Southwest La. Report

Casino, petrochemical, Rita work propel construction

By Karla Wall

Despite some question marks in the petrochemical field, the economic outlook for the southwest region of the state is positive thanks to ongoing recovery from Hurricane Rita, the construction of several new LNG terminals, a new casino and turnaround work at local refineries.

The 2007 state economic forecast estimates that the Lake Charles area added 2,900 jobs during the last two years and predicts a job market increase of 1,000 jobs per year over 2007-2008.

Most of this activity is due to reconstruction from Hurricane Rita, says Loren Scott, president of Loren Scott and Associates Economic Consulting of Baton Rouge and co-author of the annual report.

"Unlike New Orleans, where people had to wait on Road Home money or insurance money, and where some people had gaps in their flood insurance and flood damage estimates, in Lake Charles there was no floodwater, which meant that insurance money was on hand much more quickly," Scott says. "And there was a sufficient amount of damage to ensure that the job increase will easily carry over into '07 and even '08."

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Associated General Contractors area manager Scott Hines says the construction industry has played a vital role in the recovery and rebirth of southwest Louisiana post-Hurricane Rita. "The private sector will be a driving force in a robust industry in 2007, along with major hurricane rebuilds and infrastructure improvements in the lower parishes," he adds.

Another driving force in the region is the construction of several LNG >> terminals in the southwest region. Scott estimates more than $2.6 billion in LNG construction alone.

Ellis Benkenstein of Associated Builders and Contractors Pelican Chapter's Southwest office in Westlake, La., says the labor shortage that has plagued the region since Hurricane Rita seems to be stabilizing, but a significant increase in petrochemical construction and the construction of two new LNG terminals in southeast Texas may mean trouble for the southwest Louisiana workforce.

"There are some huge projects coming up in southeast Texas," Benkenstein says. "That will have a huge effect on southwest Louisiana. The manpower needed for those projects will be unbelievable - as many as 15,000-30,000 people will be needed - and it will pull workers from southwest Louisiana."

Another major factor in the construction industry for the last year - high material prices - should stabilize, with AGC chief economist Ken Simonson predicting a more manageable and predictable materials cost inflation for 2007.

Major projects to watch in the southwest region include the Sempra, Chenier, Trunkline and Dynegy LNG terminals, ranging from $250 million to $756 million each; and several Lake Charles projects, including Pinnacle's new $350 million Sugarcane Bay Casino, a $40 million repair/renovation project at Chennault Airpark and a $30 million rebuild project at Lake Charles Regional Airport.

Major Lafayette projects include the new $18 million Bridgeway Apartments; a $6.8 million renovation of Burke-Hawthorne Hall on the University of Louisiana at Lafayette campus; a $10 million to $12 million, 45,000-sq-ft Cox Communications facility; several projects at River Ranch including a new Whitney Bank, 110-room boutique hotel and CPA office; and a multimillion-dollar Acadian Ambulance complex.

Also, the Cameron Parish area will see major rebuild projects including a $20 million hospital in Cameron and the $20 million Cameron High School rebuild.

Following are a few of the larger projects under construction:

Cameron LNG Terminal, Hackberry. Sempra LNG, a division of Sempra Energy, will complete work on its Cameron Liquefied Natural Gas receiving terminal and storage facility in Hackberry, La., in the third quarter of 2008.

Primary contractors Aker Kvaerner of Norway and Tokyo-based Ishikawajima-Harima Heavy Industries began work on the project in August 2005.

The facility will have the capability to process 1.5 billion cu ft of LNG daily, offloading two tankers, which will range in size from 850-1050 ft in length and carry 1.6 to 4.3 billion cu ft of LNG each per day.

The 275-acre terminal will consist of three storage tanks with a capacity of 1.5 billion cu ft each, 10 submerged compression vaporizing units, an administration building and a marine basin and turnaround area. LNG will be offloaded with one of three unloading arms located in the two unloading jetties in the marine basin.

An expansion is planned to add a storage tank, increase the terminal's capacity, increase vaporizing capacity, add send-out pumps and a fuel gas heater. The expansion will take up 12-15 acres of the site, according to Sempra LNG.

Interstate 10 Widening, Coone Gully to Hwy. 27, Sulphur. After delays of three to four months caused by hurricanes Katrina and Rita, this $42.4 million project to widen a 10-mi stretch of I-10 just west of Sulphur is moving at a brisk pace and is set for completion by the end of this month.

Two 12-ft lanes are being added to the highway, says Randy Noel with Diamond B Construction of Alexandria, La., primary contactor for the project. The project will also add a 10-ft shoulder to each side of the interstate and widen four bridges. Subcontractor for the bridge work is T. L. Wallace Construction of Columbia, Miss.

U.S. Highway 165, Oberlin to Oakdale. Gilchrist Construction of Alexandria began work on this TIMED project to four-lane 12.7 mi of Highway 165 from the city limits of Oberlin to the city limits of Oakdale in August.

