Walmart Distribution Center In Baytown

[BayouCityGirl]

anyone have any or what it is exactly?

[houstonsemipro]

Yes. I've heard about this. The new Wal-Mart Distr Center will be 4 million sq.ft. the largest Distr Center in the nation now, located in Baytown, Tx.

They will ship their goods at the Port of Houston to the center, (talking about money for the port).

I will try to get on at this center.

[RedScare]

Story in yesterday's Chronicle

http://www.chron.com/cs/CDA/ssistory.mpl/front/3211156

[H-Town Man]

That's a pretty good article - notice what it says about how Houston has superceded LA/Long Beach as the best port to bring retail goods into the country. Wal-Mart and Home Depot have their major distribution centers here, and now it says Lowe's and Target are in talks. Apparently this will attract a lot of other companies because they will all be jumping to get on the same ships that bring Wal-Mart goods. Houston may never be a center of cultural importance in America, but when it comes to physical importance, and making this country run, we are high and getting higher.

Side note: Does it worry you a little that the reason why the port is so important to Wal-Mart and why all these other companies are interested is that all of this stuff is coming from China? Think about it - fifty years ago, it didn't matter what port the nation's leading retailer was using, because the nation's leading retailer (I don't know who - Sears perhaps?) WASN'T IMPORTING ANYTHING. It was all made right here in the good ol' U.S. of A. Now it is as if the whole country is being fed through a tube, and the thing at the other tube is none other than China, our friendly totalitarian neighbor across the Pacific.

[BayouCityGirl]

Wasn't it also that we ALMOST had Burger Kings headquarters here but it slipped through our fingers?

when I typed this question I was overtired...excuse me for that. I was bidding on Ebay and trying to wait for the bid to be over before someone stole it. (OT)

[LTAWACS]

That's a pretty good article - notice what it says about how Houston has superceded LA/Long Beach as the best port to bring retail goods into the country.  Wal-Mart and Home Depot have their major distribution centers here, and now it says Lowe's and Target are in talks.  Apparently this will attract a lot of other companies because they will all be jumping to get on the same ships that bring Wal-Mart goods.  Houston may never be a center of cultural importance in America, but when it comes to physical importance, and making this country run, we are high and getting higher.

Side note:  Does it worry you a little that the reason why the port is so important to Wal-Mart and why all these other companies are interested is that all of this stuff is coming from China?  Think about it - fifty years ago, it didn't matter what port the nation's leading retailer was using, because the nation's leading retailer (I don't know who - Sears perhaps?) WASN'T IMPORTING ANYTHING.  It was all made right here in the good ol' U.S. of A.  Now it is as if the whole country is being fed through a tube, and the thing at the other tube is none other than China, our friendly totalitarian neighbor across the Pacific.

<{POST_SNAPBACK}>

Yes, I agree. And they have nukes for cryin' out loud!

[Subdude]

The Wal-Mart project could be a big boost for the regional economy as a logistics hub. It is a great way to leverage the port and the expanded air freight capabilities at IAH.

[The Great Hizzy!]

^^^ Moreover, diversification of the Port's overall function is a good thing. The Port is large, very busy, but a good percentage of the port's commerce is centered around petroleum related items. Dealing in the distribution of wholesale and household items on a larger scale makes the port more viable long term.

[kjb434]

Having these distribution centers is a great thing for our local economy. You have to realize that these companies are willing to pay extra to have a ship from China to pay to go through the Panama canal and come to Houston. There's that added cost yet, they still chose us.

Houston's port is also going to be location for increased trade with Central Americal through CAFTA (Central America Free Trade Agreement). The concept was around for years (from both polictal parties) and Clinton began the negotiating talks. Bush is wrapping it up and Congress is finishing off thier role in ratifying the treaty. This will allow increase goods shipments to come into the US. At the same time, the countries exporting will have acces to US goods at lower rates. It's a win-win.

Wal-Marts Distribution facility is a pretty awesome site. And for you environmental crazies, they are providing more detention and remediation to the surrounding land than it required. Essential the place will be surrounded by a massive lake that'll allow local fish, wildlife and plantlife survive. I read the drainage studies since I worked on the Master Drainage Plan for the Cedar Crossing Industrial Park that Wal-Mart has built in. Home Depot provided similar remediation. The most amazing thing is that they weren't required to do any of it because they are in Chambers County.

[Subdude]

You have to realize that these companies are willing to pay extra to have a ship from China to pay to go through the Panama canal and come to Houston. There's that added cost yet, they still chose us.

