The Dallas Morning News

Pact links Dallas, Panama Canal – Group hopes to channel more trade through southern part of county

December 9, 2005

The Dallas NAFTA Trade Corridor Coalition plans to sign an agreement today with the Panama Canal Authority in an effort to boost trade to southern Dallas County.

The deal calls for joint marketing efforts and the exchange of data and ideas between the coalition and the Panama Canal Authority, which operates the 50-mile canal in Central America.

The coalition, consisting of the city of Dallas, Dallas County and the city of Balch Springs, seeks to transform the southern sector into a trade hub, bringing jobs and development.

The agreement aims to capitalize on many shippers’ growing interest in using the Panama Canal to bypass congested ports in Southern California when moving goods to the Midwest or East Coast from Asia.

Some of the cargo from the canal is unloaded at Houston’s port, then transported by truck to distribution centers in North Texas for delivery to the rest of the country. The coalition wants to increase this traffic.

“We’re seeing shifts in trade patterns, which is why we’re doing this,” said Leslie Jutzi, manager of the city of Dallas’ intergovernmental services and project manager of the Dallas NAFTA Trade Corridor.

No money is exchanging hands with the deal.

Although North Texas isn’t alone in vying for a role as an inland port, southern Dallas County already has several efforts under way to become more of an import destination.

In August, the Union Pacific railroad opened a $100 million international intermodal terminal in Wilmer, joining a new Federal Express distribution center nearby.

And the Allen Group, a California real estate company, recently announced plans to open an industrial park surrounding the Union Pacific terminal.

The coalition’s agreement with the Panama Canal Authority follows the recent signing of a similar pact with the Port of Topolobampo in northwest Mexico.

Additional agreements are also expected with the Ports of Lazaro Cardenas and Manzanillo in Mexico, Ms. Jutzi said.

Fresno Bee

Visalia Gets New ‘Biggest’ – VF Outdoor Center Includes 800,000 Square Feet.

December 4, 2005

Visalia is flat like Kansas and tamed into settlement by pavement, irrigation and housing subdivisions, but it will soon be a stopping point for expedition gear devised for backcountry adventure.

VF Outdoor Inc.’s distribution center, now under construction at the southwest corner of Plaza Drive and Riggin Avenue, will be the launching pad for The North Face brand products – now distributed from the Midwest — and Reef, a surf-inspired brand of footwear and clothing.

The 800,000-square-foot building is about 50% complete, according to Scott Burke, director of distribution for VF Outdoor Inc., a subsidiary of VF Corp.

“We look for it to be under roof by the end of February [and] operational by June 1,” he said. As it stands in early December, the distribution center is still blank walls of concrete, the last structure on Plaza Drive before the northern city limits and acres of farmland between Visalia and the northern Tulare County city of Dinuba.

But when it is completed next year, VF’s building will be the city’s largest building by far: Jo-Ann’s Stores Inc.’s distribution center, which stands at about 600,000 square feet just south on Plaza Drive in the city’s industrial park, will fall to second place.

The VF building’s footprint alone could swallow 14 football fields or about 267 fast-food restaurants. Its 64-acre site could hold more than three White Houses, including the grounds. But counting the mezzanine system and upper layers, the building is planned to have a million square feet of working space, according to city officials.

“It’s certainly VF’s largest distribution center and will be our most automated distribution center and it does allow us to ship multiple brands through multiple channels of distribution,” Burke said.

VF Corp., VF Outdoor’s parent company, said during the summer that Visalia will be its largest distribution center by 300,000 square feet, a difference that could hold a Wal-Mart supercenter with room to spare.

Burke this week declined to comment on the building’s cost. Larry Montgomery, construction director of the Allen Group, had estimated earlier this year that the building could cost about $40 million, not including the internal structures such as extensive racking and conveyor systems that VF would add.

When VF announced that Visalia would be the site of its largest distribution center, beating out competition in Nevada, city officials applauded. But it also triggered the question, said Glenn Morris, executive director of the Visalia Economic Development Corp.: What if the next large company comes along?

As a result, the city is considering a square mile, or about 640 acres, north of Riggin Avenue for annexation into the industrial park.

Plaza Drive intersects the land that is owned by two property owners, Russell Doe and David Vargas, according to city planner Brandon Smith.

Doe has submitted an application for his 160 acres to be annexed into the city, Smith said. An application for Vargas’ land is expected in the near future, he added. Morris said companies looking for sites are often seeking their quickest option. Having land developed and ready to go can be a big plus for a city’s competitive position, he said.

For instance, VF wanted to move so fast that it is renting out a 118,000-square-foot temporary facility for its Reef brand, before the larger distribution center is finished next summer. Both brands, Reef and The North Face, are “growth engines” for the company. Third quarter earnings showed that sales rose 14% in the quarter, with Reef contributing $18 million of the $64 million increase. The North Face brand sales increased 23% in the quarter.

Burke said that for “fast-track” projects like the Visalia distribution center, available land does influence companies in choosing a city. “It gives you a better incentive to go to that location,” he said. “It takes all the questions out.” Burke said if land hasn’t made it through the permitting process, the company considers that a risk.

