Colorado Leads Rocky Mountain Region for Third-Quarter Project Starts

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Researched by Industrial Info Resources (Sugar Land, Texas)--Colorado leads the U.S. Rocky Mountain market region for the value of projects kicking off in the third quarter of this year. The state plans to begin $2.37 billion in projects this quarter, narrowly edging out Idaho, which has $2.32 billion in projects scheduled to begin. New Mexico, with $1.6 billion of scheduled project starts, rounds out the top three states in the region.

Click on image at right for a breakdown by industry of third-quarter project starts in Colorado.

While many of the Rocky Mountain states will begin projects valued in excess of $1 billion this quarter, the East Corridor segment of Denver's Eagle P3 commuter rail project gives Colorado the leading edge for the region. The 22.8-mile line will run from Denver Union Station to Denver International Airport and will have six stations. The project, which has an estimated total investment value (TIV) of $1.3 billion, is scheduled to break ground in August. Currently, right-of-way acquisitions are in progress. In total, 109 parcels of property will be acquired: 89 privately owned, 11 railroad and 9 government agency-owned parcels. Acquisition is expected to be completed by September 2011, and the first trains are scheduled to run on this line in 2016.

The Power Industry is also contributing substantially to the state's third-quarter project kickoffs. Black Hills Energy (Rapid City, South Dakota), the utility subsidiary of Black Hills Corporation (NYSE:BKH) (Rapid City), plans to begin construction of the Pueblo Airport Generation Station this summer. According to local media, Black Hills has purchased most of its electricity from Public Service Company of Colorado (Pueblo), a subsidiary of Xcel Energy (NYSE:XEL) (Minneapolis, Minnesota), but this agreement ends December 2011. The estimated $500 million project is expected to be in service by the start of 2012.

Black Hills recently awarded K.R. Swerdfeger Construction Incorporated (Pueblo West, Colorado) the contract to construct the water line and gas line at the facility. A Black Hills press release states that Swerdfeger will subcontract components of the project out to local contractors, including Rice & Rice Incorporated (Pueblo), Pueblo Electric, and Industrial Constructors/Managers Incorporated (Pueblo).

Rounding out the top-three third-quarter projects in the state, Suncor Energy Incorporated (NYSE:SU) (Calgary, Alberta) will add a benzene saturation unit at the company's refinery in Commerce City, Colorado. The estimated $200 million project is scheduled to begin in August and should take a little more than a year to complete.

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