By Jennifer Distribution • New Developments • Workforce 0 Comments

Amazon opens third fulfillment center in Tracy

Amazon officially opened their latest Tracy fulfillment center with a ribbon cutting on Friday at the 3.7 million-square-foot facility on East Grant Line Road. Director of operations Vincent Wong cut the ribbon for the facility, named SCK6, which had a soft opening in October. Assistant General Manager Mohammed Khan said the building will have approximately 1,500 employees and 3,000 robots in the building at 15000 East Grant Line Road.

At maximum capacity he said Amazon will be able to ship 1 million units a day from the facility, which is the online retailer’s second advanced robotics fulfillment center. Wong welcomed the crowd of employees, some dressed in San Jose Sharks attire, along with invited guests to the dedication.

“We are honored to serve the people of Tracy and especially honored to support our work force here in this place. At Amazon, people are our most valuable asset and resources,” Wong said. “Promotion actually plays an important part in their growth and (our employees are) promoted for recognizing our people and reaching their goals. At Amazon, we start with the community in which we work and live, including myself, we are committed to uniting Tracy and leveraging our resources for good. Since the beginning of 2022 we actually provided more than $4 million in donations for our community here and also in in-kind donations and volunteer hours.”

SCK6 is the fourth logistics center opened in Tracy by the online retailer. Mayor Nancy Young welcomed the new facility to the Tracy community noting that her youngest son had just started working at SCK6 the night before.

“When I got on council it was really hard, and even as my children were growing up, it was a challenge to get a job in the city of Tracy, especially for young people because they were really competing with a lot of adults trying to just hold on their homes and make their ends meet,” Young said. “But when Amazon came here it was the first really big opportunity for a lot of young adults and adults alike to be able to get a really good paying job to be able to take care of their finances. I’m just really excited that this is a great addition to continue to grow our community, to grow our economy and I just want to say thank you all for being a part of this and I encourage each and every one of the Sharkies, each and every one of the workers out there to keep moving forward knowing that you can continue to grow wherever you are, blossom wherever you are.”

San Joaquin County Fifth District Supervisor Robert Rickman joined in welcoming the new facility that had been in the planning stages since he was mayor of Tracy.

“When we approved this facility when I was mayor of Tracy one of the issues we ran into was this was going to be the biggest building in the city of Tracy. So, we had to work with Amazon, adjust our zoning in order to get this building built,” Rickman said. “So driving up and down Grant Line Road and seeing just a dirt field to what it is now is just absolutely amazing.”

New jobs generated by the facility will be a boon to the surrounding communities.

“One of our jobs as elected officials is to bring more jobs, bring awesome companies to our counties, to our cities, and Amazon you have fulfilled that role. The building behind me, what you see, you see local employment — people from Tracy, Stockton, Manteca, Ripon, Lodi, Livermore, the entire surrounding communities — coming to Tracy and making a living, not just for themselves but for their families their spouses and their children,” Rickman said.

He noted the health and education benefits their employees their employees and the company’s work with schools and education will make a difference in the community.

“Your footprint isn’t just here in this parking lot on Grant Line Road but encompasses the entire city of Tracy and San Joaquin County where our population is approximately 800,000 people that live here in the county,” Rickman said.

Amazon has three major centers in town include its OAK4 fulfillment center that opened in 2013, just south SCK6. Two more and two centers in the Prologis International Park of Commerce on the west side of town.

https://www.ttownmedia.com/tracy_press/amazon-opens-third-fulfillment-center-in-tracy/article_faf470c0-ce7b-11ed-a6f7-5f3f6ce4d7e1.html

By Jennifer Distribution • Economy 0 Comments

‘A win for the entire region.’ Merced County awarded $49.6 million for Castle rail project

Merced County’s Castle Commerce Center is about to receive a huge boost in the form of a $49.6 million grant to build out an inland port that will improve its capacity to move freight worldwide. The California State Transportation Agency announced Merced County was awarded the grant on Thursday. “This will directly support our agricultural producers and manufacturers throughout the entire San Joaquin Valley,” said Merced County Board of Supervisors Chairman Scott Silveira.

“This is a win for the entire region,” Silveira added. “From local agricultural producers to major manufacturers throughout the Valley, being able to transport goods in a quick and efficient manner is absolutely critical. This grant will position us to drive our economy in the right direction.” In January 2022, Gov. Gavin Newsom proposed $1.2 billion for port and freight infrastructure to support the state’s goods movement networks, which have been hurt by global disruptions and increased port congestion in recent years. The grant will help the state develop a more efficient, sustainable and resilient goods movement system.

