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Final Phases of Southwest Gulf Railroad Medina Line Begin By Chuck Harvey CEG CORRESPONDENT
“Historical” is one way to describe a 9-mi. Southwest Gulf Railroad Medina Line track and facilities project now under construction near Dunlay, Texas, west of San Antonio. Short line railroads, which initially delivered both goods and passengers, were a major part of the history of early-to-mid 20th century rail service in the United States. Now short lines are making a substantial comeback. They operate nearly 30 percent of the nation’s total railroad mileage, comprising more than 50,000 mi. of railroad track. The Medina Line will be the 17th short
Southwest Gulf Railroad Co. photo
Phase III involved earthwork. Working generally from a south to north direction, crews performed cut and fill work along the route.
line railroad in Texas. Short line railroads serve more than 13,000 customers and haul more than 14 million carloads per year. The Medina Line will provide direct delivery of goods to factories and other businesses along and near its 9-mi. course. There are no plans for the Medina Line to carry passengers. The Medina Line project started in August 2017 and should be completed by 2019. Southwest Gulf Railroad Co. declined to provide a cost estimate for the project, but it is expected to be in the 10s of millions of dollars. The company instead said that it is making a significant investment in the Medina Line and the Medina
Oil Fields Drive West Texas Dealership Beard Equipment By Craig Mongeau CEG EDITOR IN CHIEF
In a notoriously up and down, cyclical industry, you better be good at what you do and you better have a good business plan. Beard Equipment, like every other business in the oil-rich areas of West Texas, rides the roller coaster that is the oil market. The highs are higher
Quarry, “which will serve as a major economic engine for the county and surrounding region, creating and supporting local jobs and families and generate tax revenue.” Vulcan Materials Co.’s Medina Quarry, an existing limestone quarry at the northern end of the Medina Line, will be the railroad’s initial anchor customer. Other items to be transported would be dependent on the businesses that develop on or near the Medina Line. Southwest Gulf Railroad is actively seeking partners for development opportunities along the line. Services offered by the see RAILROAD page 6
Jeff Beard stands alongside the last KCM loader he would take delivery of. All future loaders will carry the Hitachi name and colors.
than almost anywhere else; alternatively, the lows can be a sobering reality check. A woman once asked Owner and President Jeff Beard about his equipment dealership’s market. “Are you in the oilfields?” she asked, wanting to find out to what extent his business was impacted by the oil industry of the Permian Basin. see BEARD page 12
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Page 4 • June 24, 2018 • www.constructionequipmentguide.com • Texas State Supplement • Construction Equipment Guide
Cracking Concrete Puts Texas Stadium in the Spotlight Giles Lambertson CEG CORRESPONDENT
High school football stadiums are a big deal in Texas. A big heavy deal. A big heavy cracking deal. A new $70 million stadium and event center in McKinney is the latest Texas venue to be scandalized by cracking concrete. McKinney independent school district officials announced on the last day of May that the concrete and brick structure, which is scheduled to open in time for the 2018 football season, has numerous cracks running through it. The cracking is in both vertical and horizontal surfaces. An examination of the structure by Nelson Forensics of Plano, Texas, quickly produced a preliminary report. It said that, while the cracking is excessive, it apparently does not structurally compromise the facility. On the other hand, Nelson engineers believe the cracks will widen from weather and foot traffic pressures and eventually could become hazardous. In response to the school board announcement, Manhattan Construction has assured McKinney residents and taxpayers that it is committed to quality construction. How much the company statement reassured residents was not immediately clear. But Manhattan Construction and the project architect, Stantec — both Dallas-area firms — have pledged to pay for any repair work that results from the forensics report. Concrete Structures Are Tricky It is easy for arm-chair engineers to decry the failure of a contractor or subcontractor to do flawless work. In fact, the construction of large public structures is a magnificent feat of engineering and design. The scale of such projects is what makes them so impressive. Almost anyone can form up, pour and finish a 10-foot by 10-foot concrete slab for a backyard patio. It is a whole other undertaking to form and pour deep reinforced concrete footings, structurally sound vertical walls, slanting ceilings, and broad concourses. Thousands of cubic yards of concrete were poured at McKinney and, for the most part, poured successfully. Still, “excessive cracking” is not a good advertisement for quality work. Someone seems to have erred somewhere. Whether the blame lies with the architect or the concrete subcontractor, Greco Structures, is undetermined at this time. Forensics people at McKinney have noted a discrepancy between some stipulated requirements and what actually was done onsite. Stadium drawings call for joints no more than 10 feet apart and at least 1.25 inches deep. However, some joints in the stadium reportedly are 20 feet apart and no deeper than three-quarters of an inch.
