< Previous8 SEPTEMBER 2024 SITE SELECTION T he annual infrastructure issue of Site Selection is an ideal occasion to roam the newsrooms of IAMC member organizations for insights into projects across the infrastructure spectrum. (See even more in this issue’s Top Utilities in Economic Development and Global Groundwork Index features.) Scanning these newsrooms reveals IAMC’s wide geographic reach, depth of knowledge and scope of expertise. One might even call the interconnected network of IAMC members a crucial infrastructure asset unto itself. Here are a few highlights among many: Progress continues in Barstow, California, where BNSF Railway in October 2022 announced the $1.5 billion Barstow International Gateway, a 4,500-acre site in San Bernardino County encompassing a rail yard, intermodal facility and warehouses for transloading freight from international containers to domestic containers. In June, the railroad announced plans for a 4,321- acre master-planned logistics hub in northwest Maricopa County, Arizona (see Greater Phoenix Intelligence Report in this issue). It will include a 1,770-acre intermodal facility; a 1,131-acre logistics center with direct-rail-served sites; and a 1,420- acre logistics park with sites for warehouse and distribution facilities. IAMC Member Organizations Fully Engaged in Infrastructure Investment H illwood in April announced plans to work with Austin-based fleet electrification solutions company Gage Zero to develop Texas’ first public commercial EV charging facility, catering to trucks and last- mile fleets. “Our vision is to enhance AllianceTexas’ forward-thinking infrastructure ecosystem,” said Hillwood Executive Vice President Russell Laughlin, “further empowering businesses to thrive while enabling them to take steps toward meeting tomorrow’s supply chain resiliency and reliability challenges.” A new EV charging facility for truck fleets adds to the infrastructure at AllianceTexas. Photo courtesy of Hillwood G rowth in Greater Charlotte has spurred Haskell to move to a larger office in Red Oak Office Park. The company first established roots in the city in 2014 when it acquired health care design firm FreemanWhite and the office remains the company’s center of excellence for its Healthcare Design, Consulting and Construction divisions. The most significant expansion has been in the manufacturing, water/wastewater and municipal/education sectors, with the former driving the latter two, said Haskell Regional Vice President for Planning & Development Charlie Rocheleau, who leads the Charlotte office, in a press release, noting that staff had grown by 50% to more than 60 team members since 2021. A BNSF Barstow Mountain Train Photo courtesy of BNSF UNC Charlotte has played a part in the city’s growth. Photo courtesy of Charlotte Regional Business Alliance10 SEPTEMBER 2024 SITE SELECTION C elebrating its 100th anniversary this year, JE Dunn Construction, based in Kansas City, Missouri, announced in August that it has been awarded the contract for the MEP upgrades necessary to double the electron beam energy of the Linear Particle Accelerator at SLAC National Accelerator Laboratory in California. The company has carried out multiple projects on the SLAC campus since 2016. “Our longstanding relationship with SLAC has been instrumental in JE Dunn’s growth and success in Northern California,” said JE Dunn Project Director Kyle Chase. “We are excited to contribute to this critical upgrade and look forward to continuing our work with SLAC to support groundbreaking research.” H elped by Inflation Reduction Act tax credits, NV Energy earlier this year deployed the Reid Gardner Battery Energy Storage System at the site of a former NV Energy coal plant. The 220-megawatt two-hour grid- tied battery system is the largest stand-alone battery project in Nevada. “The batteries can be charged and discharged based on generation elsewhere in NV Energy’s system,” the utility stated, “and will help serve NV Energy’s peak load, particularly in the summer.” A similar project recently completed in the booming Phoenix market involved two IAMC service provider member organizations: Salt River Project (SRP) and Burns & McDonnell, which in June completed the commissioning of Plus Power’s 1-GWh stand-alone energy storage facility for SRP. The Sierra Estrella Energy Storage facility will store enough electricity to power 56,000 homes for a four-hour period. The Sierra Estrella Energy Storage facility in Avondale, Arizona, uses more than 275 Tesla Megapacks. Photo courtesy of SRP SLAC National Accelerator Laboratory in northern California Photo courtesy of SLAC K C SmartPort’s 2024 Annual Industry Briefing, attended by 650 industry leaders, featured remarks from IAMC member David Hickey, global managing director of Hickey and Associates. ““Industrial corporations from around the world are seeking the best ways to optimize their operations, looking more and more at North America,” he said. “Cost of power and labor, supply chain disruptions and government policies all play into companies’ decisions of where to invest and grow. The strategic advantages of Kansas City including prime location and transportation infrastructure position it well for continued foreign direct investment.” T he portfolio of the Port of Portland includes three airports, four marine terminals and five business parks. June marked the launch of the port’s 2024 dredging season on the Columbia River, where in 2020 $22 billion worth of cargo moved. “The Oregon Legislature established the Port of Portland in 1891 specifically to dredge a navigation channel from Portland to the sea,” a Port of Portland release explains. By the end of the season in December, the Dredge Oregon “will have scooped up over 2 million cubic yards of sediment from the riverbed and deposited it elsewhere.” Meanwhile, one of the Port of Portland’s other assets — Portland International Airport (PDX) — in August celebrated the opening of its new main terminal, which doubles the airport’s capacity. Kansas City’s infrastructure assets and central location offer a strategic advantage. Photo