International Falls – Multimodal Transportation Distribution Center

Funding package

The total project cost for the Multi-Modal Transportation Distribution Center project is $957,400. TED funds from MnDOT and DEED contributed $657,400 to this project and the rest was funded by the city of International Falls.

Description

This project will involve improving multimodal transportation and other infrastructure including rail spurs, sewer, water, and other utilities in order to support the development of a multimodal transportation hub. International Falls is partnering with Nexus Distribution, a leading third party logistics provider, to provide flexible and integrated warehousing and transportation solutions that will promote regional economic development.

Transportation impacts

The project will significantly improve supply chain productivity to the existing manufacturing facility in International Falls. This project will allow better management of vendor supply and product distribution along the existing supply chain, which is valued at over $100 million per year. In addition, the project will create a expanded multi-modal hub that will serve the largest rail port of entry in North America, and will reduce shipping requirements that currently require products to be shipped all the way to Chicago.

Economic development impacts

The development of a modern warehouse/distribution center will promote consolidation of distribution operations of a major manufacturer and regional employer that currently utilizes facilities in Chicago, Calgary, and Toronto. The new facility expansion is valued at $5 to $8 million and is expected to add 100,000 square feet of warehousing and distribution space. As vendor repackaging and manufacturing vender needs expand, the facility will support significant job creation and economic development.