NBC photo
It is easy for arm-chair engineers to decry the failure of a contractor or subcontractor to do flawless work. In fact, the construction of large public structures, such as the McKinney stadium, is a magnificent feat of engineering and design.
The bottom line is that McKinney taxpayers and football fans must be underwhelmed by how their premier facility is coming together. They can’t be blamed for feeling aggrieved. They’ve suffered disappointment once already, having to absorb an increase in project costs. The $70 million project originally was expected to cost $62 million. Partly to blame were rising concrete costs. Is Cracking Ever Acceptable? We all have seen concrete floors and walls with smooth, flawless surfaces. Yet cracks are not uncommon. When a crack shows itself in especially impressive structures, laymen tend to say something derogatory about the builder. The fact is, some cracking is acceptable. It really is. The American Society of Concrete Contractors even issued a position paper on the subject in 2010. This is the opening passage: “Some concrete professionals believe that reinforced concrete structures should not crack. With that firm belief, when cracking does occur, they often claim that the concrete contractor caused the cracks and should pay for repair. Cracks in reinforced concrete, however, are not a defect but are specifically included as part of the design process.” The paper goes on to say that “when highstrength reinforcing steels are used at high
service load stresses, visible cracks should be expected.” It then talks about “reasonable crack width.” Presumably, anything too wide is a defect. The American Concrete Institute specifically says that a deep crack that is wider than a credit card “could be a sign of more serious problems.” It might indicate a foundation is settling. The ACI, is more accepting, however, of non-structural cracks — the cosmetic hairlines that sometimes mar a surface. If a hairline crack isn’t widening, isn’t apt to develop into a crack that will cause someone to trip, and doesn’t collect dirt and other unsanitary materials, the institute’s general suggestion is just to live with it. Or if a crack is too ugly to ignore or otherwise is distracting, covering it with a slurry mix is recommended. What Causes Cracking? Whether or not a crack is acceptable ignores the central question: Why does concrete crack? There are several reasons. The leading cause is using a concrete mix that is too heavy on water. Such a disproportionate mix not only weakens the final product, it is likely to cause cracking as the concrete hardens and shrinks. The greater the volume of water, the greater the shrinkage and the greater likelihood it will crack. Conversely, if a concrete pour is air-dried
too quickly, it doesn’t cure evenly and tends to crack. Or if an improper strength of concrete is used in a pour — different strengths are used in different situations — the concrete does not cure properly and will begin to partition itself. Finally, as previously noted, concrete control joints should be installed at recommended intervals to control the curedin-place stress. Engineers will get to the bottom of the unfortunate mess at the 12,000-seat McKinney stadium. What is annoying to some is that the embarrassing situation is a case of déjà vu. Six years ago, Allen, Texas, fans cheered the opening of 18,000-seat Eagle Stadium. Two years later, the stadium was closed because portions of its concrete were cracking. Nelson Forensics again was called and construction and design features were scrutinized. Not until 2015 was the rehabilitated stadium re-opened. So stadium architects and contractors in Texas had fair warning that building a new stadium will bring a company lots of publicity — but building a stadium with “excessive cracks” in its concrete will bring publicity, too. The wrong kind. (This story also can be found on Construction Equipment Guide’s website at www.constructionequipmentguide.com.) CEG
Construction Equipment Guide • Texas State Supplement • www.constructionequipmentguide.com • June 24, 2018 • Page 5
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Line to Strategically Connect to North American Markets of taking nearly 1,000 18-wheeler trucks off the road per train trip. Trains for the new line will be either purchased or leased.
