Fruits of their labor

The second largest food distribution center in the world is about to get bigger.

City and state officials announced Sept. 22 the east end of the Navy Yard is slated as the future home of the Philadelphia Regional Produce Terminal and new seafood terminal. Jointly funded by the Commonwealth and terminal merchants, the $100 million project tentatively will be completed by 2007.

Merchants have outgrown the 30-acre terminal at the 3300 block of South Galloway Street, said Gov. Ed Rendell during last week’s press conference at the Navy Yard. The new center will include two buildings, about 800,000 square feet for fresh produce and 160,000 square feet for seafood.

"People are no longer willing to accept anything but the freshest produce and seafood," he said. "At the facility, there’s no room to grow to supply this increasing demand."

Last year, merchants accepted a proposal to build a new facility at an auto-transfer site at the corner of Columbus Boulevard and Oregon Avenue. But government officials were enticed by the ample space in the Navy Yard and the chance to build up its lagging eastern section, noted Sonny Di Crecchio, general manager for the Philadelphia Regional Produce Terminal.

South Philly residents comprise roughly 40 percent of the city’s produce terminal staff, said Di Crecchio, who noted the world’s largest food distribution center is in New York.

Keeping the terminal in the city will help maintain its 1,500 workers and $1.5 billion in annual sales, Rendell said. The move will create an additional 400 jobs at the new site.

State Sen. Vince Fumo, working with representatives from produce and seafood markets for five years, helped develop a financing plan for the project. The relocation is needed to keep the terminal competitive and continue providing quality merchandise to the area, he said.

A new location is "important not only to the men and women who work directly in these jobs, but for many restaurants and food-related businesses all over Southeast Pennsylvania who rely on this center," Fumo said. "The restaurant renaissance we have today would not be alive in Philadelphia if we didn’t have this center to serve it."

Since the produce market has been a Philadelphia staple since 1959, Mayor John Street said he frowned upon the proposed idea of New Jersey relocation.

"We couldn’t let that happen. The Food Distribution Center is ours," he said. "We made a commitment that it was here to stay."

With the completion of the new facility, Street said the city would continue "supplying the quality of produce necessary for our city and region for decades and decades to come."

Over the next 15 years, imports are expected to increase at a rate of 7 percent a year. With an expanded facility, "Philadelphia is poised to grab a big part of that business," said state Rep. Bill Keller.

"We’re taking a first step in making Philadelphia a partner in global distribution," he said.

Compared to the current site, the new terminal is expected to triple the amount of refrigeration and storage capacity while increasing safety measures against bioterrorism in the wake of 9/11, Rendell said.

"Bioterrorism is considered one of the greatest potential threats," said Rendell, who noted one in five Pennsylvania jobs are related to agriculture and food processing. "This requires that we safeguard our food distribution against potential terrorist attacks. This requires a modern facility."

Calling the existing produce market "out of date," Dan Vena of John Vena Inc., a merchant in the market that specializes in fruits, vegetables and herbs, praised its move to a spacious location.

"It’s going to be an excellent opportunity for all merchants to revive some life into the market and do more business," he said.