As it closes out the massive $1.1 billion SH99 Grand Parkway Project road project in Houston, Texas, during the next few months, the Zachry-Odebrecht Parkway Builders construction joint venture needs to dispose of more than 900 machines. The assets, purchased new during the project that began in 2013, include cranes boom lifts, dozers, wheel loaders, trucks and trailers and other rolling stock.
Zachry-Odebrecht received the contract for three segments of the Texas Department of Transportation parkway located between US 59N/US 69 and US 290 in September 2012. The toll road is anticipated to be finished late this year.
Instead of a one-and-done auction, Zachry-Odebrecht opted to use a variety of disposal platforms offered by IronPlanet. “As they take the machines off work, they can dispose of it in an orderly fashion,” says Jeff Jeter, IronPlanet president. Assets from the project started selling in early October, “and we’ll really see a ramp up in the next three to four weeks,” Jeter says.
First up are a variety of large crawler cranes, used to construct bridges on the 38-mile long parkway segment, and up for sale for a fixed price on IronPlanet’s daily marketplace. “These are items that require finding the right buyer, and take a more surgical approach than just placing in one of our auctions,” Jeter says.
IronPlanet will receive a list of equipment weekly from Zachry-Odebrecht, and put machines on the list up for sale. Most of the rolling stock, including wheel loaders, excavators and trucks, will be offered first on allEquip, IronPlanet’s “buy now” online marketplace.
After a machine is on the site for three weeks, if not sold, it will be offered in one of IronPlanet’s weekly online auctions. “AllEquip is for those who have an immediate need for the equipment,” Jeter says. Those who can wait can vie for it on the online auction, but with the knowledge a certain piece may be already sold, and they’re competing for it with other buyers.
“Major equipment buyers are getting much more sophisticated about how they dispose of equipment,” Jeter says. “They are insisting on multiple disposal options, not just live auctions. People like to gain access to the market on their timeline, and not wait for the next auction. They think smartly about supply and demand, instead of flooding the market.”