“What if they were doing an inspection and they found anything that would delay your project?” The need for land may become more important as Visalia makes its name as a distribution hub. The city has received more interest from companies since VF Corp., known as the world’s largest clothing company, picked Visalia.

Just this week, two consultants interested in distribution centers larger than 500,000 square feet visited the city, Morris said. In the past, the typical company would be looking for something smaller — 100,000 to 200,000 square feet, he said. “We’re still getting some of those, but we seem to getting a lot more of the bigger projects,” he said.

The Dallas Morning News

Neglected Sector Gets Trade Hopes

November 30, 2005

County’s southern area called prime location for a new state hub Southern Dallas County may not look like the state’s next booming trade hub now, but local business and government leaders said Tuesday they have high hopes for the area.

The Union Pacific intermodal rail yard in Wilmer is one of several facilities officials hope will establish the southern part of Dallas County as a shipping hub. “The places that will do well will be places that can grow, places that can export,” said Mike Rosa, vice president for economic development at the Greater Dallas Chamber. “The southern sector is positioned to do this. It has a logistics advantage.”

His remarks came during the chamber’s annual Southern Sector Infrastructure Forum & Tour, designed to introduce executives to business opportunities south of the Trinity River.

Robust business in southern Dallas County would mark a welcome turn for an area that’s lately been in the news for the unkempt Wilmer-Hutchins Independent School district, now disbanded.

The southern half of the Dallas-Fort Worth region is largely undeveloped, save for strip mall retail centers and business parks that dot the landscape along the interstates.

NAFTA hub

But business is beginning to take notice of the opportunities there, boosters say. The port of Topolobampo, Mexico, signed an agreement Tuesday with the Dallas NAFTA Trade Corridor Coalition to formalize North Texas as an inland hub for international trade from the Pacific facility.

Also, the Allen Group of San Diego announced plans to build an industrial office park near a new Union Pacific intermodal facility in Wilmer.

“Dallas is probably the most dynamic market” in the country, said Edward Romanov, chief executive of the Allen Group, which has spent two years assembling land for the approximately 4,500-acre site.

“This is our chance to help the Dallas business community to refocus efforts back to Dallas instead of Fort Worth or Alliance,” he added.

Area outlook

The daylong panel included presentations on the Dallas-Fort Worth area’s economic outlook, and perspectives from utility companies, railways and general aviation airports.

Also, the city gave attendees an update of the Trinity River Corridor project, which is designed to open up the Trinity Forest to recreational use and open an equestrian center, among other amenities in the next few years.

Though speakers acknowledged the area’s challenges – issues with crime and low educational attainment – they still rattled off familiar themes about why the southern sector is a good investment: central geographic location, good workforce, low cost of land.

And, unlike much of the region’s developed northern half, the southern sector still boasts quick commute times.

Unique position

The area is already home to key parts of a budding trade corridor, said Dallas City Councilman Bill Blaydes. “We can’t afford to lose this opportunity,” he added The Union Pacific terminal, in particular, is expected to play a key role in efforts by the city of Dallas to create an inland port south of downtown.

The intermodal facility sits near a Federal Express distribution center.

Indeed, Dallas developer David Garner pointed out that the FedEx development demonstrates one of the southern sector’s main advantages: Truckers are able to drive to the company’s headquarters in Memphis in a day and still meet trucking safety requirements.

Dallas Morning News

Dallas a Major Trade Center – Developments in the Works to Make it Happen

September 14, 2005
Hub of the trade wheel

Attention, insomniacs.

Here’s a thought guaranteed to induce yawns, courtesy of the city of Dallas’ latest task force, this one on economic development: The city needs a strategy, one that focuses on its historic strengths, including transportation and freight handling.

But wait. What’s that ungodly racket coming from the southern part of the county, that part so desperate for new enterprises? Why, it’s the new Union Pacific freight terminal, busy transferring containers stuffed with goods made in China from trains onto trucks. (OK, it’s in Wilmer, not in Dallas, but many of the people who work there undoubtedly live in Dallas.)And why are all these Dallas officials jetting off to Houston, Washington, Mexico and even China to meet with foreign-trade honchos? Why do they keep whipping out pens to sign long legal declarations with those folks? And why do they keep spouting words like “intermodal,” “agile port” and “NAFTA impact zone”?

Well, we could load you down with details, but suffice it to say that sleep may have to wait. Because, with a little prompting from transportation experts and the Port of Houston, Dallas – and now all the cities in the southern part of the county – snapped to the fact the area they collectively encompass is positioned to be the dominant trade center in North America. If, that is, they act swiftly to put in place the infrastructure, the economic incentives and the legal agreements to make it happen.

The first battles – to persuade the federal and state governments not to bypass Dallas when expanding their highway networks – seem to have been substantially won. The city also has signed exploratory agreements with the ports of Houston and Manzanillo, Mexico, to handle and – in the case of Houston, store – containers bound by rail to and from those ports. Closer to home, the southern-tier cities have agreed in principle to sign a pact to act as one in developing new infrastructure – including, potentially, a new cargo airport – and courting trade-related companies.