RAILROAD from page 1
Medina Line include customized rail, railcar switching and transloading. The line will help take trucks off the road, which will reduce carbon emissions. One rail car can carry cargo 436 mi. on a single gallon of fuel. The railroad is connected to the Union Pacific and Burlington Northern and Santa Fe railroads, providing access to the entire country. The Medina line is located 30 mi. west of San Antonio along U.S. Route 90. In 2008, the U.S. Surface Transportation Board granted Southwest Gulf Railroad authority to build and operate the Medina Line. The line will: • Operate as a common carrier rail line serving customers located on or near the line; • strategically connect the area to North American markets by tapping into the Union Pacific, Burlington Northern and Santa Fe railroads, connecting the West Coast to the Midwest across America’s heartland; • serve as a catalyst for new jobs and longterm economic opportunity in Medina County and Texas; • generate new tax revenues for vital government services, including road construction and maintenance, schools and public safety; and • provide local businesses with a low-cost and convenient connection to the regional, national, and global marketplace. The Medina line is now moving into the fourth and fifth phases of the five-phase project. Once operational, the developers expect the line to be well-accepted. They describe it as an efficient time saver. Medina Line’s plans to carry goods a short distance is nothing new. It was common during the early days of United States trains but disappeared during what is known as the standard era of train travel from 1912 to 1940. From the mid-century forward, 18wheeled trucks handled most direct delivery of goods. But with new short lines, like the Medina Line, some of the tried and tested ideas of earlier rail lines will be used again. Determining that the project was in the public interest, in 2008 the U.S. Surface Transportation Board granted Southwest Gulf Railroad Co. the authority to build and operate the line. It will operate 30 mi. west of San Antonio, north of U.S. Route 90 in Medina County. It will provide local business customers access to the regional, and global marketplace through low-cost and convenient transportation solutions.
Southwest Gulf Railroad Co. photo
In second-phase work, crews cleared the right-of-way perimeter and installed fencing to establish the right-of-way boundary.
Connecting With the rail line now under construction, Southwest Gulf Railroad Co. and Union Pacific Railroad are working together to actively market the Medina Line and development opportunities to customers. Union Pacific is the nation’s largest freight railroad connection the West Coast to the Midwest. As a common carrier, the Medina Line is available to serve businesses located on or near the line. The line will offer customized rail, railcar switching and transloading service. The line’s initial anchor customer will be Vulcan Materials’ Medina Quarry, an exist-
ing limestone quarry at the northern end of the line operated by Southwest Gulf Railroad Co.’s parent company, Vulcan Materials Company. Vulcan’s coast-to-coast footprint aligns with and serves the nation’s growth centers. Through the company’s extensive logistics network, Vulcan provides materials to build and repair valuable infrastructure such as roads, bridges, residential and commercial buildings, schools, hospitals and places of worship. To serve Vulcan Materials’ Medina Quarry, it is expected that each 100-car train will run once or twice per day, the equivalent
Southwest Gulf Railroad Co. photo
Construction of the project began with surveying which lasted two weeks.
Phase III Workforce Is Busy The current workforce is 70 to 80 workers spread out along various parts of the 9-mi. route. Project team members include Erik Remmert, vice president, Barton Chevreaux, project manager and Cynthia Preto, community liaison, all of Southwest Gulf Railroad Co., which has a Medina County office in Hondo, Texas. General contractor is WT Byler Co. Inc. of Houston. The company is experienced in railroad construction, having constructed hundreds of miles of railroad in Texas and Louisiana. The Medina Line project will use local workers whenever possible. It also will use local materials and services when building the railroad line. WT Byler has been accepting applications for heavy equipment operators and laborers. The company has subcontractors on duty including experienced crews for the bridge and fence work. Construction of the project began with surveying which lasted two weeks. In Phase 1 a small crew worked to establish the right of way. Markers were placed in 25- to 50-ft. intervals. In second-phase work, crews cleared the right-of-way perimeter and installed fencing to establish the right-of-way boundary. Crews will remain in the right-of-way for the duration of the construction process. Phase III involved earthwork. Working generally from a south to north direction, crews performed cut and fill work along the route. Under Phase IV, site work begins. It includes installing base material along the route. Site work will last about six months. Phase V features building the rail. Crews will install rail, ties and ballast along the route and construct seven road crossings. Southwest Gulf Railroad Co. will install electric warning signals and gates at the roadway crossings. “We have completed all of the earthwork along the line and [are] laying track,” said Scott Bernham, Southwest Gulf Railroad spokesman. “Laying the track is the final phase of construction and will take up to 12 months.” About 1,900 tons of steel rail will be laid over the course of the project. see RAILROAD page 10
Construction Equipment Guide • Texas State Supplement • www.constructionequipmentguide.com • June 24, 2018 • Page 7
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Slew of Heavy Iron Works on Vital Texas Rail Line Project RAILROAD from page 6
sures in advance to neighbors and stakeholders. Closings will be publicly posted via road signs 14 days in advance.