Castle’s rail district became operational in May 2022 under Patriot Rail, which operates the rail line and has already tripled the shipping volume to and from Castle in recent months, according to Merced County spokesperson Mike North. The grant will help area farmers, manufacturers and other businesses to ship and receive goods throughout the San Joaquin Valley cost effectively. “Castle’s inland port and rail activities is focused on increasing regional economic opportunities while reducing semi-truck traffic along our roadways,” North said. The $49.6 million grant will enhance Castle Commerce Center’s existing rail capacity by: Facilitating the development of 70 acres at Castle to support pre-shipment processing and intermodal cross-docking for Central Valley agricultural producers. Providing cost-effective, direct rail service for shippers. Expanding the railway to a new staging and container laydown area to support cross-docking and processing. Evaluating, engineering and planning for further expansion on existing land within Castle Commerce Center. Merced County Supervisor Daron McDaniel, whose District 3 includes Castle Commerce Center, said the inland port and rail district has been in the works for many years and is a major focal point for the county.

“This is a prime example of government facilitating an environment where the private sector can thrive,” McDaniel said. The Merced County inland port will support additional goods movement to and from the Port of Los Angeles, the Port of Long Beach and the Port of Oakland while making Merced County a focal point for inland goods movement. The rail district expansion project is expected to be complete by mid-2028. “With all that has been accomplished to date and coupled with this sizable state investment, Castle is proving to be the leading economic development site in California,” said Assistant Merced County Executive Officer Mark Hendrickson.

https://www.mercedsunstar.com/news/local/article277078128.html

By Jennifer Distribution • New Developments 0 Comments

State of Calif. Announces $1.5B in Port Infrastructure Upgrades (UPDATED July 11)

The State of California on July 6 announced an investment of more than $1.5 billion—including approximately $450 million for zero-emission infrastructure, locomotives, vessels and vehicles—as part of the state’s work to build a more “efficient, sustainable and resilient supply chain.”

According to the State of California, the $1.2 billion will fund 15 projects creating an estimated 20,000 jobs and “increase the capacity to move goods throughout the state’s global trade gateways while lessening environmental impacts on neighboring communities.” Administered by the California State Transportation Agency (CalSTA), $350 million was also awarded to 13 projects that eliminate street-level rail crossings to make “critical lifesaving safety improvements, reduce emissions and keep goods and people moving.”

Projects receiving funding will help boost capacity to move goods through the ports of Los Angeles and Long Beach—the busiest ports in the Western Hemisphere—as well as enhance all major trade centers throughout the state—from San Diego to the Central Valley to the Bay Area. The high-priority grade separation projects, the majority of which are funded through the Transit and Intercity Rail Capital Program, will improve safety and reduce conflicts and delays at railroad crossings, helping enhance the state’s freight and passenger rail systems, the State of California said.

The funding—particularly the investments in zero-emission projects, which account for nearly 40 % of the Port and Freight Infrastructure Program awards—builds on a partnership between the governments of California and Japan announced this March to collaborate on strategies to “cut planet-warming pollution at seaports and establish green shipping corridors as part of the state’s broader strategy to aggressively combat and adapt to climate change.”

The investments, the State of California says, also follow the California Transportation Commission’s (CTC) recent approval of $1.1 billion for infrastructure improvements on high-volume freight corridors as part of the Trade Corridor Enhancement Program (TCEP)—for a total state investment in supply chain infrastructure of more than $2.6 billion in just the past week.

Part of the funding includes a $383.35 million grant awarded to the Port of Long Beach to complete a series of construction and clean-air technology projects aimed at accelerating the transformation to zero-emissions operations and enhancing the reliability of cargo movement.

As part of the state’s Port and Freight Infrastructure Program, nearly $225 million will fund a variety of zero-emissions cargo-moving equipment and supportive infrastructure projects across the Port of Long Beach and include “top handlers” and other manually operated cargo-handling equipment, as well as tugboats and locomotives. The sum is the single largest grant the Port has ever received to support the zero-emissions goals of the 2017 Clean Air Action Plan Update.

Additionally, $158.4 million of the state grant will go toward the planned Pier B On-Dock Rail Support Facility, which will shift more cargo from trucks to on-dock rail, where containers are taken to and from marine terminals by trains. The $1.57 billion facility will be built in phases, with construction scheduled to begin in 2024 and be completed in 2032.

As part of its Clean Air Action Plan (CAAP), the Port of Long Beach has set a goal of zero-emissions terminal operations by 2030, and zero-emissions trucking by 2035. The Port has a long track record of air quality improvement projects that have “dramatically lowered” emissions since 2005.

