Stantec (TSX:STN) Wins $274.7 Million GSA Contract for New Commercial Inspection Port in Arizona

3 min read | November 14, 2024 01:06 AM AEDT | By Team Kalkine Media

Highlights: 

  • Stantec awarded a $274.7 million contract to design and develop a new commercial port of entry in Douglas, Arizona.
  • The project includes $180.3 million in IIJA funding and $92.2 million from the IRA, focusing on increased inspection capacity and sustainability.
  • New port to feature 4 inspection lanes and 36 docks, increasing efficiency for commercial traffic at the U.S.-Mexico border.

Stantec (TSX:STN), a global leader in infrastructure and environmental services, has been awarded a significant contract worth USD 274.7 million by the U.S. General Services Administration (GSA). This contract covers the design and development of a new commercial inspection port along the U.S.-Mexico border in Douglas, Arizona, which is expected to significantly boost the efficiency of cross-border trade and travel.

The Douglas Commercial Land Port of Entry (LPOE) will address the growing need for expanded inspection capacity, facilitating smoother and more efficient trade between the two countries. This project is part of the federal government's ongoing efforts to modernize infrastructure and improve trade efficiency. The new port will replace the current Raul Hector Castro (RHC) LPOE, which handles both commercial and non-commercial vehicles but has limited capacity, particularly for large commercial trucks and oversized equipment.

Currently, the RHC LPOE only has one usable lane for truck inspections and 12 truck-inspection docks, which are insufficient to handle the increasing volume of cross-border trade. The new Douglas LPOE will substantially expand this capacity, adding four inspection lanes and 36 truck-inspection docks. The port will also be designed to accommodate oversized mining equipment, something the existing RHC port cannot accommodate. This is a crucial feature for industries reliant on cross-border transport of large machinery and equipment, such as the mining sector.

The Douglas LPOE will shift all commercial traffic away from the RHC port, freeing up the latter to focus solely on non-commercial traffic, such as passenger vehicles, buses, cyclists, and pedestrians. Stantec will also provide master planning services for the modernization and expansion of the RHC LPOE, which will serve as a critical component in the U.S. government’s broader plan to improve border infrastructure.

As part of the federal government’s commitment to sustainability, the new Douglas port will be all-electric and designed to meet the Federal Building Performance Standard, targeting net-zero emissions by 2045. The project will incorporate clean energy systems, including photovoltaic solar panels to generate renewable energy. Additionally, water-saving fixtures, energy-efficient building systems, and low-carbon construction materials, such as concrete and steel with reduced greenhouse gas emissions, will be utilized. This initiative aligns with the Biden-Harris Administration’s Buy Clean Initiative, which prioritizes the use of materials with lower carbon footprints.

The project will be funded through a combination of the Infrastructure Investment and Jobs Act (IIJA), which is contributing USD 180.3 million, and the Inflation Reduction Act (IRA), which is providing an additional USD 92.2 million. These funds are part of the broader effort to invest in modernizing the nation’s infrastructure and addressing climate change.

Construction on the Douglas Commercial LPOE is expected to begin in the fall of 2025 and is slated for completion by the fall of 2028. This project will not only increase the efficiency of cross-border trade but also contribute to the U.S. government’s sustainability goals, providing a model for future infrastructure projects.

Stantec’s involvement in this project reflects its expertise in providing sustainable infrastructure solutions that meet the needs of both communities and businesses. With a focus on long-term environmental stewardship, the new Douglas port will serve as a vital gateway for trade while reducing the environmental impact of infrastructure development.


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