Heavy Equipment Equipment includes nine 470 Hitachi excavators; one 349 Cat excavator; three 336 Cat excavators; 12 D6N Cat dozers; six D6T Cat dozers; four 745 Cat off-road trucks; 23 25-ton Volvo off-road trucks; five Sakai 84-in. compactors; two Case 84-in. compactors; one 140 Cat blade; two Cat loaders; two John Deere loaders; and five Peterbilt water trucks. Southwest Gulf Railroad Working With Medina County On its webpage, Southwest Gulf Railroad reported that it is committed to Medina County and looks forward to working with the community to generate new jobs, new tax revenues and economic growth for the county and its residents while providing local businesses with a low-cost and convenient connection to the regional, national and global marketplace. Connectivity Is Vital to Rail Line The Southwest Gulf Railroad Company plans to keep local communities connected to the national rail network through America’s heartland. The company provides
Southwest Gulf Railroad Co. photo
Crews will install rail, ties and ballast along the route and construct seven road crossings.
local business customers access to the regional, national and global marketplace through low-cost transportation solutions. The Medina Line will serve as a catalyst for new jobs and long-term economic opportunity in Medina County and Texas. The line is expected to generate new tax revenues for vital government services, including road construction and maintenance, schools, and public safety. It also will provide local business-
es with a connection to the regional, national and global marketplace. The line will partner with local business and economic groups as part of GoMedinaCounty.com to foster economic development and jobs. Minimal Noise Unlike Class II or Class I railroads, trains on the Medina Line are expected to travel at an average speed of 20 to 25 mph. In addition, the track will use continuously welded rail, commonly called rib-
bon rail and track lubrication to minimize noise. The rail line also has a plan to minimize dust. Southwest Gulf Railroad Co. will maintain a dust control plan, including the use of water trucks. It also will implement best management practices to minimize the impact of air pollutants. A few railway crossings will be temporarily closed for construction. The line has a total of seven crossings. The rail line will report road clo-
Jobs and Opportunity The Medina Line will create approximately 200 construction, engineering and operations jobs over a two-year construction phase. Businesses that locate on or near the Medina Line will create additional jobs and opportunities for longer-lasting economic development. The line will generate new tax revenues for vital government services, including road construction and maintenance, schools and public safety. Businesses that locate on or near the Medina Line will generate additional local revenue through increased household incomes and spending at local suppliers, stores and restaurants. The project also will enhance transportation infrastructure. And by strengthening transportation infrastructure, Southwest Gulf Railroad Co. expects to help the county attract new employers. (This story also can be found on Construction Equipment Guide’s website at www.constructionequipmentguide.com.) CEG
Gov. Announces CORE West HQ Relocation to Frisco, Texas Gov. Greg Abbott announced on June 5 that CORE West Inc. will be relocating its headquarters from Phoenix, Ariz., to Frisco, Texas, bringing $4 million in capital investment and 97 new jobs to the state of Texas. CORE West Inc. is the parent of CORE Construction Inc., a general contractor that has been in operation for more than 80 years. CORE Construction currently has operations in Frisco with more than 50 employees. A Texas Enterprise Fund (TEF) grant of $970,000 has been extended to CORE West, Inc. “This headquarters relocation not only brings more job opportunities to Texas, but adds to the growing diversity of our booming economy,” said Abbott. “Texas’ ability to meet the demands of our growing population relies on companies like CORE West, which focuses on infrastructure construction. Industry leaders across the country continue to recognize the tremendous potential the Lone Star State has to offer, and I wel-