Additionally, the Port of Los Angeles has been awarded $233 million in grants from the State of California to complete essential infrastructure projects aimed at creating a more efficient and sustainable supply chain.

Port of Los Angeles infrastructure projects supported by the new state grants include:

  • Maritime Support Facility (MSF) Improvement and Expansion Project—The MSF provides chassis and empty container storage for all 12 container terminals at the ports of Los Angeles and Long Beach, critical to facilitating goods movement throughout the complex. With this new funding, the area will be improved and expanded from 30 to 71 acres. Improvements will include utilities, drainage, sewage, power, water supply, as well as a paved perimeter roadway. The $198.2 million total project amount includes $149.3 million from CalSTA and $48.4 million in matching funds from the Port of Los Angeles.
  • Rail Mainline/Wilmington Community & Waterfront Pedestrian Grade Separation Bridge—In addition to demolition work and soil remediation, the project involves construction of a 400-foot dedicated pedestrian bridge over freight tracks, creating a safer connection between the Wilmington community, several local area schools and the Port of Los Angeles’ Wilmington Waterfront area. The project will also include construction of retaining walls, storm drainage, electrical and utilities, sidewalks and landscaping. The total project cost of $57.9 million includes $42 million from CalSTA, $5.62 million from the Port of Los Angeles and $10.2 million from LA Metro.
  • State Route 47/Seaside Avenue and Navy Way Interchange Improvements—This project will modify the intersection of Navy Way and Seaside Avenue to improve traffic operations, reduce collisions and improve safety. Improvements will add a new westbound auxiliary lane, a new eastbound two-lane collector-distributor road, a new off-ramp terminus and eliminate a traffic signal, among other upgrades. Total project cost of $62.98 million includes $41.79 million from CalSTA and $21.19 million in Port of Los Angeles funds.

Last week the Port of Los Angeles received a $15 million grant from the CTC for a four-lane grade separation on Terminal Island that will reduce truck delays and improve public safety.

Of the $1.5 billion awarded by CalSTA, approximately $250 million is allocated for zero-emission infrastructure, locomotives, vehicles and vessels.

Southern California regional projects totaling $191 million were among the grants announced. These include a $100 million BNSF rail expansion project in the High Desert and another $76.3 million zero-emission rail and drayage fleet support project by the South Coast Air Quality Management District, among others. These projects support the Port of Los Angeles by improving cargo movement throughout the region.

Additionally, Merced County has been awarded a $49.6 million grant—one of the largest in the history of Merced County and San Joaquin Valley—from CalSTA to build-out an inland port at Castle Commerce Center, “leveraging its unique capacity to move freight worldwide.”

The $49.6 million CalSTA grant will enhance Castle Commerce Center’s existing rail capacity by:

  • Facilitating the development of 70 acres at Castle to support pre-shipment processing and intermodal cross-docking for Central Valley agricultural producers.
  • Providing cost-effective, direct rail service for shippers.
  • Expanding the railway to a new staging and container laydown area to support cross-docking and processing.
  • Evaluating, engineering, and planning for further expansion on existing land within Castle Commerce Center.

These projects, Merced County says, will support additional goods movement to and from the Port of Los Angeles, the Port of Long Beach, and the Port of Oakland while making the County a focal point for inland goods movement.

Situated at the southeastern corner of Castle, its rail district became operational in May 2022 under Patriot Rail, which operates the rail line and has already tripled the shipping volume to and from Castle in recent months. The CalSTA grant, Merced County says, will “further enhance the viability of agricultural producers, manufacturers, and other enterprises throughout the San Joaquin Valley to cost-effectively and efficiently ship and receive goods along the BNSF railroad mainline, which runs adjacent to the site.” Castle’s inland port and rail activities is focused on increasing regional economic opportunities while reducing semi-truck traffic along its roadways.

“Patriot Rail is privileged to partner with Merced County to advance the rail foundation of an inland port at the Castle Commerce Center,” said Patriot Rail CEO John E. Fenton.

The rail district expansion project is expected to be complete by mid-2028.

Meanwhile, the Port of Stockton was awarded $45.9 million for the Rail Infrastructure Improvements for Sustainable Exports (RISE) Project through CalSTA’s Port and Freight Infrastructure Program (PFIP).

The RIISE project supports building new infrastructure to enhance rail capacity, accommodate increased freight tonnage and train frequencies, mitigate potential service disruptions, and reduce long-term repair and maintenance costs. PFIP will fund the replacement of the San Joaquin River rail bridge; expansion of the port’s long lead track to two tracks; and procurement of a zero-emission electric railcar mover.

