b'JUNE 2025TEMPERATURE-CONTROLLED LOGISTICS 37(PROSPECTScontinuedibility as possible is key whilegoes with a spec building or buildfor the cold chain to have moreconceptual in the U.S., but Id from page 22) beingcostly.Anyoneventur- to suit comes down to timing. of this product close to coastalexpectittogaintractionover customersarefront-loadingingintothistypeofprojectI believe its more a matterportsand/orintermodalhubstime.Iwouldexpecttoeven-inventoryinanticipationofreally needs to have a strongof timing, Hurvitz said.Theduetotransportationefficien- tuallyseethisinhigh-density potential tariff and longer-termunderstandingofthedemandadvantage of going and finishingcies and less time in transit forurban markets where land is at a tariff issues. inthegivenmarket,hard/ a speculative build is you nowperishables, he said.One ofmajor premium, he said.Nonetheless, Perry Menziessoftcosts,entitlementrisk,havesomethinginthemarketthe challenges is that the cost ofDespiteshort-termchal-says, Were cautiously optimis- etc.Theneedformodernthat ideally doesnt exist. Mostindustrial/logistics land adjacentlenges,thelong-termoutlook tic [on] how its going to panfreezer/coolerspacerepre- of the time it will be a 3PL pro- to or close to ports/intermodalsfor cold storage remains strong.out. Mainly for us, only becausesentsonlyasmallportionofvider with a customer contract inis much higher than further out- Build-to-suitopportunities the majority of our customers areoverall user demand, he said.place (or one they are competingwardinthemarket.Thisaddswilldrivemostcoldstorage also the producers of the cargoEnergyefficiency,refrig- for), and they need the space toadditional costs to what will beconstruction projects in the near and theyre not going to shut theerationsystems,sprinklers,fulfilthecontract.Whereasaa much more expensive projectterm.However,SCSdevelop-millsdown.Itstooexpensiveautomation and robotics are allbuild-to-suitwilltake18-24+thanatraditionalwarehouse.ment is expected to rebound as for them to do that. So, we seeveryimportant.Iwouldcon- months. The larger outfits (Lin- We may see more developmentsexisting inventory is leased and imports will probably continuesidercontrolsystemsasubseteage, Americold, Emergent) canwith a lower land basis or morethedemandgrowsformodern at sort of a normal cadence of automation, but theyre cer- planincertainmarketswherecreative JV structures with land- convertibleandmulti-zoned tainly a critical part of facilitythey believe there is a shortfallowners (port authorities, munic- temperature facilities, reported management.Ithinkalotofin space and plan for the future,ipalities, etc.) that arent lookingHurvitz and Smutko in the Col-(SIGNcontinued from page 34) it also involves all the upfrontbut most 3PLs and food servicefor a one-time significant finan- liers online analysis.district judge vacated the permits.market due diligence before youcompanies are looking to solvecial event.Cold storage development We are very excited abouteven put a shovel in the ground,for customer needs with existingis a highly specialized and cap-this new public private partner- looking at where the food manu- options because they cant waitB uildingi nnovaTion ital-intensive endeavor, making ship with our state and federalfacturing companies are located,that long. Of course, demand is advanc- itadauntingsectorfornew-partners in the development ofthe site selection process, zoningDemandforSCSshouldinginnovation.Hurvitzsaidcomers,especiallyconcerning DelawareContainerTerminal.requirements,regulations,andbecome more prevalent at cargobuildersaremaximizingspacespeculative builds. Nonetheless, [Weare]excitedtosignourlabor analytics. and port hubs as well as intermodalinpremiummarketsbycon- investorsanddeveloperswho developmentagreementswithportssuchasthestate-of-the-artstructing cold storage verticallypossess the expertise and finan-WalshandSoletancheforthen oT imel ike The Cold Summit II project in Dallas,withsuperhighbaysinEuro- cial capability to navigate these development of the facility thereP resenT or isT here ? TX, Hurvitz said. pean markets.complexities will find a wealth and getting that kicked off on aAndwhetheracolduserItmakeslogisticalsenseI believe this is still moreof opportunities ahead.design and construction process. [Weare]gettingsomedemo workdoneuptheresowere really excited about that project. We think that facility [at]this consumermarketanddistribu-tion and fulfillment area,willCold You Can Count On createagreatgatewayforthe mid-AtlanticatNortheastfor BCOs for the future.continueFreshness You Can TasteIn the meantime, infrastruc-ture development will atPortWilmingtonincluding the significant expansion of plug capacityalthoughHogansdid not have a specific number. The projectincludesrepairingold plugs too. Weredefinitelygrow-ingourplugcapacityherein theportasDoleandChiq-uitas volumes grow One of ourkeyinfrastructureprojects isgrowingthatplugcapacity along with other infrastructure improvements that we continue to make here.(SLOWINGcontinued from page 34)ated storage has become integral tosupplychainswhenstoring andtransportingtemperature-sensitiveproducts.Inaddition, thegrowingperishableproduct tradeisalsoexpectedtoboost the demand for refrigerated stor-age solutions over the next few years, Grand View stated.m acroeconomicF acTorsHurvitzsaidmacroeco-nomicfactorssuchastariffs, labor,taxes,andinfrastructure spending will continue to shape SCS development. And despite the fact many cold storage facili-ties are highly unique and cap-ital-intensive,Hurvitzsaidhe believesspeculativecoldstor-age can attract a wider investorReal Time Data Food Waste Remote ClimateEnd to Endclass beyond the risk tolerant.But it will depend on typi- & Tracking Mitigation Controls Telematicscalfactors,andthemorespe-cialized it is, the more important the credit profile, securitization, macro/micromarketdynam- Its not just the box.ics, WALT, etc., become in theIts our approach to offering food waste mitigation underwriting, he said. solutions bundled with leading-edge technologyHurvitzsaidoverthepastthat makes the difference.decade,investors,lendersand contactors have learned a lot about the complexity of putting a specVisit www.seacubecontainers.com to learn more. cold storage project together.No user is the same, and thus, maintaining as much flex-BSYA 1139 SeaCube unexpected places_r11.indd 1 6/16/25 10:27PM'