Plan could bring ag hub, jobs to county
The Port announces a major project that would make the county a shipping center for regional produce.

Walla Walla County could become a hub for shipping Northwest produce under a massive economic development plan announced by the Port of Walla Walla.

Under a more than $14 million proposal, the area's apples, onions, potatoes and more would be packed onto refrigerated rail cars from a huge facility planned on 183 acres of Port property in Wallula.

Slated for the same site as a former power plant project just below the Tyson Fresh Meats plant, the 200,000-square-foot facility would become a distribution center for produce destined for the East Coast, said Port Executive Director Jim Kuntz.

The business would be operated by a startup company called RailEx LLC. Further details about that company could not be obtained this morning, except that it estimates 148 full-time jobs would be created in the process.

As one of the first major milestones for the project, the Washington State Community Economic Revitalization Board on Thursday conditionally approved $1 million in funding for construction of an access route to the proposed property off Dodd Road. Of the $1 million, $800,000 is a loan and $200,000 is a grant.

The project is believed to be the first of its kind in the country _ certainly the first in the Northwest, Kuntz said _ and could help bolster the area's agriculture industry, which struggles in the face of transportation regulations.

``It's a fundamental problem growers are having,'' Kuntz said this morning. ``It is very difficult to get long-haul truck drivers to go from the West Coast to the East Coast.''Regulations requiring breaks after a certain length of time on the road have prompted some drivers to switch over to the more profitable short-haul routes, he said. As a result, some packing companies have struggled to get their produce onto store shelves on the East Coast _ where he said about 60 percent of the American population lives. ``This project solves a major transportation problem that has plagued the Washington state fresh produce industry for years,'' said Port Commission President Ken Jantz, in a prepared statement.

``It will give growers in our state a consistent transportation supply option to get their fresh produce to East Coast customers.''But much work remains, Kuntz said.

In addition to construction work, details about what RailEx will pay the Port for rail car fees must be determined.

Apart from road construction and drainage improvements, the Port also needs to build a public water system.

Kuntz said the well and water rights are already in place for that. The rest of the water work is estimated at $800,000.

Additionally, the Port will construct the loop track system at a cost of about $2.5 million.

As part of the partnership, Union Pacific plans to build 110 refrigerated rail cars at an undisclosed amount. The company will transport the produce on a weekly basis from Walla Walla to Albany, N.Y., Kuntz said.

In one of the biggest investments of the project, RailEx will construct the $10-$12 million facility from where the produce will be distributed.

Kuntz said arrangements have not yet been made with the farming community as many details remain.

``Growers have been promised a lot of things in the past,'' he said. ``(RailEx) wants to be sure that they have everything locked down before they approach the growers.''If all goes according to plan, the result will be one of the largest economic development projects ever broached by the Port.

``It has the potential of benefitting all of Eastern Washington,'' Kuntz said.

``Quite frankly, I wouldn't be surprised if it benefited Northern Oregon, too.''Kuntz said the Port has been working on the project the last two to three months.

Employees are putting in overtime as they work with state and federal entities to secure more funding, and develop plans for the necessary infrastructure.

He estimates funding sources will be put together within the next few months as the various agencies see potential for the ag industry.

``Everyone's excited about this business model,'' he said.

``It's a new paradigm of how we're going to ship product.''Vicki Hillhouse can be reached at vhillhouse@ubnet.com or by calling 5253300, ext. 284.