The project will help reduce trucks traversing neighborhood streets, consistent with the priorities of near-port communities and the Stockton AB 617 Community Steering Committee, reducing public health harms and negative environmental and economic impacts.

“No other state has a supply chain as critical to the national and global economy as California,” said Gov. Gavin Newsom. “These investments—unprecedented in scope and scale—will modernize our ports, reduce pollution, eliminate bottlenecks and create a more dynamic distribution network.”

“CalSTA’s ‘Core Four’ priorities are safety, climate action, equity and economic prosperity, and the strategic investments announced today shine in all those areas,” said Transportation Secretary Toks Omishakin during an event on July 6 announcing the awards at the Port of Long Beach. “These awards—a direct result of Governor Newsom’s visionary leadership—will help maintain our state’s competitive edge in our nation-leading supply chain infrastructure and will create a cleaner, safer and more efficient goods movement system that will have a lasting positive impact for the people of California. The historic level of state funding also puts these projects in a stronger position to compete for significant federal infrastructure dollars from the Biden-Harris Administration.”

https://www.railwayage.com/intermodal/state-of-calif-announces-1-5b-in-port-infrastructure-upgrades/

 

By Jennifer Distribution • Manufacturing • New Developments 0 Comments

Tesla Presents Its New Megapack Factory In Lathrop, California

Tesla’s all-new battery energy storage system (BESS) factory in Lathrop, California is almost ready and is ramping up production. This week, the company showed a short video, presenting the plant and some of the production processes, on its Linkedin profile. Tesla is now looking for more employees – but that’s not a surprise, as basically the entire EV industry is investing and competing for workers. The site in Lathrop is pretty big as it’s envisioned for an annual output of 40 GWh of Tesla Megapack systems (according to the announcement from 2021).

A single Megapack container has a capacity of about 3 MWh, plus all necessary power electronics. At 40 GWh, Tesla should be able to produce more than 13,000 Megapacks per year. That’s an order of magnitude increase compared to its 2021 output. With the new manufacturing facility, Tesla’s Energy business is now expected to quickly expand. The company recently set a new quarterly record of 2.1 GWh of battery energy storage system deployment (all types).

Once the Lathrop plant is completed, more than 10 GWh to be installed per quarter. That will be a groundbreaking change for the entire industry and potentially a huge help to utilities, which are looking for high-volume and reasonably priced battery systems. Tesla’s advantage will be large BESS like the Megapack, series production at high volume and use of the Lithium Iron Phosphate (LFP) battery chemistry (the company previously announced the switch to LFP cells in entry-level version of its cars – Model 3/Model Y, and energy storage systems).

Currently, BESS accounts for only several percent of Tesla’s total revenues and margins are much lower than in the case of cars. Because the company is quickly expanding its EV business (higher production of cars and new models), we guess that in the foreseeable future, BESS share will remain under 10%.

https://insideevs.com/news/618643/tesla-megapack-factory-lathrop-california/

By Jennifer Distribution • Hi-Tech 0 Comments

Amazon’s started to deliver orders by drones in California and Texas

Amazon is now delivering orders by drones in California and Texas with the aim to ultimately fly out packages to customers’ homes within an hour, Ars Technica reports. The retail giant’s drone delivery service, Amazon Prime Air, already dropped a small number of packages via drone in the backyards of customers in the run-up to Christmas in Lockeford, California, and College Station, Texas.

“Our aim is to safely introduce our drones to the skies. We are starting in these communities and will gradually expand deliveries to more customers over time,” Amazon Air spokesperson Natalie Banke told KTXL Fox 40.

The Federal Aviation Administration (FAA) gave Amazon Part 135 approval to send packages by drone in 2020, as well as filing Final Environmental Assessment and Finding of No Significant Impact/Record of Decision documents for Lockeford on November 14th and College Station on December 12th.

The rural town of Lockeford, California, is located 50 miles southeast of Sacramento and has only about 3,500 residents, while College Station, Texas, is a medium-sized city 100 miles northwest of Houston that’s home to Texas A&M.

Those living in either town are eligible to sign up and place orders, while Amazon will notify customers elsewhere when drone delivery is available in their area. The most recent filings indicate Amazon’s deliveries will be available within 3.73 miles of its delivery center in Texas and within four miles of its drone depot (aka Prime Air Drone Delivery Center, or PADDC) in California.

FAA:

Operations from the College Station PADDC would occur during daylight hours up to five days per week. The operating area is divided into four sectors, with each sector having a maximum of approximately 50 delivery flights per operating day. Only one aircraft in each sector can be airborne at any time. Operations from the Lockeford PADDC would occur during daylight hours up to five days per week. The operating area is divided into four sectors, with each sector having a maximum of approximately 50 delivery flights per operating day. Only one aircraft in each sector can be airborne at any time.

