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Plastics Producer Expansion Reflects Industry Growth in Houston

September 25, 2018

Plastic Bagging & Packaging plans to lease a new distribution center at Cedar Port Industrial Park east of Houston.

The latest sign of the Gulf Coast’s booming petrochemical demand can be seen in a new distribution center in the country's biggest logistics hub that's served by both boats and trains.

Under construction is a 519,224-square-foot, rail-served distribution center for Plastic Bagging & Packaging, an international producer of plastic bagging materials and provider of packaging services.

Trammell Crow Co. and partner Artis REIT have begun work on the build-to-suit facility on the Grand Parkway in Cedar Port Industrial Park east of Houston.

At 15,000 acres, Cedar Port is the largest rail and barge-served logistics facility in the United States, according to its website.

"Gulf Coast chemical companies are continuing to ramp up resin production reaching an estimated 54 million metric tons of resin per year by 2020, much of which will be exported outside of North America," said Daniela Dell’Oglio, an owner with Texas-based Plastic Bagging & Packaging. "Our new, state-of-the-art facility has been designed to serve this rapidly growing market."

Research firm IHS Markit estimates the United States will add 5.2 million tons of production capacity of natural gas-derived chemicals including ethylene, propylene and methanol, all used to make a wide range of plastics, building materials and consumer goods. Gulf Coast producers have seized the opportunity, investing billions of dollars in new facilities up and down the coast.

The Port of Houston and other major Gulf Coast ports handle more than 80 percent of the nation’s polyethylene exports, according to research firm S&P Global Platts, and that percentage could grow as new plants come online, driving the demand for industrial distribution and logistics in the region.

Plastic Bagging & Packaging's new distribution center, to be built by E.E. Reed Construction, will be owned by an affiliate of Artis REIT.

Powers Brown Architecture, Landev, Kimley-Horn, RITD, Binkley & Barfield and Bihner Chen contributed facility design work. Trans-Global Solutions and Christensen Bridge & Rail are making improvements to the infrastructure that connects the site to Union Pacific and BNSF railways.

For the record: Jim Pratt and Mike Taetz with Colliers International represented Plastic Bagging & Packaging in the transaction.