protect the natural resources, ecosystems, fisheries, marine and wildlife habitats, beaches, coastal wetlands and economy of the Gulf Coast region.”

The RESTORE Act sets forth the following framework for allocation of the Trust Fund:

• 35 percent equally divided among the five States for ecological restoration, economic development and tourism promotion;
• 30 percent plus interest managed by the Council for ecosystem restoration under the Comprehensive Plan;
• 30 percent divided among the States according to a formula to implement State expenditure plans (the formula factors in oiled shoreline, population and distance from the Deepwater Horizon rig);
• 2.5 percent plus interest for the Gulf Coast Ecosystem Restoration Science, Observation, Monitoring and Technology Program within the Department of Commerce’s National Oceanic and Atmospheric Administration (NOAA); and
• 2.5 percent plus interest allocated to the States for Centers of Excellence Research grants, which will each focus on science, technology and monitoring related to Gulf restoration. 

State and local economic development officials throughout the Gulf Coast region are gearing up to receive their share of the Deepwater Horizon disaster trust fund.

According to state officials, Mississippi was the first state to come up with a dedicated plan to use these funds. Gov. Phil Bryant came forward with a GoCoast 2020 plan that lays out how Mississippi will spend its share of funds from the Restoration Council.

Here are some of the projects in Mississippi that eventually may be built using BP disaster funds, as reported by the Mississippi Press (GulfLive.com):

Jackson County, MS is considering using the BP funds to expand Trent Lott International Airport; expand rail services; eliminate 23 railroad crossings in Pascagoula and Moss Point; dredge bayous throughout the county; and replace a county bridge that connects east and west Jackson County, a $20-million project.

Pascagoula, MS is considering a $24.2-million riverfront project which would include Point Park, a beach promenade, Yazoo Lake channel dredging, Inner Harbor repairs and adding public access and a restaurant at Spinnaker Point. Another $424-million project would acquire riverfront property, relocate the wastewater treatment plant, complete Lighthouse Park and connect the bayou north of Lake Yazoo to the lake for improved drainage. A proposed $7.6-million project would convert Lowry Island into a recreational harbor.

Other Mississippi towns are queuing up to deploy the BP restoration funds to expand highways, repair bridges, build water treatment plants and restore wetlands.

Here’s hoping the improvements funded by the Deepwater Horizon settlements outlast the damage to the ecosystem of the Gulf of Mexico and the Gulf Coast wrought by BP’s big oil spill.

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The company, which provides long-haul, dry van truckload service throughout North America, will invest $5.7 million to build a 61,000 square-foot training facility near its Indianapolis headquarters campus. In addition to the Quality Drivers school, the building will house dorm rooms, a cafeteria, workout room, basketball/racquet court, Wi-Fi and driver training road course. Facility construction is expected to be complete by the fall.

“Celadon’s commitment to Hoosiers reflects a growing confidence in the business climate in our state,” said Pence. “At the heart of the nation, our convenient location and expansive transportation infrastructure strengthen Indiana’s reputation as the ‘Crossroads of America.’ Combine this with our competitive tax climate and skilled workforce and, logistically speaking, Indiana works for business.”

The first class of driver training school candidates began last October. Based on the individual driver, the program offers a three to five-week training curriculum, both in the classroom and on the road. Celadon plans to bring in overlapping classes of driver trainees every two weeks.

“Driver recruitment and driver retention is a long-term challenge within the industry,” said Paul Will, president and chief executive officer of Celadon. “Logistically, locating the driver training school in Indiana is a sound business decision that provides access to the state’s vast resources, but it also gives Celadon another opportunity to give back to the state of Indiana by contributing significant jobs numbers right here in Indianapolis. We’re extremely happy and proud to continue our commitment to the local and state economies.”

Founded in 1985, Celadon ranks as one of North America’s largest truckload carriers with annual revenue exceeding $600 million. The company has also been recognized as one of the safest truckload carriers with multiple first-place finishes in the Truckload Carriers Association’s National Fleet Safety Awards among carriers annually hauling more than 100 million miles. Employing more than 650 Hoosiers, Celadon has approximately 4,000 associates nationwide and operates roughly 3,000 tractors and 8,700 trailers. Its customer base includes many Fortune 500 shippers, including most major retailers and manufacturers.

“Celadon’s commitment to Indianapolis is crystal clear with the investment it is making in our community by providing new quality jobs for our workforce with a focus on retention while also offering the training necessary to succeed,” said Indianapolis Mayor Greg Ballard. “With its plans to build a new facility here to accommodate its driver school, Celadon is among a growing number of companies choosing to expand in Indianapolis.”

The Indiana Economic Development Corporation offered Celadon Trucking Services, Inc. up to $2,950,000 in conditional tax credits and up to $200,000 in training grants based on the company’s job creation plans. The city of Indianapolis will consider additional property tax abatement at the request of Develop Indy.

The announcement of Celadon’s expansion adds to Indiana’s growing distribution and logistics industry. Indiana is home to more than 11,000 total highway miles, four international airports and 4,165 miles of active rail track. The state ranks 9th in the country in total railroad mileage, and 76 percent of the track is operated by Class I railroads.

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Baton Rouge Facility (© Katoen Natie)

Gov. Bobby Jindal and Frank Vingerhoets, Katoen Natie’s president of petrochemicals in North America, have announced that Katoen Natie USA will invest $150 million to build a plastics storage, custom packaging and distribution facility for producers of petrochemical products in Baton Rouge. The logistics platform will create 210 new direct jobs. LED estimates the project will also result in 516 new indirect jobs, for a total of more than 700 new permanent jobs. Another 150 construction jobs will be created during the building phase.