After placing an order, customers will receive both tracking information and an estimated delivery time they can expect the drone to drop off the package in their backyard.

The drones are intentionally shaped in a hexagonal fashion with six propellers to improve stability and minimize high-frequency sound waves, Amazon claims. Still, though the MK27-2 delivery drones fly autonomously and are programmed to avoid running into obstacles like chimneys, Amazon says it’s currently using humans to monitor deliveries.

Safety will continue to be a consideration, particularly given some setbacks Amazon faced in developing the drone delivery program, including crashes. In one incident at its test site in Pendleton, Oregon, a drone fell 160 feet and sparked a brush fire that stretched across 25 acres, as reported by Insider and Bloomberg.

At current, Amazon is currently working on a new and reportedly safer MK30 drone that will be available to use in 2024. It should be lighter and smaller than MK27-2 delivery drones, handle high temperatures and light rain better, and go further. Amazon is just one of many companies working on their own drone delivery services. Alphabet and Walmart, for example, launched versions of their own in the past year to select customers in certain areas.

https://www.theverge.com/2022/12/28/23529705/amazon-drone-delivery-prime-air-california-texas

By Jennifer Distribution • Economy 0 Comments

MADERA COUNTY 2023 FORECAST: CENTERSTAGE IN THE CENTER OF THE STATE

The Nov. 25 print edition of The Business Journal 

Despite inflation and a limited housing market, Madera is still poised for a positive economic outlook for 2023.

With a slew of new projects waiting to come online, Madera County remains robust with strong growth in both the industrial and commercial sectors.

Darren Rose, the new executive director of the Madera County Economic Development Commission (EDC), said there is strong business interest in the county because of its location, workforce and business friendly environment.

Rose said that the industrial sector is seeing a lot of movement in the county, adding up to 1 million square feet of industrial space.

Cold storage company Amond World is currently building a 250,000-square-foot almond cold storage facility near the Madera Airport. Construction is expected to be completed by the second quarter of 2023.

Though they cannot be publicly named because of proprietary issues, a few local businesses in the county are preparing to expand, including a food manufacturer, a light-industrial construction fabrication company and an industrial component manufacturer and solutions provider.

Ready Roast Nut Company, an industrial supplier and processor of roasted tree nuts, is working with the city for its expansion as well, Rose said.

In August, ground broke for AutoZone’s Northern California distribution center, located in the Chowchilla Industrial Park near Highway 99. The $150 million project will create 300 full-time jobs.

The facility will cover 540,000 square feet and will be online by the end of 2023.

On the retail end, Rose said that there are inquiries from national brands, but with the national economic fluctuations, these companies cannot be disclosed.

“We have our eyes wide open — we are on the precipice of potential national recession, and retail tracks the economy very closely. We are excited, but we don’t know what the future holds from a national standpoint and what it would mean to locate a national company in the Madera market,” Rose said.

But the county does remain on the radar for national companies he said. The available workforce and land, as well as the transportation corridors, make the region attractive to national actors.

Madera will also be getting its first In N’ Out that will be going in the former space of the SugarPine Smokehouse restaurant near the Madera fairgrounds, which could open possibly by 2024, Rose said.

Rose said the ag industry in the county is expected to remain strong, but it is facing several challenges.

“The cost of fuel, supply chain issues with international markets are not as active and of course water,” Rose said. “Hopefully, the international markets begin to open and in turn help with commodity prices.”

Residential real estate is expected to remain active, but Rose said there is likely to be a slowdown because of the lack of available housing.

Madera City Manager Arnoldo Rodriguez said that the city has been fortunate this year with investment from private development, as well as grant funding for public projects.

For retail, Rodriguez said that Madera doesn’t have a single large vacant retail space, which is a challenge as the city is getting inquiries from national companies.

A Big Lots is going into the space of a former Save Mart, expected to open by early 2023.

Madera is expecting to break ground for its “Village D” master plan in the summer of 2023, consisting of 11,000 residential units and approximately two million square feet of commercial space near the Madera airport.

With the approval of Village D, and other subdivision housing projects, Rodriguez said the city is hopeful for a strong housing market.

“If interest rates come down a little bit, I think we will see a decent amount of development. With interest rates a little bit higher than average, people are skittish,” Rodriguez said. “While we can do a lot locally, some of it is dependent on national economic issues that we cannot control.”

With federal and state funding programs available, Rodriguez said the city has been aggressive in securing millions in grants for road repairs, new parks and park improvement, Fresno River conservation efforts and repairs for sidewalks.

