Why Choose the St. Louis Region?
What I like to say as a site selector, is it’s basically 70 miles of beachfront property.
Finally, we’re able to compete [with incentives] and challenge other states. If it’s a multi-city search, St. Louis now looks a lot better compared to where it used to be just five to 10 years ago.
I don’t know if there’s ever been a better time to invest in St. Louis than now. It’s a unique city. There’s a ton of character. You constantly hear small city, big town. So as outsiders, we’ve been welcomed with open arms, and the support just continues to pour in from groups wanting to collaborate in any way and people listening to your ideas, even if they seem ambitious. I’ve never seen anything like it.
As we went through the project and evaluated where we wanted to be and what might be the optimal location for us, we started out by just looking at every county, literally, in the continental U.S., over 3,000 counties. And we eventually narrowed it down to 25, then 10, then three, and eventually landed on Warren County. And we just felt that the infrastructure, natural resources, workforce, the cattle inventory, and Interstate 70 (I-70) played nice contributing factors to that selection. We’re excited about the location. It’s really at the crossroads of the U.S.
Incentives and commitment from the local, state and federal government agencies helped us ultimately choose Missouri. Our experience with working with the government officials in Missouri has been nothing but positive.
We’re strategically located in the central part of the country so that helps us meet the needs of our customers more efficiently, particularly with the latest robotics and automation. There’s a strong community base here with an appetite for job opportunities. And our facility is an excellent place for those individuals to work and have a rewarding career and provide for their families.
The IL Route 3 Corridor is clearly in the path of progress, and the excellent market connectivity and road access of the RTE 3 Industrial sites make this large-scale development area the perfect spot for manufacturing. Being part of the Freightway’s pipeline of rail-served sites helps to ensure a higher level of visibility for the opportunities this site presents for the right user.
The St. Louis region’s central location in the U.S. and its logistics capabilities has made the metro area a coveted destination for industrial users. As consumers demand faster shipping times, the St. Louis region becomes very attractive to e-commerce users.
Private industry representatives with first-hand knowledge of the bi-state St. Louis area consistently reinforce that availability of space and speed of delivery; an available, job-ready workforce, and exceptional freight assets are continuing to drive the growth we’ve been seeing in our region. As a result of that growth, as supply chains continue to shift in the wake of the COVID-19 pandemic, the St. Louis region has all the ingredients in place to accommodate those shifts.
Why the St. Louis region for site selection? And what makes us different from our sister cities? The answer is the St. Louis bi-state region can support one system or the entire supply chain from a company’s headquarters, research and development, warehousing and manufacturing to suppliers and logistics. We have the infrastructure, both vertical and horizontal, and the talent. Our workforce has a can-do attitude with a heritage of making things, enabling companies like World Wide Technology, Bunge, General Motors, Progressive Recovery and many others to compete in the global market, elevating our ranking as a global logistics hub. Our supply chain ecosystem is unique and has adapted to and stands ready for COVID-19 shifts in terms of shortened supply chains and a local workforce that supports each system of the supply chain.
Regions best positioned to win site selection projects are ones that, for the foreseeable future, are deep regionally and highly accessible globally. This means a region, that from a real estate, infrastructure, and talent perspective can accommodate multiple aspects of most any company’s supply chain, with access to talent to support each of the functions required to run a global business, and with transportation modes that provide global access to markets. The bi-state St. Louis region performs magnificently by this standard.
The St. Louis region is able to supply all of that labor, and I don’t think every metro in the U.S. could make that claim. That’s a critical part of why World Wide Technology is here and remains here, I believe. It’s estimated there are 5,000 employees at Amazon facilities in the St. Louis region, and you have to have a deep labor pool to support that. We have that in St. Louis.
When you put it all together, the sum of this [St. Louis] region is much greater than the individual parts of the sub-region. Areas that can present the entire menu and the entire platform and that are going to work together collaboratively to attract certain investments will win.
Now, more than ever, companies are really going to want to have a great handle on where their people and where their assets are, and also, where their future pipeline of talent exists, and generally just being more compact and more focused geographically. Supply chains are going to shorten, and the areas that are going to do well are the ones that can effectively serve the world from one location.
