Grocery supplier to open distribution center in Rotterdam-- October 26, 2005
Railex LLC will invest $18 million and create 300 new jobs at a new distribution facility in Rotterdam, N.Y., Gov. Pataki announced Wednesday.
Railex, of Riverhead, N.Y., a division of Ampco Distribution Services Management LLC, is a 50-year-old company that delivers fresh produce to grocery retailers on the East Coast.
The company is building its East Coast hub, a 200,000-square-foot distribution facility, in the Rotterdam Industrial Park. The state is providing $2.75 million in funding from the state's Multi-Modal and Industrial Access Program for rail improvements at the industrial park.
The 300 jobs will be created during the next three years.
The refrigerated distribution facility will process inbound rail shipments arriving as a result of a new cross-country freight train service. A new rail yard and extensive improvements to the existing rail infrastructure will be added to the Rotterdam Industrial Park in order to process the nearly mile long freight train that will arrive each week.
Railex plans to import two 55-car trains per week of fresh produce from the west coast into its new facility -- the equivalent of 400 truckloads of produce -- across the United States by Union Pacific and CSX Transportation in less than six days. That will replace the 200 tractor-trailers that make the 3,000 mile trip, saving 84,000 gallons of fuel
per week, the company said.
The Rotterdam site beat competitors in New Jersey and Pennsylvania, Railex said.
More than $21 million in new investments have been made at the Rotterdam Industrial Park. In addition to the new Railex LLC distribution facility, the industrial park will have a new $15 million Price Chopper warehouse, $6 million FedEx Freight facility, and a new corporate office park.