The city also secured a $14 million grant to rehabilitate portions of Highway 145, which includes Yosemite Avenue, Downtown Madera’s main street. Construction for this will begin in 2025.

As well as attracting the attention of national companies, Madera County was able to attract national and international travelers as well.

Covid-19 restrictions in 2020, which carried into 2021, did lead to less visitors travelling to areas including Yosemite and Bass Lake, but the pent-demand led to a record number of visitors in 2022.

“The second quarter was strong — it beat all records,” said Rhonda Salisbury, CEO of the Yosemite Sierra Visitors Bureau. “2019 was the highest we had in tourism numbers, and 2022 beat that and 2021. But then the fires hit in July.”

California wildfires burned in the busiest time of the season, Salisbury said, which did bring down the number of visitors to the parks and lakes.

Since Yosemite National Park will no long be requiring reservations to visit, Salisbury expects this will draw more visitors in 2023.

She added that the bureau is expecting around the same number of visitors in 2023, especially with a lot of international travel rates returning to normal. They expect the typical European travelers to return in 2023, as well as for agritourism and Central Valley wineries.

Even with higher gas prices across the state, Salisbury said that if people are committed to traveling, gas prices are not going to deter them from taking a trip to the area.

“There’s more options of places to travel,” Salisbury said. “For a while California just toured California. Thank goodness we have so much to see and do.”

By Jennifer Distribution • New Developments 0 Comments

500K SQUARE FEET OF ALMOND COLD STORAGE COMING TO MADERA

Developers broke ground Tuesday on an almond cold storage facility in Madera open to all growers in hopes of alleviating price pressures on the nut. The owners hope the facility at 2842 N. Golden State Blvd. will be the first of many throughout the Central Valley. A project over seven years in the making, Amond World looks to open by the second quarter of 2023, said Robert Sullivan, managing partner for the company. The company name (“almond” without the “L”) links to a colloquialism of the word “almond” popular in the Central Valley — pronounced “am-end.”

The two 250,000-square-foot buildings are focused entirely on almonds. What separates this facility from others is that they will take almonds from any grower, according to Steve Sagouspe, managing partner along with Sullivan. The cold storage will allow almonds to be stored up to two years, meaning during times of plenty, growers can keep the nut in storage rather than bringing it to market. Each building will be able to store 50 million pounds of finished product. “I think farmers and processors are going to really enjoy the opportunity of being able to time their sale rather than having to get rid of it,” Sullivan said. With shipping disrupted as it is now, growers are having to sit on massive amounts of product, creating gluts in the market. Almonds this year have traded below $2 a pound, down from highs of $5 a pound a few years ago. Having access to cold storage means longer shelf life and more stable markets, Sagouspe said.

This also means the almonds don’t need to be fumigated for sanitary purposes. They will also be able to store certified organic almonds. Sullivan and Sagouspe contracted with Madera’s Span Development to build their ground-up development at the Madera Airport Industrial Park. Sullivan hopes to have the building up in the first half of 2023. The Amond World model allows for more growth in the Valley — anywhere almond grows, he added. They are currently scouting additional real estate near Chowchilla and Pixley.

The partnership with Span Development allows them to build several at a time. Part of the seven-year delay came with finding investors, said Sagouspe. They had courted suitors from other parts of the world, but they weren’t a good fit. They eventually found Adam Hayner from Los Angeles-based Origo Investments. The fit was good, he said. Coming from Washington originally and being involved in apple farming, Hayner knew about the importance of cold storage, Sagouspe said. Hayner said supporting the Central Valley is integral to supporting the food chain. The building would also be built with sustainable materials and powered by renewable energy, including solar panels and solar batteries. Sullivan hopes within five years to have 5 million square feet of cold storage online. Sullivan and Sagouspe were both previously real estate brokers with backgrounds in ag, but said Amond World is their new full-time job.

https://thebusinessjournal.com/500k-square-feet-of-almond-cold-storage-coming-to-madera/

By Jennifer Distribution 0 Comments

Plans advance for Mojave Inland Port, first of its kind in California

MOJAVE, Calif. — Kern County, Calif., supervisors have approved a proclamation in support of the Mojave Inland Port, a planned 410-acre facility intended to receive and distribute up to 3 million containers per year from the ports of Los Angeles and Long Beach. “The Mojave Inland Port is a fully permitted industrial site that will provide a solution for California goods movement at the ports,” Lorelei Oviatt, Kern County director of planning, said in a press release from holding company Pioneer Partners, which is spearheading the project. “This one-of-a-kind project will help unsnarl the congestion in the twin ports of Los Angeles and Long Beach; it will help the national economy by reducing pressure on the supply chain; it will help the local economy through job creation,” said Pioneer Partners Chairman Richard Kellogg. “Goods will get to businesses and consumers faster and more efficiently. We can’t wait to get started.”