courtesy of Kansas City Area Development Council/KC SmartPort The new main terminal at Portland International Airport is part of an overall $2.15 billion expansion that will be completed in 2026. Photo courtesy of PDXA leading Asian investment region and prime logistics gateway to the Southeast Asia market has emerged along Thailand’s Eastern seaboard. Known as the Eastern Economic Corridor (EEC), this area-based development initiative represents Thailand’s flagship program for executing its National Strategic Plan and 4.0 Economy Policy. The Corridor’s overarching objectives are to lead the nation up the industrial and business services value chains creating a more innovative, competitive economy while providing the urban, institutional and living amenities appealing to well-educated professionals and high-skilled labor, both expat and Thai. The concluding section of this article highlights the latest financial incentives for foreign companies investing in the Corridor. In May 2024, the Thai Cabinet approved special provisions allowing the EEC Negotiation Committee to offer incentives case-by-case from September 2024 onwards. Investors can negotiate customized incentive packages based on the nature of their investment, providing them with additional flexibility and value. The EEC’s Business Ecosystem Nearly US$60 billion has been spent or is in the pipeline from a combination of private and public-sector sources to: 1. markedly improve air, sea and surface transportation infrastructure; 2. foster business and industry technological advancement; 3. upgrade educational institutions and the labor force; and 4. enhance urban place and entrepreneurial ventures through creating smart, livable cities and innovation districts. Digitization and sustainable practices pervade all new residential, business and infrastructure development to appeal to innovation-oriented firms and their tech-savvy, environmentally conscious employees. Whereas the EEC formally commenced in 2018, its 5,100-square- mile area encompassing three eastern seaboard provinces — Chachoengsao, Chonburi and Rayong — has been at the forefront of Thailand’s foreign direct investment for over 30 years based on its central location for Asia-wide trade and its industrial, transportation and tourist assets. These assets include, among others, 37 special investment promotion zones, modern highways and expressways, three deep-water seaports, an international airport and popular coastal resorts. In the three decades leading up to the EEC’s legal establishment, multinational enterprises had already invested almost by DR. JOHN D. KASARDA editor@siteselection.com ASIA 12 SEPTEMBER 2024 SITE SELECTION Thailand’s Investment Hub Renderings of EEC Capital City Source: Thailand Eastern Economic Corridor OfficeEECiti EECi EECmd EECg EECd EEC Capital City Next-Gen Automotive Medical & Health Digital Bio-Circular-Green (BCG) Services LAEM CHABANG PORT $ billion in its area. From to , despite COVID- impacts, the value of EEC investment certifi cates (the vast majority foreign) totaled $ billion, with the largest sources being China, Japan, Singapore and the United States. Just under % of all foreign direct investment in ailand took place in the EEC during this period, with seeing the Corridor capture over %, a trend which continued in Q . e EEC is administered by the ailand Eastern Economic Corridor Offi ce (EECO) whose Secretary-General reports directly to the Prime Minister. EECO has initiated a number of large infrastructure projects (some completed and some currently under construction) providing substantially greater connectivity, speed and agility advantages to the Corridor’s businesses. Infrastructure Expansions Align for Target Industries ese projects include a -mile high-speed rail line to be completed by . e line will link EEC’s international airport (U-Tapao) and major EEC urban locations with Bangkok’s two international gateway airports (Suvarnabhumi and Don Mueang) and to Bangkok city center within minutes. Laem Chabang Seaport, which ranks among the largest container ports, is introducing the world’s fi rst automated shipping terminal, which will increase its throughput to million TEUs per year by . Simultaneously, with the EEC’s large automotive production bases (crowned the Detroit of Asia) rapidly expanding, the port’s vehicle roll-on and roll-off capacity is increasing to million cars per year. Map Ta Phut Industrial Port is likewise completing its expansion to handle million tons of bulk cargo annually by , much in the petrochemical sector. Plans have Sattahip Port being transformed into a container port with a cruise ship terminal to be developed nearby. When its planned expansion is completed, U-Tapao International Airport will be able to handle million passengers and . million metric tons of cargo annually. An additional runway is in the works as are a free trade zone and airport city on its property. With its one-hour high-speed rail link to downtown Bangkok, U-Tapao is being positioned to become Bangkok’s third international airport. New EEC highways and motorways have been completed, facilitating connectivity within the EEC and to the Bangkok metropolitan area. Double-track rail freight lines have been constructed as well, effi ciently linking the EEC’s major goods production centers to the seaports and inland ports. e EEC has fi ve general clusters of targeted industries for which special fi nancial incentives and other promotional privileges (to be detailed later) are off ered on a negotiated basis. ese clusters include: 1. medical & health, 2. digital (intelligent electronics, data centers, robotics, defense), 3. next-generation automotive, including components, 4. green and biocircular economy (biofuels and biochemicals, advanced agriculture and biotechnology, food for the future), and 5. services (high-value business services and medical tourism, aviation and logistics, education and human resource development). Almost all other industrial sectors not on the EEC’s targeted list are supported by generous incentives from ailand’s Board of Investment. To provide research and knowledge support to EEC businesses and industries, a number of technology, innovation and entrepreneurship- advancing districts are being developed. e Eastern Economic Corridor of Digital (EECd) serves as an investment destination for the spawning of new digital ventures. e Eastern Economic Corridor of Innovation (EECi) has been established to promote high-tech fi rms and foster technological advancement in such sectors as biotechnology, biofuels, petrochemicals and robotics. e EECmd is a comprehensive district for precision medicine and health care, while the EECg innovation district will promote the use of genomics for DNA analytics to diagnose diseases for early preventive treatment. 