• Strong Demand for Industrial Sites With Rail Links

  • Pertaining to all railroading subjects, past and present, in New Jersey
Pertaining to all railroading subjects, past and present, in New Jersey

Moderator: David

  by Mark Schweber
From Sunday's NYT Real estate section (link may require registration but it is free and I hope link works since this is the first time I am trying one on the new system):

Strong Demand for Industrial Sites With Rail Links

Published: March 14, 2004

INDUSTRIAL brokers say they have first-hand evidence of a back-to-the-rails movement in the freight industry in New Jersey: sites with rail connections are hot properties.

Over the years, rail had become somewhat outmoded because of its set schedule of delivery times, observed Frank Caccavo, a Cushman & Wakefield broker. "There was a time when rail companies did not fully participate in the time sensitivity of delivery," Mr. Caccavo said delicately. "With the modern manufacturing supply chain, from just-in-time production to the reduce-your-inventory model of warehousing, the handle-pack-reship mode of operation has been better suited to trucking in many ways."

But he and other brokers point out that it has always been cheaper and more efficient to ship heavy bulk items by rail — and now that some improvements have been made in rail delivery, certain industries are simply demanding it.

"We are seeing a tremendous demand for rail-served buildings right now," said Robert C. Kossar of Binswanger/Klatskin in Teterboro. "I have seen nothing like it in my 15 years in the business." Mr. Kossar said he was about to close a deal in the Newark area for a grocery concern, recently closed one just over the border in Eastern Pennsylvania for a lumber company and is currently searching for 250,000-square-foot rail-served buildings in New Jersey for a paper producer and for a recycling company.

"We used to see a lot of times when rail was a `nice to have' when a company was looking for a site," Mr. Kossar said. "More and more now, it's a `must.' "

http://www.nytimes.com/2004/03/14/reale ... 4NJZO.html
  by Ken W2KB
>>for a paper producer<<<

The paper mill in Milford, NJ on the Bel Del (operated by BR&W RR now) is vacant and looking for a buyer. Unless they need to be further east, that could be ideal.

  by Sir Ray
Wait about 5 or so years, when the Big Box retail concept implodes upon itself, and simply reuse the empty building shells of former Home Depots, K-Marts, and Best Buys by the ROWs. (OK, this is somewhat unlikely, although even today I know of several areas with overcapacity in Big Box retailing).

BTW, I hope our friends at Raritan Center are able to capitalize on this trend - it's really nice to see shiny new sidings go in, rather than rusty old sidings get paved over.

  by 1st Barnegat
Mark Schweber wrote:

"...But he and other brokers point out that it has always been cheaper and more efficient to ship heavy bulk items by rail..."

I've wondered about that...how heavy and how much bulk does it take to reach the tipping point where rail is cheaper than truck?

In 1999, I saw a $450 bill of lading for 70,000 lb of industrial equipment shipped by truck. Its origin was near Eddystone, PA and its destination was in Central New Jersey. It could have travelled by rail to Lakehurst, but the shipper said rail between those two points was more expensive.

  by JLo
I alwasy thought that most of the warehouse developments at Exit 8A missed the boat. There is an easy connection to the NEC and the Freehold Secondary, yet very few of the warehouses are set up for rail access. When gas gets to $5 a gallon, companies are going to be kicking themselves.

  by Jtgshu
There's a nice big closed glass plant on the Coast Line in Aberdeen - Anchor Glass - any glass making companies looking for a site?????

It would be nice to see that in operation again

  by dave76
Its only a mater of time. I never thought there would be a reversal. Now they just need tracks to run the trains on.

  by trainfreak
Going a but further northwest on the NYSW southern division main. In Sparta NJ the NYSW is laying down a new siding to access a new facility being put up. Its for bulk beverage grade carbondioxide delivery. The siding will be able to hold up 6 tank cars (i think.)

  by Elwood
I think it's good that there is a bcak to rail thinking in the business world again. I know this is really unlikely, but if that kind of trend continues, might we see short lines begin to turn into regional lines?