The Northern California port says cargo business from Outer Harbor Terminal LLC, a joint venture between Ports America and TIL, will be transferred to other terminals and night and weekend truck gates will be offered to help in the transition.
The Port of Oakland has detailed plans on how it will deal with the decision by Outer Harbor Terminals, a joint venture of Ports America and Terminal Investment Ltd., to shut down operations on March 31.
The joint venture announced its decision to leave the port last month and has since filed for reorganization under Chapter 11 of the Bankruptcy Code. The port said its “continuity plan” will keep trade flowing and prevent vessel diversions to other ports.
“We will find a home for all ships that come to Oakland, we will improve cargo-handling processes to move cargo efficiently, and we’ll meet the needs of shippers in Oakland,” said Chris Lytle, the port’s executive director.
According to the plan, ships that currently use the OHT terminal will relocate to berths at adjacent terminals in Oakland, and those terminals will add labor where necessary and open gates nights and weekends to accommodate additional cargo. Most ships and cargo from OHT will relocate to Oakland International Container Terminal (OICT), which is operated by SSA, in Oakland’s Middle Harbor, and the rest will go to TraPac’s terminal, which is adjacent to OHT.
Both SSA and TraPac will lease additional acreage from the port to accommodate increased container volume. TraPac is finalizing negotiations with the port to lease two additional vessel berths at Outer Harbor Terminal.
The Port of Oakland said shipping lines are finalizing agreements with the terminals now to move their cargo.
The port said it will ask its governing board to approve $1.5 million to fund a transition assistance program for participating terminals. That money will help participating terminals open night and weekend gates, which are expected to ease peak hour build-up of trucks picking up or dropping off cargo.
It said that the terminals must agree to get drivers in and out of the facilities within 75 minutes and a monitoring system will measure how long drivers spend at terminals, but customers won’t be assessed fees for extended gate hours.
OICT, which is Oakland’s largest terminal, has confirmed it will add the extra gate hours. The port said other terminals will follow suit if demand warrants.
OICT will transport a number of import containers out of its facility every night. They’ll be available at a nearby location for immediate pick-up by truckers in an operation that is similar to its Shippers Transport Express in Southern California.
Oakland said it will also open a container depot in the Central Valley for OICT customers. This will enable cargo owners – including Valley growers – to pick up or drop off containers without long drives to the port.
The port said that night and weekend gates will be critical to the success of the program.
“The terminals can’t move all of this additional cargo between 8 a.m. and 5 p.m.,” said Lytle. “We need a smooth, seamless transition from Outer Harbor Terminal and weekend and night gates will make a huge difference.”
Port of Oakland details plan for handling OHT departure
