State News Release
Office of the Governor
Date: July 21, 2005
FOR IMMEDIATE RELEASE
Contact: Althea Cawley-Murphree, Governor's Communications Office, 360-902-4136
Kate Engle Rothschild, CERB Program Manager, 360-725- 4058
State investment in Walla Walla County will create jobs and open more markets for Washington produce
OLYMPIA -- A new state investment in Walla Walla County will lead to more good paying jobs for the community and open up more markets to Washington produce.
Today the Washington State Community Economic Revitalization Board (CERB) conditionally approved an $800,000 loan and $200,000 grant for the Port of Walla Walla. The new funds will be used to make public infrastructure improvements to port-owned property so a new Washington business, RailEx, LLC, can move in and open a state-of-the-art produce packing and distribution facility.
"This is an excellent example of how government should work," Gov. Christine Gregoire said. "These funds will help the port turn this piece of property into productive land that will put people to work and help produce grown in our state reach more people - everybody wins."
The port will use the state funds to construct an access road and make drainage improvements to the property adjacent to Highway 12 in Walla Walla County. RailEx will then construct a $10 million facility and $2.5 million rail "loop track" around port property. Once up and running, RailEx estimates its operation will create 148 full-time jobs at wages that exceed the average annual Walla Walla County salary.
The Port of Walla Walla and other sources will match the state investment with slightly more than $1 million for additional public project costs.
According to Port of Walla Walla Commission President Ken Jantz, "This project solves a major transportation problem that has plagued the Washington state fresh produce industry for years. It will give growers in our state a consistent transportation supply option to get their fresh produce to East Coast customers."
RailEx is the newest member of a 50-year-old group of providers of produce from Maine to Florida. The group provides fresh produce to the largest grocery chain stores in the eastern United States. RailEx will use new high-efficiency refrigerated boxcars to ship produce from Washington to a planned distribution facility in Albany, New York. The company estimates these non-stop trips will deliver produce from coast to coast in as little as five days, cutting the typical rail time by more than half.
"These state funds will have a significant impact," said Juli Wilkerson, director of the Washington Department of Community, Trade and Economic Development. "Along with the RailEx jobs, the new facility will also create more work for area trucking companies. It will take more than 150 truck loads of produce to fill a train for its cross-country journey."
RailEx expects to hire most of its employees from Walla Walla, Benton, and Franklin counties. It is estimated that every state dollar invested in public infrastructure improvements for this project will generate $1.50 in state and local revenue.
The release of the CERB funds is contingent on RailEx finishing its development plan, and the Port of Walla Walla and RailEx finalizing other funding sources and obtaining necessary permits.
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