Shuffle Off To Buffalo - FoodLogistics.com

Shuffle Off To Buffalo

The new inland port would be used for international container traffic since the Port of New York and New Jersey has just about capped out on dealing with the high volumes of traffic there. The idea would be for international shipments of containers to go right onto a train and arrive in Buffalo as a unit train of up to 200 container cars.

CSX is currently building a facility here and they would offload those containers onto cars or local warehouses where they would undergo value--added manufacturing or be stored for distribution at a later time.

This plan has several advantages. Moving out of New York is a lot quicker with rail than by truck and economies of scale are on the side of moving a train of 200 container cars vs. 200 trucks. "We are also working on getting the port of entry from customs to be considered Buffalo rather than New York so that the containers could clear customs right here in Buffalo," according to the EDIC. "We already have the infrastructure in place to handle these functions with the international freight forwarders and brokers who are already here because of the Canadian border activities." The facility should be ready to operate by late 2005 or early 2006.

Other sites in the immediate area of this new facility are being considered by companies who would locate warehousing and DCs. Companies would be able to feed markets in an on--time mode and this would work particularly well for consumables and food products.

Because perishable food goods are coming into the country from all over the world, this facility would help speed up the process from port of entry into a major DC, says Michael Licata, senior business representative for Buffalo--Niagara Enterprise. "When you look at a map of the Buffalo area from a North American perspective, we are really centrally located and more international trade crosses the border in western New York than comes through the Port of New York and New Jersey," Licata says, adding that on a typical day, 300 trucks per hour cross between Buffalo and Canada.

The inland port would be able to handle up to 60,000 containers a year initially. The port will have a network of rail spurs running off the CSX line. Licata states they've identified up to 1,0000 acres of land in the vicinity of the facility that could be ready for construction.

Long--term plans for increasing barge traffic on the St. Lawrence Seaway include individual international containers of things like toys for Asia, grapefruits or olives from Italy, all handled by one barge.

As for business incentives companies can expect in the region, there are three major Empire Zones close to the proposed inland port facility. Some benefits within Empire Zones include property tax and sales tax incentives. The region was recently designated as a Federal Renewal Community Zone, which businesses can use for employment tax credits for jobs that are created.

There are also investment tax credits available through state and federal programs for companies needing to upgrade a production line with new production equipments. This can really favorably impact a companys bottom line in terms of having tax credits to offset corporate profits.

As for after--hours life, the greater Buffalo area offers lots of optionssuch as major league sports, the Buffalo Philharmonic Orchestra, art galleries, ski areas and world--class sailing on Lake Erie.