The project will add two lanes to the west of the existing highway, which will become the southbound lanes, says project manager Richard Spurgeon. The >> new lanes will be surfaced with about 9 in. of concrete pavement mixed onsite. Subgrade will consist of 12 in. of soil cement, 6 in. of select fill and another 6-in. layer of soil cement, followed by a 4-in. layer of stone.

Despite weather delays due to recent heavy rains, the project is "going as well as can be expected," Spurgeon says.

U.S. Highway 165, Fenton to Kinder. Gilchrist is also handling another four-laning project on U.S. 165, adding two new 12-ft lanes and a 7-ft, 4-in shoulder to the 5.7-mi stretch of highway from Fenton to Kinder.

Work began on the $21 million project in August, and project manager Doug Spivey expects completion by May 2008.

Spivey says about 200,000 cu yds of dirt have been hauled in to elevate the roadbed 14 ft. About 40,000 tons of stone base will be added for the subgrade, as well as soil cement.

Eunice Hospital. Batten & Shaw Inc. of Nashville completed work on this single-story hospital expansion, located just off U.S. Highway 190 in Eunice, in 2006. The project added 90,000 sq ft to the existing 13,000-sq-ft structure. The new building houses four operating rooms, patient rooms, four birthing suites, a nurse's station and an ICU, says project manager Aaron Talbot.

"Tons of dirt work" were needed for the steel-framed, slab-on-grade structure, Talbot says. "The year before the project began we removed about 6-8 ft of dirt and brought in structural fill in 6- to 8-ft lifts, compacted that and got it to the top of the finish floor. Then we brought back in the trash dirt, brought it back up to the finish floor and then let it sit a year or so to settle."

Camelot of Broussard Nursing Home/ Assisted Living Facility, Broussard. Work was recently completed on this $13 million facility in Broussard. The complex houses nine buildings totaling 135,000 sq ft. The Lemoine Co. of Lafayette began construction on the building in June 2005.

The facility consists of an apartment-style assisted-living area; traditional nursing home unit; Alzheimer's unit; behavioral health unit; and centralized kitchen and dining areas.

Project manager Mitch Wesley says state regulations forced a fairly tight schedule for the project, with vertical construction required to begin by Oct. 1, 2005, to avoid a state-mandated moratorium on new nursing home facilities.

Women's and Children's Hospital ICU/ER, Lake Charles. The Lemoine Co. of Lafayette will complete work on a $12.5 million addition at Women's and Children's Hospital of Lake Charles by the end of the month, says project manager Mike Richard.

The 25,000-sq-ft addition includes four operating rooms, 10 birthing rooms, eight staging areas for surgery prep, a new front entrance for the ER and a nurse station. About 8,900 sq ft of existing structure will be renovated as well, including new ceilings and floors, Richard says.

Critical Care Hospital, Franklin. Woodrow Wilson Construction of Baton Rouge began construction on this $11.7 million project in November 2005, and project manager Greg Rome expects work to be completed by June.

The 60,000-sq-ft single-story building will house 26 patient rooms, respiratory care unit, surgical and imaging suites with two full operating rooms and administration offices. Work is about 40-percent complete, Rome says.

The slab-on-grade structure is built on 1,400 concrete pilings. The footprint was elevated 8 extra in. to 4.5 ft above sea level to accommodate the new FEMA flood plain requirements.

"FEMA requires that we build according to 20-year flood plain," Rome says.

Camellia Boulevard Extension, Phase III-B, Lafayette. Work will be completed by December on a project to extend Camellia Boulevard from Starling Lane to Verot School Road. Work began on the project in July 2005.

Project manager Matt Fitch says the project will not only lengthen Camellia Boulevard 3,500 ft. but will also add 1,500 ft to Bluebird Lane to connect a subdivision to the boulevard. Excavation is almost complete on the last of three 20-ft drainage ponds and 12 by 7 precast concrete culverts have been placed 15-18 ft deep in the bed for drainage.

The project also called for the installation of two ConStan precast bridge units, which are set on a poured-in-place foundation in a matter of two weeks, Fitch says.

Oceaneering International Administration and Manufacturing Facility, Morgan City. The Lemoine Co. began work in September on an $18.75 million project that will add two new buildings to the Morgan City complex of Oceaneering International, which manufactures robotic underwater units for use in deepwater research and maintenance work for the offshore drilling industry.

Completion is expected in January 2008, says project manager Jack Craft.

The 44,490-sq-ft administration building will be a structural steel building with an exterior of concrete block and brick veneer. The 57,200-sq-ft manufacturing facility will be a premanufactured metal structure with the same exterior as the administration building.

The addition also includes a 135,000-sq-ft limestone parking lot and a 300,000-sq-ft concrete parking lot.

Craft says a major challenge is keeping the existing facility operating fully while new construction is ongoing.