Shipping center on fast track
Construction of the Railex produce distribution center is expected to begin within a month.
By VICKI HILLHOUSE of the Walla Walla Union-Bulletin
Construction of Walla Walla County's new Railex produce distribution warehouse should be under way within the next 30 days, Port of Walla Walla commissioners were told Wednesday.
The Port has awarded nearly $2 million in road and water system construction contracts, and Railex LLC, the company behind a proposed produce train loop that will start in Wallula, is eager to break ground in January, said Port Executive Director Jim Kuntz.
If all goes according to plan, the warehouse and train system will be unveiled next spring, revolutionizing Washington state's agriculture industry as the rail line transports local produce to the East Coast.
``It's a for-real project,'' Kuntz said Wednesday.
In its first year, Railex _ a subsidiary of AMPCO Distribution _ is expected to employ 103 full-time workers with an annual payroll of more than $3.3 million.
Kuntz said those numbers are projected to grow within three years to 196 employees and an annual payroll of more than $5.8 million.
The project has been on a fast track since April, when the Port was first approached by Railex.
The idea came as a way to help solve numerous difficulties in transporting Northwest produce to the East Coast, including increased gas prices and restrictions in the trucking industry.
Funded through a public/private partnership, with Railex investing more than $19 million of its own money, Port officials continued to rally for more state dollars Wednesday.
In a special meeting with state Reps. Bill Grant and Maureen Walsh, Kuntz asked for another $3.5 million, which he said would be used to help buy the rail line, for which Railex is fronting the money.
``Commissioners want to make sure the loop line is a public asset,'' Kuntz said.
With 55 rail cars carrying the equivalent load of 165 trucks, the train is expected to ship 8 million pounds of produce each week.
Grant, a fourth-generation wheat farmer, called the project ``terribly exciting.'' He said he and Walsh will work to find available funding.
Kuntz said excitement over the project has spread as far as Skagit County, and he continues to receive calls from other communities about shipping their produce from Wallula.
``Our phone has been ringing off the hook,'' Kuntz said.
Vicki Hillhouse can be reached at vhillhouse@ubnet.com or by calling 5253300, ext. 284.
ON THE WEB
For more information on Railex, go to www.railexusa.com.
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