Virginia Wins $59.9 Million Logistics Expansion in Norfolk
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Virginia Gov. Glenn Youngkin recently revealed that a Belgium-based international logistics provider’s subsidiary is expanding its footprint in the commonwealth with a new warehouse, rail yard and rail spur expansion at its Norfolk facility.
“Katoen Natie Norfolk’s increased demand matches the surge Virginia is experiencing as a premier supply chain destination, and this expansion will foster the synergy of the industry ecosystem,” Youngkin said.
Noting that the subsidiary of the Belgium company has thrived in Hampton Roads for more than a decade because of the region’s logistics advantages, access to the Port of Virginia and workforce, Youngkin noted, “I look forward to its continued growth.”
The Norfolk unit of Katoen Natie plans to invest $59.9 million to add a 450,000-square-foot warehouse and rail yard while also expanding its existing rail spur to meet increased demand.
Katoen Natie Norfolk’s facility enables producers of plastic resin pellets to ship bulk railcars to its warehouse for products to be packaged and loaded onto intermodal containers for international shipments through the Port of Virginia.
“The expanded warehouse and rail yard will enable the company to address current and future demand while boosting Virginia’s supply chain industry,” said Caren Merrick, state secretary of commerce and trade. “I congratulate all the partners involved in securing this project that will create 76 new jobs for hardworking citizens of Hampton Roads. This is a strong signal of confidence in Virginia.”
According to the governor’s office, Virginia won the project after successfully competing against Georgia and South Carolina.
Edwards
Stephen Edwards, CEO and executive director of the Virginia Port Authority, called the company a “valued port user” that is making a significant investment in the future of both the port and Norfolk.
“The Port of Virginia is investing in parallel to ensure we can meet the demand that this type of expansion requires,” Edwards said. “This announcement shows the confidence Katoen Natie has in the port’s ability to safely and sustainably move its cargo to world markets for years to come.”
In April, port officials announced a $15 million investment at the Virginia Inland Port and Richmond Marine Terminal to expand capacity, reconfigure some operational areas, such as a container stack yard, and prepare the terminals for future needs. Completion is expected next year.
Vingerhoets
Katoen Natie President Frank Vingerhoets said, “Due to its central location on the East Coast, great workforce including former military, dual rail service via Norfolk Southern and CSX, and natural deep-water, great-functioning port, we chose Norfolk for our expansion.”
Founded in 1854, Katoen Natie is an international logistics service provider and port operator with a presence in 35 countries on five continents that boasts a workforce of 15,000 employees. It focuses on industries such as supply chain and process engineering, petrochemicals, specialty chemicals, consumer goods, port operations and general cargo/commodities.
The Virginia Economic Development Partnership worked with the city of Norfolk, the Hampton Roads Alliance, the state Department of Rail and Public Transportation, and the Port of Virginia to win the project.
The Norfolk facility enables producers of plastic resin pellets to ship bulk railcars to its warehouse for products to be packaged and loaded onto intermodal containers for international shipments through the Port of Virginia. (Katoen Natie via YouTube)
Katoen Natie Norfolk is eligible to receive state benefits from the Virginia Enterprise Zone program (administered by the Virginia Department of Housing and Community Development). Other incentives are funding and services to support employee training through the Virginia Jobs Investment Program. The company also may be eligible to receive benefits from the Rail Industrial Access Program through the Department of Rail and Public Transportation.
Secretary of Transportation W. Sheppard Miller III said, “This international company chose Virginia over other states, once again demonstrating that the commonwealth is a great place to do business. With our premier port, strong rail infrastructure and outstanding workforce, Virginia has everything a company like Katoen Natie needs to thrive.”
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