27 Jul, 23

Infrastructure and Accessibility: The Role They Play in Greenfield Site Selection for Construction Aggregate Sites

When plotting a course to set up a new construction aggregate operation, there’s more to the equation than just the availability of resources. An often overlooked yet pivotal element in this decision-making process is the role of infrastructure and accessibility. Let’s dive into the compelling impact transportation costs and logistics can have on the viability of a greenfield site.

The Rising Tide of Aggregate Transportation Costs

A glance at recent studies demonstrates a marked uptrend in the transportation costs for aggregates:

  • 2023 Cost of Aggregate Transportation Study by the Construction Industry Institute (CII) revealed the average transportation cost per ton for aggregate by:
    • Truck: 33 cents
    • Rail: 10 cents
    • Barge: 2 cents
  • 2023 American Road & Transportation Builders Association (ARTBA) Construction Cost Index painted a slightly varied picture, with costs averaging:
    • Truck: 35 cents
    • Rail: 11 cents
    • Barge: 2 cents

These differences, while seemingly small, can translate into significant amounts depending on the volume of aggregate being transported.

The uptrend in transportation costs stems from various factors, including:

  • Fluctuating fuel prices
  • Surging demand for aggregates
  • Mandates to adhere to environmental regulations.

For a clearer perspective, let’s consider a real-world example. Transportation costs are often the heftiest bill contractors and end-users pay for a ton of aggregates. Imagine a bridge project that necessitates rip-rap from a quarry located 60 miles away. With the rip-rap priced at $17 per ton FOB at the mine, the transportation costs come into sharp focus. Using the ARTBA’s truck cost of 35 cents per mile, transporting the rip-rap would add $21 to the cost of each ton. This makes the transportation cost a larger expense than the material itself, highlighting the pivotal role of proximity and transportation infrastructure in project cost management.

Strategic Site Selection: Proximity and Accessibility

  • Cost Efficiency: Sites situated closer to their target markets naturally enjoy reduced transportation costs. Over time, even a few cents saved per ton can result in considerable savings.

 

  • Infrastructure Availability: The presence of a robust transportation network – roads, rail lines, or waterways – not only reduces costs but also ensures smoother operations. Sites nestled near these transportation arteries benefit from more efficient and cost-effective aggregate movement.

 

  • Environmental Impact: Proximity also translates to shorter transportation distances, leading to lower carbon emissions and a reduced environmental footprint – a factor becoming increasingly crucial in the age of sustainable business practices.

In conclusion, while the resource richness of a site is undoubtedly vital, its accessibility and the associated transportation logistics can significantly influence the long-term profitability of a construction aggregate operation. As transportation costs continue their upward trajectory, the significance of infrastructure and accessibility in greenfield site selection only becomes more pronounced. It’s not just about where the aggregates are, but how efficiently and economically they can reach their intended destination. Leveraging advanced tools like those offered by Mineralocity Aggregates, especially its drive time analysis, can provide invaluable insights into selecting greenfield sites with optimal market reach and superior infrastructure access. By integrating technology and strategic analysis, you can position your operation for enduring success in an ever-evolving market landscape.

Ready to Unlock the Secrets of Successful Greenfield Site Evaluation?

Dive deeper into the world of construction aggregate production with our exclusive Greenfield Guide. Whether you’re a seasoned expert or just embarking on your aggregate adventure, this guide is your roadmap to identifying prime locations, assessing supply potential, and capturing significant market shares. Arm yourself with proven strategies, actionable insights, and essential formulas designed to propel your projects to unparalleled success. Don’t miss this chance to elevate your greenfield endeavors – grab your free copy of the Greenfield Guide now! 

21 Jul, 23

Sand Shortage or Not? A Realistic View on the Construction Sand Market

Hello, it’s Stuart Burgess here. Today, I traded my office chair for the sandy shoreline of a picturesque lake where I had the delightful opportunity to enjoy one of my favorite summertime hobbies – fishing. As I stood on the fine sandy surface, basking in the serene environment and reeling in a particularly feisty trout, a thought occurred to me: the debate surrounding the impending “sand shortage”. This brought me back to reality from the tranquility of my fishing spot, and I felt the urge to shed some light on this matter.

For a few years now, the media has been awash with headlines predicting doom and gloom over an imminent shortage of construction sand. Many articles have presented this as an insurmountable challenge, almost as if the sand beneath our feet is vanishing before our eyes. It’s crucial, however, to separate the wheat from the chaff and examine the situation from a pragmatic perspective.

Let’s be clear; we are not running out of sand in the literal sense. Our planet has an abundance of it, and the amount of available sand in the world isn’t diminishing to the point of extinction. However, we are witnessing a scenario where the accessibility and affordability of construction-grade sand are becoming increasingly challenging.

One of the main issues lies in the economics of transporting sand. It’s heavy and bulky, making transportation a significant part of the total cost. As construction sites become farther from their sand sources, transportation costs rise, and so does the total cost of sand. This is the crux of the matter: it’s not that we’re running out of sand; it’s that it’s getting more expensive to bring it to where we need it.

There’s also the issue of construction standards. Not just any sand can be used for construction purposes; it must meet specific criteria. This is another factor that’s contributing to the perceived shortage. As we use up the readily accessible sources of this ‘good’ sand, we’re left with sources that are either less suitable or more costly to use.

This is where manufactured sand comes in. It’s an alternative that can be produced to meet the required standards, offering a potential solution to the problem. However, it’s important to note that manufactured sand is generally more expensive than natural sand due to the production process, adding another layer of complexity to the issue.

But here’s where I’d like to leave you with a glimmer of optimism. This situation is not a death knell for the industry but rather an invitation for innovation and adaptation. It presents a window of opportunity for those ready to think outside the box.

At Burgex Mining Consultants and Mineralocity Aggregates, we believe that there are ample opportunities to open new construction sand producing operations. With creativity, perseverance, and the right tools, these challenges can be turned into prospects for growth. In fact, each update of the Mineralocity Aggregates platform incorporates the latest trends and data relevant to this issue, backed by over 800 hours of labor dedicated to ensuring the most reliable information.

Alarmist views of a sand shortage are useful in that they bring attention to a genuine issue. But they need to be taken with a grain of… well, sand. The reality is not that we’re running out of sand, but that we need to be smarter about how we source, use, and transport it. So next time you’re standing on a sandy beach, remember: The opportunities are as abundant as the grains beneath your feet.

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