RE:Construction around Torontolet me spring from that Teach:
Cali is making an excellent comeback. Jerry Brown has put the fiscal house in order - a good story there from 3-4 years ago. Cali, lets not forget, is the 7th largest economy in the world (a remarkable factoid). The Cali economy is bigger than the entire Canadian economy.
As you think - construction demand is making a good recovery in cali - but lets be more specific and discuss SFO and LA. Lets get more granular - of the 5 terminals PLS has in the SFO Bay - 90% of the action is through three of them - on the piers in the city (downtown) and the one in redwood city further sth in the valley.
think tech, think SF 49ers in Santa Clara, think Google, think Stanford, think housing for the tech army, think good school, think economic growth well about nationa averages, think an educated class of workers whom demand (and pay high taxes for) quality public infrastructure, think Apple.
the story has a further dimension: scarcity. NIMBY (not in my back yard) - for love nor money you can not permit new reserves in PLS's markets - and this is a premise for PLS.
PLS has high quality rock and it has a low cost position to SFO downtown. Plus they are keeping 1m tons of agg of rail and road - its an elegant solution.
Cali housing, public, private, all segments are comming back - why PLS is on a 4.0 m tpa run rate in the Bay alone. Add Long Beach to that, a measured gradual build up, and this is soon a 6.5M tpa business.
Add more ports (San Diego, #2 in LA), good outcome in Hawaii, add hard rock and you have a 9.0m tpa and growing enterprise.
It is an excellent development story, that has 7 years of trading behind it, and is cliping into a good consistent stride.