“The port had planned to lease empty space at Berths 33 and 34 for container traffic but the sluggish market has forced the port to shop for more diverse tenants.”

Oakland May Use Container Space To Store Aggregate
The Cunningham Report
08/31/2008

 

The economic downturn and sluggish container shipping business has compelled the Port of Oakland to consider leasing vacant wharf space and marine facilities in the Port’s outer harbor to store construction aggregate.

The port’s Maritime Committee Thursday voted to ask the Port Board to authorize Executive Director Omar Benjamin to enter into a negotiating agreement with Teichart Materials of Sacramento to lease 12.5 acres in Berth 33. The agreement would give Teichart six months beginning in November to conduct due diligence and prepare an operating plan for a five to ten-year lease for an estimated $13.8 million.

Teichart is considering leasing the berth space for handling bulk construction materials, including crushed rock and sand. The site is currently being used for the TraPac Terminal construction project and won’t be available for another 18 months.

The port had planned to lease empty space at Berths 33 and 34 for container traffic but the sluggish market has force the port to shop for more diverse tenants. The Port’s long-term plan is to restrict the outer harbor area for containers.

Commissioner Margaret Gordon argued that Oakland should follow the Port of San Francisco example and conduct “smart planning” for cluster areas of similar industries, such as asphalt, cement, and recycling operations.

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