Sacramento outsources port operations to SSA Marine
SSA Marine, the largest U.S.-owned container terminal and stevedoring company, recently won a contract to operate the terminal at the Port of Sacramento.
The arrangement completes the troubled port’s transition from an operating port to a landlord port, but rather than leasing the site SSA will share revenues from cargo operations with the California port.
Under the 10-year agreement, the port will retain 75 percent of annual wharfage and dockage revenue up to $4 million, 65 percent of revenue between $4 million and $5 million, and 55 percent above $5 million, Port Manager Mike Luken told Shipper’s Newswire. The contract includes a renewal option.
The city of West Sacramento has operated the port and cargo handling for more than 40 years. The only private stevedore on the site was Marine Terminals Corp., which operated on a limited basis under license from the port.
SSA beat out MTC and Metro Stevedoring for the job, Luken said. The Seattle-based company will be responsible for operating warehouses, scheduling cargo, and loading and unloading vessels.
Sacramento, which has lost money for the past five years, selected SSA in conjunction with the Port of Oakland. The two ports inked a partnership last year as Oakland sought to develop Sacramento as an inland port to relieve container overflow and tap business in California’s central region.
Sacramento expects that SSA will do a better job marketing the port to shippers and carriers, Luken said.
Under a new governance structure, the city of West Sacramento has gained the upper hand in port decisions from other local governments by appointing four of the seven port commissioners. In January, the port commission will shrink to five members, four of whom will be selected by West Sacramento.