The refrigerated cargo industry has emerged as a top growth sector for North American ports, driving new investment in cold storage facilities. Speaking at the American Association of Port Authorities’ annual meeting, industry leaders highlighted the surge in refrigerated cargo and the need to replace outdated infrastructure to accommodate this high-margin market.

Read also: Cold Storage Logistics makes it to the Nasdaq

With many North American cold storage sites aging—over half are more than 40 years old—operators like Cold Summit Development are leading the charge to replace inefficient facilities with modern, port-based warehouses. “The bulk of existing cold storage facilities need upgrades to meet today’s standards in design and cooling efficiency,” explained Eric Casey, Cold Summit’s executive vice president.

The Port of Wilmington, North Carolina, exemplifies this trend, with new cold storage developments aimed at balancing local cargo flows. Brian Clark, North Carolina Ports’ executive director, noted the Port’s strategy to support both import and export demands, handling everything from export-bound poultry to imported produce for the mid-Atlantic region.

These cold storage projects not only make better use of port land but also offer quick returns for investors, with payback periods as short as three to four years. Additionally, as reefer cargo continues to grow at an annual rate of 6-8%, the reefer boom is set to redefine the cold chain infrastructure across North America, catering to evolving consumer preferences and boosting port revenues in the process.