The logistics complex—including polymer terminals, warehousing and distribution facilities—will support local petrochemical and specialty chemical producers in the Capital Region. The Katoen Natie facility will offer a variety of processing, handling, storage and value-added services to these producers, and will distribute to both domestic and international customers. The 2 million-square-foot indoor storage complex is being designed with an extensive rail yard by CRA Engineering Group of Baton Rouge.

Katoen Natie’s plans include developing tie-ins to rail assets served by Kansas City Southern Railway and Canadian National Railroad, potentially becoming one of the few facilities of its kind with dual railway access.

“We are excited about the new project that will expand our U.S. and global network,” Vingerhoets said. “This state-of-the-art facility will help absorb the increasing production capacity of our customers, which is in relation to the shale gas growth in the U.S. The cooperation with the local authorities has been great, and their efforts have contributed to our decision to invest in the Baton Rouge area.”

The state began working with Katoen Natie on the new project in February 2012. The company is expected to utilize Louisiana’s Quality Jobs and Industrial Tax Exemption incentives, as well as the services of LED FastStart® workforce development program.

“The addition of Katoen Natie to our region will provide a valuable service to the chemicals and new energy production sector, further strengthening this sector, one of our recently identified target industries,” said BRAC President and CEO Adam Knapp.

The first phase of the project is expected to begin in early 2013, and will include construction of the first 600,000 square feet of storage space, all of the rail lines servicing the facility, half of the available rail yard, all rail tie-ins, and the construction of a 6-acre detention pond. The company expects to complete the first phase by the end of 2013, with hiring for the new facility beginning this summer. Katoen Natie expects to complete the entire facility by 2018.

“The addition of Katoen Natie to Baton Rouge will strength our ability to meet the needs of our existing businesses and help us recruit new ones,” Baton Rouge Mayor-President Melvin “Kip” Holden said. “We eagerly welcome the company to our city.”

Katoen Natie NV is headquartered in Antwerp, Belgium, with U.S. operations headquartered in Houston.

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Port Everglades (Source: Wikipedia)

By Ed Felton
From the January/February 2013 issue

Florida East Coast Railway has signed a joint marketing agreement with Port Everglades to promote the new, 42.5-acre intermodal container transfer facility.

The facility will be adjacent to the Southport container terminals at Port Everglades and will facilitate containerized cargo transfer through the port to and from the FEC mainline. The facility will handle domestic and international cargo that is to result in advantageous transfer and shipping fees for Port Everglades’ customers, according to a news release.

The facility is being relocated from the current rail facility on Andrews Avenue, two miles from the port. As a result, traffic congestion on State Road 84 is to be reduced.

“The ICTF with new technology will allow FEC to efficiently and effectively deliver superior transportation service between South Florida and the Eastern United States,” FEC CEO Jim Hertwig said. “This agreement enables FEC and Port Everglades to be in a competitive position for additional freight and jobs beyond the completion of the Panama Canal.”

The agreement includes joint promotions including international business development, the creation of promotional materials, shared sponsorships and milestone events, according to a news release.

FEC signed a lease agreement with Broward County in March 2012 to build and operate the intermodal facility for 30 years. Broward contributed the land for the facility to serve its domestic and international business segments. The Florida Department of Transportation recently provided FEC with $18 million in grants through its Strategic Intermodal System program for the intermodal facility. The remaining $35 million in costs will be covered by the FEC, with $30 million from an FDOT State Infrastructure Bank loan and $5 million from the FEC capital plan.

The project is expected to create 767 construction jobs over the next two years, according to the news release. It is estimated that the facility will remove 180,000 truck trips from roads by the year 2027, reducing both highway congestion and air emissions.

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Texas Gov. Rick Perry (with hard hat) and German Cura at a recent press conference announcing Bay City as the location of the first US seamless mill for Tenaris.

Tenaris has announced it will build its first U.S. seamless pipe mill in Bay City, Matagorda County, TX. With its proximity to Houston and to Tenaris’s North American headquarters, the location offers a combination of favorable geography, operational logistics and availability of a skilled workforce.

“Our new facility will complement our integrated global manufacturing network and work closely with our existing North American operations to further strengthen domestic production,” Paolo Rocca, Chairman and CEO, said.

“This announcement is only possible, thanks to the hard work of state and local officials, as well as, the area business community, which always plays a major role in decisions like this,” Texas Gov. Rick Perry said. “The most profound statement about our favorable economic climate comes when companies like Tenaris make an investment of this size in our state.”

“With this investment, we will strengthen our local production and service capabilities to address the growing demands of the energy industry,” German Cura, President, North America, said. “We are grateful for the support we have had from The State of Texas, Matagorda County and Bay City.”

An analysis conducted on the economic impact of Tenaris in Matagorda County states the company will have a large direct and indirect influence on the area.  The new plant will generate 600 direct manufacturing jobs and offer substantial economic impact in Matagorda County as well as in the surrounding areas.

“The company’s commitment to the environment and safety is a top priority,” Cura said. “The facility is being designed according to the most stringent environmental and safety standards, with the implementation of control technologies that will reduce our emissions footprint and exceed state and federal regulations.” The new facility is expected to begin operations in 2016.

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