Press Release - Phase 2 Expansion of Wine Distribution Warehouse

Railex Press Release

Railex Wine Services, LLC, and the Port of Walla Walla announce the Phase 2 expansion of the Wine Distribution Warehouse in Walla Walla County, Washington

Walla Walla, WashingtonRailex Wine Services, LLC has begun construction of a 260,000 SQFT addition to the existing 500,000 SQFT Railex Wine Services Distribution Center in Wallula, Washington. With the addition, the total footprint of expanded facility will be 760,000 SQFT of temperature and humidity controlled bonded wine storage and distribution space. Railex Wine Services will invest approximately $10 million to build the additional 260,000 SQFT of bonded wine storage which will add 10 additional truck doors for a total of 30 for the entire facility along with 5 railcar loading/unloading doors. The Phase 2 expansion is scheduled to be completed and opened in April/May 2017.

Ste. Michelle Wine Estates continues as the premier anchor tenant with long term plans to
utilize a significant portion of the expanded warehouse footprint. In addition, Ste. Michelle has contracted with Railex Wine Services to manage the transportation of its domestic and import wines throughout the U.S. This represents another significant expansion of the current work that Railex Wine Services is managing on behalf of the wine company.

The Phase 2 expansion of the Railex Wine Services Distribution Center will allow Railex Wine Services to offer expanded services to the Northwest wine industry. According to Jim Kleist, Senior Vice President of Railex Wine Services, “with the additional space we will be able to offer storage, distribution, freight brokerage and consolidated shipments programs for all Pacific Northwest wineries to the Midwest, Southeast and Northeast markets via truck, rail or intermodal carriers”. In addition, the added capacity includes 50,000 SQFT of refrigerated Special Projects space which will accommodate specific requests such as; relabeling, re-casing, direct to consumer fulfillment, club store packaging and export preparation.

“The Port of Walla Walla is pleased with another new large investment coming to the Port’s
Dodd Industrial Park. The Port over the last several months has worked closely with Railex Wine Services to ensure that the required infrastructure is in place to accommodate the Phase 2 expansion,” said Mike Fredrickson, President of the Port of Walla Walla. When completed, the Phase 2 expansion of the wine distribution warehouse will create new jobs and additional new tax base for Walla Walla County.

Railex Wine Services, LLC was founded in 2012 as a wine storage, distribution and logistics
platform that provides wineries and distributors across the United States with the latest technology in managing their storage and shipping needs. Committed to maintaining the highest level of customer service with state of the art facilities, proven warehouse management systems and multiple forms of transportation options, Railex Wine Services was created to provide the Northwest with a complete array of wine services not previously available.

Port of Walla Walla is governed by three elected Commissioners, Ron Dunning, Mike
Fredrickson, and Peter Swant. The Port was founded in 1952 and is the lead economic development agency for Walla Walla County. The Port has been the recipient of the Port of the Year Award by the Washington Public Ports Association for its leadership in enhancing the economic vitality of Southeastern Washington.