By : Subuk Hasnain
Tue, 06/25/2013 - 12:50pm
An agreement with Chicago Perishable Center, LLC for development and financing of a perishable cargo center at O’Hare International Airport advanced through the City Council Committee on Aviation Monday.
Rosemarie Andolino, commissioner of Chicago Department of Aviation, explained that the center will be used to take deliveries of and process time-sensitive perishables such as flowers, pharmaceuticals, fruits and vegetables. The center is expected to increase the speed with which perishable goods pass through O’Hare, thus increasing the amount and variety of fresh goods that are available to Chicago residents as well as consumers in other U.S. and international markets.
According to Andolino, O’Hare is a global gateway that gives Chicago direct access to markets across the world. “This center at O’Hare represents a tremendous opportunity for new commerce, economic activity and jobs to the Chicago region,” she said.
Chicago Perishable Center, LLC was chosen as the operator of the center, which will be called “The Orchard,” following an RFQ process that began in August 2012. Under the terms of the agreement, the company will operate the center in a 27,000 square feet cargo building located east of Terminal 5. Chicago Perishable plans to invest approximately $1.5 million in constructing the infrastructure necessary to handle the perishable goods and the office space needed to accommodate federal agencies.
The building provides direct access to the plane field as well as convenient highway access to I-190 and I-294 to the east and I-90 to the north. In its first year of operations, it is estimated that the center will have a $12 million impact on the local economy and create over 500 jobs, 25 of which will be direct jobs. According to Andolino, the Columbian, Ecuadorian and Dutch governments have shown keen interest in the new plan.
Jerry Roper, President and CEO of Chicagoland Chamber of Commerce, testified in support of the development of the cargo center. Roper told committee members that air-cargo development was critical to the expansion of Chicago markets as well as for the creation of jobs for those not graduating from top-notch schools.
“The chamber has long recognized the importance of O’Hare International Airport to our region, but air-cargo operations have been somewhat underutilized,” Roper said.
Ald. Willie Cochran (20th) and Ald. Edward Burke (14th) expressed their support for the plan during Monday’s meeting and highlighted the potential of the center to increase Chicago’s position as a transportation hub. Cochran and Roper noted that Chicago currently serves as the import hub for about 1 percent of fresh flowers coming into the U.S. while Miami serves as the hub for about 85 percent of fresh flower imports. They agreed the Perishable Cargo Center could significantly boost Chicago’s image as a hub for flowers and other perishable imports.
The City Council is scheduled to consider the agreement on Wednesday.
This article was originally published on the Daily Whale website in 2013.