Maritime Industrial Development: Georgia, Miami, Vancouver (WA)

Gulf States Cold Storage is adding a 55,000 square-foot expansion to its Savannah facility, not far from the Georgia Ports Authority’s marine terminals.

John Dean, vice president of sales at Gulf States, said the additional infrastructure should be operational by the end of January.

"Currently, we are blasting around 3 million pounds a week; with the expansion, we will be close to 5 million pounds a week," Mr. Dean said. "We will be adding a dock with five new doors, to go with the 18 doors already in use."

In August 2013, Gulf States Cold Storage opened a 100,000-square-foot facility in Savannah, less than 10 miles from GPA’s Garden City Terminal (Advisory, August 12, 2013). The cold storage area is maintained at -12 degrees Fahrenheit, while the blast cells reach as low as -35 degrees. Most of the cargo is moved on racks, but the facility also features a bulk staging area for transload operations.

With the addition, Gulf States will double its storage capacity to a total of 28 million pounds of frozen cargo.

"The Georgia Ports Authority welcomes this private investment in Savannah’s refrigerated cargo market," said GPA Executive Director Curtis Foltz. "Gulf States’ growth will enable a 20 percent increase in their blast freezing capacity, and a 100 percent increase in storage for poultry and other proteins."

The Port of Savannah can accommodate more than 2,000 refrigerated containers at a time.

"I only see the port offering more in the future, and I think it might entice more producers to move into the state of Georgia," Mr. Dean said. "This is yet another reason that we want to expand our capabilities in Savannah."

Gulf States handles the export of poultry, beef, pork and seafood, as well as some frozen vegetables – a growing business segment. Mr. Dean said the company also anticipates the growth of frozen imports. Produce such as onions grown in South America – which has an opposite growing season from the U.S. – are brought in through Savannah to supply the Southeast during the winter months. The GPA is also participating in a U.S. Department of Agriculture pilot program bringing in South American citrus, grapes and blueberries.

"I think that imports are going to be a big part of our future," Mr. Dean said. "With the demand for export boxes in Savannah, I think you will see more and more imports coming in through GPA."

PortMiami Foreign Trade Zone 281 Hits 3,000,000 Square Foot Mark

Just over two years after being approved by the U.S. Department of Commerce, Miami’s Foreign Trade Zone (FTZ) 281 has 27 approved sites with more than 3.0 million square feet of warehousing and logistics space.

FTZ 281, which is managed by PortMiami on behalf of Miami-Dade County, was established for the purpose of providing a competitive tool for companies that provide import/export and logistics services.

An FTZ is a geographic area where duty-free treatment is accorded items that are processed within designated boundaries and then re-exported. Additionally, duty payment is deferred on items until they are brought out of the FTZ for sale in the U.S. market. FTZ sites are considered to be outside of the U.S. Customs territory (although physically in the U.S.) for purposes of payment of duty.

FTZ 281 was established under revised federal regulations which make it much simpler and faster for site designation. The Miami-Customs District ranks near the top of all U.S. Customs Districts in international trade as measured by value, encompassing 25 million square feet of FTZs and bonded warehouses.

"We want to welcome all Miami-Dade County international trade and logistics companies to join Foreign Trade Zone 281," said Port Director Juan M. Kuryla, PPM®. "It is an excellent competitive resource that benefits importers/exporters, warehouse operators, manufacturers, and 3rd party logistics providers."

Vancouver USA Commissioners Approve 10-Year Lease Extension with Northwest Packing Co.

Port of Vancouver USA commissioners approved a 10-year lease extension with Northwest Packing Co. on January 13 that could keep the longtime Clark County business in Vancouver through 2024.

The lease extension includes three five-year options for Northwest Packing to renew beyond the initial 10-year term. The company also has the option to end its lease in 2019 if business needs require relocation outside Clark County.

The port’s most recent lease with Northwest Packing dated back to 1987 and was up for renewal in 2011. One of the renewal terms was a rent adjustment to fair market value. The port extended the lease to December 31, 2014, to give Northwest Packing a chance to evaluate its needs and both parties time to discuss options.

The port and company came to agreement last November (Advisory, November 28, 2014) and worked out remaining details as 2014 drew to a close.

At the January meeting, representatives with Northwest Packing thanked port staff for their hard work and collaborative efforts. President and CEO Matt Jones spoke of his company’s long history and his expectation for the future.

"We’re proud to be a significant anchor to Clark County’s economy, providing stable employment for local residents over the last 43 years," Jones said. "It is our hope that this agreement ensures that Neil Jones Food Company – Northwest Packing – can continue to play a vital role in the Clark County economy."

"This is a great note to begin 2015 on," said port CEO Todd Coleman. "Today’s approval is the culmination of three years of hard work for both us and Northwest Packing. We’re happy we could come to agreement, and we look forward to another decade of partnership."

Northwest Packing is the only fruit processing operation at the Port of Vancouver and one of only three similar companies in the Pacific Northwest. The business, which is owned by Neil Jones Food Co., employs the equivalent of 500 full-time workers annually.