The city’s location in the middle of the country positions it to better handle loads from either coasts than from a logistics hub like Chicago, especially in the wake of new federal legislation that caps the number of hours drivers are allowed to be on the road. Drivers from California, for example, will run out of hours before they can make it to Chicago — giving St. Louis, and its close proximity to more destinations, an advantage in the $9.6 trillion global logistics industry.
Infrastructure Investments Driving Regional Growth
We’ve seen a significant increase of new tenants, new users to St. Louis. We used to quote that 17% of all deals were new to St. Louis, meaning they didn’t have a presence here. That’s doubled. It’s in the 30, 30-plus percent range.
Kaskaskia Regional Port District is poised for significant growth. With these upgrades, we’re going to have great capacity within our terminals to move cargo to any tenant that wants to locate there.
This continuing public and private sector collaboration is essential to the ongoing efforts that are helping to transition vacant abandoned industrial sites into developable, ready-to-market sites.
The St. Louis region remains primed to take its place as a global hub for logistics and the movement of goods throughout the United States and internationally. This list of [priority] projects goes a long way toward achievement of that goal.
A project I think that could give the region the same strategic advantage [as KC or Indianapolis] is the expansion of the Union Pacific Intermodal Yard in Dupo, Illinois. It could put us on par with our rival cities by giving us cost competitive connectivity to the major West Coast ports.
The list of current and future infrastructure projects occurring across the Bi-State St. Louis region will not only allow freight to move more safely through the region, but also enable strategic advantages for companies looking to reduce costs and run leaner supply chains. Once these [priority] projects are completed, these improvements will benefit not only the companies located in the Bi-State region, but companies throughout North America that use the St. Louis region as a corridor for moving their freight.
This type of progress doesn’t happen overnight. We continually invest the time and effort and lay the foundation to make sure that all necessary parties are familiar with our priorities and understand why they are priorities, so they can advocate for funding for them. It’s tremendous validation to see projects on our list move forward and contribute to the enhancement of our region’s freight network.
Waterways & Ports
We have over 3,000 Gulfstream aircraft flying around the world today. As our fleet continues to grow, it is necessary that we expand our facilities and customer offerings. The greater St. Louis region is an area we’ve strategically identified to further invest in to support this growth. The local workforce and partnerships we’veestablished are invaluable. The strong relationships that we currently have with local educational institutions, Bi-State Development, local government and community leaders, and the phenomenal group at the St. Louis Downtown Airport have certainly contributed to our decision to continue to expand here.
Boeing has had a long-standing presence in the community. It’s because of the partnerships, the relationships at all levels within this ecosystem, whether that’s with the airports, non-profits, business community, local and state chambers, and economic development organizations.
Rail has been the backbone of the economy for a long time, and we are confident it is here to stay.
We’ve also invested over $600 million in rail facilities so that every one of our marine terminals has on or near dock rail, and we have capacity for over one and a half million lifts of rail cargo alone. It’s our view and our vision that rail cargo and intermodal cargo to places like St. Louis is what’s going to help us grow and continue to grow and be a major port gateway, not just on the East Coast, but in the country into the future.
The I-70 reconstruction and expansion between St. Louis and Kansas City is a game changer. The St. Louis region is a distribution metro, and distribution relies on trucks and those trucks rely on the smooth, safe movement of freight. Chicago is a big competitor and is fed by two major east-west interstates, I-80 and I-90. If we are going to remain relevant and competitive, we have to have good connections on I-70. It is our major east-west corridor. That project is crucial to the region and will be a big part of our future successes.
The epicenter of this construction boom is along the I-70 bi-state corridor, including I-70 and portions of I-170, I270, and I-370 running from Missouri to Illinois. This is a major logistics corridor supported with more than $600 million of roadway infrastructure investment, which will help to foster continued growth among the national manufacturers, suppliers and distributors choosing to locate in the corridor.
Roads, Rails & Runways
I think it’s important to understand just how big of a role the waterway system plays and the impact it has on our everyday life. The Mississippi River system alone serves 23 different states – export, import, and a lot of other stuff. We live in a good time to do maritime innovation, and we’ve seen unprecedented money and grants being allocated for the ports community in the U.S., and for general logistics and supply chain with the infrastructure bill. There’s just so much potential right now.