14 SEPTEMBER 2024 SITE SELECTION16 SEPTEMBER 2024 SITE SELECTION The New EEC Capital City EEC Capital City is being developed on 9 square miles between the international seaside resort of Pattaya and U-Tapao Airport, approximately 10 miles to each. Planned to integrate business and people with cutting-edge technology and nature, the new city will feature high-quality commercial, residential, educational, financial, health care and sports and recreation zones as well as serve as the CBD for administrative offices of manufacturing and business services enterprises operating throughout much of the EEC. Capital City is the EEC’s largest investment promotion zone. Public-private investment partnerships will operate the new city’s basic services including transportation, power and energy, water provision, waste management and digital platforms. Committed to carbon neutrality, Capital City will be LEED-certified with sustainability embraced in all infrastructure, commercial and residential development. The new city has been planned not only to be modern, digitally smart and sustainable, but also to reflect “Thai-ness” in its architectural style and in its commercial, cultural and social venues. Education, research and other institutional assets will be prioritized to appeal to knowledge-based firms and their talented labor. The center of this urban development covers just under 4 square miles. Its CBD will serve as the hub for the local headquarters of EEC firms with some regional headquarters expected, government complexes and financial-oriented enterprises. Its wellness zone will focus on human performance, anti-aging and regenerative medicine with associated health clinics. Functioning as a lifelong learning hub, the education zone will host a range of academic institutions from K-12 international schools to branches of graduate research universities. A sports and recreation zone will house the Thailand International Sports Park planned to host major sporting events such as regional soccer championships and the Asian Olympic Games. Its facilities will include a national stadium with an 80,000-seat capacity, an international-class aquatic center, an e-sports arena and a variety of recreation facilities. Capital City’s residential zones will be mixed-use with a combination of largely middle- and upper- income housing along with neighborhood shopping and restaurants, pocket parks and public space. All of these will be developed to enhance livability and overall quality of life.Investor Incentives The EEC and its new Capital City offer sets of financial incentives and nonfinancial promotional privileges to foreign investors that are among the most attractive in Asia. Tax incentives to foreign firms include, among others: 1. Exemption of corporate income tax (CIT) on the net profit derived from an approved business for up to 15 years; 2. Reduction of CIT on the net profit, derived from approved business • Reduction of CIT not exceeding 50% of the normal rate for up to 10 years, for no exemption of CIT • Reduction of CIT not exceeding 50% of the normal rate for up to 5 years commencing from the expiry date of corporate income tax exemption, if the exemption was less than 8 years; 3. Deduction of annual loss incurred during the period of CIT exemption from the net profit accrued after the expiration of the exemption period; 4. Deduction of the investment capital of approved businesses from net profit; 5. Double deduction of the cost of transportation, electricity and water supply; 6. Deduction from net profit of the cost of installation or construction of facilities used in the approved business; 7. Exemption of dividends from taxable income; 8. Exemption of fees for goodwill, copyrights and other rights from taxable income; 9. Exemption of import duties on machinery; 10. Exemption of import duties on materials imported for R&D; 11. Exemption of import duties on raw materials or essential materials imported for use in production for export purposes; 12. Reduction of import duties on raw materials or essential materials; 13. Exemption of import duties on items imported to re-export; 14. Exemption of export duties. Nontax incentives include, among others: 1. Right to own land in a promotional zone which is subject to the consideration of the EEC Negotiation Committee; 2. Right to own condominium which is subject to the consideration of the EEC Negotiation Committee; 3. Right to bring foreign workforce and their dependents who can reside in Thailand, the number and period, which is subject to permission of the EEC Secretary-General; 4. Rights to obtain EEC work permits for who is brought into Thailand by Business Operator in the EEC Promotional Zone, is entitled to work under the permit issued by the EEC Secretary-General; 5. Exemption from laws on exchange controls; 6. Right to use foreign currency for payment of goods and services; 7. Other rights and benefits as specified under the laws of Competitiveness Enhancement. To these foreign investing firms’ benefits are added a variety of personal tax privileges to their expat employees such as substantially reduced personal income tax rates. More information can be found at www.eeco.or.th. Dr. John D. Kasarda is the President of the Aerotropolis Institute China and a specialist in smart city development for the Office of Eastern Economic Corridor of Thailand. SITE SELECTION SEPTEMBER 2024 17Next >