Most ground-up developments are similar in some ways. They require approval from a particular authority body, assessments, zoning negotiations, timelines and designs, all of which are completed before the physical work begins.

However, we’ve learned at KDC that not all projects are created equal. We approach each development like a blank slate rather than with a “been-there-done-that” method. This means we’re prepared for the usual while being able to deal with the unexpected.

The approach also served us well in developing Volkswagen Group of America’s Gulf Coast hub for operations in Freeport, TX. It was no small feat to create a hub to move hundreds of vehicles off the ocean, to the mainland and across the country in a timely manner, but KDC was ready for the challenge!

The Operations

The Volkswagen Gulf Coast hub is integral to the auto manufacturer’s supply chain. The hub receives vehicles from overseas factories and then ships them throughout the United States. The cars in the US are distributed by rail or car carrier throughout the central US, and from Freeport, they will go as far as Chicago.

But the Gulf Coast hub is more than an import station, logistics center and storage facility.

Vehicles entering Texas have few, if any, add-ons. They’re cars and trucks without the extras. One job of the Gulf Coast hub is to accessorize; it’s here where workers add upgrades like backup camera mirrors, sound systems, floor mats, roof racks and customized wheels. Once accessorized, these vehicles continue on their journey to Volkswagen dealerships. Each shipping vessel holds approximately 4,000 cars. The Freeport facility has a parking capacity of 15,000 vehicles.

Understanding a project’s purpose from the start is essential. That understanding is the backbone of everything from structural design to required materials, to the foundation, to building the client’s trust. We understood that the Volkswagen hub was unique. In addition to logistics space, it also required a factory, office space, on-site roads and a large enough asphalt lot to store the vehicles.

The Site

As client development partners, we’re sometimes asked to help find an ideal project site. This helps the client and us—we’re aware of the site's advantages and disadvantages before we start to plan.

Prior to partnering with Volkswagen, the site selection process was already complete. The company opted not to renew its expired lease at the Port of Galveston, instead deciding to take 120 acres at Port Freeport.

Port Freeport is approximately 60 miles south of Houston and accessible via State Highways 36 and 288. The port is connected to the Gulf Intercoastal Waterway through the 7.5-mile Freeport Harbor Channel.

This was an ideal scenario for Volkswagen—it gave the company plenty of space for manufacturing and storage, plus accessible infrastructure by land, sea and rail. But because it was a done deal when we came on board, we weren’t aware of challenges until we faced them. Those issues needed to be identified and solved within a 15-month construction timeline.

Challenge #1: Soil Issues

In our years in business, we've learned that no matter how prepared you are upfront, something new always comes up. In this case, the “something new” was soil, all 120 acres of it.

The soil on the Volkswagen site wasn’t your usual dirt, sand and rock. Rather, it consisted of dredged material gathered from the Freeport Harbor Channel over many years. That soil wouldn’t support the hub’s buildings, lots or roads. And we had a little less than a year and a half to solve the issue.

Our first step was to bring in engineers and experts to examine every inch of the soil and determine remediation recommendations. The analysis revealed more concerning news: The soil material wasn’t consistent. The composition varied from one square foot to the next.

Armed with this knowledge, we brought remediation experts on board to “clean” the soil. The process required several methods, including physical excavation, soil washing and stabilization. Each site area was a little different, requiring diverse solutions. Some areas had soil removed and replaced, while other areas were stabilized by adding lime to the existing soil. These methods required the entire 15-month construction period. However, it resulted in clean soil to support the Volkswagen hub physically.

We’ve dealt with soil challenges in the past but never to this extent. This issue meant we needed to give much thought and flexibility to solve the problem, develop creative solutions and work with the right people to get the job done.

Challenge #2: The Need for Rail

Union Pacific serves Port Freeport. Unfortunately, the rail service didn’t extend to the Volkswagen site. This required the addition of a three-track spur, which would feed into Union Pacific’s main trunk line.

KDC doesn’t handle rail infrastructure, so this was the first time we were faced with this challenge.

We researched the process to understand the steps involved with rail building, including site preparation, materials and laying the rails. We negotiated with a different kind of entity than in the past—Union Pacific—gaining an understanding of legal and other requirements. And once again, we turned to outside experts for assistance with hands-on efforts.

Adding rail to a project meant obtaining new knowledge in an unfamiliar area and partnering with an unfamiliar entity. But we dived into the process and looked at it as a great opportunity to broaden our expertise, learning as we went along and working alongside experienced individuals to get the job done.

The Takeaway: There’s Always Room to Learn

Developing real estate is interesting because no two projects are the same. Furthermore, there are times when projects go well beyond the familiar scenario, requiring new techniques, different forms of knowledge and innovative approaches.

Whatever your role, following the same plan or blueprint for each project means you miss out on opportunities for problem-solving or learning something new. It also means a lack of flexibility when the unexpected occurs.

Much of the Volkswagen Freeport development followed the usual route involving blueprint creation, entitlement negotiations, subcontractor hiring and timeline development. The project also allowed us to solve different problems, while getting the job over the finish line with KDC’s high-level of client service and while adding to our bank of experience.

The cliché of “expect the unexpected” is valid for each development project, no matter how seemingly mundane. Upfront preparation and anticipating unexpected challenges help ensure developments can be completed on schedule and within budget while meeting the client’s requirements.