How much does it cost to build a cold storage system?

The UAE is characterised by scorching temperatures, with very rare and mildly cold winters. The summer seasons, May to September, could sometimes reach 40 degrees Celsius, or 104 degrees Fahrenheit; this squeezes businesses that trade in perishable goods. 

This kind of heat makes sound cold storage systems not a luxury but a necessity in industries such as food and pharmaceutical. With proper cold storage, the products will stay at ideal temperatures and thus be preserved in quality and safety despite the outside heat. One of the significant apprehensions over building a cold storage system lies in cost. 

Here, in this blog, we review the factors that dictate such costs and how BestAirServices can assist you in building an efficient cold storage solution to satisfy your needs.

The Basics: What is Cold Storage?

Cold storage refers to environments designed to keep perishable goods in a fresher state based on temperature control. In reality, most businesses rely on it because of the sensitivity of various products – mostly in agriculture, food processing, and pharmaceutical industries. Designed to minimise damage to the product, it has optimal temperatures that would extend shelf life while ensuring its contents’ safety.

Cost Breakdown: How Much Will It Cost?

Cost Per Square Foot

Cold storage facilities construction costs vary significantly, ranging from AED 250 to AED 350 per square foot. In fact, the traditional warehouse building averages between AED 80 to AED 100 per square foot.

General Range:

AED 250 – AED 350 per square foot

Wider Spectrum:

The estimated cost range in this neighbourhood is between AED 150 to AED 400 per square foot, depending on several factors like materials and design specifics.

Total Construction Costs

To put this into perspective, consider a standard 1,200-square-foot cold storage facility. The total would be between AED 300,000 and AED 420,000, depending on the average price per square foot. It can go up to AED 812 per square foot in a few cases.

Key Factors Influencing Cold Storage Costs

Size and Capacity

Size is another main cost factor for the facility. The bigger it is, the more expensive its construction and operational costs will be. Determine the size you will need currently and calculate future growth projections. The proper calculation may save you from future expensive expansions.

Type of Cold Storage

Cold storage systems come in different types.

Refrigerated Warehouses. These are big facilities built to conduct bulk storage.

Walk-in Coolers. Used by firms that require quick access to their products.

Blast Freezers. Utilised for quick freezing of commodities in order to preserve quality.

All have varied construction costs and vary with the need for insulation, type of refrigeration equipment, and operational capabilities.

Construction Materials

Cost in materials: The construction of a cold room facility mainly depends on the materials used. High-grade insulation materials are crucial to maintain the temperature and conserve energy. In general, flooring, walls, and roofs also add up the expenses. More expensive materials may incur higher costs initially, but for long-term usage, they will save on electricity and maintenance costs.

Refrigeration Equipment

In a cold storage system, any refrigeration equipment is essentially the heart. How much you will pay as an initial investment and what operating costs will be is highly dependent upon the type and efficiency of the refrigeration units. Systems that conserve energy could save you money in the long run through fuel saving despite having a higher purchase price.

Location

Also, the location of your cold storage facility might increase costs. Land prices, distance from your suppliers and customers, and local regulations, among other things, could increase your budget. Land costs in areas like Dubai or Al Ain will be significantly higher than in non-urban areas.

Installation and Labour Costs

Labour costs will depend on how complex the installation process is and the local going rate of wages. Hiring professionals who have experience with construction projects concerning cold storage might be more costly; however, they promise that it is done correctly and efficiently.

Compliance with Regulations

Businesses must meet the UAE’s local health and safety regulations regarding food storage and handling. This will be costly as compliance will require more investments in technology or perhaps some form of infrastructure, raising the cost in general.

Estimated Costs

Although it is difficult to approximate the exact figure without knowing the details of any project, here are the general costs.

  • Standard Walk-in Coolers: AED 50,000 to AED 150,000.
  • Refrigerated Warehouses: Starting with AED 500,000 and up to AED 2 million or more depending on size and specifications.
  • Blast Freezers: Approximately AED 200,000 and above.

These figures fluctuate widely depending on the factors discussed above.

Ongoing Operating Costs

While initial construction costs may be substantial, ongoing operational expenses should also be considered. Some of these might include:

  • Electricity: A continuous need for refrigeration might require a huge sum of electricity bills.
  • Maintenance: Usually runs about 2% to 3% of total equipment costs annually.
  • Labour: Manpower requirement for the surveillance and administration of the facility.
  • Insurance: Preserving your investment for the loss elements.

Why Choose BestAirServices?

Investing much in your business at BestAirServices means building a cold storage system. For your cold storage requirements, a highly experienced team will design and install your system concerning local regulations.

Our Services Include:

  • Consultation: We work closely with you to understand your specific needs and provide highly tailored solutions.
  • Design & Engineering: Our experts design efficient layouts and ensure optimum temperature control for the whole area.
  • Installation: We ensure all matters related to installations are treated, using quality materials and the best refrig
  • Maintenance: To ensure smooth operation, provide scheduled maintenance services for your cold storage unit.

Conclusion

A cold storage system can be a particularly lucrative investment for any enterprise operating in the competitive UAE market. With proper knowledge of what to spend on, plus a reliable partner such as 

BestAirServices, an efficient solution, will be tailored to meet all of one’s business needs at optimal product quality and safety levels.

If you are designing a cold storage facility or need assistance with current systems, call BestAirServices today for the solutions to meet your requirements!

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