come the investment by CORE West Inc. in the Frisco community and the state of Texas.” “CORE Construction is a growing construction management firm with 17 offices in eight states. We have made the strategic decision to move our headquarters to Frisco, Texas, and to co-locate with our existing Texas branch,” said Jim Jacobs, CEO of CORE Construction. “In the process, we plan to construct a new headquarters building and training facility. This move will support the future growth of our firm and allow us to continue providing professional construction services to our clients across the country from a centralized location. Texas provides a business-friendly environment, comfortable living for our employees, and improved access to our other offices across the country. We appreciate the efforts of the Frisco Economic Development Corporation for their assistance as we have explored the options and we are excited to have selected
Frisco for our new headquarters.” “On behalf of the city of Frisco, I’m excited to welcome the corporate headquarters of CORE Construction to our community,” said Mayor Jeff Cheney. “When CORE relocates from Phoenix to operate alongside its Frisco-based regional office, CORE will bring nearly 90 new jobs here — the majority of which will be high-paying, professional, executive level positions. We applaud CORE’s partnership with our Frisco Economic Development Corporation, which is committed to creating jobs in our community. But we’re also thrilled to partner with a company which shares city of Frisco values such as ‘integrity, safety, quality and results’. Bound by these like principles, we’re honored CORE chose to grow its company in one of the fastest growing cities in the country.” Under Gov. Abbott’s leadership, the Texas Enterprise Fund helped to close the deal on 28 projects in 2015-2018 that committed
over $849 million in new capital investments and more than 16,000 new direct jobs all across the state, from Amarillo to the Rio Grande Valley and communities in between. The TEF also serves as a jobs multiplier, supporting thousands of indirect jobs at existing local and small businesses. The $70 million invested in job creation during Gov. Abbott’s administration also helped close the deal on seven corporate headquarter relocations to Texas. Administered by the Economic Development and Tourism Division within the Office of the Governor, the Texas Enterprise Fund helps to strengthen the state’s already diverse and growing economy and attract new jobs to communities across the state. For more information, visit coreconstruction.com/. (This story also can be found on Construction Equipment Guide’s website at www.constructionequipmentguide.com.)
Construction Equipment Guide • Texas State Supplement • www.constructionequipmentguide.com • June 24, 2018 • Page 11
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Page 12 • June 24, 2018 • www.constructionequipmentguide.com • Texas State Supplement • Construction Equipment Guide
Urgently Responding to Iron Needs Key to Oil Industry
A John Deere 772 grader and 700J dozer await service in Beard Equipment’s service bays. Beard services all major lines of equipment.
Beard Equipment maintains a rental fleet of more than 150 machines, mostly earthmoving and roadbuilding in nature.
BEARD from page 1
“Ma’am,” he answered, “Chickfil-A is in the oilfields in Midland/Odessa.” Currently about 50 percent of the Midland based dealership’s business is oil pipeline-related. That hasn’t always been the case, and Beard knows the most recent boom will come to an end at some point. Beard has seen booms and busts in his 12 years in business. He launched the business in 2006 as an equipment rental service, after a decade in the industry with Cisco Equipment and United Rental. “We had two machines when we started,” he recalled. “I was fortunate enough to own several rental properties around Midland, and just started selling them and buying machines.” By 2010, the fleet had grown to 10 machines and today has skyrocketed to 150. “Rental definitely got us where we are today,” Beard said. And today, the company is a full-service dealership that carries Kobelco excavators, Hitachi loaders, Epiroc hammers, JLG lifts and Atlas Copco air compressors in addition to the rental fleet of earthmoving and compaction equipment. The company also offers several lines of trailers and transportation services anywhere in the United States. Rental remains the majority of
Charlie Hensley (L), operations manager, and Joey Ramirez, parts and service manager, are part of the Beard Equipment team.
