🧊 The cold storage boom

November 01, 2024

Welcome back to CubeCold News where we cover the latest developments in the cold chain industry and temperature-controlled logistics.

In today’s edition:

  • The cold storage boom: Insights from the NAIOP I.CON Cold Storage Conference

  • Lineage celebrates grand opening of automated warehouse in Hazleton, PA

  • Portabull Cold Storage expands Southeast rental fleet with new acquisition

  • The rise of electric vehicles and implications for the cold chain

News

The cold storage boom: Insights from the NAIOP I.CON Cold Storage Conference The cold storage sector is experiencing unprecedented growth, driven by increasing demand for temperature-sensitive goods across food, pharmaceuticals, and biotechnology industries.

  • This growth is primarily fueled by e-commerce expansion and changing consumer preferences for fresh products.

  • Modern facilities are significantly more advanced than older ones, however, developers face challenges in speculative builds due to diverse end-user requirements and environmental considerations.

  • While the sector offers attractive investment opportunities with stable cash flows and long-term lease potential, there's a significant learning curve for investors, typically requiring 9-12 months to understand the space.

  • Leasing involves complex, long-term commitments with specific requirements for location, design, and regulatory compliance.

  • The industry's future depends on continued innovation in facility design and operations, focusing on energy efficiency, capacity optimization, and adapting to evolving supply chain demands. (link)

Lineage celebrates grand opening of automated warehouse in Hazleton, PA Lineage, Inc. (NASDAQ: LINE) has opened a new fully automated cold storage facility in Hazle Township, Pennsylvania.

  • The 386,000 sq. ft. facility features advanced automation technology including cranes, rail-guided vehicles, and proprietary computer vision technology for receiving processes.

  • The strategic location can serve approximately 60 million people within a 250-mile radius, strengthening the regional supply chain. The facility offers 85,000 pallet positions and includes automated layer picking capabilities for efficient handling of large SKU offerings.

  • This facility joins Lineage's network of over 80 automated buildings and represents their commitment to supply chain innovation.

  • The company's total portfolio includes over 480 facilities across North America, Europe, and Asia-Pacific, totaling 84 million square feet. (link)

Portabull Cold Storage expands Southeast rental fleet with new acquisition Portabull Cold Storage has acquired Portable Refrigeration Storage, Inc. (PRS), expanding its electric-powered cold storage rental fleet in the Southeast United States.

  • As the only provider offering electric temporary cold storage units across all 48 contiguous states, Portabull serves diverse clients from nationwide grocers to local florists.

  • Portabull specializes in electric-powered cold storage solutions that help businesses reduce costs and environmental impact compared to diesel-powered alternatives.

  • The acquisition integrates PRS's 25-year industry experience with Portabull's advanced electric cold storage solutions.

  • PRS President Rick Nuckols endorsed Portabull as the right fit to continue serving their existing customers and team members.

  • This strategic acquisition strengthens Portabull's presence in the Southeast region while meeting growing demand for sustainable temporary cold storage solutions. (link)

The rise of electric vehicles and implications for the cold chain The transition to electric vehicles in the logistics sector, particularly in cold chain operations, presents both opportunities and challenges.

  • While EVs are emerging as the dominant decarbonization option due to lower costs compared to alternatives like biofuels and hydrogen, their integration with cold chain operations requires careful consideration.

  • Key challenges include EVs' shorter range and smaller payloads affecting network design, substantial power demands for charging, cooling technology impacts on vehicle range in hot climates, and the need for more active management of operations through digital platforms.

  • This intersection is particularly relevant in developing markets like India and Kenya, where both EV adoption and cold chain expansion are rapidly growing.

  • For example, Kenya saw 500% growth in EV uptake in 2023, while India's cold chain currently handles less than 10% of agricultural produce.

  • FPS and the Clean Cooling Network are conducting studies in these countries to help policymakers and practitioners make informed decisions about cold chain and EV infrastructure development. (link)

Other headlines

Cold storage boom: North American ports embrace reefer revolution.

Why demand for cold chain logistics in pharmaceuticals is growing rapidly.

Movianto is expanding its UK vaccine distribution capabilities by introducing active frozen transport solutions at -25°C.

Interstate Cold Storage supplies new equipment to boost warehouse efficiency.

That’s it for today!

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