The rationale was that the primary port, LA/Long Beach, was experiencing labor difficulties and capacity restraints not only at the port facilities, but with the roads and railroads that serviced the port. As a result, there were times when ships were stuck in the water without being able to unload, most notably before last year's Christmas season. Despite the extra cost in both time and money of shipping through the congested Panama Canal, they still figured it was worth it because it was easier to develop the necessary infrastructure here. The case for Houston was also helped because of our central location: shipment costs to the rest of the country are less from here than LA.

[kjb434]

Very much true. Also, Panama is completely rebuiling the canal portions and locks through the isthmus to allow larger ships. It will also make the trip through Panama much safer for ships.

When this is finished, cargo ships will be able to get through the isthmus quicker and easier.

LA is having lots of trouble with is union. Good thing the Port of Houston has a free market labor setup.

[HeightsGuy]

As soon as we're all finished high-fiving eachother, I think it's important to step back and look at what we are getting out of this deal. Most of the time, whenever a company comes calling with a couple of thousand jobs in tow, it's all win-win. This, on the other hand, comes with a much steeper price tag.

Namely, how do you think this stuff gets from the warehouse to the point of sale?

(hint - get used to that little smiley-face, you'll be seeing it on a ridiculous number of 18-wheelers soon to be clogging up your favorite freeway)

[westender]

As soon as we're all finished high-fiving eachother, I think it's important to step back and look at what we are getting out of this deal. Most of the time, whenever a company comes calling with a couple of thousand jobs in tow, it's all win-win. This, on the other hand, comes with a much steeper price tag.

Namely, how do you think this stuff gets from the warehouse to the point of sale?

(hint - get used to that little smiley-face, you'll be seeing it on a ridiculous number of 18-wheelers soon to be clogging up your favorite freeway)

<{POST_SNAPBACK}>

Not if it's called the Grand parkway.

[DJ2025]

Not if it's called the Grand parkway.

<{POST_SNAPBACK}>

So THAT's why they put a rush on that segment

[BayouCityGirl]

Does that mean Mr.Smiley will be slashing prices too!!!! C'mon local distr. needs some goodies for the local area!!! Get some good ole' fashioned cheapies at Walmart!!!

Or does that mean we will see more Super Walmarts popping up as well? and when there's a Super Walmart there is a Super Target!! (just kidding) its not as bad as the CVS vs. Walgreens thing y'know?

I just wonder why there is no Super Target near me!! (I live near the Beltway/Westheimer! c'mon get rid of dumpy Target...its uglfiying the neighborhood! We don't need a Ross, make a Super Target out of the Ross Dept store. Tear the other strip center stuff too (except Petco...I like it there :-D)

oh and Randalls can go too. If I want a high priced grocery store I'll take the Super Target. It smells good in there (especially the aroma of the Starbucks coffee as you walk in)

sorry for going offtopic

[HeightsGuy]

No, I don't think the Grand Parkway has anything to do with this. Since the stuff is coming out of Baytown, a majority of traffic will either go East or West down I-10, or up 59 or 45 north after coming around the east belt.

Another area that will see higher volume is the RR's. For you who like to complain about all that whistle noise in the middle of the night, get ready for much more. Assuming that a lot of freight will still go through Long Beach to Western regions of the US, hopefully most rail cargo will head east and north out of Baytown and not much will pass through the city.

[H-Town Man]

No, I don't think the Grand Parkway has anything to do with this. Since the stuff is coming out of Baytown, a majority of traffic will either go East or West down I-10, or up 59 or 45 north after coming around the east belt.

Another area that will see higher volume is the RR's. For you who like to complain about all that whistle noise in the middle of the night, get ready for much more. Assuming that a lot of freight will still go through Long Beach to Western regions of the US, hopefully most rail cargo will head east and north out of Baytown and not much will pass through the city.

<{POST_SNAPBACK}>

According to the article, the area around where this center and the Home Depot center are at will be served by the East section of the Grand Parkway. From there, I imagine the bulk of the traffic will head up to 59 around Cleveland, then up the future I-69 corridor to the midwest and northeast.

So to put it all into perspective... these goods are going to go to Houston. And then they're going to go to Arkansas and Memphis and Indianapolis! And, and then they're going to go to Cleveland... and to Pittsburg... and then they're going all the way to the White House! YEEEEAAAAAAARRRRRRGGGHHHH!

[HeightsGuy]

H-Town, that part of the Grand Parkway, I believe, is just a small segment from 146 to I10 East, and I didn't know it was even completed yet. The Grand Parkway from I10 East to 59 North and 45 has not even been cooked up yet and exists only as a map.

[kjb434]

Yes, but the GP segment under construction will divert the truck traffic away from Baytown's downtown and residential streets. The GP is just a couple 100 feet from the Distribution center.

Also, the section from I-10 to the Eastex US-59 is on the move. It will be built just a couple of years from now.

