Just the Beginning
The development at Railhead Industrial Park is just one of many Foreign Trade Zone projects taking place around the country. Others include the following:
- Kenco Logistics Services,
which provides distribution services for many Fortune 100 companies, will occupy 116,867 sq. ft. (10,857 sq. m.) in DeSoto Trade Center Building 1 in Northern Mississippi just across the river from Memphis.Tejon Ranch Offers
Distributors New West Coast Option
Since locating at Tejon Ranch in 2000, IKEA has expanded to 1.7 million sq. ft. (157,930 sq. m.)
The Tejon Ranch Co. announced in February 2005 that it has reached an agreement with the Rockefeller Group Development Corp. to establish a joint venture at the Tejon Industrial Complex (TIC) in the heart of the California Logistics Corridor.
The agreement calls for the designation of 500 acres (202 hectares) at TIC as a Foreign Trade Zone and the development of the property within the FTZ for warehouse/distribution uses.
The joint venture represents the Rockefeller Group's first major industrial investment on the West Coast, in an area first settled by Spanish soldiers in the early 1800s.
Located in Kern County about halfway between Bakersfield and Santa Barbara, the 270,000-acre (109,350-hectare) Tejon Ranch is about 60 miles (97 km.) north of Los Angeles and 30 miles (48 km.) south of Bakersfield. TIC is located at the junction of Interstate 5 and Highway 99, at the southern end of the San Joaquin Valley, about 70 minutes north of Los Angeles.
The complex is also accessible via Interstate 40 and Highway 58 and provides direct trucking routes to the ports of Los Angeles/Long Beach and the Port of Oakland. IKEA established a major facility in the park in 2000. The Western North American Distribution Center for the company opened on an 80-acre (32-hectare) site in TIC. Since then, IKEA has expanded to 1.7 million sq. ft. (157,930 sq. m.) in the park.
Barry Hibbard, vice president of real estate for Tejon Ranch Co., says, "Companies are looking at the fact that they can't have Long Beach be their only portal. That gets you thinking about the Central Valley and Tejon Ranch ... where land values are 50 percent less."
Hibbard adds that the region also offers attractive labor wage rates for prospective companies. "Pay a driver $40,000 a year in Kern County, and he can have a pretty good lifestyle. Even from a manufacturing standpoint, Kern County is still the affordable California," he says.
Brandi Hanback, managing director of Rockefeller Group Foreign Trade Zone Services, says, "The Tejon Ranch venture really provides a good opportunity. It has the right combination of things companies want on the West Coast right now: Good transportation access and infrastructure; it can service major West Coast markets; good access to labor and affordable labor; and it serves the needs of companies doing co-location."
Hanback also pointed to Tejon's multi-port access and the abundance of affordable housing in the area.-Ron Starner
Kenco will establish a national distribution center for an unnamed corporate client inside the DeSoto Trade Center, which recently received Foreign Trade Zone Status.Andy Smith, chief operating officer for Kenco, called the DeSoto Trade Center "a great fit" for the client, which stipulated an FTZ location as a requirement for the project.
- Norfolk Southern Railroad is launching a joint venture with the Columbus (Ohio) Regional Airport Authority to build a 300-acre (122-hectare) intermodal facility at Rickenbacker Airport in Columbus.
Expanded intermodal service is expected to spur additional warehouse and distribution facility construction in Rickenbacker, which recently had its Foreign Trade Zone expanded.
"Rickenbacker International Airport's primary function is to provide an infrastructure that facilitates the movement of goods throughout the world," said Elaine Roberts, president and CEO of the Columbus Regional Airport Authority. "The new intermodal facility will further serve this need and allow business to remain in Columbus while providing the opportunity for new business and resulting economic development."
One report estimates that construction and machinery investments in the new intermodal facility could top $2.5 billion by 2035.
- The International Intermodal Center at Huntsville (Ala.) International Airport recently completed a $13.4 million expansion in a Foreign Trade Zone. The capital improvements were part of an ongoing $24 million expansion and took place in several phases over three years.
The expansion increased the capacity of the rail yard to 100,000 lifts per year. Depot storage increased from 985 available spots to 2,517 spots. The project included the completion of a railroad track extension by 6,000 feet, as well as refurbishment of the existing track. In addition, improvements were made to the paving, lighting, fencing and drainage of the entire intermodal yard.
"The newly completed expansion project will be of great economic benefit to the entire Tennessee Valley region," said Bill Johnston, chairman of the board for the Port of Huntsville. "These infrastructure changes will increase our capacity and efficiency on the yard, which enables us to be more productive for our customers. A growth in the economy is a precursor to a growth in jobs and facility expansions. We want to be ready to go as our community succeeds."
The International Intermodal Center is one of the main operating entities at the Port of Huntsville. The other branches include the Huntsville International Airport and the Jetplex Industrial Park.