We utilize dredging to provide safe, efficient, and reliable movement to keep commerce flowing on the Mississippi River in support of the nation’s economy. Over 500 million tons – half of all U.S. grain exports – transit the Mississippi River at some point annually.
Despite some recent low runoff years, I think it’s important to note that these are really exciting times for navigation on the Missouri River. The most recent numbers from 2020 show that over 5.4 million tons were moving on the Missouri River, which is a significant increase over the 2019 number of 3.9 million tons. And that’s a mix of sand and gravel being the largest piece, in addition to fertilizer, petroleum products, grain and a lot of other things as well.
I think it’s important to realize that our farmers are going to continue to adopt new technologies, which are going to continue to allow us to grow more and more volumes of grain, and exports are critical to the profitability of our farmers. We’re going to be demanding and needing more transportation of all modes. When we look at what mode is somewhat underutilized, I’d say there’s room for growth on the river, so we’re excited about that. Our waterways give us a strategic advantage and we need to leverage that.
All this funding that’s been coming for our port facilities has just been tremendous, and I just can’t thank enough those who are now realizing the importance of ports throughout the country. The Port District, like many other ports in the region and throughout the country, are economic development generators. We are here for the purpose of creating jobs, and we do that through a lot of investment in our property that tries to attract companies.
I think it’s important for people to realize that we are by far the busiest inland port. We have approximately 130 facilities in our harbor on both sides of the river. We just have so many different options, and we have ultimate flexibility and last mile in and out options for people.
This is a really exciting project for us and is the culmination of 12 years of technology history in the transportation industry and is one of the most impactful projects we’ve worked on in our lifetime. When we started this project, we were calling it the data visibility tool, and Noel and his team came up with the moniker, the Supply Chain Information Highway. I thought that was really insightful because a highway is simply infrastructure and, by itself, doesn’t provide value. It is value transiting along that infrastructure that is the really important element for the nation. And so as we continue to build out the Supply Chain Information Highway, usage is what brings value.
The Port of New Orleans is proud to be a global gateway to the middle of the United States and into Canada through the St. Louis corridor of the Mississippi River system. Port NOLA’s continued collaboration with the St. Louis Regional Freightway plays an important role in the continued success of our container-on-barge service which expands shipping options to inland markets while honoring our commitment to sustainability.
We need to be moving more containers via the Mississippi River in order to take advantage of barge transportation as the most cost-effective and environmentally friendly mode of transportation. As the Port of New Orleans grows, so, too, does our hope that the container-on-barge service at our Madison Harbor in the St. Louis area can ramp up and achieve its full potential.
Leveraging the competitive advantages with Port NOLA’s supply chains is key to strengthening the nation’s global competitiveness. Projects like the Louisiana International Terminal project will further benefit freight volume efficiency for agricultural commodities for regions like St. Louis and other inland ports.
The amount of river business in the St. Louis region has disproportionately increased over the past three decades. This region is a rail and interstate highway gateway. It is more cost-effective to move commodities into, out of and through St. Louis by combinations of truck, rail and barge than points upstream on the Mississippi and Illinois Rivers. Barge loading and unloading capacity has expanded in the St. Louis area to take advantage of these train rates and barge freight rate adjustments.
The St. Louis to New Orleans barge route is one of the most efficient logistics export steams in the U.S., and there typically is an abundance of corn in the region. St. Louis is directly tied to U.S. export markets, including China, so any increase in trade volumes would improve operational conditions.
More Testimonials
We also just made a major investment in the advanced manufacturing innovation center in North St. Louis City, so we are heavily involved in this evolution of St. Louis as an advanced manufacturing hub for the Midwest.
We’re a small, mighty staff of 11. So, we like to rely on our partnerships, whether it’s Hanson Professional Services, the Leadership Council, Bethalto Chamber of Commerce or River Bend Growth Association, and even the other airport directors are very helpful.
We need to make St. Louis the place where the next generation of aviators want to come.
At the end of the day, with all the talent and the workforce here in the local area, I think we can consider St. Louis to be an aviation mecca. The access to talent, the relationships, it all just plays a part.