EPC Firms Bullish on Industrial Project Capital Expenditures at 2010 Breakbulk America Conference in Houston

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Researched by Industrial Info Resources (Sugar Land, Texas)--The 2010 Breakbulk Americas Transportation Conference & Exhibition officially launched yesterday with the keynote speech given by David Hammerle, the principal vice president and corporate manager for procurement and contracts for Bechtel Corporation (San Francisco, California). Jim Edmonds, the chairman of the Port of Houston Authority, introduced Hammerle and spoke briefly about the logistical importance of the port of Houston, including the fact that it is the largest breakbulk port in North America, as well as the largest container port on the Gulf Coast.

Speaking for the Procurement Executives Group, which is a 22-member group of engineering, procurement and construction (EPC) firms including Aker Solutions, AMEC, Bechtel, KBR Incorporated (NYSE:KBR) and Shaw Group (NYSE:SHAW), to name a few, Hammerle spoke positively about capital spending plans for the global power, oil and gas, civil and mining industries, explaining that even with today's economic uncertainty, capital spending is expected to increase dramatically during 2011-15.

Hammerle touched on several key challenges for EPC firms in today's global industrial project market. Projects are large and more complex; many of these mega-projects can cost billions of dollars. The projects are in remote locations, regulatory compliance is rising, and the supply chain is more complex. All of these factors make project delivery, and therefore project breakbulk logistics, more crucial. For these large projects, freight costs represent about 10% to 15% of total project spending, making breakbulk transportation an important aspect in project delivery.

This is the first year for the Breakbulk Americas conference to be in Houston, after residing in New Orleans for its first 20 years. The breakbulk industry refers to the logistics and transportation of primarily large, heavy-lift cargo in relation to major industrial projects.

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