Nothing exists on the ground yet; it’s all on paper. But the “inland port” idea seems to have generated what the first President Bush called “the big mo” – which is more than you can say for many other recent plans for the southern sector.

Snooze at your peril.

Dallas Business Journal

Project Set for Southern Sector

September 12, 2005

A California investment company is buying 2,600 acres of raw land in fast-growing southern Dallas County, for what is believed to be the first major industrial development deal sparked by the massive, rail intermodal facility just opened by Omaha-based Union Pacific Corp.

Privately held The Allen Group, based in Carlsbad, Calif., will develop much of the land for its soon-to-be-announced Dallas Logistics Hub, said Edward Romanov, president of The Allen Group.

Assuming build-out over several decades, the 26 parcels of land around Interstate 45 in the towns of Wilmer, Hutchins, Lancaster and Dallas County can accommodate 40 million square feet of industrial development worth $1.4 billion in today’s valuation, Romanov said.

Good prospects

Several factors attracted The Allen Group, he said.

Union Pacific Railroad Co., the nation’s largest railroad, earlier this month opened its 342-acre intermodal facility, the largest U.S. facility built this decade.

The group is also optimistic about regional plans to establish an inland port to handle increased international freight movements into the United States through the Port of Houston and up Interstate 45 to Dallas-Fort Worth for distribution nationwide.

The Allen Group is buying the land from longtime real estate investor Myron Goff. The group has closed on an 82-acre parcel on Cleveland Road across from a new 330,000-square-foot Federal Express ground distribution hub in Hutchins. The Allen Group will close in a few days on 24 acres off Evergreen Road and I-45. The remaining acreage will close in about five months, after major engineering studies are complete, Romanov said. Financial terms were not disclosed.

The Allen Group specializes in what it describes as high-end office and industrial real estate. The Dallas Logistics Hub will house major distribution centers, warehouses and rail-served facilities, Romanov said.

UP’s intermodal rail facility sits south of Dallas on the west side of I-45, just south of Interstate 20. The north half of the massive yard sits in the small town of Hutchins, while the south half sits in the small town of Wilmer. The facility is now operating at 80% capacity and will ramp up to 100% by the end of the year, said Thomas Lauer, city administrator for Wilmer.

The Allen Group land sits west and east of I-45, Romanov said.

Wilmer, a town of only 3,600 residents, has determined that potential industrial development sparked by the intermodal yard could be worth up to $30 million in tax revenue for the community over the next 10 to 15 years, Lauer said.

“This used to be a small sleeper town of 900 rooftops and 10 to 12 businesses,” he said. “Pretty soon it’s going to be the center point of growth for all of North Texas.”

About 70% of Hutchins is developed, while only 20% of Wilmer’s land is taken.

Material Handling Management

TARGET Hits Bulls-Eye – Why Target Corporation Located at ITTC

2 January 2005

BAKERSFIELD, CALIF.-The Target Corporation, America’s fourth largest retailer, hit a bull’s-eye when it selected the Central California community of Shafter for a 1.7 million square foot distribution center. The community’s location in the state’s population center is ideal for logistics, but the company has also enjoyed unprecedented governmental cooperation and an outstanding workforce that’s already ahead of the curve in every efficiency category.

After only a few months operation, the Shafter facility is performing well ahead of all initial goals. Bob Grove, Human Resources and Development Manager with Target Distribution, credits the company’s early success to the local labor force’s strong work ethic. “The availability of a skilled, dedicated workforce enabled us to build a team that has exceeded all of our expectations.”

Shafter (pop. 13,211) is located in the southern end of California’s Central Valley, about 20 miles north of Bakersfield. The community’s aggressive economic development program has won over a number of major manufacturers, including Elk Corp., GMC Roofing Materials, and GAF Corp. In 1997, the city doubled its geographical size when it annexed land designated for the International Trade and Transportation Center, an industrial complex with free-trade status. Target selected a 132-acre ITTC site…

The region is highly attractive to companies who compete in the California marketplace. Strategically, Central California offers one-day turn around times throughout the state, as well as to parts of Nevada and Arizona. Target’s new distribution center, which is within minutes of the state’s two primary north/south transportation routes (I-5 and Highway 99), is within four hours of 35 million consumers.

Central California also offers an abundance of land and more favorable land and labor costs than more urbanized areas in the state. The job-to-applicant ratio gave the company true hiring flexibility. And while the facility was still under construction, the local Career Services Center set the company up with a human resources office, complete with staff, phones and advertising and screening assistance. Three local job fares produced a pool of 8,500 applicants for an initial hiring of 500 employees…

Quality of life issues were a top concern for Target. Communities’ boast of quality school systems and opportunities for higher learning are growing, as evidenced by the new UC Merced campus. Cultural activities vary from community to community, but include symphonies, theatres, botanical gardens, zoos, museums and extensive parks and recreational programs.

The nearby Sierra Mountain range offers proximity to unlimited recreational opportunities, from Yosemite to Sequoia National Park and beyond. Residents have easy access to fishing, camping, hiking, biking, rock climbing, white water rafting, winter sports and a host of other activities.