Americold JV Eyes Kansas City Cold Storage Facility
Americold, in partnership with Canadian Pacific Kansas City, plans to invest $127 million in a 335,000-square-foot cold storage facility in Kansas City, Mo. While the company intends to begin construction in the first half of 2024, the start of the project is still pending local approvals.
This new facility is slated to support CPKC’s Mexico Midwest Express service that connects midwestern U.S. markets with Mexico. Once complete, it will allow customers reduce transit times, transport costs and food waste since they don’t have to rely on transportation by truck.
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Project partners include the City of Kansas City, the Economic Development Corporation of Kansas City, KC SmartPort, the Missouri Department of Economic Development, Missouri One Start, Evergy and Spire, together with Missouri Partnership.
The Kansas City facility will be the first of many to be built on a CPKC railway as part of the firms’ strategic collaboration that was announced in June. Under the terms of the agreement, Americold will co-locate many of its warehouses along the railroad’s network.
Expanding beyond the Americas
Americold, a REIT focused on temperature-controlled warehouses, has an extensive portfolio of cold-storage facilities across the world. Overall, the company owns or operates 243 properties totaling approximately 1.5 billion refrigerated cubic feet. While the majority of Americold’s warehouses are in the U.S., the company also has locations in Europe, Asia-Pacific and South America.
The collaboration with CPKC will add several new facilities to Americold’s U.S. development pipeline, but the REIT already saw a major expansion of its portfolio in January 2021 when it acquired Agro Merchants Group for more than $1.7 billion. The acquisition added 46 facilities totaling 236 million cubic feet of cold storage to its portfolio.
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