Belgium-headquartered Katoen Natie plans to spend $59.9 million to expand warehousing and rail facilities in Norfolk, Virginia, to support the growing export market for plastic resins.
Subsidiary Katoen Natie Norfolk will oversee the project, which includes the addition of a 450,000-square-foot warehouse and a rail yard, as well as an expansion of the existing rail spur.
The current facility, which is near the Port of Virginia and has access to both CSX (NASDAQ: CSX) and Norfolk Southern (NYSE: NSC), receives bulk rail transport of plastic resin pellets. The pellets get packaged and loaded onto intermodal containers that sail out of the port.
Virginia officials boasted that the state beat out Georgia and South Carolina to win the expansion. The Virginia Economic Development Partnership, the city of Norfolk, the Hampton Roads Alliance, the Virginia Department of Rail and Public Transportation, and the Port of Virginia worked together to lobby for the project.
“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,” Virginia Gov. Glenn Youngkin said in a Monday release. “Katoen Natie Norfolk has thrived in Hampton Roads for more than a decade thanks to the region’s outstanding logistics advantages, access to The Port of Virginia, and robust workforce, and I look forward to its continued growth.”
“Katoen Natie is making a significant investment in its future [in Norfolk] and The Port of Virginia is investing in parallel to ensure we can meet the demand that this type of expansion requires,” Virginia Port Authority CEO and Executive Director Stephen A. 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. This company is a valued port user, and we welcome the opportunity to work with the Katoen Natie team to ensure even greater success.”
Katoen Natie Norfolk has operated in Norfolk since 2011 when it took over a former Ford Motor Co. assembly plant and body shop. Its parent company is an international logistics service provider and port operator.
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