The Port of Oakland has indicated officials are negotiating with TraPac, but said its other terminals will handle former OHT cargo and expects no diversion as a result of decision by TIL and Ports America to end operations at the port.
In the wake of the announcement earlier this week by Ports America and TIL that they will end operations at the Port of Oakland’s Outer Harbor Terminal, TraPac may take over a portion of the facility.
“Berths 25-26, we are in negotiations right now with a terminal operating company that has committed to putting in $30 to $50 million into that facility to making it better,” said Port of Oakland Executive Director Chris Lytle, during his annual State of the Port address.
Port officials indicated they are negotiating with TraPac, which operates the adjacent berths 30-32.
During his speech, Lytle promised the port would “do absolutely everything in our power to make sure that there are no disruptions to cargo in any way shape or form.”
“This is not the end of the world and actually we see it long term as a very positive thing,” he said of Ports America and TIL’s departure. According to Lytle, the port has excess capacity and the decision by Ports America and TIL to leave means the other terminals in the port, operated by SSA, TraPac and Everport Terminal Services, will be able to move cargo through their existing facilities and that the port will potentially be able to diversify and handle other cargoes such as roll-on/roll-off or project cargo.
“This port can handle the business,” said Lytle. “We’ve identified a new home for 90 percent of the cargo that must be relocated,” and the port has a “pretty good idea” on where the remaining 10 percent will be handled, he added.
Going forward, Oakland wants to have “measured, organized growth,” said Lytle. “What you don’t want to do is go ahead and throw another 160 or 200 acres out there and then wonder why everybody is losing money, all the terminal operators. We have to do it smart, in a measured way.”
Lytle rejected the idea that worker slowdowns or other labor issues caused the operators of the Outer Harbor Terminal to decide to end operations at the port.
“I don’t think the labor had any relationship whatsover to Ports America leaving,” he said.
He said labor leaders and Oakland terminal operators have committed to a smooth cargo transition when Outer Harbor closes. Lytle told his audience that steps to be implemented include extending terminal gate hours including Saturdays and some weeknights, hiring more labor to process cargo transactions, and the construction of a Central Valley depot to help agricultural exporters pick up and drop off containers.
TraPac may lease portion of Oakland’s Outer Harbor Terminals
