WASHINGTON: The Port of Oakland got the go-ahead to spend $133 million on infrastructure improvements, including $9.5 million toward the development of a refrigerated storage facility, after the harbor commissioners approved the fiscal year 2017 budget. The 2017 budget is projected to be 1.7 percent higher than the 2016 budget. The port authority forecasts a 3.9 percent increase in revenue and a 6.4 percent increase in expenses, due mostly to rising personnel costs.
The port’s budget earmarks $113 million for capital improvements, which are weighted heavily toward infrastructure projects at Oakland International Airport. The port authority operates the seaport, airport and a commercial real estate division.
Like other major gateways, Oakland must modernize its container terminals to handle mega-ships with capacities ranging from 8,000 to 18,000 20-foot container units. Oakland earlier this year received two visits by the 18,000-TEU CMA CGM Benjamin Franklin, the largest container ship ever to call in North America.
Oakland has actually been preparing for the arrival of the mega-ships for the past 15 years. It is big-ship ready in terms of draft because it completed more than three years ago a project to deepen its harbor to 50 feet. Oakland has no major impediments on the water side, such as the bridge-clearance issue that New York-New Jersey must address.
Oakland’s major efforts will be on the land side, and it is investing in nuts-and-bolts projects such as on-dock rail, a rail-access line and grade-separation projects to separate rail and truck traffic in the harbor area. The port must make headway on those projects before it can turn to big-ticket items such as marine terminal redevelopment and construction of the $1 billion, 330-acre Global Trade and Logistics complex at the former Oakland Army Base.
The port and its tenants are adjusting to the departure this spring of Outer Harbor Terminal. About 90 percent of Outer Harbor’s business shifted to Oakland International Container Terminal. SSA, the terminal operator, is working with the port on infrastructure development and operational improvements such as extended gate hours in order to handle the 5,000 to 6,000 daily truck calls at OICT.
The largest spending projects at the former Army Base will be in the future. When the access projects are complete, Oakland will be in the somewhat unique position among major U.S. ports of being able to develop about 2 million square feet of warehouse, distribution and transloading facilities within the harbor footprint.
The capacity to load containers adjacent to terminals, rather than 20 miles or further from the harbor as is common at most ports, will reduce transportation costs by at least $100 per container, John Driscoll, maritime director, said in an April interview. Development of the logistics complex at the former Army Base is expected to continue for the next 10 years, but a more immediate project, construction of a cold-storage facility on the site, will begin this year with expenditure of $9.5 million.