Look, any economic progress will increas truck and train traffic in town. The east half of the GP project is primarily for the increased traffic from the port.

[energyman2005]

Just came from hearing Charles Iupe speak about the port and the new Wal-mart center. An interesting fact he mentioned was the fact that the Long Beach, CA port currently processes about 14 million containers per year. Houston's number is only approximately 1.3 million per year. He projected a 2.5x increase in containers over the next few years once Bayport is complete.

[2112]

As soon as we're all finished high-fiving eachother, I think it's important to step back and look at what we are getting out of this deal. Most of the time, whenever a company comes calling with a couple of thousand jobs in tow, it's all win-win. This, on the other hand, comes with a much steeper price tag.

Namely, how do you think this stuff gets from the warehouse to the point of sale?

(hint - get used to that little smiley-face, you'll be seeing it on a ridiculous number of 18-wheelers soon to be clogging up your favorite freeway)

<{POST_SNAPBACK}>

Anyone here familiar with that Saturday Night Live skit "Debbie Downer"?

Mua Mua Mua Muaaaaaaaaa.......

[HeightsGuy]

Yes, I'm being Debbie Downer on this one, but I just don't see how this is such a great thing for the city and the economy. 1200 warehouse jobs and a bunch of extra truckers driving through, with Walmart no doubt getting a huge tax break.

I'm sure the convenience stores along the Grand Parkway are salivating at the news.

[RedScare]

http://www.co.chambers.tx.us/demographics.html

One project increases Chambers County's employment by 10%? 1200 warehouse jobs in a county where per capita income is $23,000? One project produces twice the number of jobs as the entire county's number of unemployed?

Yeah, you're pretty much a downer. I'm curious what kind of project would lift your spirits. Maybe it would help everyone, including Chambers Co., port and other officials put this into some perspective.

[Subdude]

The job base will grow if others like Lowes and Target move primary distribution centers here. Also, there will be secondary job creation in the port and other businesses, yes, including convenience stores. But that isn't a bad thing - it's how you grow the economy. Distribution, logistics, and transportation isn't a glamorous industry, but it is stable and creates jobs. Look at the impact that airports have had in Dallas and Atlanta. Businesses like this are leveraging the port in the same way by diversifying from petrochemicals. I think that this could also help utilize the new air freight capacity at IAH.

[HeightsGuy]

Redscare, maybe I'd be a little happier if this wasn't such blatant corporate welfare.

Walmart built this thing. Once built, the Texas Permanent School Fund is buying it from Walmart for 80 million dollars. Walmart will then turn around and lease it from the Permanent School Fund. Because Walmart will not "own" the property, they don;t pay any taxes to Chambers County and Goose Creek ISD, and, even though the land is now worth 80 or so million, the Permanent School Fund is exempt from paying taxes to Chambers County. The only taxes Walmart has to pay now will be for are taxes on inventory, which go to the state.

[RedScare]

OK, neighbor, I'm with you on that point.

[tigereye]

QUESTION?

If the Port of Houston sees all this new distribution center business in Baytown happeneing that will benefit our region's economy, why are they even entertaining Dallas' idea of creating an inland port distribution outpost in Dallas?

[Subdude]

Redscare, maybe I'd be a little happier if this wasn't such blatant corporate welfare.

Walmart built this thing. Once built, the Texas Permanent School Fund is buying it from Walmart for 80 million dollars. Walmart will then turn around and lease it from the Permanent School Fund. Because Walmart will not "own" the property, they don;t pay any taxes to Chambers County and Goose Creek ISD, and, even though the land is now worth 80 or so million, the Permanent School Fund is exempt from paying taxes to Chambers County. The only taxes Walmart has to pay now will be for are taxes on inventory, which go to the state.

It's unfortunate if that is the case. One of the country's largest corporations shouldn't need to be gaming the tax system that way. How much revenue is Baytown forgoing by having the property taken off the tax rolls? Also, Walmart will probably also be able to deduct the cost of the lease for income taxes.

[Talbot]

QUESTION?

If the Port of Houston sees all this new distribution center business in Baytown happeneing that will benefit our region's economy, why are they even entertaining Dallas' idea of creating an inland port distribution outpost in Dallas?

<{POST_SNAPBACK}>

They think that our port is going to be backed up like the port of Los Angeles, but personally I think its a bad idea, especially if they plan on adding onto our port.

[kjb434]

Remember that Wal-Mart will still lease this facility from the School District. That revenue will pay off the building and will serve as tax revenue stream to the school. The property tax route is not a definite as the lease revenue.

This has been done many of times with different business because the income to the localities is much higher and Wal-Mart doesn't own the facility.

Also, I don't think Wal-Mart will leave it anytime soon as they already have phase two plans underway.