Supply Scan

News and Trends from across the industry

PepsiCo Selects Jacobson To Run DC In Washington

PepsiCo, Purchase, NY, has awarded an operating contract to Jacobson Cos. to run a new 450,000-square-foot distribution center in Tacoma, WA.

As part of PepsiCo’s efforts to consolidate its supply chain, the company recognized the need to expand its network by opening a DC in the Pacific Northwest.

This additional DC will expand Jacobson’s partnership with PepsiCo to operate five distribution centers and 2.5 million square feet nationwide.

The Tacoma operations ramped up Sept. 1, with first customer shipments on Oct. 31.

U.S. Foodservice ExpandsFlorida Distribution Center

U.S. Foodservice recently broke ground to expand its Port Orange, FL division’s food distribution center to 409,000-square-feet and support the continuing growth of the company’s central Florida distribution business.

Construction on the $33 million expansion will be completed by July 2011.

Once the expansion is complete, the company will close its nearby Ormond Beach location. Its more than 330 employees will move to the new facility which will have a combined workforce of more than 500.

This consolidation will make Port Orange the hub of its central Florida business which serves nearly 5,000 restaurants, healthcare facilities, hotels, schools and government agencies throughout the state, southeast Georgia and southern Alabama.

“Our business is growing and we need more space to serve customers,” says Pat Kelly, president of U.S. Foodservice-Port Orange. “The expanded facility will enable us to respond more efficiently to our customers’ needs while serving a growing market from a modern and strategically located distribution center.”

Despite two prior expansions, the company had exhausted capacity at the Ormond Beach facility, Kelly says.

The 60-acre site at Port Orange, however, offers ample space for growth. The expanded facility will offer:

  • Capacity for 14,000 fresh, frozen, non-perishable and non-food products;
  • 127,000-square-feet of freezer space;
  • 48,000-square-feet of refrigerated space;
  • 155,000-square-feet of dry storage space; and
  • 51 loading docks.

Kelly says the consolidated facility will feature the latest in food storage technology, including one of the largest private refrigerated transport fleets in Florida.

The facility will also feature motion-activated and energy-efficient lighting to reduce energy consumption.

‘Cold Train’ Intermodal Service Launched

A new refrigerated intermodal container rail and distribution service between Quincy, WA and Chicago is quickly growing in popularity with produce shippers in the Pacific Northwest.

This expedited, door-to-door Pacific Northwest-Chicagoland Express “Cold Train” Intermodal Service was launched in April by Rail Logistics in partnership with the Port of Quincy Intermodal Terminal and covers more than 2,000 miles in only three days.

According to Steve Lawson, vice president of intermodal for Quincy, WA-based Rail Logistics, weekly bookings of produce (apples, potatoes, etc.) on the Cold Train have increased by more than 40 percent since the service began and continue to rise weekly. In June, the Cold Train also began shipping cherries from Quincy to the Midwest and “is ideal for shipping Washington State perishable products to Chicago quickly and efficiently,” says Lawson.

“We are committed to providing a vital link between the growers and producers of Washington State and major retailers operating throughout the Midwest. In fact, we have added capacity heading into the fall harvest season and will continue to do so for the foreseeable future,” Lawson adds.

Produce shippers in Washington State are embracing the Cold Train service.

“One of our biggest challenges is finding competitive and consistent transportation services shipping products East,” says Bart Connors of Basin Gold, Pasco, WA. “This intermodal service to the Midwest offers a cost-competitive and sustainable alternative.”

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