August 23, 2017

Penske Logistics to build DC in Romulus, Mich.

606,000-square-foot facility follows news of Amazon's fulfillment center in Detroit suburb.

By DC Velocity Staff

Third-party logistics (3PL) provider Penske Logistics will build a 606,000-square-foot warehouse and distribution center in Romulus, Mich., about 24 miles from downtown Detroit, the state said yesterday.

Reading, Pa.-based Penske will invest $98.6 million to build the facility, $2.5 million of which will come from the Michigan Business Development Program in the form of a grant. The project is expected to create 403 jobs, the state said.

Penske will break ground on the project this fall, according to Alen Beljin, a company spokesman. It is unclear when during 2018 the work will be completed, Beljin said.

Romulus, located in southeast Michigan, is close to Detroit Metropolitan Airport, and Interstates 94 and 275 cut through the city. In addition, four railroads operate nearby. Romulus participates in a public-private sector partnership known as the "Aerotropolis," which focuses on attracting corporate activity in the areas around Detroit Metro Airport and Willow Run Airport in southeast Michigan.

In late June, Seattle-based e-tailer Amazon.com. Inc. said it would build a 1-million-square-foot fulfillment center in Romulus, the company's second fulfillment center in Michigan. The first, in Livonia, was approved last October.

The state is aggressively promoting itself as a logistics center, focusing its energies on the potential of Detroit, a long-blighted metropolis but one with direct access to Canada and substantial multimodal connections.

"These new investments underscore Michigan's expanding economy, and the appeal and promise of the state's logistics capacity, automotive industry and autonomous vehicle potential along with a renewed commitment to manufacturing jobs," said Jeff Mason, CEO of the Michigan Economic Development Corp., in a statement. "These high-impact developments could prove to be a catalyst for additional investments."

According to Beljin, this facility was created for an unidentified customer, and does not have an effect on other Penske operations in the region.

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