Plans call for groundbreaking in 2023 with the facility beginning operation in 2024. Pioneer Partners says it will work with Kern County officials to secure the necessary building permits. Developer Greenbriar Capital says in a press release that the project will the California’s first inland dry-land port and the largest in the U.S. and could support as many as 3,000 new jobs while generating an annual economic impact exceeding $500 million. “Inland ports are a critical component to the future balance of our supply chain. They can provide flexibility and efficiency, all while relieving traffic congestion at critical choke points,” said Trelynd Bradley, an official at the California Governor’s Office of Business & Economic Development. “We appreciate the work that Pioneer’s Mojave Inland Port proposal has done to help find new solutions to address our supply chain challenges.”

The site is about 90 miles from the San Pedro Bay location of the two ports. Containers will arrive at the site astride Union Pacific’s main line via shuttle trains and can be distributed via state highways 15 and 58. There is also a 12,500-foot, heavy-lift runaway at the adjacent to the Mojave Air & Space Port.

https://www.trains.com/trn/news-reviews/news-wire/plans-advance-for-mojave-inland-port-first-of-its-kind-in-california/

By Jennifer Distribution 0 Comments

State Explores Commercial Drone Deliveries via Shared Airways

In a first-of-its-kind study in North America, Michigan is researching the feasibility of using drones for commercial delivery beyond visual line of sight or what operators can see, with a plan to seek approval for such flights from the Federal Aviation Administration.

The state’s Transportation Department tapped Airspace Link, a provider of data, software and managed services associated with drone flight, to analyze the air traffic and ground infrastructure that would enable flights in shared air mobility corridors. The company will also study the economic and community impacts of BVLOS operations.

“The big thing that we need to do is be able to make the safety case, have the infrastructure ready, to be able to go to the FAA,” said Charlie Tyson, technology activation manager at the Michigan Economic Development Corporation (MEDC), a partner in the effort. “That’s a big task.”

Airspace Link’s AirHub Insights software, data and services will contribute to the risk analysis that the state will use to seek FAA approval. The solution analyzes more than 50 datasets—ncluding Esri GIS data and information from federal, state, local governments and third parties — to provide actionable information on safety, economic impact and drone reach, said Lisa Peterson, vice president of business development at Airspace Link.

“This Michigan DOT study is all about what will it take to enable these drones to go 20, 30, 40 miles, which they are capable of,” Peterson said. “But because of the current [FAA] rules and regulations and the need to have the visual observation, you can’t do it. Think of this as a digital visual observer that we’re putting together – the ground infrastructure that’s going to help ensure that these drones don’t conflict with manned aviation, that we are sensing where they are at all times, and if there is an event that happens … there’s a safe landing spot along these areas that has been approved for beyond visual line of sight.”

Since January, the study has looked at how drone BVLOS operations could safely happen in three geographic areas. One is southeast Michigan, particularly the highly populated Detroit area.

“We are trying to look at how we can layer highways in the sky, if you will, above the ground-based autonomous vehicle corridor being developed by Cavnue between Detroit and Ann Arbor,” Tyson said. The corridor project started in 2020 to test the viability of a 40-mile driverless vehicle roadway.

The BVLOS study supports the state’s sustainability goals. “We think that with electric, small aircraft it can actually help reduce carbon emissions of moving goods on ground-based trucks and freight,” he said. “It’s important for us to think about how these can positively impact communities and not cause noise pollution or a hindrance to communities.”

The second study area is international deliveries across the state’s border with Ontario, Canada, and the third targets rural and tribal regions in the northwest where residents might struggle to access vital goods, especially in the winter.

“The outcome of this study would be a report outlining the air corridors in those spaces and what infrastructure would be needed to establish them … and what the economic benefit would be,” said Corey Whittington, director of business development at Airspace Link.

The data will also inform route plans, Peterson added. “The state of Michigan is also going to learn by working side-by-side with us as we turn out some initial drone operations,” she said. For instance, last month, the company worked with MissionGO, a drone developer, to determine the best way to deliver medical supplies using a mile-long stretch of railroad tracks between two sites belonging to a local health system.