the dealer’s business. Rental Purchase Options (RPOs) continue to grow in popularity. “Over the last two to three years, even large contractors are moving to rental rather than purchase. I think the contractor wants to maintain a fleet size at all times that he can keep busy even in a downturn,” Beard said. Beard services all lines of equipment including Caterpillar and John Deere with five service trucks in all areas of Texas, plus neighboring New Mexico and Oklahoma. Growth Creates Challenges Those five service trucks, along with four services bays at the dealership require qualified techni-
cians, and that is a huge challenge in the ultra-competitive Permian Basin job market. Starting pay for techs has risen more 30 percent in just the past three years. Jobs are plentiful in the basin, and Beard said he has to get his technicians to $40/hour within a short period of time, or he could lose them. “We now offer employees a 401K plan, health insurance including dental and vision plus paid vacation, holidays and sick days,” Beard said. “For the right person this can be a good place to land.” Beard also noted that a lot of planning is required to ensure that the company can retain those good people when the next downturn
comes. Inventory management is a constant concern, as well. “You have to be careful with your inventory, in a boom economy and in the oilfields in general,” Beard said. “Be prepared for a major downturn every four to five years.” On the other hand, on the new equipment side, delivery time has become a major challenge. Kobelco, Hitachi and Epiroc have all had delivery times as high as three to four months and more. Yet another challenge a dealer in the basin face is urgency. “If there is a pipeline leak, it has to be fixed now,” Beard said. If his customer requires an excavator, he is not willing to wait until tomorrow. “We have to deliver pretty much all times of the day,” said Beard. What’s Next? The aggregate market is requiring some changes to the company. Beard is having to add larger loaders to the fleet to accommodate the market’s demands. Additionally, he is eying a move into crushing and screening products. The company also is slowly diversifying into road building equipment, which Beard said, “is expensive, but with a huge upside.” And like all equipment dealers, Beard is working hard to keep pace with the rapid changes in technology. He reported seeing a dramatic
increase in demand for grade control on his rental machines and on new Kobelco and Hitachi equipment. It’s this attention to detail through a sound, proactive and diverse business plan that inasmuch as it is possible, can greatly keep Beard Equipment going strong through the industry rollercaster and help the ride be much less anxious. About Beard Equipment Beard Equipment is the authorized dealer for Kobelco excavators, Hitachi loaders, Epiroc hammers and JLG lifts in a large part of West Texas. The company also maintains a rental fleet of more than 150 machines, mostly earthmoving and roadbuilding in nature. Beard Equipment sells a number of top trailer lines and offers transportation services throughout Texas and the surrounding states. Jeff Beard is president. Other key personnel include Charlie Hensley, operations manager; Joey Ramirez, service and parts manager; Jeff Ison, sales; Terry Gilbert, sales; and Megan Beard Schilder, accounting. For more information, visit https://beardequip.co.com/. (This story also can be found on Construction Equipment Guide’s website at www.constructionequipmentguide.com.) CEG
Construction Equipment Guide • Texas State Supplement • www.constructionequipmentguide.com • June 24, 2018 • Page 13
DĐ ŽƵƌƚ Θ ^ŽŶƐ ƋƵŝƉŵĞŶƚ͕ /ŶĐ͛͘Ɛ ƉƌŽǀŝĚĞƐ Crushing, Scr S eening, Co C nveying, Wash hing and Recyclling equipment for th following ap a plications: Aggregates and Mineral Processing, Sa S nd & Gravel, Concrete Recycle, Washing, Highway Contractors, Organics ʹ Compost, Topsoil, Mulch h, Landfill Mining, Environ nmental Cleanup, Specialized and Industrial Sands, and Energy ʹ Oil, Wind.
Page 14 • June 24, 2018 • www.constructionequipmentguide.com • Texas State Supplement • Construction Equipment Guide
Harbor Bridge Crews Achieve Project Milestone
NEXT ISSUE CLOSES JULY 12, 2018 Harbor Bridge Project photo
A large auger is used to drill each shaft to a depth of approximately 200 ft.
Harbor Bridge Project (HBP) crews have reached another milestone with the completion of 40 drilled shafts on both the north and south side of the project. The 40 drilled shafts will make up the foundations of the two bridge pylons. There are 20 drilled shafts located on the north side of the project and 20 located on the south side of the project. Each of the shafts are 10 ft. in diameter and were drilled to a depth of just more than 200 ft. More than 500 cu. yds. (approximately 70 truckloads) of concrete was placed in each of the completed drilled shafts. Crews have moved into the next stage of construction which includes trenching areas around the shafts to prepare for the completion of the footings. (This story also can be found on Construction Equipment Guide’s website at www.constructionequipmentguide.com.)
Harbor Bridge Project photo
HBP crews prepare drilled shafts for the completion of the footings.
Construction Equipment Guide • Texas State Supplement • www.constructionequipmentguide.com • June 24, 2018 • Page 15
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Page 16 • June 24, 2018 • www.constructionequipmentguide.com • Texas State Supplement • Construction Equipment Guide
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