Improved rail access is seen as key to developing new logistics center.
The Port of Oakland and Union Pacific Railroad began construction of a rail link to a decommissioned 360-acre army base where the port is developing a global logistics hub.
“Connecting the Oakland Army Base to the national rail network is a milestone for us,” said Chris Chan, the port’s engineering director. “To be successful, we must have good rail access.”
The $25 million project is financed by the Port of Oakland and the California Transportation Commission’s Trade Corridors Improvement Fund. It’s part of a $100 million port effort to significantly expand Oakland rail capacity. A 7,400-foot lead track and the reconfiguration of adjacent tracks should be completed in October. Once finished, the port will be better positioned to receive bulk rail shipments at the former army base from Union Pacific and BNSF railroads.
Located on the port’s outer harbor, the logistics center will include warehousing, trans-load facilities and a dry-bulk cargo terminal.
Bulk shipments of commodities such as Midwest grain and beef could be delivered to Oakland by rail, trans-loaded into containers at the port, and then exported via Asia-bound container vessels.
Bulk shipments of other commodities could also travel to Oakland by rail and be be loaded onto bulk vessels for export to Asia at a new dry-bulk shipping terminal.
Union Pacific will manage construction of the new rail link within its own property. The railroad has hired Oakland-based McGuire & Hester for a significant portion of the work. The port has emphasized use of local contractors since construction began at the former army base in 2013.