Airspace Link is an authorized provider of the Low Altitude Authorization Notification Capability (LLANC), a collaboration between FAA and industry that supports the integration of unmanned aerial systems into the airspace. LAANC, pronounced “Lance,” gives drone pilots access to controlled airspace at or below 400 feet and awareness of where they can fly. It also provides air traffic professionals with visibility into where and when drones are operating.

“We basically digitize the skies with our mapping capabilities, and then we also are able to authorize flights in controlled airspace,” Peterson said. “What we’re doing in our system is providing the rules and regulations to unmanned aircraft system pilots—aka drone pilots—on how to navigate the airspace safely and compliantly. Just like on the roads you have street center lines and speed limits and rules you have to follow as a driver, there are rules that drone operators have to follow in the airspace.”

The research is already showing promise. “We have learned that this is very attractive and very interesting for industry,” Tyson said. “We’ve seen a significant influx of tech companies—small and large startups, even large logistics providers [and] some of the big names—reaching out to us and [the Michigan Aeronautics Commission (MAC)] about how they would leverage these corridors and how they can get involved and what type of use cases they would have.”

Another promising area is the use of the state’s many regional airports for drone operations— “looking at how takeoff and landing locations and logistics hubs for drones can be aligned with airports or at airports,” Tyson said. Michigan’s aviation system already contributes more than $22 billion to the state economy each year, according to MDEC.

In addition to MAC and MDEC, MDOT is working with the Michigan Office of Future Mobility and Electrification and the Ontario Vehicle Innovation Network. “This model and these corridors that are being developed, we hope to be able to then scale to other parts throughout Michigan,” Tyson said.

https://www.route-fifty.com/tech-data/2022/07/state-explores-drone-skyway/374828/

By Jennifer Distribution • Economy 0 Comments

Patriot Rail to establish rail district in central California

Patriot Rail CEO John E. Fenton is hoping the creation of a new rail district in central California will be a boon not only for his company but also for agricultural producers in the region. Patriot Rail is part of a public-private partnership with local leaders to develop a rail district for central California. Patriot Rail will lease approximately 6,500 feet of track and related property to Merced County, and the company will invest $1.2 million to increase rail capacity there at the Castle Commerce Center. The lease’s term spans 20 years, but it could be renewed in subsequent years. Patriot Rail interchanges with BNSF (NYSE: BRK.B), meaning that agricultural producers will have expanded access to the West Coast ports as well to the domestic market. When local economic developers were pursuing options for a rail district, BNSF brought Patriot Rail to the table, according to Fenton. “We think this is a great opportunity for the state of California to make their farmers even that much more competitive around the world,” Fenton told FreightWaves.

Patriot Rail’s involvement in the rail district was in response to an area shipper’s needs. Tomato products producer Morning Star and its warehousing provider needed to expand their packaging capabilities, and so they were looking for an area to grow, according to Fenton. Locations such as Modesto, Stockton and Sacramento were already at capacity, so expanding production in the San Joaquin Valley was the next natural location, Fenton said. “The San Joaquin Valley is one of the agricultural centers of the world. And there’s a lot of tomatoes that come out of that region,” Fenton said. Fenton hopes to have Patriot Rail’s assets ready by May 1, which is when the pack season starts for Morning Star. The pack season involves 100 days of operations running 24/7. In that time, Morning Star produces about 9,000 cans of tomatoes per minute, Fenton said.

According to the California Tomato Growers Association, tomato producers in the state processed 11.3 million tons of tomatoes in 2020, and that production has a value worth $887 million. Other agricultural products in the region include almonds, wine and cheese. According to the Almond Board of California, the counties of Stanislaus, Merced and San Joaquin in central California produced 921 million pounds of almonds during the 2020-2021 crop year, representing nearly 30% of overall California almond production.

Although Patriot Rail and others aren’t sure yet how many carloads might come out of the rail district, the rail district provides shippers with the opportunity to build warehouses and expand production. “We are meeting with all the agricultural shippers in the region. We want them to have a say in what kind of services they’re looking for. … The demand is really high, and we’re going to start to piece that together. The first thing is to really understand what the demand will be so we can build the facility and plan the facility in the right way,’ Fenton said. “We’re still scoping that [demand] but over time, we think it will become a very large rail district in the state of California.”

The agreement with Merced County was executed with Patriot Rail subsidiary Foster Townsend Rail Logistics. “Castle Commerce Center has enormous potential and is quickly becoming a site of regional, national and international significance,” Merced County Supervisor Daron McDaniel said in a release last week. McDaniel’s district includes Castle. “Patriot is a major part of our vision for Castle, and we’re looking forward to working with the partners they bring to help expand this growth and spur future job creation.”

https://www.freightwaves.com/news/patriot-rail-to-establish-rail-district-in-central-california